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Blueland

Achieving Exponential GMV Growth with Controlled Advertising Costs

Background

Client needed to scale its operations and revenue without proportionally increasing its advertising spend. Our primary challenge was to amplify its annual GMV by 300% while operating within the confines of a 15% TAcos. This required a delicate balance between scaling up sales and managing advertising expenses effectively. The brand had to ensure that any increase in advertising spend translated into a substantial increase in sales, without compromising profitability.

Key Strategies:

  1. Granular Expense Management: Implemented a meticulous approach to managing expenses, breaking down the analysis to monthly, daily, and even hourly intervals. This granular view allowed the brand to identify inefficiencies and optimize spend in real-time, ensuring that each advertising dollar was utilized to its maximum potential.
  2. Advertising Structure Adjustment: To reduce reliance on paid traffic, Anker revised its advertising structure to bolster the contribution of natural traffic. By enhancing organic reach and visibility, the brand aimed to attract more customers without incurring additional advertising costs.
  3. Product Priority Restructuring: Re-evaluated its product lineup, giving precedence to items with higher profitability. This strategic shift meant reallocating advertising spend and discounts to promote more profitable products, thereby maximizing return on investment.

Results:

The implementation of these strategies yielded impressive results for Anker. Within the first four months, the brand’s GMV soared by an average of 100%, indicating a significant stride towards the 300% annual target. Moreover, monthly profits experienced a dramatic increase, improving by 2 to 6 times post-strategy execution. These outcomes underscore the effectiveness of Anker’s strategic approach in driving growth while adhering to a stringent TAcos threshold.