Case Study: Existing Seller that switched to Three Pillars

In this blog series, we walk you through high-level case studies of our work so that you can understand 1) how we support our clients, and 2) the cost of our services.

Spring 2019

We were approached by an existing Amazon seller who had over 400 products with over 200 live Sponsored Products campaigns. Our client had a budget of £30,000 per month across all campaigns but had an Advertising Cost of Sales (ACOS) of 37%, which was much higher than their target of 17%. They felt there was a lot of wasteful spending, and disorganised, duplicated, and mismanaged campaigns. We were tasked with managing their campaigns to increase sales whilst lowering their ACOS to their target (17%).

Our first action was to clean up the campaign manager view by consolidating their 200+ existing campaigns into few ‘portfolios’ based on product type. We reviewed the performance of their campaigns over time and removed low performing, duplicated or poorly optimised campaigns.

Next, to increase conversion, we sorted their strong performing and weak performing keywords. We discovered there were too many general ‘auto’ campaigns, and so we moved a number of products to ‘product targeting’ campaigns and removed wasteful brand ad spend. By splitting Auto, Manual and Product targeting ads we increased sales and reduced ACOS.

Not only did our client benefit from increased advertising revenue, but also benefited from the ‘halo effect’: higher ad sales -> higher sales rank -> higher organic traffic -> more sales.

Overall monthly ad spend initially dropped to £24,000 with no loss of advertising sales. after 5 months of management the full £30,000 ad budget was redeployed, and overall revenue had risen 18% from initial contact. We achieved all of this whilst reducing ACOS from 37% to a mere 1.7%, ten times lower than their target.

To achieve this, we charged: No setup fee, no contract minimum duration, £3000 per month budget management fee (based on 10% of ad budget). Note – the fee did not decrease in the early months as a consequence of less ad spend due to budget efficient deployment, the fee was based upon the clients overall ad budget.

Here is what our Client has to say about their experience working with us.

The guys at Three Pillars are geniuses. We met William and the team at an Amazon seller event in London and we got talking about advertising. I knew that we could do better, but I had no idea that there was so much room for improvement. I'm genuinely surprised that they have delivered such outstanding results. A pleasure to work with, I would them to anyone looking to improve their Amazon advertising.

If you're looking to optimise your Amazon advertising, or want to understand how we can help you put your products in front of the right customers, then get in touch to learn how we can help you.