Lighting Supplier

The Challenge:

A well-known multi-billion dollar household lighting supplier approaches our team for strategy and guidance. The client has been well-established before Amazon swept the retail market, and is disappointed to be spending on Amazon advertising and seeing sales decrease on its DTC site. The client is also frustrated by poor communication between them and their agency. With limited motivation to sell on Amazon and ACoS as their only metric of performance, can we optimize their resources to drive sales?

The Strategy:

An audit of the account showed campaigns running out of budget early. Since ACoS was the only metric this client was looking for, our analysts predicted that by lowering bids, we’d still be able to optimize the daily budget. Our team created low bid campaigns to capture low CPC keywords and ASINs.

(We couldn’t use Sponsored Brands or Sponsored Display for this brand because they have other resellers selling their products so ACOs would be inaccurate due to how Amazon attributes sales.)

The Results:

In just 3 months, the campaign designed by our team spiked the company’s sales by 430%!
We succeeded in lowering their ACoS from 6.8% to securing it between 1.3-1.5%. Their CPC was lowered from $0.69 to $0.19-$0.21, and this is in a rising CPC environment.

(Note: This is by far not a typical ACoS.
These products are highly-ticketed items from a well-known brand.)