How Phyto US Improved Its ACOS by 10% with Astra

The Company:

Phyto, part of a French cosmetics laboratory, has been operating in the US since 1989. The brand was a pioneer in launching the Luxury Beauty store on amazon.com, offering its products to Amazon customers since 2013. Phyto's shampoos and hair care products are celebrated for their high-quality botanical ingredients, providing gentle and long-lasting hair care.

The Challenge:

In the third quarter of 2019, Phyto experienced rising advertising costs, with ad spend increasing by 50% quarter over quarter, while ad-attributed sales stagnated. Despite various tactics to enhance overall performance, the advertising cost of sales (ACOS) continued to climb.

The Solution:

Phyto and Astra US collaborated to test the effectiveness of Astra technology in addressing the brand’s challenges. Astra is a Retail SaaS solution that enables sellers and vendors to control and accelerate their Amazon sales through machine learning algorithms, optimizing campaign management and bids based on performance goals. While Astra handles all media trading operations, sellers and vendors can focus on their core business. Phyto and Astra conducted this test during the fourth quarter of 2019.

The Results:

During Q4 2019, Phyto's advertising performance improved significantly. The ACOS decreased by approximately 10 percentage points compared to the same period before the test. This improvement resulted from an increase in ad-attributed sales and a reduction in ad spend. The quality of paid clicks improved, evidenced by a 1.8x increase in the conversion rate. Additionally, Astra technology saved substantial time in managing advertising campaigns.

“It saved 6 hours a week on keyword research,” noted the Phyto team.