Case Study: KOBO Candles
The Challenge
KOBO Candles faced a pivotal moment in their business. After being acquired by a new company and undergoing a complete rebrand, the sustainable candle company needed to reestablish their presence on Amazon and promote their continued commitment to eco-friendly products. The challenge was significant: they had to drive Q4 2022 sales growth during the competitive holiday season while operating under severe budget constraints. The new ownership set aggressive profitability targets—keeping advertising cost of sales (ACOS) under 20% and total advertising cost of sales (TACOS) under 10%—metrics that would test even the most experienced Amazon advertisers.
For a rebranded company trying to rebuild momentum in a crowded candle category, these weren't just numbers—they represented the difference between profitable growth and burning through limited resources. KOBO needed an Amazon partner who could deliver results within tight financial constraints while honoring their sustainable brand positioning and helping them navigate the most competitive selling period of the year.
The Solution
Lab 916 took on the challenge in July 2022, building a comprehensive advertising strategy designed for maximum efficiency under budget constraints. Rather than relying on broad, expensive campaigns, our team conducted extensive keyword research to identify the highest-performing terms that would engage the broadest audience at the lowest cost. We implemented a dynamic optimization approach across Sponsored Products and Sponsored Brands, continuously monitoring performance, adjusting bids, and testing different placements to improve return on ad spend while aligning campaigns with inventory availability and seasonal promotions.
What Lab 916 Delivered:
- Deep keyword research to identify cost-efficient, high-converting search terms in the competitive candle category
- Strategic Sponsored Products and Sponsored Brands campaigns optimized for Q4 performance
- Real-time bid management and placement testing to maximize efficiency within tight budget parameters
- Amazon Marketing Cloud (AMC) analysis combined with third-party data to monitor performance and refine targeting
- Ongoing optimization based on shopping signals, complementary brands, and competitive market analysis
- Remarketing strategies that drove traffic spikes and exceeded conversion rate benchmarks
The Results
Lab 916's campaign for KOBO Candles didn't just meet expectations—it shattered them. We achieved an ACOS of 11.9% and TACOS of 4.5%, both significantly below the target thresholds and demonstrating exceptional profitability and budget efficiency. The campaign generated substantial sales growth compared to the previous year while driving notable traffic increases that exceeded conversion rate benchmarks. This success earned Lab 916 the 2023 Amazon Ads Partner Challenger Award, recognizing our ability to deliver innovative results within tight resource constraints.
Key Outcomes:
- Achieved 11.9% ACOS—well below the 20% target, demonstrating exceptional advertising efficiency
- Delivered 4.5% TACOS—less than half the 10% goal, proving sustainable profitability
- Generated significant year-over-year sales growth during competitive Q4 period despite budget limitations
- Won 2023 Amazon Ads Partner Challenger Award for delivering standout results with constrained resources
