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Optimizing Costs and Increasing Sales With Zero-to-Hero

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Profit Whales Team on Dec 08, 2022 in Case Studies

Optimizing Costs and Increasing Sales With Zero-to-Hero Approach

CPA vs. Total Sales vs. ACoS

 

Company Background

Today we will talk about the Home & Kitchen brand, which is aimed at the U.S. marketplace. The brand improves everyday life by ensuring comfortable sleep for customers with its sheets and pillowcases.

 

The Challenge

The company contacted us for audit and conversion improvement. As a result, we found that ACoS was above the acceptable 60%, and CPA costs accounted for half of the product costs. At the same time, the monthly Wasted Ad Spend took about 20% of the budget. Meanwhile, Ad Conversion was below 2% when the average CTR for Home Goods was 2.44%.

Also, the product did not have strong positioning, and we needed to solidify its presentation to the buyer.

 

The Solution

We started by reformatting advertising campaigns according to the ZTH (Zero to Hero) structure. Next, our PPC team removed all unnecessary Match Types, removing about one thousand duplicates. Within a week, ACoS and CPA significantly decreased.

To reduce Wasted Spend, we carefully analyzed the Search Term report and identified all the keywords that generated a lot of clicks but did not bring even a single sale.

To increase ad conversion, we created a group with relevant high-converting keywords, allocating 60-70% of the budget for this purpose. Also, we redirected Product Pages traffic to the Top of the Search.

We created appropriate ad campaigns to keep the client’s listing away from competitors’ ASINs and Sponsored Display Ads, thus saving listing conversions.

 

Outcomes

As a result:

  • ACoS has decreased from 60% to 30%;
  • Wasted Spend has dropped from 20% to 5%;
  • CPA costs for one sale have declined by two times;
  • Ad Conversion has increased by 8%;
  • The audience coverage has grown by three times;
  • The sales have risen by 3-4 times.

Strengthen Your Market Position with Profit Whales

 

Strengthen Your Market Position with Profit Whales

Profit Whales experts always start with a deep analysis of your past advertising campaigns. This is how we identify strengths and weaknesses, as well as growth areas that must be improved.

Another critical principle is complex work with your brand. We research the market, strengthen your positioning, optimize listings, set up various ad formats, and run A/B testing to determine the most effective variation.

Contact us to receive comprehensive support and achieve impressive results!

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