Increased Sales by $1,000,000 in 1.5 Years and Reduced ACOS from 47% to 28%

Category: Home & Kitchen

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Home & Kitchen

01

Overview:

After conducting a comprehensive audit, we developed a strategy using our SkyRocket setup system, which allowed us to scale advertising without increasing bids. This involved creating an extensive campaign structure, proper scaling, adjusting various ad types, and optimal clustering.

Over one and a half years of collaboration, total sales increased by $1,000,000. We reduced CPC from $1.92 to $1.34 and decreased ACOS from 47% to 28%, bringing the client's business back to profitability and boosting both organic and advertising sales.

02

Problem:

In July 2022, we took over a client's account with $87,000 in ad sales and an ACOS of 47%. Previously managed by two agencies, the latter increased bids and ACOS from March 2021 to July 2022, but failed to improve sales. This led to cannibalization of organic sales and reduced overall profitability. The agency's focus on increasing ad sales volumes neglected the overall efficiency and profitability of the business.

03

Primary Objective:

Our objective was to increase sales, improve the performance of ad campaigns, and reduce ACOS to achieve profitability. We aimed to optimize ad expenses and boost organic sales.

04

Strategy in action:

From July to October 2022, we focused on preparing listings and creating an extensive structure for advertising campaigns across all ad types.

· Listings

Despite having an established brand and a large number of reviews (around 15,000!), the client's listing was underdeveloped. Our detailed audit of the client's account and competitors revealed several key areas needing improvement:
· We created a Comparison Chart for the listing, helping buyers make quicker purchasing decisions and reducing the time spent looking for alternative sellers.
· We also identified and highlighted about six key advantages of our client's product, clearly distinguishing it from competitors.

· Advertising Campaigns

We implemented our SkyRocket setup system, which focuses on a broad structure of advertising campaigns. Utilizing our software, we established a comprehensive company structure, targeting various types of ads like Sponsored Display and Sponsored Brands. This approach allowed us to decrease ad bids and expand our targeting scope.

05

Result:

We successfully reduced the CPC to $1.34 and ACOS to 28%, bringing the client's business back to profitability. By implementing our SkyRocket setup system, we scaled the advertising not by increasing the bid rates but through developing a broad campaign structure, proper scaling, diverse ad setups, and optimal clustering.

06

Conclusion:

For this client, we became more than just another PPC specialist; we became a lifetime business partner, helping solve all tasks to increase business profitability. We've helped the client increase profits and continue to work on the foundation we've laid for business scaling. The client has reinvested the profits in traffic generation and product line expansion, no longer worrying about falling out of profitability.

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