Brand Background
Sephora offers a vast range of beauty products, including skincare, makeup, haircare, and fragrances. The company features its own Sephora Collection alongside renowned international brands. Their website and stores provide access to over 300 carefullyselected brands, making Sephora a one-stop destination for all beauty enthusiasts.
Challenges
Lack of Product/Category-Level Insights
With 14,000+ SKUs spread across 120+ categories and 90+ brands, manually tracking product performance was overwhelming. There was limited visibility into which products were driving real returns — particularly within their exclusive collections and top-performing international brands.
2. Ad Spend Leakages on Poor Performers
More than 25% of ad spends across Meta and Google were being allocated to underperforming SKUs — draining budgets that could’ve been better used to scale high-converting products.
3. Lack of Control on Budget Allocation
Being a multi-brand marketplace, Sephora needed a solution that could provide granular control over which products, categories, and brands were being promoted — ensuring their flagship offerings got the visibility they deserved.
Solutions
1. Bigatom's 360-degree Product Analytics
BigAtom delivered a comprehensive 360-degree solution for all of the brand's Product Performance Analytics needs. This enabled the client to track key KPIs like Ad Spend, Conversion Rate, ROI, and Revenue for each category and product on their website. As a result, they could pinpoint the products best suited for boosting ad performance.
2. Customizable Product Sets
Targeted Product Sets played a pivotal role in helping Sephora promote its most profitable products. For instance, a specific Product Set was promoted across Meta and Google, delivering a remarkable ROAS of 13x from April to June 2024. The filters applied included:
- Blended ROAS: Estimated Spends per Product ≥ 10x
- Purchases: ≥ 2 in the last 30 days
- Brand Filters: Products from specific brands like Anastasia, Makeup Forever, and Huda Beauty
This strategic targeting enabled Sephora to focus on high-performing products, maximizing their ad spend efficiency.
3. Stop-loss Automation
BigAtom.ai implemented Stop Loss Automation, an advanced feature that automatically filtered out underperforming products from their Catalog Ads across Meta and Google Ad placements.
By setting specific rules and criteria, the brand was able to focus resources on top-performing products, ensuring better spend allocation.
This strategic automation saved the brand 13% in ad spend between April and June 2024, demonstrating its substantial impact on ad efficiency.
Key Results
With a data-driven approach to product selection and campaign automation, Sephora significantly improved ad efficiency and returns.
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