Overview
In 2022, a well-known cookware brand aimed at a lofty target: launch Amazon efforts and scale to 8 figures of revenue in less than a year. To achieve this profitably, the brand needed to ensure it was increasing its Amazon ppc campaigns spend month-over-month without diminishing Return on Advertising Spend (ROAS) in order to hit its top-line revenue goal. By using Pacvue’s advertising automation and optimization tools like Share of Voice, Rule-Based Optimization, Dayparting and Amazon DSP it saw a 75% increase in ROAS and a 500% increase in monthly sales.
The Solution
The cookware brand adopted a strategy that utilized Amazon advertising campaigns across several ad types, including Sponsored Products, Sponsored Brands, Sponsored Display, Sponsored Brands Video, and Amazon DSP.
The brand asked Pacvue to help it figure out how much money it needed to spend on advertising to meet its sales goals. Once it knew how much it needed to spend, it came up with a plan to increase sales for generic search terms related to its product.
To make the plan, it first figured out how much money it was making for every dollar spent on advertising for its specific product searches. It then used Pacvue to create a plan that included several different tactics, such as Share of Voice, Tagging, Rule Based Optimization, Day Parting, and Amazon DSP.
It started by optimizing its spending on specific product searches. Then, it created tags for budget and pacing to optimize spending for generic search terms. It aimed to achieve a 3.5 to 1 ROAS each month by increasing spending in small amounts.
By spending more money on advertising, it was able to improve its ranking on search pages for both specific product and generic search terms. It kept track of how much of its sales came from advertising and made sure it stayed at a consistent percentage of its overall sales.
The Results
The KPIs before the campaign included a ROAS of under 2 in January 2022. However, by the end of the campaign, the ROAS had consistently increased to 3.5. Ad-attributed sales flatlined, and non-branded CPCs remained flat. The campaign resulted in a 500% increase in monthly sales by December 2022.
With Pacvue’s forecasting capabilities, the brand was able to perform an analysis to determine a realistic 2023 revenue target, as well as a Share of Voice (SOV) market share goal based on 2022 KPIs. By using Pacvue, they were able to achieve their goal of almost 8 figures in Amazon sales in just one year.
“Pacvue has allowed us to identify spend at a granular level and really understand what levers we need to pull to hit our goals” – Director of Marketplaces
