How Loma Lux Achieved a Predictable and More Efficient Ad Spend

Overview

Loma Lux Laboratories offers mineral-based, homeopathic treatments for skin conditions. The company was founded in the 1990s by dermatologist Dr. Steven A. Smith, MD, who found that conventional treatments were often prohibitively expensive or triggered adverse reactions in his patients. 

Loma Lux sells over-the-counter products and prescription treatments through its Plymouth Pharmaceuticals line. The company has four products under the Loma Lux brand, each named for the ailment it treats—Acne, Psoriasis, Eczema, and Dandruff. The all-natural nature of its remedies is reflected in the company's motto: "Healthy Skin From Within." 

When Gerti Morell joined the company as marketing director in 2014, her expansion strategy was two-pronged: establishing a solid ecommerce base and placing products in brick-and-mortar drugstores.  

The Challenge: Growing Sales While Keeping Ad Spend Within Budget

Morell initially managed Loma Lux's Amazon ads herself, but like many marketing directors, she found Amazon's vendor dashboard cumbersome to use. She eventually hired a company to assist her, but they could not keep the ad costs below the desired target. Furthermore, the volatility in ad spend was jarring. She was shocked to find her spend could range from $4,000 one month to $8,000 another. 

Morell’s inability to manage that aspect of the ad spend was frustrating. So was the advertising platform's choice to only highlight one of Loma Lux's products, the eczema remedy, which felt like a tactical move that did not align with her larger business priorities.

"I wasn't able to control the budget at all," Morell says. "That's when I started looking for another agency."

The Solution: Smart Strategies that Make Business Sense

In July 2020, Morell hired Intentwise. She could see the difference right off the bat. "[Intentwise’s] presentation wasn't smoke and mirrors and empty promises," she says. "They were honest. They showed me opportunities our agency at the time had missed and ways we could grow our business."

We understood the importance of capping ad spending, which impressed Morell. They also did not have to rely on tactics that prioritized one product over another. 

"I didn't have to do anything other than give them the monthly budget I wanted to stay within, how much per brand and per product,” Morell says, “and from there they went in and developed an entire plan, taking advantage of different ways of advertising on Amazon."

The Results: Skyrocketing Sales with only a Modest Increase in Spend

In the year since the company began partnering with Intentwise, Loma Lux's overall Amazon sales grew 54%, with impressive jumps for each product line: The Eczema remedy was up 32%, Psoriasis was up 87%, Acne was up 103%, and Dandruff was up a whopping 159%. 

Over the year, Loma Lux saw its advertising cost of sales (ACOS)—how much is spent on advertising per dollar of revenue—decrease from 59% to 38%. Ad revenue sales increased 29%, while ad spend only grew by 12%.

During the initial Covid-19–related lockdowns, sales of Loma Lux products increased on Amazon, buoyed by the general trend toward ecommerce and growing consumer interest in natural and homeopathic health care options. Morell was relieved to find that in 2021, robust sales have endured. "I'm looking forward to working with Intentwise even further to increase our sales revenue," she says.