Internal deadlines, creative approve, deal submission dates, stakeholder meetings—all things that can force marketers to accept what is, instead of building a solid, focused foundation that will result in optimization and sustained growth.

Challenge

THE COMPANY approached us with the goal of optimizing ad spend after their success on Amazon had plateaued due to structural inefficiencies in their PPC strategy. Their ACOS was well above category average and was continuing to rise with the lucrative holiday period approaching.

To get them back on track, Labelium needed to redevelop and implement new, front-to-back, Amazon strategy that addressed their inefficiencies without losing out on key Q4 holiday traffic and sales.

Solution

While ACOS reduction and overall spend efficiency was always a top goal, we understood that we needed to optimize conversion while simultaneously eliminating unqualified traffic.  We knew that simply optimizing their existing campaigns would save time and we could still drive an improvement in ACOS, however, we decided to strategically and simultaneously restructure their campaigns and detail pages, while still optimizing. 

We worked with our client to focus our efforts and prioritized the 20% of ASIN’s that were driving 80% of both revenues.  Once ASIN’s were identified, we immediately were able to implement detail page and storefront changes to ensure they were optimized for advertising & pages would convert at the highest rate possible.  By focusing on the 20% of ASIN’s, we turned this around in three days and immediately restructured both their Sponsored Product and Sponsored Brand Ads.

For Sponsored Product Ads, we strategically phased out campaigns where ad groups contained products that had similar qualities, but different customer intents.  We immediately used hyper-focused and data driven branded, category and negative keywords to create new campaign, but we were now able to leverage negative keywords appropriately to optimize ACOS for our automated campaigns. 

Prior to the automated SPA’s being grouped correctly and having negative key words, there was no way for us to tie search terms to specific products, which meant their manual SPA campaigns weren’t optimized either.  Once the team had gathered enough data from automated SPA ads, we leveraged manual campaigns to convert customers in the consideration and purchase stage who had a with high propensity to buy.

For Sponsored Brand Ads, we phased out dynamic ASIN optimizations, which displays ASIN’s based on products that will lead to conversions and set up multiple brand ads that featured top converting ASIN’s and ASIN’s where the client wanted to over rotate.  To ensure these were optimized at all times, we monitored in-stock and buy-box delivery messaging of featured ASIN’s.

Results

By restructuring disorganized ad groups, setting up single ASIN ad groups and optimizing Sponsored Brand Ads, THE COMPANY saw revenue increase by +10% over the holidays while cutting ACOS by 46% heading into 2020.  In addition, the strategy has increased the total marketing budget for the client in 2020.  This incremental budget will allow us to invest in display advertising, where we can continue to drive more branded searches and ultimately bring more customers into the consideration phase-which we’ll convert through our SPA & SBA ads.

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