Without clear strategic direction from their former agency, a leading home décor brand was spending increasing amounts of money and time for diminishing returns. Teikametrics partnered with this company to create a brand-led, multichannel strategy to optimize their full advertising funnel with AI technology and expert-led managed services. With Teikametrics’ help, sales increased by over 339% while keeping TACoS at a sustainable 10%.
Teikametrics has positively impacted our business in a variety of ways. First, by allowing us to broaden our budget structure and crystallize our strategy, we have been able to optimize and reach out across a much larger SKU set. It’s been extremely impactful. Also, their help has allowed us to grow and optimize sales across the entire assortment because we are such a brand-focused company – and looking at TACoS across our entire assortment, we have seen a dramatic improvement.
VP of Ecommerce at Leading Home Decor Brand
Challenge
Before partnering with Teikametrics, the organization worked with an agency to run ad campaigns on Amazon and Walmart. The agency lacked a strategic plan for campaign structure and budget allocation, generating little return on their investment. Knowing this was a surefire way to lose profits, the organization had to make a change. Luckily, their Vice President had experience with Teikametrics while in a previous position. His past experience dictated they would lead the home décor brand to rapid, efficient, scalable success.
The organization created a list of their explicit needs. First, they needed to consolidate all their advertising motions under a single entity. Second, they sought to achieve massive sales growth while remaining at or under 10% of their Total Advertising Cost of Sale (TACoS). Finally, they wanted a dedicated analyst who would act as an extension of their in-house team.
These goals, ambitious for any company, were exacerbated by challenges unique to their industry. Home décor is a saturated market on Amazon, with industry leaders securing top sponsored spots due to their large advertising budgets. Additionally, Amazon has decreased the number of organic slots available per page, further increasing the importance of knowledgeable, targeted spend.
For Walmart specifically, analysts guided the organization to test how increases in ad spend impacted unpaid placement of their products. All the while, Teikametrics held their Total Average Cost of Sale (TACoS) constant.
Solution
To achieve the client’s goals, Teikametrics provided them with an expert team with deep multi-channel experience, with major focus on Amazon and Walmart. Using Flywheel 2.0, the Teikametrics team maximized performance by leveraging next-gen AI technology to inform campaign strategy, keyword targeting, and bid optimization. These efforts became a single source of truth across marketplaces, keeping up with changes in their product-level goals, conversion rates, and seasonality trends in the market.
The home décor brand understood and trusted the powerful capabilities of Flywheel 2.0. To increase odds for success, they approved an unlimited budget, with the caveat that Teikametrics continued to hit major KPIs.
The team set up a 5:1 campaign structure, deploying manual and automatic campaigns based on category and parent product. Whereas other organizations use 1:1, Teikametrics creates five campaigns per product, to ensure optimal spend for brand, competitor, product, and generic search terms across all ad types.
Exclusively on Walmart, analysts guided the client to test increases in ad spend, thus finding out how this improved the organic placement of their products. All the while, Teikametrics held their Total Average Cost of Sale (TACoS) constant.
This was only possible as Teikametrics became an integral part of the home décor brand’s marketing team. Key staff members and analysts from each team met to discuss overarching goals for the brand, including off-marketplace entities, providing a complete understanding of the brand.
Results
The home décor brand experienced a 339% year-over-year increase in multi-marketplace ad sales as a result of Teikametrics’ partnership, powerful AI technology, and expert analyst team. Broken out by marketplace, They saw sales increase by 194% on Walmart and 363% on Amazon respectively. These increases came with industry-leading efficiency increases in Return on Advertising Spend (RoAS) of 237% on Amazon and 74% on Walmart.
Their continued efforts with Teikametrics netted them their biggest Prime Day sales in 2022 with over $4 million in ad-generated sales.
