Case Studies / Future Beauty Labs

Future Beauty Labs exceeds ROAS goals for three brands with Skai’s AI Dayparting powered by Amazon Marketing Stream

Challenge

Future Beauty Labs (FBL) is one of the world’s fastest growing beauty-tech incubators, best known for its self-tanning brands Isle of Paradise and Tanologist. While a leading brand, FBL operates in the highly competitive cosmetics industry.

FBL’s agency is dedicated to enhancing efficiency and delivering optimal returns for its clients. The team was consistently seeking ways to maximize its Amazon Ads budgets during peak conversion periods in the day.

With peak sales season upon them, the agency was faced with four challenges: promoting premium products during a downturn economy, dealing with rising CPCs in an ever-competitive category, proving FBL’s profitability as a private company, and working with limited budgets.

The agency knew it was overspending on branded keywords and investing too much time on manual dayparting strategies. It was looking for a data-driven, time-efficient approach to boost FBL’s market share and profitability.

Solution

The agency had already been utilizing manual dayparting strategies for the FBL account in the Skai™ platform for some time to help better distribute budgets throughout the day and had seen an increase in ROI of 14.5% as a result.

However, when you are already running highly optimized campaigns like this, and under constant pressure to maximize profitability, any opportunity to get your hands on new data as an optimization lever is a potential win.

Once Amazon Marketing Stream data was integrated into the Skai platform, the agency began using Intraday Reporting to quickly surface hourly performance insights. Using these real-time insights the team could see which keywords were driving the most conversions, adjust its keyword bid strategy accordingly and automate the optimization for efficient spending with Advanced Automated Actions.

But the benefits didn’t just end with the insights. Skai’s unique AI Recommendations feature for Ad Scheduling across Sponsored Product, Sponsored Brand and Sponsored Brand Video campaigns also surfaces suggested bid modifier actions to take in the platform to improve performance.

In itself this saved significant time and proved highly effective in scaling performance. But when combined with other features in the platform, such as Portfolios, it has been game-changing. The team is not only able to take immediate action from the recommendations, but also manage their Dayparting strategies in combination with their Portfolio Strategies to further optimize bids and maximize every dollar spent. Plus, when combined with Automated Actions the team could “set and forget” the campaign—knowing that the machine would optimize bids based on the recommendations during peak shopping hours.

Result

Using Skai, FBL’s agency transitioned from manual analysis to AI-driven suggestions, utilizing hourly Amazon Marketing Stream insights. This streamlined approach saved time and enhanced performance. The agency now relies on these tools for ad scheduling, dayparting and overall optimization across Amazon Ads to ensure consistent efficiency.

FBL saw incredible efficiency with reduced branded ad spend and optimized ad spend for incremental, non-brand strategies. Its agency exceeded overarching ROAS goals across all three brands. In addition, the performance of FBL’s non-brand campaigns improved significantly, with CPC’s remaining flat despite ad spend increasing by 40%.

Isle of Paradise: Tanologist:
  • Cost: +47%
  • Cost: +22%
  • Rev: +51%
  • Rev: +61%
  • ROAS: +3%
  • ROAS: +31%

 

In addition, out-of-budget events were reduced by 25%.

“We are excited to see Amazon Marketing Stream rolled into many facets of the Skai platform, and we will use these features across more of our accounts immediately.”

Saundra Button
Ecommerce Advertising Manager

About Future Beauty Labs

Future Beauty Labs is one of the world’s fastest growing, beauty-tech incubators and noisemakers. It is a creative collective built on brand transparency, and dedicated to its people, partners and community. Learn more at futurebeautylabs.com.

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