Fairybell

Mastering Resource Allocation: Unleashing the Potential of Strategic Advertising Budget Allocation for a 238% Increase in YOY Revenue — While Lowering ACOS

Client Overview

Fairybell specializes in high-quality LED outdoor Christmas trees renowned for their energy-saving, sustainable designs. In recent years, Fairybell has enjoyed notable success. Seeking to boost their sales further for the upcoming holiday season and reach their sales goals, they sought a partner. Despite a large and highly rated product catalog, their advertising expenditure has been limited, presenting significant untapped potential.

Nuanced Media Services Used:

Challenges

Fairybell’s advertising efforts were previously misdirected towards a low-search-volume product on Amazon, despite having a high-demand product. This resulted in missed opportunities in their advertising campaigns, hindering revenue growth. Additionally, they faced inconsistency in Advertising Cost of Sale (ACOS), indicating ineffective optimization and targeting of current advertising strategies, resulting in fluctuating efficiency and profitability. The challenge was to refocus advertising efforts on more sought-after products without exceeding a 25% ACOS threshold.

Key Challenges

Neglect of high-converting products in advertising campaigns.
Inefficient allocation of ad spend among product variations.
Inconsistent ACOS indicating ineffective optimization and fluctuating profitability.

Solutions

We began by analyzing Fairybell’s keywords, audiences, and categories to identify their top-performing products. Advertising campaigns were reconstructed to then reallocate the budget towards the high-converting products. We increased ad spend with a keen focus on maintaining ACOS below the 25% threshold. Finally, we continue with daily monitoring and optimization to ensure the advertising budget was allocated efficiently to campaigns yielding the highest returns as well as enhancing targeting and improving quality scores.

Key Solutions

Analysis to identify top-performing products and missing opportunities.
Reallocate advertising efforts and resources to high-converting products.
Increase overall ad spend while ensuring ACOS remained below 25%.
Implement strategic negations and optimizations in campaign management.

Results

The updated advertising strategy yielded remarkable results for Fairybell. The average CPC dropped from $1 to $0.8, while the average ACOS decreased from 31% to 18.86% year-over-year. Sales skyrocketed from $322,000 in the high season (Oct-Dic) of the previous year to $1,090,000 in the corresponding period this year, marking a staggering 238.5% increase. This multifaceted approach allowed Fairybell to refine its advertising efforts, enhance budget allocation, and achieve significant improvements in campaign effectiveness and profitability.

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Increase in YOY revenue

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Decrease in ACOS

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Decrease in CPC

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We hire Nuanced Media to reach our Amazon sales goals with PPC and organic sales. Besides get help with optimizing product content. A+ content, brand story, imagery. I’m impressed with their knowledge, and the service timing is great. Sales increase has been a measurable outcome. They deliver on time and we are very happy with the project management we had. Great company to work with.

Joren A.

E-Commerce Specialist, Fairybell