Amazon

Healthy Spot

MuteSix worked with Healthy Spot to increase ROAS by 55% and ad revenue by 48% with Amazon Account Management and Sponsored Ads.

Overview

Healthy Spot, the premier provider of nutritional foods and eco-friendly products for pampered pets, came to MuteSix with a minimal budget, looking to increase ROAS and total revenue via organic and paid marketing efforts on Amazon. After careful consideration of budget and past performance, the MuteSix Amazon team implemented a two-prong strategy to boost organic sales and maximize efficiency with Sponsored Ads, given high CPCs relative to the revenue generated from low-price-point products.

The Strategy

Healthy Spot generates revenue on Amazon from both organic and paid marketing efforts. In order to best allocate their tightly budgeted marketing dollars, the MuteSix Amazon team carefully analyzed the brand’s ratio between organic and paid sales.

In doing so, we discovered the majority of monthly sales were organic in nature. As such, an increase in ad budget would not necessarily translate to an increase in sales to the same degree as it would for brands generating the majority of their revenue via Paid Sponsored Ads.

Given Healthy Spot’s limited budget, our observations informed our two-prong marketing strategy:

 

  1. In order to increase organic sales, the team optimized Product Description Pages on all low-AOV one-packs.
  2. In order to increase efficiency against the high CPCs, the team removed low-AOV products from the paid ad campaigns, instead focusing only on the high-AOV three-packs, which cost 3x more.

The Impact

Once we adjusted Healthy Spot’s Product Description Pages and Sponsored Ads strategy, their ROAS, total revenue, and ad revenue skyrocketed within four short weeks.

With increased efficiency, Healthy Spot’s tight budget was no longer a challenge. In fact, the two-pronged strategy proved so effective, Healthy Spot had additional spend to create and test more campaigns and even expand their Amazon catalog by adding more higher-AOV products to include in the ad campaigns, further boosting revenue.

The Success

55% Increase in ROAS 16% Increase in Total Revenue 48% Increase in Ad Revenue