Case 1

Executive Summary We were tasked with maintaining daily sales of $30-40k with 40 fewer products (50 vs. 90). Whilst maintaing conversion rates and TACOS goals. We achieved the $30k-$40k daily target and increased the conversion rate by 3%. Notably, we achieved a TACOS below 22% in Q4 for the first time. Additionally, there was a 4% growth in repeat sales units and a 2% rise in repeat customer share.

Strategies

  1. Relevancy and Keyword Limitations:
    • Eliminated irrelevant keywords, products, and category targeting (e.g., 'shampoo and conditioner' in Mask campaigns).
    • Reduced keywords per campaign for enhanced visibility, addressing campaigns with 100+ keywords, half of which were ineffective.
  2. Branded and Non-branded Segregation:
    • Differentiated between branded and non-branded campaigns, reducing spending on branded ones.
    • Initially, 80-90% of campaigns relied on branded targeting, necessitating an improved focus on non-branded targeting.
    • Lowered bids on branded terms by 80-90%, contingent on organic ranking, to assess cannibalization.
  3. Retargeting and Repeat Sales:
    • Addressed stagnant repeat sales and retargeting strategies for beauty products with monthly consumer needs.
    • Implemented diverse retargeting campaigns to enhance views and purchases.
  4. New-to-Brand (NTB):
    • Increased NTB orders by 19% through awareness campaigns, resulting in 4890 NTB orders in Q4 2023 compared to 5057 in Q4 2022.
  5. Hero & Non-hero Products:
    • Focused on 231 out of 318 active campaigns related to hero products.
    • Launched campaigns for non-hero products, previously underutilized, to boost awareness and ROI.
  6. Budget Management:
    • Instituted performance-based budget rules for campaign budget control.
  7. Video Expansion:
    • Enhanced video campaigns for products and categories, improving click-through and conversion rates, including single-product targeting.
  8. Experiments:
    • SBV Top of Search:Utilized store page as landing page, focusing on subscription store promotion.
    • SB Multiple Custom Image Campaigns:Tested multiple custom image ads, but found diminishing effectiveness compared to video ads.
    • Breaking Auto Campaigns:Split auto campaigns for sets into two types based on targeting characteristics, currently with limited budget and bids.
    • SD Retarget vs SDV Retarget:Compared campaign types to optimize retargeting techniques, with SD campaigns currently outperforming SDV.

 

Results: 

  • Maintained daily sales at $30k - $40k. 
  • Increased conversion rate by 3%. 
  • Achieved TACOS below the target of 22% in Q4 for the first time. 
  • Recorded a 4% growth in repeat sales units and a 2% increase in repeat customer share. 
  • Boosted visibility and effectiveness through keyword optimization. 
  • Strengthened focus on non-branded targeting, leading to diversified traffic. 
  • Successfully implemented and refined retargeting campaigns. 
  • Enhanced video campaign performance, showing significant improvements in vCTR and vCVR. 

 

T5 (Black Friday and Cyber Monday) Performance: 

Strategies: 

  • Pre-Holiday Experiments: Conducted multiple tests from August to October, applying outcomes in November. 
  • Rigorous Campaign Structure Setup: Established structures pre-Q4, with defined portfolios and spending limits per product. 
  • Focused Spending: Directed 95% of T5 spending towards top deals. Budgets were allocated based on product performance. 
  • Targeted Focus: Aimed for TACOS-based targets, prioritizing relevant targeting over controlling ACOS. 
  • Strategic Bid Optimization: Employed strategic bidding for Sponsored Products (SP) campaigns based on keyword performance. 

Results: 

  • Despite having 40 fewer SKUs, revenue increased by 5.5% during T5, compared to the previous year. 
  • Generated $344k in revenue during T5, a 5.5% increase over the previous year's $326k. 
  • Achieved targeted spending and bid optimization goals. 
  • Successfully managed campaign structures to maximize T5 sales.