Nectar implemented a two part strategy to address Souper Cubes' challenges and fuel their growth:

Part 1: Segmentation of ASINs and Spend Control

In order to address the issue of ineffective spend allocation across different products, Nectar opted for a detailed approach involving the segmentation of each unique product. This enabled Nectar to allot specific advertising spend to individual products rather than bundling them together in the same campaign.

This methodology provided a multitude of benefits. First, it offered a more transparent view into the allocation of advertising budgets across the diverse product range. This allowed for precise tracking of individual product performance and identification of product-specific trends.

Secondly, it yielded more control over the advertising budget of each product. Nectar was able to fine-tune the budget allocation based on the performance and potential of each product, thereby optimizing the use of advertising resources.

Finally, this granular approach laid the foundation for more efficient optimization of advertising campaigns, as Nectar could now adjust campaigns according to the specific requirements and performance of each product.

Part 2: Overall Spend Management and Performance Measurement

To address Souper Cubes' dependency on advertising for revenue generation and the issue of sales decline post peak seasonality, Nectar devised a comprehensive spend management strategy. They meticulously monitored the overall advertising expenditure to ensure it was aligning with organic sales and Total Advertising Cost of Sales (TACOS).

Carefully monitoring TACOS allowed Nectar to maintain a balance between the advertising spend and the sales it generated, ensuring that advertising costs were not eating into the profit margins.

Furthermore, Nectar leveraged advanced data analytics tools and features for optimizing spend allocation. They used techniques such as dayparting (timing ad delivery for maximum impact) and targeted high-converting keywords. This approach directed the advertising spend more strategically towards growth and increasing category awareness, ensuring sustainability even after the peak seasonality period ended.

These solutions resulted in a significant increase in both ad sales and total sales for Souper Cubes, while maintaining a consistent TACOS. This meant that Souper Cubes was able to achieve robust, sustainable growth without a considerable increase in advertising costs.