From 50%+ TACOS to Scalable Growth: How a Skincare Brand Fixed Amazon Ads Without Raising Prices
Overview
This case study highlights how Incrementum helped a competitively priced skincare brand transform Amazon advertising from a margin-draining cost center into a disciplined, scalable growth engine. The brand operated in a highly saturated beauty category with low-average selling prices (most products under $15), where even small inefficiencies in bidding, structure, or targeting quickly erased profitability. Prior to partnering with Incrementum, the account suffered from inflated CPCs, fragmented campaign structure, and limited visibility into true acquisition costs, resulting in TACOS exceeding 50% and stalled growth despite steady demand.
Incrementum was brought in to restore control. By rebuilding campaign structure around product intent, enforcing product-level profitability targets, and scaling only what could mathematically work at low price points, the brand was able to dramatically reduce TACOS while increasing total sales. The result was a repeatable system that balanced efficiency and growth, unlocking the ability to scale confidently heading into peak season and beyond.
The Challenge
Despite operating in a high-demand beauty category, the brand faced structural and profitability constraints that limited its ability to scale on Amazon:
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TACOS exceeding 50% on a low-ASP catalog, making paid growth unsustainable
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Disorganized PPC structure, with multiple products and variations competing within the same campaigns
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Aggressive bidding disconnected from margins, driving inflated CPCs
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Broad, low-intent targeting that generated spend without consistent conversion
Together, these issues created a system where increased ad spend led to diminishing returns, preventing profitable scale in a highly competitive category.
The Approach
PPC Restructure & Profit-First Keyword Strategy
We rebuilt the account around product-level economics, separating campaigns by parent ASIN and intent instead of grouping unrelated products together. Spend was concentrated on the highest-converting variations, while non-performing variants were paused. Keywords were rebuilt per product with defined TACOS thresholds, prioritizing exact and high-intent terms that could convert profitably at low price points.
Bid & Placement Control
Aggressive “Up & Down” bidding was replaced with disciplined bid control, aligning CPCs to what each SKU could realistically afford. We shifted to placement-led optimization, leaning into Top of Search where conversion justified it, while limiting inefficient placements to eliminate wasted spend.
Scalable Testing & Keyword Expansion
Once efficiency was restored, we introduced low-bid exploration campaigns to uncover new profitable search terms without inflating TACOS. Continuous search term mining, negation, and refinement allowed the account to expand visibility while maintaining margin discipline.
Real-Time Optimization & Performance Pacing
Weekly and daily performance tracking was used to manage spend against product-specific TACOS targets. This systemized approach enabled confident scaling heading into peak periods and created the foundation to expand beyond Sponsored Products into Sponsored Brands and Display as efficiency unlocked additional budget.
Our Results
TACOS reduced by ~70%, dropping from 50%+ to ~15–20% while maintaining sales momentum
Sustained revenue growth driven by profitable scaling of hero SKUs in a highly competitive beauty category
CPCs reduced by 25–35%, bringing acquisition costs in line with low-ASP product economics
Cost per order cut materially, enabling consistent profitability on sub-$15 products
Ad spend efficiency restored, allowing expansion beyond Sponsored Products into Sponsored Brands and Display
Predictable scaling system established, with daily and weekly pacing tied to product-level TACOS targets