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TYR, a leading performance athleticwear and equipment brand, faced a common yet complex challenge in their Amazon advertising strategy: how to grow store revenue while simultaneously reducing or maintaining their ad spend.
With a diverse catalog ranging from low-priced accessories to premium shoes, swim and athleticwear, their existing approach wasn't maximizing return on ad spend (ROAS) or total revenue efficiency.
Nectar's analysis revealed a critical imbalance in TYR's advertising budget allocation.
Many of TYR's top-selling items were Swim Caps and Goggles — low average selling price (ASP) products. The advertising budget was being distributed equally between these lower-priced items and higher-priced items such as Men's Jammers, Women's Swimwear, and Swim Bags.
This uniform distribution limited TYR's ability to scale their Amazon presence while maintaining profitable ROAS targets. The ad spend on low-ASP items was consuming a disproportionate share of the budget relative to their contribution to overall revenue and profit margins.
This case study demonstrates how strategic budget allocation based on product price points and profit margins can dramatically improve Amazon advertising performance. By realigning ad spend to prioritize higher-value items while optimizing campaigns for lower-priced products, TYR was able to achieve the seemingly contradictory goals of reducing costs while growing revenue.
Nectar's approach highlights the importance of:
For brands with diverse product catalogs on Amazon, this strategic reallocation approach offers a proven methodology for improving advertising efficiency while driving sustainable revenue growth.
After just 3.5 weeks of implementing this strategic approach, TYR experienced significant improvements across all key performance indicators:
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