Explosive Gains: Supplement Brand Achieves A Mind-blowing 11.3X ROAS
Prime Advertising’s expertise delivers exceptional 11.3x ROAS for a supplement Brand
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Project Overview
Prime Advertising’s cost-cutting strategy brought an exceptional 11.3x ROAS and 8.84% ACOS for a supplement Brand.
Prime Advertising partnered with a prominent supplement brand to overcome significant challenges hindering Amazon’s growth. Through a strategic and data-driven approach, the Prime Advertising team achieved exceptional results, delivering a remarkable 6% TACOS within a short timeframe.
Challenges Faced
The supplement brand was struggling to make headway with their Amazon advertising. They were facing following key challenges that were preventing them from getting the results they wanted
Key challenges included:
- Relying on One Match Type:
The brand was using only one keyword match type for their ads, missing out on opportunities to reach more people and grow their sales. - Tough Competition
The supplement brand was having a hard time getting noticed on Amazon because there were so many other brands selling similar products. - Sales Growth on a Tight Budget
The brand was tasked with the difficult challenge of increasing sales while keeping a healthy TACOS (Total Advertising Cost of Sale), all while working within the constraints of a limited budget. - Price Sensitivity
The supplement market is highly price-sensitive, with consumers often seeking the best deals. - Limited Brand Loyalty:
Customers on Amazon often prioritize convenience, social proof, and price over brand loyalty.
- Product Differentiation:
With numerous products offering similar benefits, distinguishing a supplement brand from competitors is challenging. - Keyword Complexity and Broad Search Intent:
Keywords related to supplements can be very broad (e.g., “vitamins,” “health supplements”), attracting clicks from users with diverse and often non-specific intentions, leading to high ad spend and low profitability - Trust and Credibility Issues:
Consumers often question the efficacy and safety of supplements. Establishing trust is critical but challenging, given the vast number of similar products available. - High Competition and CPCs:
The supplement market on Amazon is highly competitive, with numerous established and emerging brands vying for consumer attention. This intense competition often results in high cost-per-click (CPC) rates. - Strict Amazon Regulations and Compliance:
Amazon has strict guidelines for the sale and advertising of supplements, including restrictions on claims and mandatory compliance with FDA regulations.
Plan of Action
To tackle the brand’s challenges and achieve its goals, a tailored strategic approach was developed as follows
Focusing on the following key strategies:
Diversifying Keyword Match Types
Implemented a balanced mix of exact, phrase, broad modifier and broad match keyword strategies for broader audience reach, higher ad impressions, and improved click-through rates (CTR).Outpacing Tough Competition
– Advanced targeting and competitive ad placements were leveraged to boost brand visibility and capture market share.
– Competitor analysis, dynamic bidding strategies, Sponsored Brand Ads, and Product Display Ads were employed to optimize ad spend and secure prominent ad positions.Achieving Sales Growth on a Tight Budget
– Implemented strategic budget allocation and low-cost PPC strategies to drive sales growth while ensuring a healthy TACOS, leading to improved profitability.
– Utilized continuous A/B testing and peak hour scheduling to maximize ad effectiveness, optimized ad spend and performance for sustained growth.Competitive Pricing Strategy
– Implemented strategic pricing and promotions to attract price-sensitive consumers and improve competitive positioning, driving increased conversions.
– Utilized dynamic pricing, coupons, and bundling offers to enhance competitiveness, highlighting unique value propositions to engage customers effectively.Building Brand Loyalty
Focused on building customer loyalty through top-notch service and engagement strategies. This involved promoting subscriptions, using Amazon’s follow-up tools for encouraging reviews, and offering special deals for repeat customers.
Persuasive Product Storytelling
– Utilized engaging storytelling and enhanced brand content to effectively communicate product differentiation, leading to increased brand recognition and higher conversion rates.
– Leveraged influencer collaborations and visual content to reinforce credibility and highlight product uniqueness for improved customer engagementTargeted Keyword Optimization
– Focused on high-intent, relevant keywords that matched what customers were searching for, while reducing wasteful spending on broad terms.
– Organized keywords by theme and product type, and constantly updated our list of words to exclude from ads to improve our targeting and efficiency.Credibility Building Strategies
Leveraged customer reviews, verified claims, content transparency, and expert endorsements to enhance trust, credibility, and brand perception, resulting in increased conversions and improved brand reputation.CPC Optimization Strategies
Optimized bidding strategies and refined ad targeting to address high CPCs. This involved using dynamic bidding, rule-based adjustments, prioritizing top-of-search placements, leveraging product targeting, and setting budget caps to maintain cost control.Amazon Compliance Protocol
Strictly adhered to Amazon’s guidelines and regulations for selling and advertising supplements to avoid policy violations, uninterrupted ad campaigns, and sustained product listings
Results We Brought
By implementing a comprehensive and data-driven strategy, we successfully addressed the supplement brand’s challenges
Delivering the following brilliant results:
Increased Revenue
The comprehensive strategy led to a significant increase in revenue by 67.51%, amounting to $53,547.85
Key Drivers:- Strategic SEO optimization and targeted advertising boosted both organic and PPC sales.
- Introduction and promotion of top-selling and high-margin products at premium price points.
- Optimized product images and A/B testing increased click-through and conversion rates.
Explosive Profit Gains
Profitability soared by 128.42%, primarily attributed to dynamic pricing strategies, promotional tactics, ensuring better control over costs and higher margins.
Key Drivers:- Competitive pricing strategies and promotional offers attracted price-sensitive consumers, driving increased conversions.
- Strategic budget allocation and low-cost PPC strategies ensured a healthy TACOS (Total Advertising Cost of Sale), leading to improved profitability.
- Continuous A/B testing and optimization of ad spend maximized ROI and maintained cost control.
Average Value per Order (AOV)
The AOV experienced a notable surge of 34.25%, stemming from the strategic emphasis on promoting high-margin products with compelling sales copy.
Key Drivers:- Introduction of strategic pricing and promotions to drive increased conversions.
- Dynamic pricing, coupons, and bundling offers enhanced competitiveness and incentivized larger purchases.
- Persuasive product storytelling and enhanced brand content effectively communicated product differentiation, leading to higher conversion rates.
Impressive TACOS Improvement
A substantial reduction of 79.94% in TACOS indicates more efficient utilization of the advertising budget relative to total sales, achieved through optimized campaign strategies.
Key Drivers:- Strategic budget allocation and low-cost PPC strategies ensured a healthy TACOS while driving sales growth.
- Utilization of competitive pricing strategies and continuous A/B testing optimized ad spend and performance for sustained growth.
Massive Sales Growth
Overall sales witnessed robust growth of 24.77%, driven by successful SEO and PPC strategies, broadened keyword reach, and effective product promotions.
Key Drivers:- Advanced targeting, competitive ad placements, and dynamic bidding strategies boosted brand visibility and captured market share.
- Strategic pricing, promotions, and persuasive product storytelling drove increased conversions and sales growth.
- Focused keyword optimization and continuous A/B testing maximized ad effectiveness and performance.
ROAS (Return on Advertising Spend)
The drastically improved 11.3x ROAS signifies better alignment of ad spend with high-converting keywords and audience segments, resulting in increased sales and profitability.
Key Drivers:- Effective utilization of budget allocation and low-cost PPC strategies ensured optimal ROI.
- Competitive pricing strategies and persuasive product storytelling increased conversion rates and ROAS.
- Continuous A/B testing and optimization of ad spend maximized ROI and maintained cost control.
Improved CPA
CPA decreased by 73.07%, reflecting more efficient and cost-effective customer acquisition strategies, and improved ROAS.
Key Drivers:- Strategic budget allocation and low-cost PPC strategies optimized cost per acquisition.
- Advanced targeting and competitive ad placements ensured efficient spending and improved CPA.
- Continuous A/B testing and optimization of ad spend reduced wasteful spending and improved efficiency.
Massive decrease in CPC
Optimized bidding strategies and refined ad targeting resulted in reduced 59.11% CPC, enhancing overall PPC efficiency and maximizing budget utilization.
Key Drivers:- CPC optimization strategies, including dynamic bidding and refined ad targeting, addressed high CPCs.
- Prioritization of top-of-search placements and utilization of product targeting optimized CPC.
- Strict adherence to Amazon’s compliance protocol ensured uninterrupted ad campaigns and sustained product listings, minimizing CPC fluctuations.
PPC to Organic Order Ratio
Through targeted keyword optimization and strategic SEO efforts, the brand achieved an improved 60.07% ratio of PPC to organic orders, maximizing overall sales performance.
Key Drivers:- Strategic SEO optimization and targeted advertising efforts balanced PPC and organic sales.
- Introduction of top-selling and high-margin products alongside persuasive product storytelling increased both PPC and organic sales.
- Continuous monitoring and adjustment of advertising strategies ensured a balanced PPC to organic order ratio.
CTR (Click-Through Rate)
CTR improved by 43.57% due to optimized listing images, compelling sales copy, and strategic A/B testing, resulting in higher engagement and conversion rates.
Key Drivers:- Implementation of diversified keyword match types and competitive ad placements improved ad impressions and CTR.
- Optimized product images and enhanced brand content increased engagement and CTR.
- Continuous A/B testing and refinement of ad creatives and targeting strategies maximized CTR.
Other Performance KPIs- Customer Reviews:
Proactively managing and responding to customer reviews built trust and credibility, further enhancing brand perception and customer engagement. - Content Transparency:
Providing detailed information about product ingredients and benefits improved customer trust and loyalty, driving higher conversion rates. - Expert Endorsements:
Leveraging endorsements from health professionals and influencer testimonials enhanced product credibility and brand trust, resulting in increased sales and customer satisfaction - Compliance:
Strict adherence to Amazon’s guidelines ensured uninterrupted ad campaigns and sustained product listings, maintaining brand reputation and trust. - Brand Loyalty:
Strengthened brand loyalty through top-notch service and engagement strategies, leading to increased repeat purchases and customer retention.
Lets Talk Numbers
Before
January 2024
After
April, 2024
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