Case Study : Driving £1.12 Million in Sales with a 16.67% Net Profit Margin in the Beauty Niche By Successful PPC Campaign
Challenge
Entering the highly competitive beauty niche on Amazon posed significant challenges. With only two initial SKUs, the primary goal was to achieve rapid brand expansion while maintaining high visibility and profitability. This required ensuring the presence of PPC ads on high search volume keywords, setting up PPC campaigns for quick growth, and utilizing all three types of ads to maximize visibility. Additionally, maintaining a Best Sellers Rank (BSR) below 3 in the subcategory, addressing cannibalization issues, and enhancing click-thru rates were critical to our success.
Solution
To tackle these challenges, we implemented a strategic approach leveraging Scale Insights, an advanced PPC software. This tool allowed us to automate and scale our Amazon PPC campaigns effectively, using AI-driven algorithms to dynamically adjust bids, identify day parting patterns, and eliminate non-performing search terms. This automation saved time and optimized our ad spend.
Key PPC strategies included aggressive bidding focused initially on sales and conversions to rank on primary keywords, optimizing for ACOS later. We launched PPC campaigns from day one to build relevancy and capitalize on the honeymoon period. Ensuring listings and photos were optimized for conversions right from the start was crucial, as was improving listing conversion rates to boost impression share and rank.
We accepted high ACOS initially to drive sales and build social proof, setting aggressive budgets on high volume, highly relevant keywords. Separate exact campaigns were created for main keywords to ensure serious campaign recognition by Amazon.
Our PPC campaign types included discovery campaigns (auto and manual broad) to gather search term data, manual phrase campaigns to gather extra sales around main keywords, and manual exact campaigns with aggressive bids to rank on ultra-relevant keywords. We also utilized product targeting campaigns, video campaigns, custom images with multiple products, vertical videos, remarketing SD, and product targeting SD.
Enhanced click-thru rates were achieved by A/B testing and redesigning main images and A+ content, crafting a compelling brand story with our creative team.
Key Findings
The results of our strategic initiatives were impressive:
- Total Sales: £1,122,176.40
- Net Profit Margin: 16.67%
- Total Spend: £172,130
- TACOS: 15.3%
- CTR: 9.3%
- Units Ordered: 143,248
- Average Sale Size: £8.31
This case study demonstrates how a strategic approach to PPC and listing optimization, supported by advanced tools like Scale Insights, can drive substantial growth and profitability in a competitive market. For more detailed insights or queries related to this case study, feel free to leave a comment.
AMZ Groble is a leading Amazon PPC & Management agency specializing in Amazon and eCommerce powered by Groble. AMZGroble empowers eCom brands to achieve over $1M+ in ARR on Amazon
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