DSP Increases Sales By 46% While Decreasing TACOS
The Challenge OMG Commerce was given the task of increasing DSP spending while keeping a consistent ROAS for QRX Labs, a high-end skincare brand on Amazon, in order to boost overall sales and address stagnant growth. The Approach OMG Commerce implemented various Amazon DSP campaigns to sharply increase DSP expenditures while meeting return objectives. These efforts included lower-funnel campaigns like Repurchasing and Retargeting, as well as mid- to upper-funnel campaigns aimed at similar products and potential buyers, utilizing both static and video creatives. The Results saw average monthly DSP spending rise by 120% year-over-year, achieving the target ROAS of over 2x. Total sales grew by 46%, climbing from $493k in August 2021 to $720k in August 2022. Following a 38% increase in DSP spending from July to August, PPC sales surged by 26% month over month. This boost in PPC sales was accomplished with a stable return, improving from nearly 64% ACOS in July 2022 to a more efficient 58% ACOS in August 2022. DSP campaigns, which accounted for about 6% of total Amazon advertising spend in 2021, represented over 14% of ad spend in 2022. Overall spending across all advertising products increased by only 11% year-over-year, while average monthly sales rose by 18%, leading to a 7% decrease in TACOS.