In 2022, a prominent player in the food storage sector approached us with a challenging dilemma. Their advertising campaigns were spiraling out of control, with their Average Cost of Sales (ACOS) hovering over 40% and sometimes peaking over 70%. Recognizing the urgent need for a strategic intervention, they enlisted our expertise in January 2023.

Upon a meticulous examination of their campaign structure, it became evident that inefficiencies and overbidding were rampant across most of their advertising efforts. Notably, their heavy reliance on video campaigns, once a lucrative approach, was now a fading endeavor. With a target ACOS of 35%, the path to optimization faced with a few considerations. A drastic cut in their advertising could potentially jeopardize their cash flow, a risk too significant for their business. In the volatile world of Amazon Advertising, rash decisions often lead to instability, an outcome we aimed to circumvent.

Embracing a philosophy of patience and consistent optimization, we embarked on a measured journey to recalibrate their campaigns. Our approach prioritized maintaining robust top-line sales while gradually phasing out ineffective strategies. The initial results were promising; by the end of January 2023, we successfully curtailed the average ACOS to the lower 40s, simultaneously eliminating sporadic surges into the 60s and 70s.

February marked a pivotal moment as our efforts began to align perfectly with the client’s objectives. The ACOS dipped below their 35% target. However, our mission was far from over. Achieving a target is one thing; sustaining it is another. We continued our meticulous campaign optimization, aiming to consistently hit the 35% mark without leaving potential profits untapped.

By March 2023, our success was distinctly visible. Nearly every day saw the campaigns performing at or around the target, with ACOS spikes over 40% becoming a rarity. This strategic refinement translated into tangible benefits for our client. The rest of 2023 witnessed a remarkable uptick in their monthly profits, a direct outcome of our targeted and thoughtful approach to campaign management.

This case study encapsulates our commitment to delivering tailored solutions that not only meet but exceed our clients’ expectations. Our journey with this food storage company underscores our prowess in turning advertising challenges into lucrative opportunities, solidifying their market position and financial health.