Innovative Strategies: Reduced ACOS by 61% For a Beauty Brand in Just 30 Days
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Project Overview
Prime Advertising’s innovative ads strategy reduced ACOS by 61% For a Beauty Brand in Just 30 Days
By identifying campaigns SMART goals with effective advertising strategies, cutting-edge optimization strategies and innovative campaign structures, generating a revenue of $ 119,900 with an impressively low ACOS of 18.14% within 30 days.
Challenges Faced
The beauty brand faced troubles in reducing their ineffective ad spend that was eating their profits away
Key challenges included:
- Unidentified Campaign goals
The brand’s Amazon advertising efforts lacked clear goals and measurable targets for their Amazon PPC campaigns. This led to a scattered approach, inefficient spending, and made it challenging to evaluate the success of campaigns and optimize them effectively. - Ineffective Ad Bidding Strategy
The brand’s ad bidding strategy was inefficient, with either overbidding on low-value keywords or underbidding on high-potential ones. This lack of a data-driven approach led to missed conversions and wasted ad spend. - Ineffective campaigns optimization
The lack of clear campaign goals made it difficult to effectively optimize advertising campaigns. They were not leveraging data-driven insights or regularly adjusting campaigns based on performance metrics such as CTR, CVR, or CPA. Without clear systematic optimization, underperforming ads continued to run, wasting budget and reducing the overall effectiveness of the advertising spend. - SEO indexing and Optimization
The brand’s product listings were not fully optimized for search engine visibility. Key elements such as product titles, etc. were not properly aligned with relevant search terms and customer intent. This resulted in low organic rankings, making it difficult for potential customers to discover the brand’s products through natural search. - Limited Keyword Usage
The brand’s keyword strategy was restricted to a narrow set of terms, missing out on broader and more relevant search terms that potential customers might use. This limited the reach and effectiveness of their campaigns, not fully capturing the target audience’s search behaviour, leading to missed opportunities and ineffective ad spend.
- Low Conversion Rate
The brand was experiencing a low conversion rate, due to a 4.1-star average rating, which is not inherently negative, but often falls short in highly competitive markets like beauty, where consumers expect higher ratings. This perception gap can deter potential buyers. - High CPCs:
The brand was struggling with high cost-per-click (CPC) rates across their advertising campaigns. This was due to a combination of factors, including intense competition for relevant keywords, broad targeting parameters, the use of less effective keyword match types and ineffective bid management. High CPCs were eating into their advertising budget quickly, leaving less room for research and optimization. - Poor Targeting:
Ads were often displayed to users who were unlikely to be interested in their products, resulting in low engagement and wasted ad spend due to a lack of customer segmentation, reliance on broad keywords, and failure to leverage Amazon’s advanced targeting options. - Poor Campaigns Structure:
The brand’s Amazon advertising campaigns lacked a clear structure. This resulted in campaigns with overlapping targeting, inconsistent bidding strategies, and poorly defined goals. This made it difficult to track performance, identify which campaigns were driving results, and optimize for better performance.
Plan of Action
We created a step-by-step plan to fix the brand’s problems and get them back on track.
Our approach included:
Clear Campaign Goals:
Established specific, measurable, attainable, relevant, and time-bound (SMART) goals for each PPC campaign. This includes defining objectives such as increasing sales (conversion), achieving a target ROAS, or boosting brand organic visibility (ranking).Advanced Bid Management Techniques:
Used Amazon’s dynamic bidding strategies and applied bid modifiers based on performance metrics like conversion rates and sales velocity. Regularly reviewed and adjusted bids for optimal CPC and ROI.Regular Campaign Optimization:
Conducted weekly performance reviews and utilized Amazon’s reporting tools to refine targeting, pause underperforming ads, and allocate budget to high-performing segments. Implemented negative keyword strategies to eliminate wasteful spend.SEO for Better Indexing and Visibility:
Optimized product listings with high-value keywords in titles, bullet points, and descriptions. Utilized Amazon’s backend search term fields to capture additional relevant queries.Expanded & Refined Keyword Usage:
Conducted in-depth keyword research to identify a broader range of relevant search terms. Used different match types and campaigns to capture diverse search intents.Enhance Product Ratings and Reviews:
Implemented and integrated a tool with Amazon to send automated review requests to improve product review ratings and scores. Addressed customer feedback to improve product quality and customer satisfaction.
Optimized Product Detail Pages (PDP):
Improved PDPs with high-quality images, compelling titles and product descriptions. Highlighted unique selling propositions (USPs) and addressed common customer concerns.Improved Keyword Targeting Precision:
Used more exact match and phrase match keywords to refine targeting, and regularly updated the negative keyword list to exclude irrelevant traffic.Leveraged Amazon Audience Insights:
Utilized Amazon’s audience insights and customer demographics tools to refine targeting and better align ads with the preferences and behaviors of the target audience.Redesigned Campaign Structure:
Restructure campaigns into a clear hierarchy based on SMART objectives i.e. ranking, conversion, research and awareness. Implemented a structured smart approach to keywords, match type, bid allocation, placements, bidding strategy and budgeting.Avoided Overlapping and Competing Ads:
Reviewed and consolidated overlapping campaigns to avoid internal competition, ensuring distinct targeting criteria for each campaign to focus on specific goals without overlapping.
Results We Brought
Delivered the following outstanding results through our innovative strategies, boosting the beauty brand’s performance on Amazon
Resulting in the following impressive outcomes:
- Increased Revenue
The brand experienced a 77.79% increase in revenue over a quarter due to a more strategic and goal-oriented approach to PPC campaigns.Key Drivers:
– Clear Campaign Goals:
Establishing SMART objectives aligned campaigns with revenue-driven outcomes.
– Advanced Bid Management: Optimized bid strategies focused on high-performing keywords and peak times, driving higher conversions and sales. - Enhanced Profit Margins
Profit margins improved by 142.45% as a result of efficient ad spend management and strategic bid adjustments.
Key Drivers:
– Regular Campaign Optimization:
Weekly reviews and adjustments minimized wasteful spend and enhanced budget allocation to profitable segments.
– Expanded & Refined Keyword Usage:
A diverse keyword strategy captured a broader audience efficiently, balancing cost and reach. - Increased Average Order Value (AOV)
AOV saw a 28.76% increase, driven by enhanced product pages and targeted cross-selling strategies.
Key Drivers:
– Optimized Product Detail Pages (PDP): High-quality images and compelling descriptions boosted customer confidence and purchase size.
– Enhance Product Ratings and Reviews: Higher ratings and positive reviews encouraged customers to purchase more or higher-value items. - Reduced Total Advertising Cost of Sales (TACOS)
TACOS decreased by 54.76%, reflecting a more efficient allocation of ad spend relative to total sales.
Key Drivers:– SEO for Better Indexing and Visibility:
Improved organic visibility reduced reliance on paid ads.
-Leveraged Amazon Audience Insights:
Precise targeting lowered ad spend on less relevant traffic. - Increased Sales Volume
Sales volume rose by 38.08% due to expanded keyword coverage and enhanced product discoverability.
Key Drivers:
– Expanded & Refined Keyword Usage:
Broader keyword coverage attracted more potential buyers.
– SEO for Better Indexing and Visibility:
Higher organic ranking and visibility brought in more traffic and conversions.
- Balanced PPC to Organic Order Ratio
Achieved an improved PPC to organic order ratio by 123.71%, indicating effective integration of paid and seo organic strategies.
Key Drivers:
– Regular Campaign Optimization:
Efficient PPC management complemented organic efforts.
– SEO for Better Indexing and Visibility:
Enhanced listings improved organic discoverability, balancing the load between paid and organic orders. - Higher Click-Through Rate (CTR)
CTR improved by 654.13%, driven by more relevant ad placements and compelling ad creatives.
Key Drivers:
– Improved Keyword Targeting Precision:
Using exact and phrase match keywords focused on high-intent searches.
– Leveraged Amazon Audience Insights:
Targeted ads aligned closely with audience preferences and behaviors. - Enhanced Conversion Rate (CR)
Conversion rates increased by 107.86% as a result of optimized product presentations and targeted ad placements.
Key Drivers:
– Optimized Product Detail Pages (PDP):
Clear and persuasive product information led to higher purchase rates.
– Enhance Product Ratings and Reviews:
Positive customer feedback improved buyer confidence and conversion likelihood. - Lower Cost-Per-Click (CPC)
CPC decreased by 48.73%, making the ad spend more efficient and freeing up budget for additional campaigns.
Key Drivers:
– Advanced Bid Management Techniques:
Dynamic and strategic bid adjustments reduced unnecessary costs.
– Avoided Overlapping and Competing Ads:
Consolidated campaigns eliminated internal bidding conflicts, reducing overall CPC. - Improved Return on Advertising Spend (ROAS)
ROAS improved by 153.69% ratio, improving to 5.51x, reflecting higher returns for each dollar spent on advertising.
Key Drivers:
– Redesigned Campaign Structure:
Clear campaign hierarchy facilitated better tracking and optimization for higher returns.
– Avoided Overlapping and Competing Ads:
Streamlined campaigns improved efficiency and ROI.
Lets Talk Numbers
Before
April 2024
After
May, 2024
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