AGAS - 364% Increased Sales For 12 Months

Our client, a niche seller of high-quality flags, faced challenges with the highly seasonal nature of their product. Despite consistent sales, they sought to optimize their Amazon store performance, reduce wasted ad spend, and maximize profitability. In March 2023, we took over their advertising and sales strategy, focusing on driving growth while managing seasonal fluctuations.

Challenges: Before our intervention, the client faced key obstacles, including:

• Seasonal Sales Fluctuations: The flag market is highly seasonal, creating significant variance in sales throughout the year.
• Inefficient Ad Spend: The client’s advertising strategy resulted in a high ACOS, limiting profitability.
• Low Sales Growth: The client wanted to boost sales and expand their customer base during both peak and off-peak periods.

Our Approach: Our strategy focused on optimizing the client’s Amazon campaigns to take advantage of seasonal spikes in demand while improving advertising efficiency during slower periods.

1. Campaign Reorganization:
   • Exact Match Targeting and Search Term Isolation: We extracted data from previous campaigns and shifted to exact match targeting. This allowed us to optimize ad spend by focusing on high-intent search terms, cutting down on wasted budget and reducing ACOS.
2. Seasonality Management:
   • Budget Realignment: We adjusted ad budgets to capitalize on peak seasons while managing spend effectively during off-peak months. This ensured consistent sales while controlling costs during slower periods.
3. Enhanced Advertising Channels:
   • Sponsored Brand and Display Ads: With optimized campaigns, we invested in Sponsored Brand and Display ads to expand visibility, driving incremental sales during peak times.
4. Long-Term Organic Ranking Strategy:
   • We also focused on improving the organic ranking of key products to generate sales even without paid advertising, which allowed for sustained growth month over month.

Results:

• March 2022 - February 2023 (Before Our Involvement):
  • Total Sales: $94,995
  • Ad Spend: $9,808
  • TACOS: 10.3%
  • Profit (30% of Sales): $28,498
  • Net Profit After Ad Spend: $18,690
• March 2023 - February 2024 (First 12 Months After Taking Over):
  • Total Sales: $441,161
  • Ad Spend: $87,634
  • TACOS: 19.9%
  • Profit (30% of Sales): $132,348
  • Net Profit After Ad Spend: $44,714

• Improvement Overview:

• Sales Growth: From March 2023 to February 2024, we increased total sales by 364.4%, from $94,995 to $441,161. This sales boost led to a profit growth of 364.4%, from $28,498 to $132,348. After deducting ad spend, the net profit grew from $18,690 to $44,714.
• Seasonal Surge Management: During the most recent six months (March 2024 - September 2024), we further increased sales to $307,363, a 41.5% increase over the same period in 2023. Profit grew proportionally, though net profit dipped slightly due to increased ad spend, as we invested in driving more visibility and capturing market share. Therefore, the plan moving forward is to duction plan to increase profitability now that we've secured a larger market share.

Conclusion: Through reengineering the advertising strategy and optimizing spend around seasonality, we delivered a significant 364.4% increase in sales and more than doubled net profit year-over-year. Even in the highly seasonal flag market, our strategic approach has led to sustained growth, increased profits, and continued improvements in performance.

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