Halving ACoS While Doubling Revenue for a Bedding Brand
Industry
Home & Bedroom
Service
Amazon PPC
Delivered In
6 weeks
Results
ACoS halved from 45% to 18%
Revenue doubled in 6 weeks
TACoS cut from 25% to 12%
The same $25K monthly budget, restructured and redirected, halved ACoS and doubled revenue in 6 weeks.
Overview
A bedding brand spending $25K per month on advertising was generating $100K in monthly revenue at a 45% ACoS. Nearly half of every ad dollar was being absorbed by inefficiency. TACoS sat at 25%. The business was moving. The unit economics were not built to scale.
The problem was not the budget. It was where the budget was going. High CPCs on irrelevant keywords, spend directed at the wrong products, and no structure connecting campaign investment to margin. The brand did not need to spend more. It needed the same spend to go to the right places.
Within 6 weeks, ACoS moved from 45% to 18%. Revenue doubled over the same period. The same $25K monthly budget, restructured and redirected, produced a fundamentally different result.
- 45% ACoS on $25K monthly spend with no clear path to improvement
- High CPCs driven by overbidding on broad, low-intent keywords
- Ad spend directed at the wrong products with no margin consideration
- TACoS at 25% making profitable scaling impossible
Bid Discipline and CPC Reduction
High CPCs were driven by overbidding on broad terms where competition was high and purchase intent was low. Tiered bidding was introduced based on search term performance. Bids on expensive low-converting terms were pushed down. Budget was reallocated toward proven terms at lower cost. CPCs fell and conversion quality improved simultaneously.
Campaign Restructure and Product Targeting
Campaigns were audited and rebuilt around the products that could actually justify the cost of advertising. High-intent, high-margin products received proper investment for the first time. Spend on products that could not sustain the cost was reduced or removed entirely. The campaign structure was rebuilt to reflect what the data supported.
Keyword Strategy
Targeting was tightened to high-intent keywords only. Broad match terms that had been pulling spend toward irrelevant search queries were replaced with tighter match types and stronger negative keyword frameworks. Every dollar of spend was directed toward traffic with a genuine likelihood of converting.
Solution
Over the course of the engagement, People Work introduced a clearer decision framework, redefined ownership across several core workflows, and helped leadership simplify reporting lines across key functions.
Within six months, Modulabs reported measurable gains across both operating speed and internal clarity:
+41% improvement in internal approval speed
-29% reduction in cross-team escalations
Stronger ownership across product and operations teams
More consistent execution of high-priority initiatives
Managers reported spending less time acting as intermediaries and more time supporting team performance. Employees had clearer expectations around who made which decisions, and projects moved forward with fewer delays and handoffs.
