How a Premium Headwear Brand Restored Growth and Improved TACOS

This premium apparel brand specializes in high-quality hats and lifestyle accessories, managing over 2,000 ASINs across Seller and Vendor channels. The brand operates in a competitive, price-sensitive category while maintaining a premium positioning built on quality and design.

The Challenge

Growth was strong—but unsustainable.

In the first half of the year, both sales and ad spend scaled rapidly. However, increased investment outpaced efficiency, putting pressure on profitability.

To correct this, the brand raised prices. Over time, cumulative increases pushed products more than 20% higher year over year—beyond competitive thresholds.

The impact was immediate.

Sales momentum declined sharply, dropping from strong growth to near stagnation. At the same time, TACOS continued to rise, as higher prices reduced conversion while spend remained elevated.

The account entered a negative cycle:

• Higher prices reduced conversion  

• Lower conversion required more spend to maintain visibility  

• Increased spend further pressured efficiency  

The brand needed to restore demand—without sacrificing profitability.

Why Quartile

This was not just a campaign issue—it was a pricing and strategy misalignment.

Quartile identified that demand had not disappeared. It had become inaccessible at the current price point.

Using Market IQ and category benchmarks, Quartile validated that pricing needed to be corrected to restore competitiveness and improve conversion.

But lowering prices alone would compress margins.

To make the strategy viable, advertising had to become more efficient at the same time. This required aligning pricing decisions with a focused, performance-driven media strategy.

The Solution

Quartile implemented a coordinated pricing and spend strategy.

Following a 10% price reduction, campaigns were immediately restructured to capitalize on improved conversion rates.

Investment was concentrated on high-performing Parent ASINs, increasing their share of spend from approximately 20% to 40%. Lower-performing products were deprioritized, reducing wasted spend and improving overall efficiency.

Campaign mix was also refined. Budget shifted away from less efficient coverage toward high-intent queries, focusing on core category terms where the brand could compete effectively.

Sponsored Brands became a key lever. New creative assets were introduced, and investment increased to strengthen visibility and engagement across the funnel.

This approach ensured that improved pricing translated directly into stronger performance.

Results & Impact

The strategy delivered a clear and measurable turnaround:

• Sales returned to +12% year-over-year growth, reversing prior decline  

• TACOS improved by 12%, restoring efficiency  

• Sponsored Brands ACOS improved by 38%, driven by stronger creative and targeting  

• Overall growth reached +40% when including expanded account coverage  

These results demonstrate the impact of aligning pricing with media strategy—restoring both demand and profitability.  

Ongoing Value & Future State

With pricing and performance now aligned, the brand is positioned for sustained growth.

Quartile continues to refine portfolio prioritization, expand high-performing segments, and optimize across both Seller and Vendor channels. The account now operates with a clear connection between business strategy and advertising performance.