SexyHair lifts ROAS 158% by transforming sponsored ads with Amazon Marketing Cloud

Goals

In the ever-evolving landscape of beauty retail, SexyHair's journey on Amazon represents a compelling story of digital transformation and data-driven innovation. Since 2019, this salon-quality hair care brand has been expanding its horizons beyond traditional brick-and-mortar stores and salons, making its premium products more accessible to a broader audience through Amazon's marketplace.

As SexyHair continued to grow its presence on Amazon, they faced a significant challenge in maximizing the effectiveness of their non-branded sponsored ads spend. The brand partnered with Acadia, a modern digital agency known for turning complex data into profitable growth, to address this challenge head-on. The primary obstacle was the broad targeting approach in their advertising strategy, which resulted in inefficient ad spend and reaching audiences who weren't necessarily high-intent buyers.

Approach

In December 2024, SexyHair and Acadia embarked on an innovative campaign that would run through January 2025. The partnership aimed to leverage the power of Amazon Marketing Cloud (AMC) to expand sales, reach new shoppers, and move beyond their known audience profiles. This initiative was not just about increasing sales; it was about understanding the fundamental "what" and "who" of their Amazon shoppers through sophisticated insights analysis and testing.

Acadia's strategy centered on creating a more sophisticated and relevant approach to reaching high-value shoppers. The team implemented a controlled A/B testing methodology, utilizing AMC's advanced features to create lookalike audiences based on SexyHair's existing high-value customers. These insights were then seamlessly integrated into the ad console for enhanced relevancy.

The implementation process involved a two-pronged approach. First, they established a control campaign maintaining their non-branded targeting keywords. Then, they created a duplicate campaign with an additional AMC lookalike layer. The team strategically decreased bids on the control campaign while implementing an audience bid modifier to increase bids for customers who matched the profile of the brand's current high-value customers.

Result

The campaign demonstrated the power of relevant audience engagement and insights-driven decision-making. The most significant achievement was a 158%¹ increase in return on ad spend (ROAS), representing more than a 2.5x² improvement in advertising efficiency. This wasn't just a minor improvement; it was a transformative shift in advertising performance.

The campaign's success extended beyond just ROAS improvements. The cost per click (CPC) saw a dramatic 51%³ decrease, indicating significantly more cost-effective audience engagement. The conversion rate (CVR) improved by 27%,⁴ validating the strategy's effectiveness in reaching high-intent shoppers. Perhaps most impressively, the cost per acquisition (CPA) dropped by 61%,⁵ representing a substantial improvement in customer acquisition efficiency.

The campaign's success has demonstrated the potential of combining advanced analytics with strategic advertising approaches. Acadia has now implemented this strategy across their client portfolio, proving that insights-driven decision-making can drive remarkable results across various categories. The partnership between SexyHair and Acadia showcases how embracing innovation and creative strategies can lead to exceptional outcomes in the digital marketplace.

This case study illustrates the evolving nature of Amazon advertising and the importance of staying adaptable. As the digital landscape evolves, the success of this campaign serves as a testament to the power of accurate reach and insights-driven strategies in achieving remarkable results in the competitive world of advertising.

Sources

^1–5 Acadia, US, 2024–2025.