In Oct, we generated most revenue for this brand and after that, we experienced OOS situation in Nov which slowed our sales in the last 30 days.

PPC Strategy to scale this brand:

Tight margins, higher average CPC and lower conversion rate were the key issues for this brand. We knew, it won’t be easier to make the brand profitable as the brand was selling dog treats that require a decent social proof and brand presence to ensure sustainable growth on Amazon.

We had 2 major products with flavor variations. With less than 50 reviews, we had a conversion rate of 19% for the best-selling item. We did our research and found out we can improve numbers by either improving conversion rate or average CPC assuming traffic improves or remains same.

Before us, average CPC was at $2.4. We thought, if we can reduce it to $1.5 range and continue to get the orders at a similar conversion rate, we’d reduce ACOS by at least 24% just by making the above change. 

Fast forward Nov, we managed to drag down average CPC to $1.41 while maintaining a 24.89% conversion rate for our top seller listing! 

Campaign Types:

We did our research on products and checked what campaigns and targeting have been done on this account. We found one major issue with keyword targeting – previous efforts were done to advertise products against high-search volume keywords only, regardless of the fact that whether our products were highly relevant or not.

PPC strategy before us was to somehow rank on keywords with a higher search volume even if it meant a higher cost of acquisition with no profits!  

Me and my team shortlisted a group of keywords that are closely relevant to our products and we went ahead with research-oriented low-cost campaigns structure. For this, we opted to go with Broad + Phrase + Auto + Product targeting campaigns. We did duplicate targeting for broad & phrase but kept different bidding structure. We wanted to create targeting funnels that help us generate low-cost orders and the above combination worked well for us!

We have mostly tested with Sponsored product campaigns as client had a limited budget & lack of creatives. Having worked on multiple brands and managing Amazon ads for over 3 years now, we know SP campaigns can help a lot in maintaining organic ranks as well as generating profitable orders if managed wisely! That is what we did with this brand too!

Conclusion:

Starting with tight margins, high CPC, and low conversion rates, we transformed a struggling brand into a profitable one, achieving a remarkable 751% increase in monthly sales within just seven months.

By focusing on lowering CPC, optimizing keyword targeting for relevancy, and leveraging Sponsored Product campaigns, we were able to maintain consistent growth while keeping TACOS and net profitability in check. Our ability to identify and implement cost-effective strategies enabled us to significantly boost both paid and organic performance, ensuring long-term sustainability for our   brands.

Despite challenges like inventory stockouts in November, the foundation we built with a data-driven strategy and systematic campaign optimization has set this Pet Supplies brand on a path of continued growth. This case further underscores the importance of aligning PPC efforts with business objectives to maximize ROI and scale successfully on Amazon!