How we doubled advertising efficiency and sales volume at the same time
2.17x → 5.78x
ROAS improvement
$40K
in monthly ad spend optimized
407
Keyword bids recalculated and optimized every hour
The Challenge
This brand capitalized on the growing market demand for photo & video supplies after the pandemic. They expanded their product catalog to 30 SKUs across multiple categories.
Their Amazon Ads spend had grown to over $40K per month, but they noticed their sales had been declining for 8 months straight while advertising spend was actually increasing.
Their agency blamed 'increased competition' and 'market saturation' and pumped up bids across the board, using exorbitant top-of-search bid adjustments to try to keep up. But this only worsened the impending death spiral, as spend spiked and sales continued to decline.
The Discovery
When we diagnosed their account, we found that 60% of their ad spend was going to highly competitive keywords where competitors could outspend them due to better margins.
Their broad and phrase match campaigns were picking up golden nuggets every once in a while, but whenever they tried to scale these campaigns, irrelevant search terms would start picking up clicks and ROAS would plummet.
The Solution
Laurence first identified where to slash spend by calculating each existing keyword's value based on historical conversion rates and CPC.
Then, we reallocated that spend to keywords we noticed were converting well, but not explicitly targeted.
Most of these keywords had extremely limited data: Laurence solves this by borrowing statistical strength from similar keywords. A new keyword such as 'fog machine for indoor parties with kids' could immediately benefit from conversion rate estimates derived from 'fog machine', 'indoor party fog', 'kids fog machine', etc.
The Result
We now run over 407 exact match keywords across their product catalog, all optimized every hour.
Sales volume has doubled alongside ROAS, all while TACOS remains below 20%.
Their advertising has become a predictable profit center rather than a black box of hope and guesswork.
Most importantly, they can finally answer the question their agency never could: 'What is driving my ad spend and sales?'
“Our flagship product had been stagnating for the last year and a half. Within a few days Laurence was able to stop the rut and accelerate sales!”
Co-founder
Photo & Video Supplies Brand
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