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Sunnydaze Decor Capitalizes on Peak Season with 63% Increase in ROAS with Strategic AI-Driven Solutions

June 23, 2023

How we Succeeded

Challenge Sales

New eyewear seller struggled generating the flywheel effect and converting shoppers. Sales were minimal and their products didn’t have enough reviews to warrant aggressive spend.

Objective

Increase sales while reducing ad spend.

Approach

  1. Identified a moderately aggressive promotion to offset the lack of reviews
  2. Utilizing single-ASIN ad groups and the separation of match-types by campaigns, deployed a precision-driven strategy that applied learnings from harvesting tactics
  3. Leveraged Xmars rules and dayparting to reduce waste and maximize efficiency throughout the day

Results

The Challenge: Navigating the Peak Season Rush

Sunnydaze Decor is an eCommerce business that faces a unique challenge annually -a highly rewarding yet brief peak season every Spring. This short window accounts for 40% of their annual sales due to a surge in shopper engagement and conversion rates. The critical task at hand was capitalizing on this fleeting period by swiftly and efficiently scaling up their Sponsored Ads strategy.

  • Brief Peak Season Window: The challenge lay in tripling the ad spend without extra resources, optimally utilizing the existing ones, and maintaining cost-effectiveness amidst the urgency of this seasonal boom.
  • Limited Resources and Expertise: There was a conspicuous knowledge gap in optimizing Sponsored Ads when the ad spend needed to be exponentially increased. To maintain off-season optimization levels, their team would need to be six times its size.
  • Complexity in ASIN Portfolio Optimization: The peak season added over 2,500 ASINs and 3,000+ campaigns, increasing the portfolio complexity by 110%. Managing this growing product range demanded advanced skills in keyword research, campaign budgeting, and upper funnel ad strategies, which were lacking.

Goals and Objectives: Ambitious Targets Amid Challenges

Sunnydaze Decor had set three clear and ambitious goals:

  1. Achieve a 300% increase in ad-attributable sales for seasonal items compared to off-season months.
  2. Triple the budget allocation within a 30-day window (a process that typically requires 60-days).
  3. Expedite the launch of new campaigns within a week, despite the complexity and demand for optimization.

The Solution:  AI-Driven Strategy for Campaign Deployment and Optimization

To address the brand’s goals and challenges, a targeted plan of action was rolled out:

  • Rapid Campaign Deployment: The team harnessed the Xmars Smart Creation feature to quickly launch over 3,000 campaigns within a month. Using AI, the team automatically executed several tasks using various data sources, ensuring a precise and detailed campaign structure. These tasks included target ACoS, daily budget, campaign structure suggestions, keyword and ASIN targeting with bidding, all while permitting manual adjustments.
  • AI Autopilot Campaign Optimization: The expanded ASIN portfolio was brought under AI control for continuous optimization. The AI system conducted a thorough analysis of each campaign's performance, adjusting bids and budgets hourly, enriching campaigns by highlighting potential keywords, negating poorly performing ones, and introducing product targeting. The result was an AI-managed campaign with improved efficiency and significant performance boosts.
  • Proposed Testing DSP:  Activated Awareness based campaigns that outperformed with consistent level of service through detailed reporting and well communicated optimization strategy.

The Results: Rewarding Outcomes with AI-Powered Optimization and Scaling

Xmars’ AI-powered approach led to impressive outcomes for Sunnydaze Decor:

  • Business Goal Exceeded: With AI's support, Sunnydaze Decor experienced a 408% rise in ad-attributable sales, outdoing their historical record by 95%, and exceeding the initial goal by 36%.
  • Monthly Spend Rate Scaled: The company increased its monthly spend rate by 315%, surpassing its predetermined target and enhancing campaign visibility.
  • Improved ROAS: 63% Higher ROAS when consumers are reached by multiple Amazon Ad channels versus Sponsored Product alone. Despite the substantial increase in spend rate, the overall Return on Ad Spend (ROAS) increased by 27%, maintaining efficiency while multiplying the spend rate.
  • AI-powered Optimization: Xmars AI executed 3.3 million campaign changes in two months, a task impossible without AI, equivalent to the work of 156 ad professionals working full-time.
  • Timesaving: Xmars AI saved over 50,000 hours in two months, freeing the team to focus on strategic decisions and other crucial tasks.
  • Rapid Scaling: Contrary to previous experiences with automation tools, the AI-powered approach efficiently and rapidly scaled, contributing significantly to the accomplishment of Sunnydaze Decor's business goals.
  • Client Confidence Boosted: The success of the AI-optimized campaigns expanded Sunnydaze Decor's ad adoption, including leveraging Demand Side Platform (DSP) to attract more potential customers. The initial DSP campaigns were successfully launched in May, marking another step forward in their growth journey.
"Thanks to Xmars, we're doing more with less. Their intuitive Smart Creation and AI Autopilot tools are unlike anything we've used before, effectively boosting our ad campaigns, streamlining our process, and helping us exceed our sales goals. Xmars outperformed other tools we've tried. Their advanced technology has truly set a new standard for our team.” Amber Liddell, Sunnydaze Decor

This campaign illustrates how a blend of artificial intelligence and strategic planning can overcome resource limitations and knowledge gaps, driving substantial improvements in an eCommerce entity's seasonal sales performance.

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