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Cheech & Chong’s Case Study:
From $4K to $30K/Day —Mastering Ad Compliance & ROI

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Learn how Cheech & Chong’s Global Holding Co. tackled strict ad compliance, overcame confusing platform over-attribution, and scaled profitably across multiple channels...and proved MARK CUBAN WRONG!

 

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Key Results

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$30K+

Daily Ad Spend

50%

Higher LTV with Hemp-Derived Edibles

30–40%

Repeat Purchase Rate

Who is Cheech & Chong’s Global Holding Co.?

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Cheech & Chong’s Global Holding Co. has long been synonymous with the cannabis and hemp industry. With a loyal following and a range of products—from therapeutic CBD to hemp-derived edibles—the brand had the celebrity star power but struggled with ad compliance, data clarity, and scaling across multiple channels.

By implementing Wicked Reports, the marketing team uncovered the real drivers of new customers, clarified their true cost to acquire (CAC), and confidently increased daily spend from $4,000 to $30,000+ while still breaking even (or better) on Day 1.

Who is Tommy Chong’s CBD?

The Challenge

How It Works

Cheech & Chong’s Global Holding Co. faced major hurdles in advertising compliance and accurate attribution:

Platform Restrictions

 

Platform Restrictions

Meta (Facebook and Instagram) often flagged or disapproved ads for CBD products, blocking them from straightforward bottom-of-funnel strategies.

Misattribution

 

Misattribution

Native ad networks like Taboola or Revcontent over-counted conversions; Facebook or Google often claimed sales triggered by post-purchase emails.

Complex Sales Funnel

 

Complex Sales Funnel

To advertise certain products on Meta, they had to modify messaging significantly. This longer funnel made it hard to see which clicks turned into actual sales.

“We realized we couldn’t make sense of these numbers. Our agency claimed a big holiday bump was from Facebook ads, but we knew it was really our post-purchase email.”

 

Testimonial LogoSTEVE GUNN

Cheech & Chong’s Global Holding Co. Team

The Wicked Reports Solution

The Wicked Reports Solution

 

Centralizing Attribution Data

 

Wicked Reports’ multi-touch attribution platform integrated with Cheech & Chong’s Global Holding Co. existing systems, including Sticky.io for checkout. This provided a single source of truth for last-click conversions, customer lifetime value (LTV), and new vs. repeat purchase behavior.

Centralizing Attribution Data

Adopting Last-Click & nCAC

 

Cheech & Chong’s Global Holding Co. team embraced Wicked Reports’ last-click model to identify which ads genuinely closed the sale. They also used nCAC (New Customer Acquisition Cost) to measure the cost to acquire a customer—and keep them returning.

Adopting Last-Click & nCAC

Daily Optimization

 

Cheech & Chong’s Global Holding Co. used daily reporting to make quick judgments on which channels to scale or reduce. This approach kept them from pouring money into sources that simply grabbed post-purchase traffic.

Daily Optimization
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Results & Key Insights

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Rapid Scaling to $30K/Day

With clearer attribution, Cheech & Chong’s Global Holding Co. overcame Meta account hiccups and scaled from $3–4K/day in ad spend back up to $30K/day, all while staying profitable or breaking even up front.

Rapid Scaling to $30KDay-1

50% Higher LTV for Edibles

The data showed that buyers who started with edibles like “Cruise Chews” or “Space Chews” had 50% higher lifetime value by months 9–12 compared to strictly CBD-focused customers.

50% Higher LTV for Edibles

30–40% Repurchase Rate in 60 Days

Those who purchased edibles typically returned within 60 days at a 30–40% clip. Meanwhile, CBD buyers (often purchasing larger volumes up front) repurchased less frequently, but high AOV kept them valuable over the long term.

30–40% Repurchase Rate in 60 Days

Defying Mark Cuban's Doubts

Despite how Mark Cuban might feel, Cheech & Chong’s Global Holding Co. was able to scale spend on X profitably with Wicked Report's reliable attribution data and ability to tie lifetime value back to customer acquisition costs.

Defying Mark Cubans Doubts-1

How Cheech & Chong’s Global Holding Co. Uses
Wicked Reports Daily

How Tommy Chong’s Uses Wicked Reports Daily

Check nCAC

 

Check nCAC

Each day, the team reviews nCAC (New Customer Acquisition Cost) to confirm which traffic sources bring in customers at or below the target CPA.

Adjust Budgets

 

Adjust Budgets

Campaigns or ad sets that exceed target CPA are dialed down; the best performers get more ad spend.

Monitor LTV by Product

 

Monitor LTV by Product

They regularly assess lifetime value by the first product purchased—particularly crucial for identifying which SKUs drive the biggest repeat spend.

Plan Future Channels

 

Plan Future Channels

With accurate data, they can confidently test new channels and offers, knowing that results are tracked precisely from day one.

“With Wicked Reports, we finally have accurate, channel-specific data to guide our spend. That’s how we scaled from a few thousand a day to $30K/day while still breaking even or better on day one. It’s a total game-changer.”

 

Testimonial LogoSTEVE GUNN

Cheech & Chong’s Global Holding Co. Team

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