Pet House (One Fur All)·2024
TACoS Compression and Revenue Recovery: 14.7% to 10.4% TACoS with +18.8% Sales Growth for Pet House
14.7% to 10.4%
TACoS
3.1 to 3.8
ROAS
+18.8% MoM
Sales Growth
45% to 36%
Ad Dependency
-9.1% to +18.5%
YoY Recovery
4 Months
Timeframe
Pet House entered Q2 with rising ad costs, shrinking revenue, and TACoS nearly double the target. Revenue was down 9.1% year-over-year. Roughly 45% of total sales were ad-dependent, meaning the brand was paying for almost half of every dollar in revenue. Adverio ran a sequenced recovery: waste removal first, then conversion improvements, then Subscribe and Save acceleration, then seasonal campaign layering. In four months, TACoS dropped from 14.7% to 10.4%, ROAS improved from 3.1 to 3.8, monthly sales climbed 18.8%, and ad dependency fell from 45% to 36%.
Challenge
TACoS sat at 14.7% against a long-term target of 8%, nearly double where it needed to be. Revenue was down 9.1% year-over-year heading into Q2. Approximately 45% of total sales were ad-attributed, creating dangerous dependency on paid traffic. Buy Box vulnerability was real, with a dip to 87% in July that suppressed revenue. The brand needed structural TACoS compression without losing topline growth.
Solution
Adverio executed a sequenced recovery where order mattered. First, waste removal: paused under-converting campaigns, negated non-performing keywords, and overhauled listing assets on underperforming products. Second, Subscribe and Save plus Brand Tailored Promotions to build repeat-purchase cohorts and shift revenue from ad-dependent one-time purchases to organic recurring revenue. Third, ad-to-organic rebalancing through improved listing quality to increase organic conversion rates and reduce the ad-attributed sales ratio. Fourth, seasonal campaign layering with SB Video and SD Video for fall and winter ASINs. Fifth, inventory and Buy Box protection through low-stock alerts, packaging adjustments, and AWD pilot.
Results
TACoS compressed from 14.7% to 10.4% in four months. ROAS improved from 3.1 to 3.8. Monthly sales climbed 18.8%. Ad dependency dropped from 45% to 36% of total sales. The brand absorbed a Buy Box disruption in July without losing its growth trajectory. Month-over-month improvement was consistent: every single month, TACoS compressed further and revenue grew.
Month-by-Month Progression
April (baseline): revenue down 9.1% YoY, TACoS 14.7%, ad dependency at 45%. May: revenue returned to growth at +6% YoY and +12.9% MoM, TACoS dropped to 13.8%. June: revenue accelerated to +18.5% YoY, TACoS continued compressing to 13.0%. July: Buy Box dipped to 87%, temporarily suppressing topline, but TACoS still compressed to 12.0%. August: topline continued climbing, TACoS hit 10.4%, ROAS at 3.8, ad dependency down to 36%. Every month moved in the right direction, including through a Buy Box disruption.
Technologies & Tools
Amazon Advertising Console, Amazon PPC (Sponsored Products, Sponsored Brands Video, Sponsored Display Video), Subscribe and Save, Brand Tailored Promotions, Amazon Warehousing and Distribution (AWD), Profit Pulse Intelligence System
Project Details
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