Discover how our strategic approach led to significant growth and reduced advertising costs for a luxury skincare brand on Amazon US.
Brand Introduction
Our client, a US-based luxury skincare brand, offers premium products infused with natural minerals. Despite a loyal customer base, the brand wanted to expand its Amazon presence and increase profitability while managing advertising costs.
Key Challenges We Tackled
When the brand partnered with AdvertizeIQ, they faced several challenges:
-
High PPC ACOS (36%): Their Pay-Per-Click Advertising Cost of Sales was cutting into their profitability.
-
Stagnant Revenue: Monthly revenue had plateaued at $21,000 with little growth.
-
Need for Controlled Growth: The primary goal was to scale revenue while keeping PPC ACOS below 25% to remain profitable.
Our Objectives
Our strategy focused on two key objectives:
-
Increase Monthly Revenue: Achieve revenue growth by optimizing ad campaigns and improving the brand’s Amazon visibility.
-
Lower PPC ACOS: Reduce PPC ACOS to below 25%, ensuring profitability while scaling.
The Results After 10 Months:
-
84% Growth in Monthly Revenue: Increased from $21,000 to $38,600 per month.
-
33% Reduction in PPC ACOS: Brought down from 36% to 24.7%, meeting the client’s goal.
-
17% Total ACOS in the Final Month: Optimized overall advertising efficiency.
-
Multi-Channel Ad Campaigns: Successfully implemented Sponsored Products, Sponsored Brands, and Sponsored Videos for full market visibility.
Our Approach
1. Comprehensive Campaign Optimization
We restructured the existing ad campaigns, focusing on Sponsored Products, Sponsored Brands, and Sponsored Video ads to reach multiple audience segments and maximize visibility.
-
Optimized Campaign Mix: Leveraged diverse ad formats to increase product visibility and engagement.
-
Advanced Targeting & Keyword Strategy: Conducted in-depth keyword research to tap into high-conversion opportunities and optimize ad spend.
2. PPC ACOS Reduction
The client’s key goal was to lower PPC ACOS to under 25%. We refined campaigns and reallocated ad spend to achieve a steady reduction over time.
- ACOS Reduced from 36% to 24.7%: Continuous strategic adjustments helped us meet the client’s goal.
3. Revenue Growth Strategies
Alongside reducing ACOS, we prioritized revenue growth by improving product visibility and implementing effective campaigns.
- Revenue Increased by 84%: Sales grew from $21,000 to $38,600 over 10 months.
4. Total ACOS Management
We closely monitored the overall efficiency of advertising spend, ensuring a balanced approach between organic and paid growth.
- Total ACOS Achieved: 17% in the final month, reflecting an efficient blend of organic and paid sales.
Key Milestones
-
84% Revenue Growth: Revenue increased from $21,000 to $38,600 over 10 months.
-
33% PPC ACOS Reduction: ACOS dropped from 36% to 24.7%, below the 25% target.
-
Success Across Ad Formats: Sponsored Products, Sponsored Brands, and Sponsored Video campaigns significantly boosted visibility and engagement.
Client Satisfaction
The client was thrilled with the results. We not only achieved their growth goals but also kept advertising costs under control. The combination of revenue growth and reduced ACOS cemented their trust in AdvertizeIQ’s data-driven approach.
AdvertiseIQ’s Winning Formula
At AdvertizeIQ, we specialize in driving profitable growth through strategic advertising and expert campaign management. Whether you aim to scale your brand, lower ACOS, or maximize revenue, our tailored solutions will help you succeed.
Want similar results? Contact AdvertizeIQ today to start growing your brand.