Graco, one of our longest-standing clients, had the challenge of balancing retail commitments and advertising investment while maintaining cost stability in Q1. Consequently, they significantly reduced their Q1 Amazon advertising budget compared to the previous year, posing a challenge for us to effectively grow the account.
In our internal review of Graco UK’s AMC path to purchase data, we discovered that customers who engaged with multiple ad types achieved the highest Return on Advertising Spend (ROAS) and New-to-Brand percentage (NTB%). Based on these findings, we adopted a full-funnel strategy, leveraging all Amazon ad products despite a reduced budget. Our focus was on highly profitable SKUs, utilizing a combination of Sponsored ads and DSP advertising to maximize results and drive incrementality for the brand.
Despite a reduced advertising budget, the client exceeded expectations by achieving year-over-year growth in total sales during Q1. This positive trend has carried forward into April and May 2023. In Q1, the advertising ROAS increased 135% YoY. Additionally, the New-to-Brand percentage surged by an impressive 59.8% YoY. Total sales for Q1 demonstrated a remarkable 12% YoY growth, with March seeing a 53% YoY increase, highlighting the effectiveness of our newly implemented incremental strategies.
