Our client operates in the healthcare category, a sector that accounted for more than 10.4% of the Amazon market in 2024. The company offers science-backed wellness products designed to provide effective health solutions. Focused on high-quality, natural formulations, they prioritize accessibility and efficacy, making their products a trusted choice for consumers seeking proactive health support.
Increase advertising investment
One of the most common challenges brands face is the hesitation to increase advertising investment, even when performance data indicates strong growth potential. Concerns about profitability, cost efficiency, and scalability often lead brands to maintain fixed budgets rather than explore opportunities for expansion.
Additionally, in one of the marketplaces, we faced stock limitations and Buy Box inconsistencies, which restricted our ability to fully utilize the allocated budget. Rather than leaving this as a constraint, we leveraged this challenge as an opportunity—shifting focus and reallocating spend to the other marketplace, where we could push for higher sales growth.
Our objective was to maximize performance while maintaining the client's fixed monthly budget. This case study demonstrates how a strategic budget reallocation approach led to significant sales growth and efficiency improvements without negatively impacting profitability.
Reallocating a portion of the budget
The client operates in two major marketplaces: the U.S. and Canada. Due to Buy Box and stock limitations in one region, we adjusted the advertising strategy by reallocating a portion of the budget to top-performing products in the other marketplace.
Steps Taken:
✅ Reallocating budget to optimize market performance
- Shifted ad spend to the marketplace with stronger performance
✅ Enhancing keyword targeting
- Integrated new search terms from Amazon data to refine targeting
- Increased bids on high-volume, high-intent keywords
✅ Expanding consideration and awareness campaigns
- Launched DSP remarketing spend to drive conversions from previously engaged audiences.
✅ Refining campaign focus for maximum efficiency
- Reduced budget allocation for product targeting campaigns, to better control keyword bidding.
- This approach resulted in fewer overall impressions but a higher conversion efficiency for key ASINs
Our strategic execution led to significant performance improvements:
📈 33.1% Increase in Ad Spend – Without exceeding the fixed budget, we reallocated investments to the highest-performing areas.
📈 20.4% Increase in Clicks – More engaged shoppers driven by refined targeting.
📈 29.6% Increase in Orders – Higher purchase intent
📈 20% Sales Growth – Direct impact of strategic ad distribution.
📈 7.7% Improvement in Conversion Rate – More effective ad placements and keyword targeting.
📈 Slight ACoS Increase (+2 percentage points) – A controlled rise, well within the acceptable range, considering the significant revenue uplift.
📈 37% Increase in Total Account Sales – Achieved despite February being a shorter month (28 days vs. 31 days in January).
Key Takeaways
- ✅Strategic ad spend adjustments unlock growth potential
A thoughtful approach to budget allocation can drive significant revenue increases, proving that controlled investments in advertising yield measurable results. - ✅Market-specific budget distribution enhances performance
Adjusting spend between marketplaces based on stock availability, Buy Box status, and competitive positioning allows brands to optimize their return on investment. - ✅Balancing awareness and conversion campaigns strengthens sales funnel
expanding brand visibility while reinforcing remarketing strategies ensures a steady influx of new customers while re-engaging existing ones. - ✅Keyword-focused budget allocation improves efficiency
Prioritizing high-converting search terms leads to more effective use of advertising budgets and higher conversion rates.
Final Thoughts
By implementing a structured and adaptive advertising strategy, we demonstrated how strategic budget shifts can unlock new sales opportunities. Despite initial marketplace challenges, reallocation and precise targeting allowed for substantial growth, reinforcing the importance of a proactive and data-driven approach to advertising investment.
If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to contact the BellaVix Team.
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