How Clear Ads reduced ACoS from 37% to 22% in two months whilst increasing sales by 220% (increase month on month of £32,000)
The client had experienced a boom in sales over the Christmas period when they started to advertise on Amazon. In January, after the Q4 boom, sales fluctuated andACoS started to climb to unsustainable levels. In May, they reached out to Clear Ads for support.
What We Did...
It is possible to lower ACoS by reducing bids, but this ultimately compromises the ability to appear in the premium ad spots. This can impact sales and with the customer focused on increasing orders, we knew this could be an issue.
Instead, we started by auditing the account to identify where wasted spend was going and the customer was open to us pausing campaigns forASINs which were not performing. By clearing out high ACoS/low order campaigns, we were able to push more spend to the best sellers. We identified products and search terms which were creating sales with an ACoS under target, and we created hero campaigns for these so they had a chance to flourish with their own budget. We also found terms which were successful in the autos and we migrated these into manuals.
By focusing our efforts on the 6 best selling ASINs, we ensured that spend flowed where we suspected the would be the best return on investment. When these were all performing under target, we then released the next group.
Once Brand Registry was available, we also built out campaigns which would target customers searching for cheese gift boxes, but who might not know exactly what they were looking for.
Sales grew exponentially and with the customers blessing, we were able to keep increasing the daily budget cap as long as we were still under target for the past 7 days. Atone point, sales had increased so much that we had to slow our campaigns down so the old warehouse could keep up. With more stock available in the new custom-built warehouse, eventually we were given the green light to push hard on advertising again, although sales had dipped in the summer months when orders slowed down.
Now we are building up to another strong Q4, using search terms which have historically performed well over this period. In a competitive market, we continue to check on the competition and create offense campaigns to defend our space.