Kitchen Supplies

Client:

NDA

Main problem:

High ACoS

Niche:

Kitchen supplies

Initial ACoS:

60%

We were approached by a kitchenware brand that sells knife sets, graters, and kitchen organizers. The main problem was a high ACOS (Advertising Cost of Sales), which reached 60%. That is, most of the revenue from each sale went to advertising, which made the business unprofitable. Initial performance: • ACOS: 60% • TACOS: 38% • Monthly advertising budget: $8,000 • Sales from advertising: $11,111 • Total sales: $21,000 • Number of campaigns: 43 (most of them are automatic, without segmentation)

Thanks to the right structure, manual targeting, and content work, we not only cut ACOS in half, but also brought the brand to a new level of profitability. Now the brand is planning to launch a new product line and trusts us to scale it.

Result:

ACOS decreased from 60 to 25%, which made advertising much more effective.
TACOS dropped from 38% to 21%, meaning that overall sales grew not only through advertising but also through organic.

Advertising sales more than doubled from $11,111 to $24,000, and total brand sales grew from $21,000 to $48,000, a 128% increase. The profitability, which was almost zero before, reached over 25%.

We reduced the number of advertising campaigns from 43 to 18, eliminating ineffective and duplicated ones, which allowed us to better control the budget and focus on high-performing areas.