Scaling Revenue while Decreasing Advertising Spend for a 3rd Party Reseller

About

This premier third-party running retail vendor and event management company specializes in delivering exceptional products and experiences to the running community. With a strong commitment to offering a wide-selection of top-quality running shoes, this company serves as a trusted destination for runners of all levels.

CLIENT

Specialty Retail Company

TARGET AUDIENCE

Sells exclusively in the US through Amazon, online, and offline stores.

INDUSTRY

health and wellness

PRODUCTS

Running shoes, apparel, accessories, and equipment.

The Challenge

A reputable shoe retailer was looking to decrease their overall spending across the company while aiming to maximize the impact of their reduced advertising budget on Amazon Ads. Revive stepped in to assist the brand in optimizing their media mix, enhancing spending efficiency, ultimately improving their overall top line revenue.

PAIN POINTS

Reduced Advertising Budget

Lacked comprehensive data to analyze their Amazon performance.

Overstocked with under-performing inventory and under-stocked with popular shoe sizes and styles.

The Approach

To address the clients' challenges, Revive began by streamlining the advertising budget, allocating it towards the most popular shoe brands and styles. Through in-depth data analysis and A/B testing, Revive identified the optimal media mix and strategically shifted budgets towards Sponsored Products. Additionally, they leveraged keyword search volume to tailor their inventory and create targeted campaigns that precisely matched the preferences of the demographic actively searching for these products.

Streamlined budgets to popular shoes and styles

Shifted advertising budgets to Sponsored Products

Tailoring inventory based on Keyword Search Volume

The Results

On Amazon, the more you sell, the more organic lift you receive. Instead of solely focusing on ACoS, it's crucial to consider the full scalability of your business. By combining organic and paid sales and using the total advertising cost of sales (TACoS) metric, you can accurately measure the true success of your campaigns.

Revenue

27.82%

INCREASE

Advertising Spend

-18.16%

DECREASE

Total advertising cost of sales (TACoS)

-36%

DECREASE