Overview:
In just 2 months, we transformed a struggling Amazon brand with a high ACoS of 126% into a stable, growing business with impressive results. This case study showcases how we drastically improved the brand’s advertising efficiency and profit margins through strategic account audits, content optimization, and precise PPC management.
Results:
- ACoS Reduction: From 126% (September 2023) to 46% in November, and further to 40% by December 2023
- Sales Growth: $100,000 in sales by January 2024
- Profit Margin Growth: Increased from 21% to 25% by February 2024
- Sales Milestone: $110,690.49 in revenue for March 2024, a 6% growth from February
Key Challenges:
- High ACoS at 126%, draining profitability
- Product Detail Pages (PDPs) had underoptimized listings, subpar infographics, and ineffective A+ content
- Client’s ad spend was inefficiently allocated, failing to boost sales
Approach:
- Account Audit and Content Optimization:
- We began with a full account audit, discovering poorly structured PPC campaigns, suboptimal listing copies, and mediocre content.
- SEO-optimized listing copies were developed, back-end search terms were reviewed and improved, and the product variation structure was optimized.
- While A+ content typically drives growth, in this case, it had minimal impact, so we focused heavily on keyword targeting and PPC restructuring.
- PPC Strategy and ACoS Reduction:
- Our primary goal was to decrease the ACoS, which was over 100%. Through targeted keyword optimization, we brought it down to 46% in November and further reduced it to 40% in December.
- January 2024 saw over $100,000 in sales, with a stable ACoS of 42% and a 23% profit margin. This marked the beginning of the brand’s Growth phase, which we aimed to sustain.
- Secondary Product Focus and Revenue Boost:
- We identified opportunities for secondary products, reallocating ad spend to push their growth. By February, this strategy yielded a 2x sales increase for these items and contributed to $104,000 in revenue for the month.
- We also improved the main images of these products, adding a small banner to highlight their key advantages, which boosted impressions by 10% from January to February (6 million impressions).
- March 2024 Performance and Challenges:
- March saw continued success with record-breaking revenue of $110,690.49 and a 24%-25% profit margin, despite increasing ad spend by 4%.
- A new product launch faced difficulties when Amazon revoked the buy-box, but we persisted by enrolling the product in the VINE program and gathering reviews. Stock shortages for several products also posed challenges, requiring careful inventory management.
- Long-Term Strategy:
- Our goal for 2024 is to maintain this new revenue level with incremental growth while optimizing ad spend to prepare for the products’ transition into the “Cash-Cow phase,” ensuring long-term profitability.
Conclusion:
This case study demonstrates that a well-structured PPC strategy is essential for transforming an underperforming brand. By strategically reallocating ad spend, optimizing product listings, and targeting secondary products, we were able to stabilize the account and drive significant revenue growth. The brand is now positioned for further growth and profitability in 2024.
