Work

  • Strategy
  • Photography
  • Advertising
  • Keyword Research

A luxury beauty brand came to Nectar spending over $100,000/month in advertising with approximately 20% total advertising cost of sale (TACoS), which was poor.

Before working with Nectar, the brand had worked with another agency which was struggling to improve profitability.

The prior agency lacked a clear advertising strategy, which resulted in lots of wasted spend (spend with no sales) and negatively impacted profitability.

Because the beauty category is very competitive when it comes to advertising and advertising costs, Nectar had a real challenge to improve profitability while continuing to scale.

Challenges

1
Wasteful Ad
Spend
2
High TACoS
3
Inefficient
Advertising
4
Reaching Relevant
Customers

Solutions

Nectar’s advertising team focused on removing wasteful ad spend by getting rid of campaigns and keywords that were spending with zero or low returns.

After getting rid of non-performing keywords, the team assessed keyword relevancy from various reports to set negative targets (keywords to exclude in each campaign) and to implement search-term isolation (bidding on Amazon search terms that convert while negating search terms that don't).

Then our team separated the campaigns for each product to single ASIN campaigns, which increased relevant traffic and provided a more granular campaign view. This resulted in an increase in sales while allowing us to better assess performance and make more informed decisions.

After completing those steps, our team researched and added more relevant keywords.

Finally, the team set day-parting based on the historical sales data. That reduced wasteful ad spend at low performing times of the day.

Impact

Results

The results were amazing. The store redesign boosted monthly sales 250% by over $50,000 within the first month, and added close to $300,000 of additional revenue within 6 months.

The sponsored brand ads increased traffic 14,085% within the first month, which resulted in 81,557% increase in sales by over $34,000.

Conversion rate for advertising increased 31% in the first month, and an average of 21% over the 3 months after the store relaunch.

The increase in traffic and exposure increased sales and the conversion rate, which validated our work and strategy. Aligning the advertising strategy to increase traffic to the store coupled with the redesign made the additional revenue possible.

If your Amazon store is outdated or not optimized for conversions, you are almost certainly losing out on meaningful revenue.

If you’d like guidance or assistance with updating your store, Nectar can help. Reach out today by filling out the form below!

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