Cosmetics Brand
Back Story:
A cosmetics brand was struggling with an alarmingly high ACoS and a lack of profitability, which forced them to halt their advertising efforts for an extended period.
After 2 years of no PPC and near-zero revenue, they decided that they needed a breakthrough solution, which is how they found us.
During the period when they still ran ads, they averaged a 45% ACoS on $25,000 in monthly spend, which made them stop PPC until our involvement in December of 2022.
Our Insights
Right after signing up, the client was connected with their account manager who was able to identify 3 main areas for improvement:
- Their hero ASIN was only getting 5% of their total ad spend even though it produced a disproportionate amount of revenue. This ASIN also had room for growth since its competitors outsold it by 3-5x.
- They had a lot of ad types, match types, and targeting types missing in their old setup which left them with a lot fewer sales than they could’ve been getting.
- There were hundreds of relevant keywords that they weren’t targeting.
Our Approach
Based on what was uncovered during the initial audit, we made some major changes to the account:
- We began creating over 466 campaigns for the top 3 ASINs in the account.
- We started utilizing all ad types, targeting types, and match types.
- We switched on automated bidding with a 20% ACoS target so we could control our advertising costs.
- We used the automated keyword harvester in our software tool to discover and add over 700 keywords automatically to our campaigns
- We then used the keyword negation tool to cut down on wasted spend on Broad, Phrase, and Auto campaigns.
The Outcome
Within 6 months of signing up, we were able to 5x ad sales and bring the ACoS down to 20%.
In August of 2023, this brand did almost $400,000 in monthly ad sales at a 13% ACoS
Total sales for this account have also reached $700,000 per month, and at the current rate of growth, they should be crossing 7 figures per month soon.
