This client initially attempted to run Google Ads on their own, resulting in heavy losses. When they took their brand to another vendor they experienced yet another set of losses. It wasn’t until beginning tests with MaverickX that the trend seemed to break, as we optimized for ACOS, and once that wasn’t a concern anymore, shifted to optimizing for revenue.
It was apparent that the implementation of a strategy was necessary for this brand to make up for it’s losses and continue growing in a positive direction. We broke this case study into two parts, tracking results from their first 30 days with us while we began testing, and then tracking the following 60 days after we defined a working strategy.
After following a strict strategy, the ACOS was driven below 10%, while ROAS wildly reached over 1,000%. This ACOS Level far exceeded the brand’s standard of success, and allowed them to open up to more spending as we neared the end of our 30-day testing period.
The brand bonus is a fee each time a customer clicks on ads that are outside of Amazon. In this period of time, $403.97 was spend on ads, while the brand bonus brought in $427.02.This in itself could help the brand mitigate their losses, but of course MaverickX won't just stop there.
Although there was a fairly strict limit on the amount we could spend on ads, there was still revenue being driven, why is that? It's because the kind of campaigns we run are meant to keep your budget from blowing up and to promote organic ranking, which ultimately means your products are being pushed in front of consumers more often with less hands involved.
With all of these components beginning to align in the brand's favor, like hitting a comfortable ACOS, we begin to shift from optimizing for ACOS, to optimizing for revenue. This means there was less concern for the limit on ad spend. In fact, spending was ramped up until a breaking even point was reached.
The initial 30 days of testing produced rather unusual ACOS and ROAS levels, but as we continued our testing in the 60 days that followed, these numbers began to level out. The resulting ACOS was 43%, which is higher than before but with a ROAS of 228%, this is still an optimal level for both metrics.
After arriving at the clients acceptable ACOS level, we were able to ramp up on spending until they broke even. Although spending too much on ads was their downfall in the beginning, what they have now is a proven strategy that MaverickX implemented to keep them from seeing those losses again. Instead, this increase caused a chain reaction of increases that this brand appreciated entirely.
Clicks are exactly what you are thinking; the amount of customers that actually click on your ad. As ad spend increases, so does the amount of IMPRESSIONS (consumers that SEE your ad), which leads to a higher click rate, ultimately arriving at the one thing that most brands enjoy: increase in revenue!
Increasing spend increases the amount of consumers seeing and potentially engaging with your ads. This increase leads to increased revenue. In this case, our client's brand saw an increase of over 2x. The 30-day testing produced a total GMV of $4,270, where after the following 60 days their total GMV reached $20,339.