77% Sales from Ads, $30k+ in Profits:
A Home Improvement Brand's Journey

A home improvement brand transformed its Amazon advertising strategy, achieving remarkable profitability with $30K+ in monthly profits and a 77% increase in sales. The strategy focused on smart advertising techniques and targeted brand enhancement to lower TACOS levels and maximize net profit. Read on to discover how this transformation was accomplished!

Monthly Revenue
$ 0 k+
Take Home Profit
$ 0 k

Witness what massive changes our simple yet innovative strategy brought.

Key Difficulties

  • High Competition: Faced significant competition with rivals spending $100K+ monthly on ads and average bid costs between $4 and $7.
  • Maintaining Low TACOS: Required balancing ad spend to keep TACOS low while achieving substantial sales and profitability.
  • Ad Fatigue: Managed to prevent ad fatigue and sustain high engagement levels despite intense competition.
  • Conversion Rate Fluctuations: Addressed varying customer preferences and market trends affecting conversion rates.

Project summary

In the highly competitive lawn and garden category, this brand faced challenges balancing Amazon PPC ad spend with profitability, competing against the rival sellers. The objective was to increase profitability through a data-driven Amazon PPC strategy. This involved EXACT keyword targeting, optimized bid management, and dayparting, while continuously monitoring performance to improve ROAS. By leveraging advanced Amazon PPC techniques and refining brand positioning, the brand achieved a 77% increase in ad-driven sales and secured a 19% net profit directly from advertising efforts. This approach created a sustainable balance between ad spend and revenue growth.

Action Plan

  • Dayparting Amazon PPC: Implemented dayparting to optimize ad spend by targeting peak shopping hours, pausing ads during low-traffic times to improve efficiency.
  • Listing Optimization: Enhanced product listings with better images, descriptions, and keywords to increase conversion rates and boost ad performance.
  • A/B Testing for Amazon Ads: Conducted A/B testing on ad creatives to identify the highest-performing versions and improve overall ad effectiveness.
  • Dynamic Bid Management: Optimized bids and budgets using real-time performance data to increase ROI and profitability across Amazon PPC campaigns.

Results and Impact

The strategic approach towards their Amazon PPC campaigns led to significant improvements, achieving sales of over $126K with a total ad spend of around $25K, and still making  $32K in net profits. The brand maintained profitability and saw a substantial increase in overall sales, demonstrating the effectiveness of smart advertising strategies in a highly competitive market. The average ACOS was reduced to 26.17%, contributing to a robust ROI and a solid financial performance.

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Amazon Advertising Management

  • Sponsored products and brand campaigns setup
  • Keyword research and targeting
  • Bid management and optimization
  • Detailed performance reporting
  • A/B testing of ad creatives

Amazon Brand
Management

  • Helps with budgeting and enhances profits
  • Growth strategies to reach business objectives
  • Using insights to develop strategies to resolve any amiss
  • Managing daily hands-on operations

Amazon Catalog
Management

  • Product and organization
  • Listing optimization for search visibility
  • Image and description enhancements
  • Inventory management
  • Continuous updates and maintenance

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