Objectives:
A health and household brand approached us with the objective of increasing sales and profitability of their account.
Challenges:
The brand's advertising campaigns were not performing well, with high ACOS and low conversion rates. This made the client hesitant to increase their advertising budget, which was limiting their brand's growth potential.
Approach and Strategy:
We conducted an extensive audit of the brand's account and developed a detailed plan of action that was agreed upon by the client before being implemented. The following approach and strategies were adopted:
- Improved listing content: The main images were made more attractive, and titles and bullet points were rewritten.
- Market analysis: A market analysis was conducted, and the unit economics of the products were evaluated to calculate the Break-Even ACOS. Prices were reviewed, and a system of coupons/prime exclusive discounts was introduced to improve CVR. Lightning Deals and 7-Day Deals were also planned.
- Keyword research: A comprehensive keyword research was conducted using Helium 10 with Data Dive, Brand Analytics, and Product Opportunity Explorer. The target keywords were identified for organic ranking.
- Keyword tracker: A keyword tracker was connected to the client's account to monitor the effectiveness of the efforts to improve the organic positions.
- Ad campaigns: The budget was initially focused on target keywords, Sponsored Products campaigns, and ToS placements which helped significantly improve organic ranking. All remaining semantics were then added, and ad campaigns were launched on keywords with different match types, Sponsored Brands campaigns to keywords, competitors, and categories, as well as Sponsored Display campaigns.
Results:
The optimization of the listings and smart pricing management helped eliminate the problem of low conversion rates. Over the course of 10 months, the advertising budget was increased from $5,000 per month to $146,000, while the ACOS was reduced from 35% to 21% (Breakeven ACOS is 28%). The organic ranking improved from 2-3 pages to the TOP-10 for all target keywords. Under the agency's management, the client's turnover increased more than 30 times, and the profit margin also increased due to the growth in organic sales.
Conclusion:
Our approach and strategy helped this brand overcome their advertising challenges and achieve their objective of increasing sales and profitability. The comprehensive audit, detailed plan of action, and ongoing optimization and management of the account led to significant growth in the brand's business.
