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From 4.3% → 3.0% TACoS With ROAS >10, While Scaling +41% YoY
Road Ready Wheels entered 2025 with TACoS hovering above 4% and ROAS stuck below 8.0 — in a market where margin pressure could derail growth fast. After engaging Adverio, RRW restructured ad spend by SKU tier, defended the Buy Box, and executed a Prime Day strategy that became a turning point. By July, TACoS dropped to 3.0%, ROAS jumped above 10, and YoY growth surged +41% — proving that in a high-pressure category, disciplined scaling and profitability can go hand-in-hand.
Product Category: Automotive > Replacement Parts
Brand Objective: Achieve and sustain double-digit YoY growth while protecting profitability in a competitive automotive replacement parts market.
The Challenge
Feb–Mar 2025: TACoS hovered at 4.3 to 4.5%, but ROAS stagnated below 8.0, with uneven catalog coverage.
April–May 2025: Growth turned positive (+27% YoY), though efficiency gains lagged. Buy Box pressure and inconsistent pricing further capped upside.
June 2025: Expansion campaigns increased the topline (+35% YoY) and led to temporary inefficiencies. The focus is always to scale profitably, not just push revenue.
July 2025: Prime Day became the stress test that we passed with flying colors. TACoS dipped to a wildly profitable 3.0% while further unlocking upside to +41% YoY.
August 2025: Even after a top SKU stocked out in August, RRW still posted +28% YoY growth with TACoS tightly held at ~3.2%.
Adverio’s System — Precision Scaling Framework
SKU-tiered scaling
Split top sellers from long-tail SKUs to optimize bids and preserve TACoS discipline.
Event-based layering
Prime Day promotions and intentional deals, paired with high-intent advertising pushes.
Buy Box defense
Coordinated pricing + inventory vigilance restored share to 95%+ after June volatility.
Profit-weighted PPC
Shifted recently tested spend away from low-margin SKUs, redirecting budget into proven, higher-yield ASINs based on relative share of total sales.
Cross-channel visibility
Market QryIQ + Profit Pulse System analysis ensured efficient keyword coverage across the automotive category.
The Results
Profitability gains
TACoS reduced from 4.3% → 3.0% in July, while ROAS surged from 7.4 → >10.0.
Topline expansion
Sales grew +41% YoY in July, the strongest month of the year, aided by a successful Prime Day (+25% YoY during the event).
Stability & Resilience
Buy Box recovery and SKU rebalancing ensured continued topline and bottomline momentum heading into Q4.
The Lesson
With a disciplined Precision Scaling Framework, RRW demonstrated that profitability and aggressive growth are not mutually exclusive. By systematically rebalancing ad spend, defending margin drivers, and leveraging tentpole events, Adverio helped compress TACoS to 3% and elevate ROAS above 10 while still expanding topline at a > 40%+ YoY clip.
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