Quick Wins: Increasing ROAS & Lowering ACOS to Accelerate Revenue Growth

Client Overview

The client is a premium exercise equipment brand offering high-ticket home fitness gear designed for performance-focused consumers. Known for quality engineering and a loyal customer base, the brand had built initial traction on Amazon but lacked a sustainable ad strategy. 

Prior to engaging AMZDudes, the brand’s Amazon sales had plateaued, with advertising campaigns yielding diminishing returns. High CPCs driven by increased competition created margin pressure, and ACOS rose to an unsustainable level. The business required a tactical reset to recover ad efficiency and resume profitable growth.

Challenges Faced

Inefficient Advertising Structure
Campaigns were heavily front-loaded, lacked segmentation, and showed minimal bid optimization, resulting in poor return on ad spend.

High ACoS and Reduced Profitability
Despite prior ad success, ACoS stabilized at 50% while sales fell to $5,000 per day, signaling a mismatch between spend allocation and buyer intent.

Lack of Data Visibility
The brand lacked campaign-level data clarity, limiting their ability to track high-ROAS assets and eliminate unprofitable keywords.

Limited Brand Presence Across SERP
Sponsored Brand and Display formats were underutilized, reducing exposure across upper and mid-funnel placements.

Strategic Interventions

Campaign Architecture Redesign

Full-Funnel Ad Structure: Implemented a multi-tiered campaign structure across Sponsored Products, Sponsored Brands, and Sponsored Display. Segmenting by branded, non-branded, and competitor terms allowed for better intent targeting and cost control.

Keyword and Search Term Refinement

Negative Keyword Optimization: Regular negation of low-converting terms reduced wasted spend and improved efficiency across core campaigns.
Search Term Expansion: High-converting long-tail keywords were added using historical data, improving ROAS without aggressive bidding.

Budget & Bid Management

 Real-Time Budget Scaling: Budgets were dynamically scaled during peak sales windows (e.g., weekends, Prime events) based on conversion momentum.

Bid Adjustments by Performance Tiers: Introduced performance-based bidding to reallocate spend toward high-converting ASINs and ad groups.

Conversion-Focused Ad Formats

Sponsored Brands Testing: Rolled out Sponsored Brand video and headline ads targeting new-to-brand audiences, driving brand discoverability.

Custom Creatives for Top SKUs: Enhanced visual assets were deployed across ads to support higher CTR and product relevance.

Data Consolidation & Visibility

Custom Reporting Dashboards: Enabled weekly visibility into ROAS, TACoS, and placement-level spend, allowing for faster decision-making and iterative testing.

Key Outcomes

• ROAS Improvement: ROAS increased by 128% within 30 days of structural reset.

• ACoS Reduction: ACoS dropped from 50.2% to 21.9%, improving overall profitability.

• Sales Recovery: Daily sales recovered to over $10,100/day by Week 5.

• Increased Sponsored Brand Share: Sponsored Brand CTR improved by 2.3x with high-impact creatives and better audience targeting.

• Campaign-Level Profitability Control: 76% of ad spend now generates over 300% ROAS, compared to 28% prior to engagement.

Performance Highlights

Conclusion

Through a targeted rebuild of ad architecture, performance-driven bid controls, and expanded visibility across Amazon ad formats, AMZDudes restored ad efficiency and unlocked new growth momentum for the client. The brand is now operating with stabilized profitability, improved SERP presence, and a scalable ad infrastructure that supports long-term expansion.

Ready to improve your Amazon ROAS and lower ACoS?

Contact AMZDudes to accelerate profitable growth