$30-40k/day with 50% fewer SKUs.

Executive Summary

We were tasked with maintaining daily sales of $30-40k with 40 fewer products (50 vs. 90). Whilst maintaining conversion rates and TACOS goals.

We achieved the $30k-$40k daily target and increased the conversion rate by 3%. Notably, we achieved a TACOS below 22% in Q4 for the first time. Additionally, there was a 4% growth in repeat sales units and a 2% rise in repeat customer share.

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Strategies

1. Relevancy and Keyword Limitations:
   

• Eliminated irrelevant keywords, products, and category targeting (e.g., 'shampoo and conditioner' in Mask campaigns).
• Reduced keywords per campaign for enhanced visibility, addressing campaigns with 100+ keywords, half of which were ineffective.

2. Branded and Non-branded Segregation:
   

• Differentiated between branded and non-branded campaigns, reducing spending on branded ones.
• Initially, 80-90% of campaigns relied on branded targeting, necessitating an improved focus on non-branded targeting.
• Lowered bids on branded terms by 80-90%, contingent on organic ranking, to assess cannibalization.
  

3. Retargeting and Repeat Sales:
   

• Addressed stagnant repeat sales and retargeting strategies for beauty products with monthly consumer needs.
• Implemented diverse retargeting campaigns to enhance views and purchases.

4. New-to-Brand (NTB):
   

• Increased NTB orders by 19% through awareness campaigns, resulting in 4890 NTB orders in Q4 2023 compared to 5057 in Q4 2022.
  

5. Hero & Non-hero Products:
   

• Focused on 231 out of 318 active campaigns related to hero products.
• Launched campaigns for non-hero products, previously underutilized, to boost awareness and ROI.

6. Budget Management:
   

• Instituted performance-based budget rules for campaign budget control.

7. Video Expansion:
   

• Enhanced video campaigns for products and categories, improving click-through and conversion rates, including single-product targeting.

8. Experiments:

• SBV Top of Search: Utilized store page as landing page, focusing on subscription store promotion.
• SB Multiple Custom Image Campaigns: Tested multiple custom image ads, but found diminishing effectiveness compared to video ads.
• Breaking Auto Campaigns: Split auto campaigns for sets into two types based on targeting characteristics, currently with limited budget and bids.
• SD Retarget vs SDV Retarget: Compared campaign types to optimize retargeting techniques, with SD campaigns currently outperforming SDV.

Results:

• Maintained daily sales at $30k - $40k.
• Increased conversion rate by 3%.
• Achieved TACOS below the target of 22% in Q4 for the first time.
• Recorded a 4% growth in repeat sales units and a 2% increase in repeat customer share.
• Boosted visibility and effectiveness through keyword optimization.
• Strengthened focus on non-branded targeting, leading to diversified traffic.
• Successfully implemented and refined retargeting campaigns.
• Enhanced video campaign performance, showing significant improvements in vCTR and vCVR.
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T5 (Black Friday and Cyber Monday) Performance:

Strategies:

• Pre-Holiday Experiments: Conducted multiple tests from August to October, applying outcomes in November.
• Rigorous Campaign Structure Setup: Established structures pre-Q4, with defined portfolios and spending limits per product.
• Focused Spending: Directed 95% of T5 spending towards top deals. Budgets were allocated based on product performance.
• Targeted Focus: Aimed for TACOS-based targets, prioritizing relevant targeting over controlling ACOS.
• Strategic Bid Optimization: Employed strategic bidding for Sponsored Products (SP) campaigns based on keyword performance.

Results:

• Despite having 40 fewer SKUs, revenue increased by 5.5% during T5, compared to the previous year.
• Generated $344k in revenue during T5, a 5.5% increase over the previous year's $326k.
• Achieved targeted spending and bid optimization goals.
• Successfully managed campaign structures to maximize T5 sales.

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