Ozon: ad cost share cut from about 40% to 5-9%
An audit showed that the store barely used paid advertising: the client had tried it before, but the share of ad spend in revenue (ACOS) was close to 40%. We rebuilt the campaigns and the card content.
The task
Audit the store, describe a strategy and carry it out. Reduce the cost of paid marketing.
What we did
- Audited the store on 35+ parameters and found that marketing was weakly developed and paid ads were hardly used.
- The client had tried advertising, but the ACOS (the share of ad spend in revenue) was close to 40%, and they were not ready to lose that much margin.
- Reworked the campaigns in one ad tool: ACOS 5.4% on $9,800 of sales in a month.
- Rebuilt a second tool from zero: $8,300 of sales at an ACOS of 8.6%.
- Improved search promotion: $14,700 of revenue at an ACOS of 8.73%.
- Prepared a plan of store improvements: rich content, infographics, descriptions and SEO.
Results
| Before | After | |
|---|---|---|
| Items sold | 2,177 (September) | 2,722 (October, +545) |
| Conversion to cart from product card | 17.1% | 20.1% (+3 points) |
| Position in catalogue search | 88 | 72 (up 16) |
| Sales | $44,100 | $56,200 (+$12,100) |
After this work the client trained further and consolidated monthly sales above $50,000.
Takeaways
- The same ad tools can be loss-making or profitable. The difference is setup and control of the cost share.
- Start with an audit to find the typical mistakes.
- Advertising only scales when the product card converts.
Amounts are shown in US dollars, converted at a fixed rate.
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