Unlocking Smarter Growth: How Lighthouse Outperformed a Top Amazon Ad Tool for a $700M Seller
When you’re a $700M Amazon seller spending $20M a year on ads, the stakes are high. For this retailer, even with one of the leading bidding tools and a large in-house marketing team, performance had stalled. Costs were rising, and campaigns couldn’t adapt fast enough to changing business goals.
That’s when they chose Lighthouse.
The Situation: Growth Stalled Despite Heavy Investment
Despite their size and resources, this seller faced a familiar challenge:
Flat Results – Ads weren’t scaling profitably, despite millions spent on a top bidding tool.
Rigid Optimization – Tools struggled to adjust to shifting revenue vs. profit priorities.
Complex Portfolio – Thousands of ASINs, many with little or no ad spend history, created untapped opportunity.
They needed a more data-science-driven approach—one that could continuously balance profit and growth.
The Lighthouse Solution: Dynamic Financial Optimization
Within days of onboarding, Lighthouse applied its Dynamic Financial Optimization framework:
Automated Restructuring – Campaigns were rebuilt for keyword-level bidding, tuned to each individual ASIN.
Granular Modeling – Lighthouse measured spend elasticity and conversion rates at the ASIN-Keyword-Placement-MatchType-Hour level, modeling profit and revenue trade-offs.
Phased Rollout – We began by maximizing profit across the catalog (Phase 1), then shifted into revenue acceleration mode with Lighthouse SalesBooster (Phase 2).
Statistical Rigor – Performance was validated through a balanced A/B test to confirm significant gains.
Lighthouse What-if Simulator
The Results: Profit First, Then Scaled Growth
Lighthouse delivered transformational results in both phases:
Phase 1 – Profit Maximization
70% lift in attributed sales while lowering Ad Cost of Sales (ACoS) from 18% → 7%
+7% profit lift at the portfolio level
Prevented profit dilution by eliminating excessive bids
Phase 2 – Revenue Acceleration
+160% lift in attributed sales
+14% revenue lift overall
Cold-start ASINs—previously untapped—generated +14% revenue and +5% profit at a highly efficient 7% ACoS
Kept ACoS below pre-launch levels, despite higher sales volume
Why It Worked
Unlike traditional tools, Lighthouse doesn’t just chase clicks or sales volume. Our system:
Models elasticity at the product level to find the true “profit vs. revenue” sweet spot
Seamlessly shifts between financial objectives (profit vs. revenue acceleration)
Adapts dynamically to new product launches, Buy Box competition, and market conditions
The result? More sales and more profit, with efficiency that scales.
Takeaway for Large Sellers
For high-volume sellers spending millions on Amazon, even small gains in efficiency translate into millions of dollars in profit. Traditional bidding tools plateau. Lighthouse’s adaptive, profit-first approach breaks through the ceiling.
When performance stalls, the question isn’t how much you’re spending—it’s whether you’re spending it the right way.
👉 Ready to unlock smarter growth? Let Lighthouse show you how.
