Top “TYR” Amazon Ad Budget Reallocation

Advertising

Data Analytics

$

16

K

X

%

Improvement in TACOS and ROAS

TYR, a leading performance athleticwear and equipment brand, faced a common yet complex challenge in their Amazon advertising strategy: how to grow store revenue while simultaneously reducing or maintaining their ad spend.

With a diverse catalog ranging from low-priced accessories to premium shoes, swim and athleticwear, their existing approach wasn't maximizing return on ad spend (ROAS) or total revenue efficiency.

Challenges

1

Balancing ad spend across diverse product price points

2

Optimizing ROAS for low ASP items

3

Scaling revenue while maintaining or reducing ad spend

4

Improving efficiency across the entire product catalog

Solutions

Nectar's analysis revealed a critical imbalance in TYR's advertising budget allocation.

Many of TYR's top-selling items were Swim Caps and Goggles — low average selling price (ASP) products. The advertising budget was being distributed equally between these lower-priced items and higher-priced items such as Men's Jammers, Women's Swimwear, and Swim Bags.

This uniform distribution limited TYR's ability to scale their Amazon presence while maintaining profitable ROAS targets. The ad spend on low-ASP items was consuming a disproportionate share of the budget relative to their contribution to overall revenue and profit margins.

‍

Nectar implemented a multi-faceted approach to optimize TYR's Amazon advertising strategy:

Budget Reallocation Based on Price Point
- Strategically reallocated advertising budget from campaigns featuring Swim Caps and Goggles toward campaigns highlighting Women's Swimwear, Men's Jammers, and Swim Bags
- Created a tiered spending approach that aligned advertising investment with product price points and profit contribution
Data-Driven Decision Making
- Calculated average order value by campaign within each portfolio to identify opportunities for budget optimization
- Established clear performance benchmarks to guide ongoing budget allocation decisions
Bid Optimization
- Reduced bids across all targets in Swim Caps and Goggles campaigns to accommodate lower campaign budgets without sacrificing visibility
- Implemented targeted bid reductions of 25-50% for any specific target spending over $15 with less than 3x ROAS, with the exact reduction percentage determined by performance data
- Monitored daily spend of campaigns receiving budget increases and adjusted bids accordingly to maximize new budget utilization
Performance-Based Ad Management
- Paused ads whose spend was greater than or equal to the product price with less than 2x ROAS to eliminate wasteful spending
- Established automated rules to continually identify and address underperforming ad placements

Key Takeaways

This case study demonstrates how strategic budget allocation based on product price points and profit margins can dramatically improve Amazon advertising performance. By realigning ad spend to prioritize higher-value items while optimizing campaigns for lower-priced products, TYR was able to achieve the seemingly contradictory goals of reducing costs while growing revenue.

Nectar's approach highlights the importance of:

Catalog-Aware Advertising - Recognizing that different product categories require different advertising strategies based on price point, margin, and customer buying behavior
Precision Bid Management - Using data-driven bid adjustments tailored to specific targets rather than applying broad changes across campaigns
Continuous Performance Monitoring - Establishing systems to quickly identify and address inefficient ad spend
Portfolio-Level Optimization - Looking beyond individual product performance to optimize for total catalog revenue and profitability

For brands with diverse product catalogs on Amazon, this strategic reallocation approach offers a proven methodology for improving advertising efficiency while driving sustainable revenue growth.

Results

After just 3.5 weeks of implementing this strategic approach, TYR experienced significant improvements across all key performance indicators:

8.2% reduction in overall ad spend
6% increase in media revenue
9.2% increase in total revenue
ROAS improved by 16%
TACOS (Total Advertising Cost of Sale) improved by 16%

Before

After

Similar to this

$

99

K

X

%

Increase in Top-Line Revenue

Streamlined Amazon strategies from access to data insights like never before, leading to massive growth.

$

33.1

K

X

%

Increase in Global Sales YoY

Global Amazon strategy boosts the brand: Enhanced ads, keywords diversification, and campaign optimization drive sales surge.

$

17

K

X

%

Improvement in NTB sales while reducing CAC

Nectar overhauls Doctor's Best's Amazon Ad strategy, resulting in New-To-Brand sales and lower Customer Acquisition Cost

$

44

K

X

%

Increase in Ad Revenue in 30 Days

Unlocking incremental growth opportunities with conservative spending through categorization and ad strategy.

$

2

K

X

%

YoY Growth

The long-term effect of sponsored brand video on brand awareness, new-to-brand sales, growth, and interesting category effects.

$

2

K

X

%

Sales in the First Month

Coordinating content with the brand's advertising strategy to drive traffic and control costs.

$

76.6

K

X

%

Increase in Subscribe And Save Sales

Increasing subscribers to penetrate a market, grow customer lifetime value, and reduce customer acquisition cost.

$

238

K

X

%

minimum higher CTR from SBV

Using top notch video content for sponsored brand video to drive sales and new-to-brand customers.

$

40

K

X

%

YoY period sales growth

Closing in on the Q4 with a major product recall and creating an ad strategy to come out ahead.

$

685

K

X

%

Increase in Ad Revenue

Achieving massive profitable growth under time and budget constraints by targeting high-intent buyers during peak season.

$

78

K

X

%

Sales increase YoY

Switching from a new agency, creating a roadmap for growth, building content that converts, grows sales, and achieving a BSR.

$

500

K

X

%

Over half a million sales in 6 months

Launching a premium product on Amazon for immediate growth and profit sustained in the long term through holistic strategy.

$

55

K

X

%

YoY Increase in Sales

Optimized SEO, enhanced content, and refined ad strategies led to significant growth in Amazon sales and improved online presence.

$

800

K

X

%

In under 5 months after launching on Amazon

Launching on Amazon the right way with full-funnel advertising, SEO optimization, and creative content development for big sales.

$

56

K

X

%

Increase in Sales YoY

How a well-planned, unorthodox Amazon Prime Day coupon strategy drastically improved montly sales.

$

50

K

X

%

Monthly Increase in Sales

Revitalized an Amazon store with consistent branding, improved UI/UX, and targeted advertising to boost sales and engagement.

$

1281

K

X

%

Increase in Ad Sales YoY

Comprehensive data-driven strategy for listing optimization, refreshed design, and precise advertising campaigns to drive sales.

$

3

K

X

%

Ad Sales While Decreasing ACoS 59.2%

Implementing focused Sponsored Product campaigns and controlling ACOS, for a huge ROAS improvement.

$

214

K

X

%

1st Month Sales Increase

Using organic keyword ranking strategy to grow sales, break through plateaus, and improve ad campaigns.

$

16.5

K

X

%

Improvement in TACOS on Monthly 6-Figure Ad Spend

Focused advertising strategy and eliminated wasteful ad spend to enhance sales performance and profitability.

$

10

K

X

%

Return on Ad Spend

Using Amazon's Demand Side Platform to drive sales and a significant lasting increase in ROAS.

$

50.1

K

X

%

Increase in Total Sales

Strategic listing cleanup, content creation, and variation strategy increases sales for a renowned kitchenware brand.

$

10

K

X

%

Reduction in ACoS on 5-Figure Ad Spend

Utilizing data-driven insights to boost sales performance and optimize budget allocation for maximum ROI.

$

416

K

X

%

Increase in YoY sales

Overcoming ad spend issues and seasonality with precise segmentation and strategic spend management, fueling sustainable growth.