Halving ACoS While Doubling Revenue for a Bedding Brand

Case study: Halving ACoS While Doubling Revenue for a Bedding Brand

Industry

Home & Bedroom

Service

Amazon PPC

Amazon PPC

Delivered In

6 weeks

Results

ACoS

45% to 18%

45% to 18%

Monthly Revenue

2x

2x

TACoS

TACoS

25% to 12%

25% to 12%

Ad Spend Unchanged

Ad Spend Unchanged

$25K

$25K

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.

Challenge

  1. 45% ACoS on $25K monthly spend with no clear path to improvement

  2. High CPCs driven by overbidding on broad, low-intent keywords

  3. Ad spend directed at the wrong products with no margin consideration

  4. TACoS at 25% making profitable scaling impossible

Approach

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.