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Case Study  ·  Pet Supplies

From Vanity Metrics and Invisible Losses to
$117K Additional Profit With the Same PPC Agency

  • Monthly Revenue Grew From $450K to $849K
  • Net Profit Grew From $47K to $164K
  • TACOS Dropped From 27% to 18%
  • 24 Unprofitable Campaigns Stopped
→  START WITH A FREE GROWTH ANALYSIS
Pet Supplies
Industry
Pet Supplies
Monthly Revenue at Start
$450K
Monthly Ad Spend
$120K
PPC Management
External Agency
The Problem

Paying $8K/month agency fee on $120K ad spend with no visibility into actual profitability or campaign effectiveness.

Root Issue

Agency optimizing for vanity metrics (sales, impressions, clicks) while contribution margin declined month over month.

The Challenge

When this brand came to us they were paying their PPC agency $8K/month and spending $120K on ads with zero clarity on what was actually working. The agency sent monthly reports showing "improved impressions" and "click growth" but profit margins were declining.

The founder felt stuck between firing the agency and risking disruption, or continuing to pay for results they couldn't verify or understand.

60% of revenue was coming from paid traffic. The organic side of the business was being neglected entirely. Nobody was building anything that would last.

Our Approach

Contribution Margin Audit by Campaign

The agency was reporting impressions. Impressions don't pay salaries. We rebuilt the entire reporting framework around what actually matters.

  • Mapped every campaign against actual contribution margin per SKU. Not blanket ACOS. Not impressions. TACOS & Profit.
  • 70% of the agency's top performing campaigns were driving high volume, low margin sales. They looked great on paper. They were bleeding the business.
  • A significant portion of ad spend was generating revenue and destroying profit at the same time. It had to stop.

Agency Performance Framework

The agency wasn't the problem. The lack of accountability was. We fixed the system, not the vendor.

  • Redefined every success metric: TACOS & contribution margin per campaign SKU replaces ACOS and impressions
  • Built a weekly review process with profit-based KPIs the agency had to report against. No vanity numbers allowed.
  • Created a tiered campaign priority system tied to SKU margins. Clear rules. Stop this. Scale that. Challenge this. No more guessing.

Hero Listing Optimization & Budget Reallocation

Better campaigns going to weak listings is still a losing game. We fixed both ends.

  • Rewrote titles, image messaging, bullets and A+ content across the top revenue-driving ASINs. Built to convert & rank at the top.
  • CVR improved from 11% to 13% account wide. The agency got better results without changing anything they did.
  • Stopped 24 unprofitable campaigns and reallocated budget to high margin hero products. Ad spend increased to $150K because the channel finally deserved it.
The Results

$117K More Profit Per Month. Same Agency.

Better framework. Better listings. Better targets. The agency delivered what they were always capable of.

Results Achieved

+$117'000 EXTRA PROFIT PER MONTH
from $47K to $164K
+89% MONTHLY REVENUE GROWTH
from $450K to $849K YoY
+33% TACOS REDUCTION
from 27% to 18%
+85% NET MARGIN IMPROVEMENT
from 10% to 19%
What This Case Proves
  • PPC agencies optimize whatever you measure, define the right metrics or pay the price
  • Better listings make any agency significantly more efficient overnight
  • Most agency problems are scope of work, accountability & measurement problems, not execution problems
  • Organic share compounds over time in a way paid traffic never will
Conclusion

This brand didn't need a new agency.
They needed a new framework for managing the one they had.
Monthly revenue grew from $450K to $849K YoY.
Net profit went from $47K to $164K and organic revenue more than doubled.
We increased ad spend by $30K because the listings finally converted well enough to justify it.
The agency wasn't bad.
They just didn't have the right targets to send traffic to.

START WITH A FREE GROWTH ANALYSIS

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