ROAS
Client:
LuxeHome Furniture – High-end furniture retailer known for luxurious and contemporary
designs.
Initial Scenario (Before Implementation):
LuxeHome had been running Amazon PPC campaigns for some time but wasn’t seeing the desired Return on Advertising Spend (ROAS). Their campaigns had:
● High Ad Spend: Significant expenditure without proportionate sales increase.
● Low Sales: Revenue did not justify advertising costs.
● High ACoS: Inefficient Advertising Cost of Sales, higher than industry average.
CHALLENGES
1. Keyword Optimization:
○ Conducted thorough keyword research to identify high-converting and relevant keywords.
○ Removed or reduced bids on non-performing keywords and added negative keywords to filter out irrelevant traffic.
2. Dynamic Bid Management:
○ Implemented a dynamic bid strategy, adjusting bids based on individual keyword performance.
○ Ensured high-performing keywords received more budget, while underperforming ones were deprioritized.
3. Product Listing Revamp:
○ Enhanced product listings with compelling content, high-quality images, and clear product benefits to attract potential customers.
4. Budget Reallocation:
○ Analyzed campaign performance data to identify the most profitable campaigns.
○ Allocated more budget to these campaigns while reducing or pausingnon-performing ones.
● Ad Spend: The total expenditure was reduced to $20.94.
● Sales Generated: Sales increased to $1,829.39 from this refined strategy.
● ACoS: Achieved a strikingly low ACoS of 1.14%, far below previous values and industry commendable.
This represented a significant positive shift in sales for every dollar spent on advertising,
achieving a ROAS of approximately 87x (sales/ad spend).
Client Love
