How Strategic Advertising Transformed Home Source's Amazon Performance

A strategic overhaul of Home Source's Amazon advertising approach led to remarkable efficiency gains, with TACoS falling below 3% despite doubled ad spend. This transformation story demonstrates how precise campaign management can drive substantial growth while reducing costs.

The Home Source Story

Home Source stands among the UK's premier furniture retailers, supplying high-quality furnishings to both consumers and major retailers like Debenhams and B&Q. Their extensive catalog spans everything from essential home furniture to decorative accessories, maintaining competitive pricing without compromising quality.

The Challenge

Home Source approached us with a complex set of challenges typical of large-scale furniture retailers. Their vast product catalog, while comprehensive, fell victim to common traps such as unoptimized listings and inefficient advertising spend. Plus, seasonal inventory management posed particular challenges, with advertising resources often misallocated to out-of-season products.

Key issues included:

• High Advertising Cost of Sales (ACoS) eating into margins
• Inefficient budget allocation across a massive product catalog
• Suboptimal ad spend timing relative to seasonal demand
• Underperforming product listings lacking keyword optimization

Strategic Transformation

Our team implemented a comprehensive optimization strategy, focusing on both immediate efficiency gains and long-term scalability.

Campaign Restructuring

We rebuilt the campaign architecture from the ground up, creating a more targeted approach to product advertising. This included introducing day-parting strategies to capitalize on peak shopping hours and adjusting spend based on seasonal demand patterns.

Listing Enhancement 

Monthly keyword optimization became a cornerstone of our approach. By continuously refining product listings, we improved organic visibility while reducing dependency on paid advertising for key products

Display Advertising Integration 

We expanded visibility through strategic use of sponsored display ads, reaching customers at various stages of their buying journey. This multi-channel approach proved particularly effective during major shopping events.

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Impact and Results

The transformation yielded impressive results across all key metrics. ACoS dropped into single digits, while TACoS fell below 3% — even as we doubled the advertising budget. This remarkable efficiency improvement accompanied strong double-digit year-over-year growth.

Beyond the numbers, the strategy significantly improved inventory management through optimized sell-through rates. This reduced storage costs and improved cash flow, creating a more sustainable business model.

The success metrics tell a compelling story:

• Sustained single-digit ACoS
• Sub-3% TACoS despite increased spend
• Double-digit annual growth
• Improved inventory efficiency
• Enhanced seasonal product performance

This transformation demonstrates how strategic advertising management can simultaneously drive growth and improve efficiency, even in a highly competitive market.

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