Profitability With 70% Sales Growth YoY — TACoS Dropped to 10% From 16.8%

Pets Favorite was growing but inefficient — TACoS had climbed to 16.8%, pushing margins past safe limits. With rising ad spend and mounting pressure, leadership needed profitability restored fast. After partnering with Adverio, the brand trimmed ad waste, expanded Subscribe & Save, layered in video creatives, and rebalanced campaigns. Within four months, TACoS dropped to ~10%, sales surged 70% YoY, and margin control was fully restored — all while hitting record daily run-rates.

Product Category: Home & Kitchen > Pet Supplies

Brand Objective: Increase profitability while fueling aggressive topline expansion, thus driving TACoS into single digits while sustaining rapid sales growth.

The Challenge

May: TACoS at 16.8%, above the 13.5% guardrail. Sales climbed +44.7% YoY, margin pressure was rising.

June: TACoS pulled back to 14.5%, YoY sales up +45.9%, though Buy Box gaps and stockouts muted upside.

July: Breakthrough month as TACoS cut to ~12%, sales surged +58% YoY. Prime Day volatility tested control, and swift cost controls stabilized performance.

August + September (early): TACoS narrowed further to ~10%, sales growth further accelerated to +70% YoY, additionally supported by Sponsored Display video campaigns.

Adverio’s System - Growth-as-a-Service (GaaS)

Pruned waste quickly

reset thresholds for negations and pausing underperforming campaigns, targets, and product ads.

Built stickiness

expanded Subscribe & Save with coupon offers, lifting repeat-purchase contribution toward 20% of sales.

Layered creative reach

added SB + SD video formats to capture seasonal demand and refresh brand presence.

Disciplined scaling

funneled spend into proven winners while holding budgets lean; used dayparting and SOP resets during Prime Day Sales event.

Protected conversion engines

escalated Buy Box and inventory issues early to prevent sales erosion.

The Results

Profitability gains

TACoS dropped from 16.8% → ~10% in four months, while ACoS trended below 30%.

Explosive topline

Sales expanded +70% YoY, with new daily peaks setting performance records.

Agility under pressure

Prime Day consumer behavior shifts and Buy Box volatility were absorbed promptly.

Customer lock-in

Subscribe & Save adoption reached nearly 20% of sales, anchoring repeat revenue.

The Lesson

Pet’s Favorite proved that tight marketing discipline + smart data-fueled creative + proactive ops can deliver both margin recovery and breakout growth, simultaneously. A typically rare dual win of profitability and scale for others, but far more common here at Adverio.