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Reduction in ACoS on 5-Figure Ad Spend
Timing Ads for Success
InDUSTRY:
Home & Kitchen
TOPICS:
Advertising
Dayparting
A/B Testing
Nectar had optimized Amazon advertising campaigns for General Tools and Donna Sharp, but we wanted to reduce the advertising cost of spend (ACoS) even further because both brands have large monthly advertising budgets.
In addition, for Donna Sharp, a bedding brand, the warm-weather season is their slowest time of year and was contributing to the difficulty of further decreasing ACoS.
Challenges
1
Insufficient Ad Plan
2
High ACoS
3
Budget Restraints
4
Insufficient Data
Solutions
Leveraging an daily and hourly metrics within our advertising platform, we effectively reallocated budgets to optimize their impact, even raising bids during peak performance periods. Nectar successfully experimented, observed, and pinpointed high-traffic, high-conversion times to adjust both budgets and bids accordingly.
For General Tools, expenditures were minimized during off-peak hours to allocate more resources to peak times.
In Donna Sharp's case, bids were increased during peak hours while simultaneously lowering spending during less active periods.
Results
As a result, Nectar lowered ACoS by 16% for General Tools and by 11% for Donna Sharp.
In fact, we lowered ad spend over the test period while improving return on ad spend, and increasing overall sales.
General Tool Account Before Data Analysis:
Sales = 145k Spend = 11k ACoS = 7.64%
With Data Analysis:
Sales = 147kSpend = 9.6k ACoS = 6.53%
Donna Sharp Account Before Data Analysis:
Sales = 48k Spend = 10.3k ACoS = 21.5%
With Data Analysis:
Sales = 48.3k Spend = 9.2k ACoS = 19.2%
The brands’ ad spend was more efficient because we were able to reduce wasted spend during times where traffic and conversions were low, and focus the budget during peak times.
Would you like to see how your ad spend can be further optimized while reducing ACoS?
Contact us by filling out the form below.
Nectar is a fantastic partner and consistently finds opportunities to move our business forward. I wish we had more partners like them dedicated to growing our business!
Within five months of hiring Nectar, our average monthly Amazon sales increased over 7x from 5 figures per month to 6 figures per month, and our sales are still growing! Nectar has exceeded our expectations in every way.
Before
After
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