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 they were increasing their advertising spend month-over-month without diminishing Return on Advertising Spend (ROAS) in order to hit their top-line revenue goal.
The industry leader in cookware 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 them figure out how much money they needed to spend on advertising to meet their sales goals. Once they knew how much they needed to spend, they came up with a plan to increase sales for generic search terms related to their product.
To make the plan, they first figured out how much money they were making for every dollar spent on advertising for their specific product searches. They 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.
They started by optimizing their spending on their specific product searches. Then, they created tags for budget and pacing to optimize spending for generic search terms. They aimed to achieve a 3.5 to 1 ROAS each month by increasing spending in small amounts.
By spending more money on advertising, they were able to improve their ranking on search pages for both their specific product and generic search terms. They kept track of how much of their sales came from advertising and made sure it stayed at a consistent percentage of their overall sales.
This plan was implemented from February 7th, 2022, to December 21st, 2022.
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” – Keith, Director of Marketplaces