Case Study

Luum used atom11 to improve ACOS by -10% and drive up total sales by 22%

Learn how Luum used Atom11 to improve their ACOS and drive operational changes in their agency

Mar 18, 2024

How to reduce Amazon ACOS
How to reduce Amazon ACOS

Luum is a highly analytical data-driven agency that manages 15+ accounts across 6 sub-categories across US and Mexico. 

The agency previously used other software tools to manage their Amazon Ads. They faced 2 concerns in managing their agency: 

(a) Customization levers: with standard automations in other softwares they used, Luum missed out on control. As the agency grew in size, they needed granular controls to better optimize their accounts. and 

(b) Lack of holistic approach in ads: With traditional ad softwares, the team felt a disconnect between retail and advertising. Most of the advertisers they managed are seasonal in nature and the skew of products advertised and inventory management was problematic.

They needed an automated solution to manage accounts with seasonal and large catalogues and streamline data management. They onboarded to Atom11 in Nov’23 and drove a 17.5% increase in sales while reducing their ACOS by 10%.

"Atom11 has been an invaluable platform for us, not only for saving time in managing PPC but also for providing detailed analysis that enables us to establish optimization strategies that reduce costs and boost PPC sales" said Cesar Gomez, Ecomm Head @ Luum.

This is how they managed to curb their ACOS and increase sales:

  1. Account Audit: With a large number of seasonal products, Luum wanted to constantly monitor spend distribution among different products.

    With atom11’s Ad Spend Profile, they were able to not only monitor ad spend on different ASINs, but also course correct spend on bottom performing ASINs. By increasing spend on high performing targets, they were able to improve ACOS. 

    "One of Atom11's standout features is its ability to segment and classify our products into A, B, and C categories. This allows us to optimize our advertising investment by focusing on the products that truly drive our business" commented Cesar on ease of data analysis on the atom11 dashboard.

  1. Dayparting: Luum used atom11’s signature dayparting strategy to set up dayparting. They increased campaign budgets during weekends, when their peak sales were high. They also reduced bids by 50% during evenings, when their conversion was low. By implementing dayparting, they were not only able to minimise spend that led to high ACOS, but also increased total sales. Dayparting is now an always-on feature for all Luum accounts. Commenting on the dayparting functionality and framework, Cesar said, "The implementation of dayparting strategies has been a game-changer for us. Now, we can allocate different budgets based on the time of day when we have the best conversions. This capability has significantly increased our ROAS (Return on Advertising Spend)".

  2. Bidding and search term harvesting - Luum strategized over 5 different rule sets to manage bid changes and constantly harvest good performing search terms. Everything was automated once they had set up rules customized to each brand’s requirements. These automated rule sets were intended to increase sales while being profitable with ad spending.

  3. Insights & Recommendations - using atom11 recommendations, Luum was able to minimize spend on non performing placement ads. They increased spend on Rest of search placements as recommended by our algorithm and saw a steep reduction in ad ACOS. 

Apart from advertising automation features, Luum was also able to connect their Amazon Ads and retail data to Zoho analytics using Atom11’s refreshable google sheet extension. This saved them multiple hours in data aggregation and analytics. Once all their data was shared on google sheets, the data automatically refreshed weekly and showed up on Zoho Analytics for more deep dives. 

Cesar had more good things to say about their experience with atom11: "The customer service and attention dedicated by Atom11 to our account have been invaluable. Weekly, we learn new strategies that help grow our business. The willingness and commitment of the Atom11 team have provided us with exceptional support that exceeds our expectations.

Moreover, the Atom11 team has shown a willingness to adapt to our needs, even when faced with challenges beyond their original scope. They helped us consolidate data from our multiple accounts into a single data warehouse, demonstrating a genuine commitment to the success of our business.

In summary, Atom11 not only helps us manage our PPC more efficiently but also provides us with the tools and data necessary to make informed decisions that drive the growth of our business on Amazon"

Result - 

  1. Luum was able to save up to ~60 hours per month per account, that would have otherwise been spent on constantly analyzing data and implementing changes. 

  2. Ad performance: Luum was able to drive a 10% improvement in ACOS with 22% improvement in total sales.  

If you are interested in checking out atom11, book a call with us today.

A quick look at our demo here.