Case Study #3 · Mushroom Coffee · PPC Restructure

Ad spend cut nearly
in half. Profit up
40% in 5 months.

More spend does not mean more profit. This brand was stuck in a cycle of increasing budgets and flat margins — until we fixed the actual problem.

−47%
Ad spend reduced from Dec peak
+40%
Profitability increase
$5,600
Net profit reached in May

The problem

The client came to me in December 2025 frustrated. Every month he increased his ad spend expecting growth — but profits stayed flat or got worse. He was spending more and making less. Something wasn't working, but he couldn't see what.

This is one of the most common patterns I see. More budget doesn't fix bad structure — it just amplifies the waste.

The diagnosis

I pulled the full account data and the picture became clear fast. He was spending heavily on keywords that were generating clicks but not converting. These weren't just inefficient — they were actively damaging the account in two ways:

First, the obvious: high ACoS keywords were burning budget that could go to profitable terms. Second, and more damaging: the overall account conversion rate was being dragged down. Amazon's algorithm reads conversion rate as a quality signal. A low conversion rate means Amazon pushes your products lower in organic rankings — creating a negative spiral where you need to spend even more on ads just to maintain visibility.

The problem wasn't budget. It was the keywords eating that budget.

What I did

1

Full account audit

Analysed every campaign, ad group, and keyword. Mapped spend vs conversions vs ACoS across all targets. Identified the bleeders — keywords with consistent spend and no return history.

2

Cut the waste ruthlessly

Paused or negated every keyword and campaign that was dragging conversion rate without contributing to sales. This freed up significant budget and, critically, stopped polluting the account's conversion signal to Amazon's algorithm.

3

Built high-performing replacements

Created new campaigns targeting keywords with proven purchase intent in the mushroom coffee category. Structured tightly — exact match where conversion data existed, phrase and broad with aggressive negative lists.

4

Daily optimisation through January

The first month after a structural change is critical. Monitored daily — adjusting bids, adding negatives from search term reports, reallocating budget to what was working. The results started showing immediately.

The results

From January onwards, the trend reversed completely. Ad spend came down sharply — nearly halved from the December peak — while revenue held and then grew. By May, the brand was generating close to $5,600 in net profit, a 40% improvement in profitability despite spending significantly less on ads.

The chart tells the story clearly: the red bars (ad spend) shrink from January while the blue bars (profit/revenue) climb. That's the goal — more profit, less waste.

Dec → Jan
Turnaround started in first month
~50%
Ad spend reduction
$5,600
Net profit by May 2026
Sellerboard — ad spend vs profit, Sep 2025 to May 2026
Sellerboard chart showing ad spend (red bars) declining while profit (blue bars) increases from January 2026

Red bars = ad spend. Blue bars = profit. From January, spend drops sharply while profit climbs — reaching its highest point in May 2026.

Spending more and not seeing it in profit?

That's exactly the pattern I fix. Let's look at your account.

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