Nov was the best month of the year for us both in terms of revenue and net profit. In oct, we experienced a temporary out of stock situation for our top sellers that caused a slowdown in sales. In Nov, numbers improved as we got the Black Friday & Cyber Monday push!

PPC Strategy to scale this brand:

The biggest bottleneck for this brand was to manage 100+ SKUs and make a PPC strategy that best utilize each product. How can we best advertise each product and make sure we thrive in terms of revenue numbers & profitability, this was the biggest ask. We checked the demand for each product and hardly 2-3 items had a significant search volume on keywords. Obviously, net margin was tight so even if we produce a TACOS in the 20%-25% range, client won’t have much profit at the end.

We looked into the account and checked what had been tried previously. In terms of PPC strategy, this brand had tried giving majority of the advertising spend to their expensive products. We did our research and decided to go in opposite direction, i.e., giving major chunk of advertising spend to the less-expensive items and making cheaper items our major source of traffic. The reason behind this change was to make sure our brand reaches most buyers as low-cost products are more likely to be purchased in the first few interactions with buyers compared to expensive items.

We also tested with virtual bundles and created multiple virtual sets that we saw can be bought together frequently. It added extra visibility to our listings and also increased average buyer basket size.

We managed to double the impressions and clicks in the first month. Once traffic increased, we displayed our expensive items on our less-expensive products via defensive ad campaigns. It helped in two ways:

1) It helped us increased visibility on our expensive items.

2) It prevented other competitors displaying their items on our listings.

This way, we started selling our expensive items too and it helped our sales immensely while maintaining our TACOS!

Campaign Types:

Sponsored Product – Broad & Product targeting ad campaigns worked best for us. We have kept our targeting broad to get the most traffic with cheaper average cost per click and it is working very well for us.

We have utilized sponsored product the most as we are a bit short on creatives required to set up sponsored display and sponsored brand campaigns. However, we did test sponsored display campaigns with no custom images. It has worked well but sponsored product campaigns are generating the most traffic and revenue! From here on, we will surely add more SD & SB campaigns to boost visibility even further once we have the required assets!

Conclusion:

This case study demonstrates the transformative impact of a well-thought-out and data-driven PPC strategy. By focusing on leveraging low-cost, high-traffic products to drive impressions and strategically placing expensive items within defensive campaigns (cross-selling), we achieved substantial growth for this brand. In less than a year, the brand scaled from £1,627.64/month to a staggering £55,804.30/month, while maintaining healthy profitability with a TACOS as low as 7.76%.

The success was fueled by a deep understanding of the marketplace, innovative strategies like virtual bundles, and a commitment to optimizing every pound of ad spend. This strategic approach not only maximized revenue but also positioned the brand for a sustained growth and scalability in a competitive niche like sports & outdoor!

As we continue to refine our campaigns and add creative assets, there is immense potential to unlock even greater milestones in the months ahead!