Case Study
This case study is not entirely a GoodSellas case study. Star Gifts was founded and managed by a small team of entrepreneurs, including Kevin Oliva, the head of PPC at GoodSellas. The success of Star Gifts, albeit being separate from GoodSellas, is a great attest to the skill of Kevin Oliva who is responsible for PPC strategy with GoodSellas. The strategies that determined Star Gifts’ success are now being leveraged for our clients and partners.
THE CHALLENGE
Star Gifts was founded and managed by a small team of entrepreneurs, including Kevin Oliva, the head of PPC at GoodSellas. The intent was to sell the brand after a 2.5 year time frame. The challenge was to bring profits as high as possible for 1 year leading up to the sale to maximise resell value of the business.
THE goal
Successfully sell the business for a 7 figure sum within 2.5 years after launch.
About the brand
Star Gifts creates and offers high quality aprons with fun visuals that are highly giftable.
Category:
Home & Kitchen
STEP 1: DETERMINE POINT OF MAXIMUM PROFITABILITY
To understand how aggressive to can go with PPC while preserving profits, Kevin first performed an analysis to find the TACOS ‘sweet spot’.
Here, profits are maximal while spending enough to gain maximum exposure. This serves as the guide while setting PPC goals.
This depends from brand to brand. In the case of Star Gifts, this was 13%.
STEP 2: CAMPAIGN CREATION
Over the first six months after launch this was the primary focus:
- created and tested many new micro-campaigns (15+ per product) across different ad types so we can control the budget meticulously.
- continuously optimised them in order to maximise profit and sales volume.
- disabled and/or lowered bids on the bad campaigns, and optimised and increased budget of the good ones.
- set up campaigns where we bought placement on certain competing listings that had negative reviews regarding pain points that Star Gifts’ products solved.
STEP 3: OPTIMIZATION
Kevin optimized the spend to bring tacos back closer to the ‘sweet spot’ before creating new campaigns to preserve a certain profitability.
Constantly optimizing allowed profit % to improve over time. After six months, all campaigns were set up and the converting campaigns were optimized to the point of optimal profitability.
THE RESULTS
Through extensive reporting and meticulous follow-up, Kevin and his team could always easily identify how close they were to the Tacos sweet spot and optimize accordingly per ad type and per ASIN.
2.5 years after launch, the business was put to market and was sold for the target price relatively quickly.
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