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The brand we are talking about in this case study sells products related to Health & Household category and has been in the Amazon business for the last 5 years. They sell cleaning products and various helpful products to make homes and kitchens cozier. This brand provides items in packages from recycled materials for a reasonable price. The company concentrates on satisfactory customer service. They plan to develop numerous eco-friendly products in recyclable packaging soon.
CHALLENGE
From Jan 2019 to March 2021, they saw fewer PPC sales compared to the advertising cost. They had trouble scaling their ad campaigns to which they’ve already put enormous resources. And, then suddenly, they detected a drastic decrease in sales. As a result, ACoS was much higher than the break-even point of the brand. The company’s requirements from us were to minimize the risks of high costs and work with a tight budget. The aim was to find a solution that could help total control over the advertising budget.
ACTIONS
The first step we undertook was to redirect traffic with the help of the right keywords from Product Pages to the Top of the Search. This action helped us to increase the conversion rate of the driven traffic as most of the purchases are made at the Top of the Search. The second step we took was creating Sponsored Display Campaigns which allowed us to protect product pages from competitors’ advertising through proper targeting. Therefore, the correct structure of PPC campaigns can increase ad sales and improve organic sales. In the next step, we created a pool of high-performance keywords and direct 70% of the budget into their functioning. High bids on those keywords let the product listings show up in the most relevant searches and increase the chances for a better conversion rate.
And finally, the most crucial task was to minimize the risks of unnecessarily high costs. Additionally, that increased the activity on the product detail page when customers integrated with the product detail page and ranked higher because Amazon saw external traffic as organic. And last but not least, it was necessary to add all keywords in the negative part of auto-campaigns to find indirectly relevant keywords and attract additional traffic.
BENEFITS
The strategies we implemented have worked great on the PPC. We got a PPC break-even in a few months and even started reducing the ACoS. Month over month, there was an increase in sales and improved keyword ranking on many products targeted in the PPC. The PPC sales improved, and so did the total sales improved. Sponsored Brands Ads and Sponsored Product Display Ads worked on the products.
RESULTS
As illustrated in the graph below, Sipransh Ecommgrowth began to work with the brand in May 2021. It was essential to stabilize ACoS, find the weak spots of the brand, and see where the budget was wasted, so we eliminated them. After thoroughly analyzing the keywords and their bids, it was evident that the used keywords weren’t trending anymore. That’s why keyword harvesting was the decisive point in improving the results. However, the traffic redirection to the Top of the Search also played a key role.
We performed the ad campaign restructuration that brought normalized ACoS. It decreased from 42.39 to 17.85. When the keyword pool was renewed, PPC impressions grew more than twice. As a result, the ad sales changed significantly as well. Our testing of the PPC auto-campaigns proved the belief that Sponsored Products don’t accomplish their full potential. We also added negative keywords in the campaigns, which was very important.
Additionally, we executed A/B testing to choose whether Amazon users interact more actively with the old image listing of the product or a new one. New images were created after we gave marketing recommendations to the brand. The new images created had a better response from the customers.
Jan 1st to Dec 31st, 2021 (12 months):
Jan 1st to Aug 31st, 2022 (8 months):
Comparison of 2022 from 2021:
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