20.12
%
Decrease in ACOS
9.26
%
Increase in Ad Sales
39.85
%
Increase in Page sessions
35.76
%
Increase in orders
The Brand
Leefy Organics was founded to provide natural remedies for health issues that conventional medicine couldn’t solve. The brand’s first product, Prana, is a blend of turmeric, black pepper, and fat, designed to combat inflammation and congestion effectively. Encouraged by its success, Leefy Organics expanded its offerings to include Nidra, a tincture with tart cherry extract and sleeping herbs, targeting osteoarthritic pain and sleep issues. Leefy Organics focuses on creating natural supplements that support inflammatory response, brain function, heart health, and joint health, offering a natural alternative to conventional medications without harmful side effects.
The Agency
Brand Buddy consists of a team of marketing and branding specialists with diverse backgrounds, including individuals with PhDs in marketing, Master’s degrees in communications, retail experts, and successful entrepreneurs. Their mission is simple: to strengthen your brand’s identity and increase its visibility across different marketplaces. They prioritize sustainable growth and improved profitability through honest, tailored solutions—without shortcuts. Brand Buddy takes a client-focused approach, offering personalized strategies that meet specific business needs. They differentiate themselves by providing dedicated support and working closely with brands as trusted partners to ensure their success, regardless of their level of experience.
Objectives and Challenges
Leefy faced significant challenges in Amazon’s crowded health and wellness market, with over 10,000 brands, including 100 turmeric herbal supplement brands. Established brands with 10,000-20,000 reviews enhanced their credibility and visibility, making it tough for Leefy to compete. These brands sold at lower prices while remaining profitable, whereas Leefy had to set higher prices ($31.5) to cover costs and invest in advertising, deterring price-sensitive customers. Additionally, strong customer loyalty to established brands created substantial barriers for new entrants.
Leefy also struggled with low conversion rates, leading to a high cost per acquisition (CPA) of $13 from September to November 2023. This increased CPA pressured Leefy’s limited $5000 monthly advertising and marketing budget, reducing resources available for enhancing brand visibility and boosting conversion rates. Competitor brands’ strong emphasis on creative-led ads further intensified the struggle for visibility, necessitating innovative strategies for Leefy to cut through the noise and increase brand awareness.
The Solution
Reallocation and Optimization of Resources
Through Adbrew’s Dashboard and Audit page, the agency conveniently analyzed top-performing match types, reducing spending on costly product targeting by 69.27% from $4,311.38 to $1,324.63. This change resulted in a 47.97% decrease in ACOS for product targeting, now at 74.33%. Redirecting funds improved phrase match sales by 126.18%, lowering ACOS from 7.88% to 5.36%. Continuous monitoring and dynamic adjustments were crucial. Funds were shifted from underperforming to successful campaigns, reducing expenditure by 12.69% while increasing sales by 9.26%.
Share of Voice (Digital Shelf Tracking)
Implementing the share of voice tracking through Adbrew enabled the agency to track their product visibility for certain keywords and monitor Leefy’s market share across keywords meticulously. This approach facilitated daily and hourly performance tracking, offering insights into competitors’ strategies and visibility. By taking action on these insights, Leefy’s market share surged by 38.79%, with TOS impression shares for “turmeric extract organic” rising significantly from 11.23% to 25.77%.
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Automation of Bids, negatives, and Target Harvesting
Managing advertising effectively requires careful execution and ongoing monitoring. Adbrew’s Automation is crucial for streamlining processes and maintaining consistent performance. Brand Buddy aimed to implement a strategy that minimized daily manual adjustments, opting instead for efficient automation. Adbrew enabled systematic bid adjustments based on performance data to achieve target ACOS. This approach also optimized spend allocation, eliminating ineffective search terms.
Optimizing Ads for Converting Placements
By utilizing Adbrew’s placement page, the agency aimed to optimize the placement modifiers for different campaigns. Focus on top-of-search visibility drove TOS ACOS down from 9% to 7.58%, resulting in a 9.59% increase in TOS sales. Similarly, product page placements saw a decrease in ACOS from 197.78% to 159.05%, accompanied by a 36.37% reduction in spending. By using the placement report the agency was able to identify the campaign performance in different placement options and optimize the modifiers.
Strategic Implementation of Discovery Campaigns
By utilizing Adbrew’s target harvesting automation, Brand Buddy managed to identify new high-performing search terms from the discovery campaigns and seamlessly integrate them into performance campaigns. Regular updates ensured continuous optimization, with the harvested keywords contributing to an average ACOS of 2.05%.
Adbrew's Hourly Performance Reports for Ad Spend Optimization
Adbrew provided the agency with hourly performance reports powered by Amazon Marketing Stream, offering a detailed view of ad performance throughout the day. This real-time, granular data allowed the agency to track shopper behavior shifts and analyze performance at the hourly level. With Adbrew’s insights, the agency optimized the brand’s ad spend by reallocating budgets to high-performing hours, ensuring maximum ROI. By reducing spending during low-ROAS periods, they improved overall advertising efficiency, helping clients achieve better results while maximizing the effectiveness of their marketing strategies.
Results
- During the period from December 2023 to February 2024, Leefy’s advertising efforts yielded significant results. Ad-attributed sales increased by 9.26%, rising from $78,708.3 to $85,993.57, despite a 12.69% decrease in ad spend, demonstrating effective sales growth amidst budget constraints.
- Advertising Cost of Sales (ACOS) decreased by 20.12%, dropping from 18.09% to 14.45%. Total Acquisition Cost (TACOS) similarly improved by 19.05%, declining from 8.08% to 6.54%.
- Organic sales rose by 7.94%, reaching $189,981 compared to $176,003 in the previous period. The optimization efforts resulted in a notable 7.19% increase in total units sold, from 5,073 to 5,438, and a significant 39.85% surge in Amazon page sessions, from 20,101 to 28,112.
- Orders increased by 35.76%, from 151 units to 205 units, and sales grew by 39.69%, from $4,938 to $6,898.