Improving profitability of an 8 figure Home & Kitchen Brand from $-4k / month to $+100K / year
The problem
The owner of this Home & Kitchen brand was working with a large agency, but was disappointed with their work, since in spite of having 3 best seller products at that time, their PPC was highly unprofitable with -$4000 in a month. And yet he was worried that if he changed the PPC strategy the ranking of his products would be affected and they would lose the Best Seller Badge.
The Solution
After I finished auditing the account it was clear that the ad spend was not efficiently distributed and there were a lot of unexploited opportunities due to the bad campaign structure.
When I took over the account I started with the following steps:
Step: 1
Finding the root cause of the problem by analyzing existing advertising data
Step: 2
Optimizing and restructuring the existing campaigns
Step: 3
Looking for unexploited opportunities - products with high potential and low advertising spend
Step: 4
Optimizing the budgets of the existing campaigns
Step: 5
Keyword and Competitor Research
Step: 6
Setting Up Proper Campaign and Bidding Structures for each product
Step: 7
Continuous A/B testing of different campaign types, bidding strategies, creatives and targets
Step: 8
Weekly communication with the client
The Results
- After one month of work the negative PPC profit started to turn into positive profit
- The average ACoS improved from 35% to 25%
- We managed to achieve the Best Seller Badge with further products
- Thanks to the good organic positions the TACoS Improved by 5%
- We had 7 successful product launches in two years
- By applying the proper campaign structure with highly relevant product and keyword targets we managed to turn a slow moving, highly unprofitable product which was about to be phased out into a best seller product