How did Phyto US improve its ACOS by 10% with m19?

The company

Phyto belongs to a French cosmetics laboratory which operates in the US since 1989. The brand pioneered the opening of the Luxury Beauty store on amazon.com, offering its items to Amazon consumers since 2013. Its shampoos and hair care products are renowned for the quality of their botanical ingredients delivering gentle and long lasting care to hair.

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The challenge

The brand had seen increasing Advertising costs during the third quarter of 2019, with Ad spend growing 50% quarter over quarter, while the ad attributed sales stalled. Its advertising cost of sales (ACOS) went up, although the team tried multiple tactics to improve the overall performance.

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The solution

Phyto and m19 US agreed on testing the ability of the m19 technology to solve the brand’s challenges. m19 is a Retail Saas which enables Sellers and/or Vendors to control and accelerate their Amazon sales. It leverages Machine Learning Algorithms and optimizes campaign management and bids according to a performance goal. All the media trading operations are handled by the m19 technology while the Sellers and/or the Vendors can focus on their business. Phyto and m19 worked together to test the m19 technology during the fourth quarter of 2019.

“We were able to run our business with confidence. We found a system which is working in our favor.” François Hourcastagnou - CEO Ales Group USA

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The results

The advertising performance improved during Q4 2019. The Advertising Cost of Sales decreased 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 shown by the 1.8x increase of the Conversion Rate. On top of these results, the m19 technology saved time on the management of advertising campaigns.

“It saved 6 hours a week on doing research on key words,” according to the Phyto team

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