Harnessing the power of data-driven PPC strategies to significantly lower advertising costs and enhance product visibility in the competitive UK market.
Amazon PPC
Amazon
2021-Present
89%
Objective: Our primary goal was to overhaul the PPC campaigns for a newly acquired supplement brand, aiming to decrease Total Advertising Cost of Sale (TACOS) and enhance profitability within the UK market. We set out to achieve these objectives within the first month following acquisition.
Scope: The project involved a strategic review and realignment of existing PPC campaigns across a diverse product range, classified into three categories: top performers, growth phase products, and newly launched products.
Challenges: We faced several challenges, including stockout issues for main products and historically inefficient ad spends that did not contribute to profitability or improved product rankings.
Strategy Development: Utilizing the BCG matrix, we categorized the brand’s products and tailored our strategies to each category. This approach allowed us to prioritize resources effectively and focus on areas with the highest return potential.
Cost Management: A significant part of our strategy was to cut unnecessary ad spending, which we achieved by discontinuing non-performing campaigns and pausing unprofitable Sponsored Brand (SB) ads. We also refined our targeting approach to focus on high-conversion opportunities and reduced wastage in ad spend.
Campaign Optimization: We continuously monitored campaign performance, making adjustments to optimize for better ACOS and overall efficiency. This included refining keyword strategies, adjusting cost-per-click rates, and exploring new targeting methods to maintain profitability.
Financial Outcomes: Despite a decrease in total sales from £272k to £230k, we successfully maintained profitability levels, achieving a profit of £45k, closely matching the £46k from the previous month. This was facilitated by reducing TACOS from 18% to 13%.
Operational Improvements: The reduction in ad spend from £42k to £25k not only preserved profit margins but also reflected a more strategic deployment of marketing resources. By focusing on efficiency and targeted spending, we were able to enhance the overall health of the PPC campaigns.
Strategic Gains: The campaign adjustments and optimizations led to improved campaign performance, better rankings, and set the foundation for sustained growth and scalability in highly competitive markets.
This strategic overhaul not only tackled immediate inefficiencies but also positioned the brand for future success, demonstrating the power of focused and data-driven PPC management in the supplement industry.
