$2M Ad Spend Saved with AMC Reallocation
Query-level AMC analysis reallocated spend, reduced waste, and improved ROI on Amazon media.
27%
Ad Efficiency Gain
2.3
ROAS
$2M
Saved in ad spend
The Challenge
A premium health supplement brand enjoyed solid Amazon traction but faced cost pressure in H2 2024. The client mandated a $2 million advertising reduction—without allowing sales to fall more than 5 %. Oceanwing was tapped to design a data‑driven path to leaner spend and stronger efficiency.
- Aggressive Amazon Ads budget cut: Remove $2M while protecting topline.
- Skewed ad channel mix: The existing ad mix was heavily weighted toward Sponsored Products (64 %), with 27 % in DSP and 8 % in Sponsored Brands.
- Blind spots in upper funnel: Relying on last‑touch attribution, the team lacked visibility into how each channel truly contributed, putting upper‑funnel efficiency at risk if budgets were cut blindly.
Category
Platform
Amazon
Type
Brand
Date
July 29, 2025
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Strategic Approach
To ensure every advertising dollar delivered measurable impact, Oceanwing mapped out a three‑step, AMC‑powered roadmap before shifting a single cent:
- Quantify true channel contributions – Multi‑Touch Attribution (MTA) analysis through Amazon Marketing Cloud showed Sponsored Product ads drove 77 % direct conversions while DSP impressions raised Sponsored Product conversion rate +28 % and Sponsored Brand ads drove 8 % new‑to‑brand conversions.
- Reallocate budget intelligently – Guided by these insights, we trimmed $600K from lower‑impact SP keywords, redirected $1 M within DSP while safeguarding high‑value remarketing audiences, and reduced SB spend by $380K yet kept top‑performing video placements live.
- Simulate outcomes before execution – AMC scenario modeling forecast just a 2 % sales dip versus an 8 % drop predicted by last‑touch models), providing confidence to green‑light the plan.
Results
By executing the AMC‑informed reallocations, the brand reduced total ad spend by $2 million (‑29 %) while holding the sales impact to just ‑1.8 %, safely within the 5% limit set by the client. Most importantly, advertising ROI jumped from 1.8 ROAS to 2.3—an efficiency gain of 27 %, proving that smarter spend—not bigger spend—drives sustainable growth.
Key Insights
- Full‑funnel visibility: AMC MTC quantified both direct and assist value, preventing over cutting DSP and SB budgets.
- Scenario modeling: Pre‑execution simulations de‑risked the plan and aligned stakeholder.
- Smart Trims, not hacks – While ads budgets were shifted and reduced, they were not eliminated, so high impact keywords and remarketing remained funded.
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Budget Reallocation & Day-Parting
- Identified untapped demand: Leveraged data analytics to uncover high-potential niches within the declining category, such as “immune support for active lifestyles.”
- Benchmarked competitors: Analyzed rivals’ gaps in keyword targeting and content to carve out competitive advantages.
Budget Reallocation & Day-Parting
- Identified untapped demand: Leveraged data analytics to uncover high-potential niches within the declining category, such as “immune support for active lifestyles.”
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