Phyto US improved its ACOS by 10% with M19

Phyto is part of a French cosmetics laboratory that has been operating in the US since 1989. The brand pioneered the opening of the Luxury Beauty store on amazon.com and has been offering its products to Amazon consumers since 2013. Its shampoos and hair care products are renowned for the quality of their botanical ingredients, which provide gentle and long-lasting care for the hair.

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The challenge
The brand experienced increasing advertising costs in the third quarter of 2019, with ad spend rising 50% each quarter while ad-attributed sales stagnated. Advertising costs of sales (ACOS) were rising, even though the team tried multiple tactics to improve overall performance.

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The solution
Phyto and m19 US agreed to test the ability of m19 technology to solve the brand's challenges. m19 is a Retail SaaS that allows sellers and/or suppliers to monitor and accelerate their Amazon sales. It uses Machine Learning algorithms and optimizes campaign management and bids based on a performance target. All media trading activities are handled by m19 technology, allowing sellers and/or vendors to focus on their business. Phyto and m19 collaborated to test m19 technology during the fourth quarter of 2019.

“We were able to run our business with confidence. We found a system that works to our advantage.” François Hourcastagnou – CEO Ales Group USA
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The results
Advertising performance improved during the fourth quarter of 2019. The Advertising Cost of Sales decreased by approximately 10 percentage points compared to the same period before the test. This improvement was driven by an increase in Ad Attributed Sales coupled with a decrease in Ad Spend. The quality of paid clicks also improved, as evidenced by the 1.8x higher conversion rate. On top of these results, the m19 technology saved time on advertising campaign management.

"It saved us 6 hours per week on keyword research," according to the Phyto team.