Project Description

Phyto US improved its ACOS by 10% with M19

The company
Phyto belongs to 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 items to Amazon consumers since 2013. Its shampoos and hair care products are known for the quality of their botanical ingredients that deliver gentle and long-lasting care for hair.

The challenge
The brand had increasing ad costs in the third quarter of 2019, with ad spending increasing 50% each quarter while ad-attributed sales stagnated. Advertising cost of sales (ACOS) went up, although the team tried multiple tactics to improve overall performance.

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 the m19 technology while vendors and/or suppliers can focus on their business. Phyto and m19 collaborated to test the m19 technology during the fourth quarter of 2019.

"We were able to run our business with confidence. We found a system that works in our favor." François Hourcastagnou - CEO Ales Group USA

The results
Advertising performance improved during the fourth quarter of 2019. Advertising Cost of Sales decreased about 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 managing advertising campaigns.

"It saved 6 hours a week researching keywords," said the Phyto team.