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Cautionary Tale

Your Ego Isn't Worth Millions in Lost Valuation

What Happened When a Client Took Amazon Ads In-House

Category:Amazon FBARevenue:$1M-$5MPPC Management

+19pp

ACoS Destroyed

18% to 37%

-47%

Revenue Collapse

Year-over-year

-61%

Net Profit Collapse

Year-over-year

Your Ego Isn't Worth Millions in Lost Valuation

Overview

One of two clients that chose to part ways at the beginning of last year. They went in-house with their Amazon Ads. Trailing 12 months: ACoS up from 18% to 37%, revenue down 47%, net profit down 61%.

The Challenge

Just because you own it doesn't mean you know better.

Client believed they could manage ads cheaper in-house

Underestimated complexity of maintaining PPC performance

Ego-driven decision instead of data-driven

What We Left Behind

Our Approach

This isn't what we did. This is what happened when we stopped doing it. Root in reality and call it as it is.

1

Our Management Period

18% ACoS, growing revenue, healthy net profits

2

In-House Transition

Client took over Amazon Ads internally to save on fees

3

12-Month Results

ACoS doubled to 37%, revenue down 47%, profit down 61%

Amazon dashboard screenshot 1

The Results

Measured Results

Trailing 12 months YoY

ACoS+19 percentage points
Before
18%
After
37%

Revenue

Before

Baseline

After

-47% YoY

Near halved

Net Profit

Before

Healthy

After

-61% YoY

Catastrophic

ACoS doubled from 18% to 37%. Revenue down 47%. Net profit down 61%. Your ego isn't worth millions lost in a valuation.

The Uncomfortable Truth

Would your brand be better served by a professional you trust, instead of running it yourself? The answer can 100% be no, but ask it, and be honest about it.

Key Learnings

Main Driver of Change

The decision was ego-driven rather than data-driven, underestimating PPC complexity. The client assumed that owning the brand meant they could manage the ads. ACoS doubled from 18% to 37%, revenue dropped 47%, and net profit collapsed 61% in a single year.

What's Next

A permanent reminder to ask honestly whether a professional would serve the brand better. The answer can absolutely be no, but it needs to come from data and capability assessment, not ego and cost-cutting assumptions.

Ready to grow?

Thinking About Going In-House?

Ask yourself honestly: Would your brand be better served By a professional you trust? The answer can be no, But make sure it's data-driven, not ego-driven.

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