Case overview
Orange Mud is a renowned brand known for its innovative endurance gear and accessories. Specializing in high-performance products designed for athletes and outdoor enthusiasts, Mrange Mud has built a reputation for quality and durability. Despite their strong product line, the brand faced challenges in optimizing their Amazon store performance
Challenges
- High Advertising Cost of Sale (ACOS): The ACOS was unsustainably high at 50.4%, significantly reducing profitability.
- Inefficient Campaign Structure: The existing campaigns were disorganized, with a significant amount of wasted spend due to poorly targeted keywords and a lack of focus on high-converting search terms.
- Limited Budget Flexibility: High ACOS limited the budget available for exploring other advertising opportunities, such as Sponsored Brand and Sponsored Display ads.
- Need for Improved Organic Ranking: The brand needed to enhance its visibility and compete more effectively with top sellers in the endurance gear category.
Our Approach
Our Approach: To address these challenges and drive sustainable growth, we implemented a multi-faceted strategy focused on campaign optimization and long-term growth:
Campaign Reorganization and Search Term Isolation
Data Extraction and Analysis: We began by extracting performance data from existing campaigns to identify high-performing keywords and those that were draining budget without delivering results. Exact Match Targeting: We restructured the campaigns to focus on exact match targets, ensuring that ad spend was directed toward high-intent search terms that were more likely to convert. Search Term Isolation: By isolating search terms, we minimized wasted spend and improved the efficiency of the campaigns, which directly led to a significant reduction in ACOS.
Reallocation of Budget to Sponsored Brand and Display Ads
With the budget freed up from reducing wasted spend, we were able to invest in Sponsored Brand and Sponsored Display ads. These ads played a crucial role in increasing brand visibility and driving incremental sales, especially during the initial stages of our engagement.
Organic Ranking and Long-Term Growth Strategy
Once the campaigns were optimized and sales had increased, we shifted focus to long-term strategies aimed at improving organic rankings. This involved optimizing product listings, enhancing SEO, and employing strategies to consistently increase sales month over month. By competing with top sellers and steadily building organic traffic, we ensured sustained growth over the long term.
Long-Term Organic Ranking Strategy
We also focused on improving the organic ranking of key products to generate sales even without paid advertising, which allowed for sustained growth month over month.
The Results
First 3 Months
- Year-over-Year Sales Increase:Â We achieved a remarkable 74% increase in sales year over year.
- Sales Growth Compared to Previous Period:Â Sales grew by an impressive 366% compared to the previous period, reaching $164,681.
- Reduction in ACOS:Â ACOS decreased by 19.7% Â from 50.4% to 30.7%, enabling a more sustainable advertising spend.
- TACOS:Â Total Advertising Cost of Sale (TACOS) was maintained at a manageable 22.9%, allowing for continued investment in growth.
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First 12 Months
- Total Sales:Â Over the first 12 months, sales reached $439,879, a significant increase of 104.7% from $214,918 in the previous year.
- ACOS Improvement:Â The average ACOS improved to 34.9% compared to the previous year’s 50%, further enhancing profitability with a 15.1% decrease
- Sustained TACOS:Â TACOS remained steady at 22.9%, reflecting the ongoing efficiency of our advertising strategy.
By systematically addressing the inefficiencies in Orange Mud’s Amazon advertising campaigns and implementing a well-rounded strategy focused on both short-term gains and long-term growth, we were able to deliver exceptional results. The brand not only saw a substantial increase in sales but also benefited from improved advertising efficiency, setting the stage for continued success in a highly competitive market.
Eclipta’s approach to optimizing our Amazon campaigns was exactly what we needed. They helped us drastically reduce our ACOS and reallocate our budget to more effective ad types, boosting our visibility and sales. We saw a 74% increase in sales year over year and an impressive 366% sales growth compared to the previous period. Thanks to their strategic adjustments, we not only improved profitability but also set ourselves up for long-term success, ensuring sustained growth in a competitive marketplace.
