Home Goods Brand Increases Profits by 23%
Through thorough keyword research and disciplined ACOS management, we shifted from ranking focus to profit focus, delivering sustainable growth.
Client Overview
Industry
Home & Kitchen
Product Range
Kitchen Tools & Accessories
Monthly Ad Spend
$45,000
The Challenge
This established home goods brand was experiencing a common problem: increasing sales volume but declining profit margins. Despite ranking well for many keywords, their advertising campaigns were not translating into sustainable profitability.
Key Challenges:
- •Declining profit margins despite increasing sales volume
- •Inefficient keyword targeting leading to high ACOS
- •Poor performance on certain relevant keywords
- •Lack of clear profitability tracking at keyword level
Our Strategic Solution
Comprehensive Keyword Research
Conducted deep analysis of search terms and competitor keywords to identify high-value opportunities
Implementation Details:
- Analyzed 12 months of search term data
- Identified 200+ new keyword opportunities
- Mapped keywords to profit potential
- Created keyword priority matrix
Disciplined ACOS Management
Implemented strict ACOS targets based on product margins and business objectives
Implementation Details:
- Set product-specific ACOS targets
- Created automated bid rules
- Implemented daily monitoring system
- Established performance thresholds
Creative Optimization
Replicated top-performing creative across all placements using lifestyle imagery
Implementation Details:
- A/B tested lifestyle vs. product-only images
- Optimized for mobile viewing experience
- Created placement-specific variations
- Improved click-through rates by 34%
Strategic Pivot to Profit Focus
Shifted strategy from ranking-focused to profit-focused optimization
Implementation Details:
- Paused underperforming keywords
- Reallocated budget to profitable terms
- Implemented profit-based bidding
- Focused on contribution margin optimization
Results Achieved
Profit Increase
Overall profit improvement within 90 days
ACOS Improvement
Reduction in advertising cost of sales
Keyword Efficiency
Improvement in keyword performance
Campaign ROI
Return on advertising investment
Key Learnings
- Not all relevant keywords are profitable - focus on those that drive actual profit
- Lifestyle imagery significantly outperforms product-only shots for home goods
- Disciplined ACOS management requires daily monitoring and quick adjustments
- Profit focus often requires sacrificing some ranking positions for better margins
Conclusion
This case study demonstrates the importance of shifting from vanity metrics to profit-focused optimization. By conducting thorough keyword research, implementing disciplined ACOS management, and making strategic decisions about keyword relevance vs. profitability, we were able to deliver sustainable growth for the client.
The key was recognizing that not all relevant keywords are profitable, and sometimes the best strategy is to focus resources on terms that drive actual profit rather than just rankings or impressions.
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