In November 2019, a home appliance brand approached us, seeking a breakthrough in their advertising efforts. Despite their year-long endeavors with various agencies, they weren’t finding success. Our initial audit of their account led to two pivotal discoveries. First, the challenge wasn’t solely in advertising; they were grappling with inventory management, which hindered their ability to scale effectively. Second, their advertising strategy wasn’t capitalizing on an almost competition-free market environment.
Addressing the root of the problem, we collaborated with the client to streamline their inventory management. Ensuring adequate stock was crucial for the success of any subsequent marketing efforts. Once this fundamental issue was resolved, we shifted our focus to improving their advertising approach.
Our strategy was straightforward: dominate the low-competition space. We made a calculated decision to triple their ad bids. This move, albeit risky, was underpinned by our confidence in the untapped potential of the market. We weren’t just trying to improve their Average Cost of Sale (ACOS); we were aiming for market leadership.
The results were nothing short of remarkable. The impact of our strategy was immediate and significant. Ad sales skyrocketed from about $2,000 per day at a 30% ACOS to an impressive $7,000 per day, all while slashing ACOS to under 10%. This dramatic shift not only amplified their sales volume but also enhanced profitability.
What made this success story even more extraordinary was the speed of the turnaround. In less than 30 days, we transformed a struggling advertising campaign into a highly profitable venture. This case exemplifies our expertise in identifying and resolving underlying business challenges, crafting aggressive yet thoughtful marketing strategies, and driving rapid, profitable growth for our clients.