Tubshroom

When Sponsored Ads Hit Their Limit, SellerApp Used Amazon DSP to Drive 3.7X Revenue Growth

Sponsored Ads had already helped the brand establish strong visibility and consistent demand on Amazon. But as competition intensified and CPCs continued to rise, relying solely on shoppers actively searching on Amazon created a natural growth ceiling.

SellerApp introduced Amazon DSP to expand reach beyond search placements, re-engage high-intent shoppers, and build a more scalable acquisition engine. The result was 3.7X DSP revenue growth, 28% higher ROAS, and stable TACoS while revenue continued to scale.

Amazon DSP growth case study

Breaking Through the Limits of Search-Only Growth

Tubshroom had already built strong visibility on Amazon. Traffic was steady, demand was consistent, and Sponsored Ads were actively driving sales. But over time, scaling profitably started becoming harder.

As CPCs continued rising across the category, margins came under increasing pressure. Despite steady traffic, in a category where most competitors priced below $20, rising CPCs were making profitable growth increasingly difficult.

The account was heavily dependent on high-intent shoppers already searching on Amazon, leaving limited room to scale beyond existing demand efficiently. At the same time, rising acquisition costs and fluctuating Buy Box ownership made profitable scaling increasingly difficult.

SellerApp partnered with Tubshroom to expand beyond search-driven growth using Amazon DSP while supporting performance through Sponsored Ads optimization. The goal was to build a more sustainable acquisition model capable of scaling profitably without relying entirely on Amazon search demand.

Tubshroom wasn't looking for a temporary sales boost. The brand needed a more sustainable growth model that could protect profitability while continuing to scale in an increasingly competitive category.

Meet Tubshroom!

Tubshroom is a leading drain protection brand known for products such as TubShroom bathtub drain protectors, SinkShroom sink strainers, and ShowerShroom hair-catching drain covers. Selling across multiple home improvement and bathroom accessory subcategories on Amazon, the brand operates in a highly competitive, low-priced market where rising advertising costs can quickly pressure margins.

With most competing products priced below $20 and a growing number of international sellers entering the space, even small increases in acquisition costs could significantly impact growth efficiency.

Despite strong organic demand and established category visibility, scaling efficiently required a more sophisticated approach than traditional Sponsored Ads alone could deliver.

In low-priced categories, the ad auction is inherently unforgiving. Everyone pays similar CPCs, but not every brand has the same margin structure to absorb them.

The team came to SellerApp looking for greater control over acquisition efficiency and a sustainable growth model capable of supporting long-term growth in an increasingly competitive category.

Why Sponsored Ads Alone Could No Longer Drive Growth

As CPCs continued rising, growth became increasingly dependent on winning more expensive search auctions. While Sponsored Ads continued driving visibility, relying solely on search traffic left limited room to scale profitably.

But the objective wasn't reducing ACoS. Sponsored Ads were already performing efficiently.

SellerApp recognized that Sponsored Ads were already capturing much of the available search demand. To unlock additional growth, the strategy shifted toward expanding reach beyond Amazon search through Amazon DSP while improving acquisition efficiency across the funnel.

This meant expanding beyond search-based acquisition, refining audience targeting, and creating new demand sources that could scale profitably.

At the same time, Amazon DSP was introduced to expand reach beyond high-intent Amazon shoppers, recover lost audiences, and unlock new demand through retargeting, contextual targeting, and off-Amazon placements.

Where Growth Started Breaking Down

From the outside, the account still looked healthy. Traffic was steady. Impressions were growing. Sponsored Ads continued driving visibility across the category. But underneath that momentum, performance had started slipping in ways that became harder to ignore over time.

Problem 1: Growth Was Limited to Existing Search Demand

As competition intensified across the category, advertising costs continued climbing while returns moved in the opposite direction.

Sponsored Ads continued capturing high-intent shoppers, but growth depended almost entirely on shoppers already searching within the category. As competition increased, scaling through search alone became increasingly expensive.

This wasn't a temporary fluctuation caused by seasonality or short-term volatility.

It pointed to a deeper limitation in the account's ability to generate demand beyond Amazon search.

Problem 2: High-Intent Shoppers Were Leaving Without Converting

Traffic wasn't the issue. The account was already attracting high-intent shoppers, but many visitors left without purchasing. Without a system for re-engaging those audiences, valuable demand was being lost.

At the same time, rising CPCs made inefficient traffic increasingly expensive. Campaigns were generating visibility, but conversion stability became harder to maintain consistently as costs climbed.

The result was a system capable of driving traffic, but not one built for scalable efficiency.

Problem 3: Rising CPCs Were Shrinking the Path to Profitable Growth

Some of the biggest performance pressures weren't happening inside campaigns alone.

Buy Box ownership fluctuated across Seller Central and Vendor Central, creating instability in conversion performance. Inconsistent control over pricing and fulfillment added additional pressure on already tight margins, making scaling even more difficult.

At the same time, relying heavily on Sponsored Ads limited the brand's ability to expand reach beyond shoppers already deep in the buying journey.

Growth had started plateauing, not because demand disappeared, but because the existing acquisition model had limited room left to scale efficiently. It needed to stop paying for clicks that weren't converting.

What SellerApp Found Beneath the Performance Decline

Sponsored Ads were already capturing shoppers actively searching for products like Tubshroom.

The problem wasn't visibility. It was reach.

The account had limited ability to engage shoppers before they searched, re-engage visitors who left without purchasing, or influence buying decisions outside Amazon search placements.

SellerApp identified Amazon DSP as the key opportunity to expand beyond existing search demand while improving acquisition efficiency.

"We weren't trying to make Sponsored Ads work harder. We were trying to stop expecting Sponsored Ads to do a job they weren't designed to do."— Sam C. - Senior Manager, Customer Success at SellerApp

How SellerApp Built a DSP-Led Growth Engine

Tubshroom's account wasn't struggling to generate visibility. Sponsored Ads were already capturing a significant share of existing demand.

The challenge was finding new ways to scale beyond Amazon search. SellerApp used Amazon DSP to reach shoppers earlier in the buying journey, re-engage high-intent audiences who hadn't converted, and create new acquisition opportunities beyond traditional Sponsored Ads placements.

"Most brands think scaling means bidding harder. In reality, there comes a point where the bigger opportunity is reaching shoppers who haven't entered the search auction yet."— Sam C. - Senior Manager, Customer Success at SellerApp

Supporting Sponsored Ads Optimization

While DSP became the primary growth lever, SellerApp also refined Sponsored Ads performance through search term cleanup, profitability-based bidding, tighter campaign structures, and continuous budget reallocation.

These optimizations helped improve acquisition efficiency while DSP expanded reach and generated incremental demand.

Using Amazon DSP to Expand Reach Beyond Search

Sponsored Ads were already capturing shoppers actively searching on Amazon.

But scaling beyond that audience required a broader acquisition strategy.

Amazon DSP was introduced to expand reach outside traditional search placements and build a more layered full-funnel system.

At the top of the funnel, contextual, category, and competitor targeting were used to reach shoppers earlier in the buying journey and introduce the brand to new audiences.

At the bottom of the funnel, retargeting campaigns re-engaged users who had interacted with the brand but had not yet converted, helping recover lost demand more efficiently.

Audience targeting also became more refined over time, shifting away from broad segments and toward higher-intent audience groups with stronger purchase potential.

Refining DSP Audiences Based on Customer Behavior

As DSP campaigns matured, audience segments were continuously refined based on engagement and conversion behavior.

SellerApp shifted spend toward audience groups demonstrating stronger purchase intent while reducing investment in lower-performing segments.

This allowed DSP campaigns to become increasingly efficient as they scaled.

Supporting Operational Efficiency

Alongside DSP expansion, SellerApp monitored Buy Box ownership, inventory availability, search term performance, and campaign profitability to protect conversion efficiency.

These operational improvements ensured that DSP-driven growth translated into profitable revenue rather than wasted spend.

How the Account Performance Changed

Amazon DSP quickly emerged as a meaningful growth driver for the account, generating $75.6K in attributed revenue while maintaining efficient acquisition costs and validating the strategy early on.

As audience targeting became more refined and retargeting campaigns expanded, DSP revenue grew from $27.9K at rollout to more than $103K monthly, representing a 3.7X increase.

Crucially, efficiency held as DSP scaled. TACoS remained stable at 15–17%, demonstrating that the additional revenue was incremental rather than cannibalizing existing Sponsored Ads performance.

As DSP matured, it evolved into the account's largest growth driver, contributing 35% of total attributed revenue while helping increase total sales from $584K to $684K.

ROAS improved from 3.0 to 3.84, confirming that profitability remained intact even as acquisition efforts expanded beyond Amazon search.

More importantly, the strategy proved that growth did not have to come from spending more within increasingly competitive search auctions. By using Amazon DSP to reach new audiences and recover high-intent shoppers who had not converted, SellerApp built a more scalable acquisition model capable of sustaining profitable growth.

Key Takeaway

Sponsored Ads are built for one thing: capturing shoppers already searching. They do that job well. But at some point, the auctions are expensive, the category is saturated, and the only move left is to bid higher for the same demand.

That's the ceiling. And most brands don't realize they've hit it until margins are already under pressure.

The fix wasn't spending more inside a system that had run out of room. It was building a second system alongside it, one designed to reach shoppers before they searched and recover the ones who left without buying.

DSP didn't replace Sponsored Ads. It extended them. And that extension is what turned a plateauing account into one with a real growth engine behind it.

If your CPCs keep rising but your returns don't, you're not losing. You've just hit the limit of what search alone can do. The question is whether you build beyond it.

Amazon DSP ROAS optimization