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The Ultimate Convergence of Brick and Mortar and eCommerce

The Ask

Caljava is a well established bakery supply shop founded in 1985, that focused on cake toppers and accessories. After years of steady growth, Caljava came to us looking to counter slowing growth and competition that came in the form of smaller, home-based retailers. With that, we created a multi-channel approach that looked to stabilize website sales and to push brand growth through Amazon advertising.

 

The Solution

This multi-pronged approach focused on building brand awareness and on-site sales through Facebook advertising then letting that brand value push to either the website or Amazon. We believe in letting customers purchase through any channel they are comfortable with, and focus on overall growth rather than any one channel.

On Amazon, Caljava had been running Sponsored Product campaigns with an automated, lowest-cost approach. While this produced tremendous ACOS, it severely limited sales velocity and constricted organic growth. 

Our focus was to expand into the keyword silos to allow for Testing and Performance based campaigns. This allows us to do top level keyword research and the pull performing keywords into their own campaign. This bid isolation on performing campaigns allows us to maximize both productivity and volume, without losing budget to non-performing keyword variants.

From there, we also build on Sponsored Brand ads to supplement growth away from product pages and into search results, and finally layered in competitor campaigns to target other brands in the space.

 

The Results

With this more robust strategy, we were able to increase spend over 600% over the course of a year. With that increase in spend, we were also able to keep ACOS stable, with an identical 600% increase in revenue. In the below chart, you can see our ACOS in blue, slightly raising as we test and lower as we find performance. In tandem, you’ll see revenue in orange stay stable, even as we cut cost.

 

As seen below, the impact of this paid push is mirrored in total revenue. Over the course of a year, we were able to push overall orders over 550%.

 

600%
Increase in Ad Spend
600%
Increase in Ad Revenue
550%
Increase in Amazon Revenue
25%
Increase in ACoS
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