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Maximizing Margins: How Targeted Ads Transformed an Extensive Product Line-Up

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Profit Whales Team on Jul 08, 2024 in Case Studies

Introduction

In the ever-evolving e-commerce world, having a broad product range means endless opportunities—but also endless challenges. This case study highlights our journey with a client boasting a vast assortment of products with varying margins. Their listings were already well-indexed organically, especially in top product categories, but there was significant room for optimization. Here’s how we took their sales to the next level.

 

The Problem

Amidst their extensive product line-up, we needed to identify perspective products that had never been advertised before and launch ad campaigns for them. This was a crucial step in tapping into unrealised potential and driving new growth.

 

Actions Taken

To tackle this challenge, we implemented several strategic actions:

  1. Product Filtration and Campaign Launch: We analyzed products that we considered promising for launch. We studied their subcategories, competitors, keywords, and frequencies. This information allowed us to finalize a list of products for launch. We implemented focused Zero-to-Hero structures since each product had a limited advertising budget.
  2. Bid Adjustments and Optimization: We adjusted bids for previously launched campaigns to boost sales. Continuous optimisation was conducted on existing campaigns within our structured framework to maximise performance. We worked on advertising positions and expanded the advertising structure when a product showed excellent results.

 

Results

Our efforts yielded impressive outcomes:

  1. Sales Growth: In the first quarter, our campaign launches increased monthly sales from a consistent $30k+ to over $40k+, all while maintaining the same levels of Advertising Cost of Sales (ACoS) and Cost-Per-Click (CPC).

2. Consistent Performance: The optimization efforts ensured that even with the increased sales volume, the profitability metrics remained stable.

 

Next Steps

Looking ahead, our goal is to sustain sales at the $50k per month level while keeping the ACoS within the 20-30% range. Ensuring the project’s profitability remains a top priority as we continue to fine-tune and optimize the campaigns.

 

Conclusion

This case study is a testament to the power of strategic product selection and campaign optimization in driving substantial sales growth. By identifying underutilized products and launching targeted ad campaigns, we unlocked new revenue streams for our client. Our journey illustrates that with the right strategies and persistent optimization, significant growth and profitability are well within reach.

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