We want to showcase, based on a real case study, the importance of the right approach to constructing an advertising strategy in promoting a business on Amazon.
In the current Amazon advertising environment, the effectiveness of PPC campaigns is crucial in scaling a brand and increasing sales. Given the increasing competition and complexity of algorithms, sellers are seeking ways to maximize the ROI of their advertising budgets.
The Client’s Challenge
Our client, an American company in the Home & Kitchen niche with a patriotic theme, faced the need to optimize their advertising campaigns. The previous settings did not fully exploit the potential of their products, and sales had not grown for three years.
At that time, the client had another advertising agency as a contractor, but they decided to turn to us in February 2021 for a fresh perspective on the situation with advertising sales. At that point, their company had a weak sales level of $37,000 with an ACOS of 60%.
Setting Strategic Goals: Aiming for Increased Sales and Reduced ACOS
The first thing we did was conduct a detailed audit of the client’s account, which revealed that the client had outdated listings that were significantly losing out to competitors. Additionally, since peak sales in this niche occur during the Christmas Sales period, the client’s products were well-suited for gifts, but campaigns aimed at the gift category had been poorly set up by previous specialists. The client’s sales during the Christmas Sales period did not exceed $100,000.
The main goal in this case was to increase sales and reduce ACOS, optimize advertising expenses, and increase organic sales through product listing refinement.
Our agency’s strategy involved a comprehensive analysis and optimization of existing campaigns, with an emphasis on expanding the gift theme and improving the structure of advertising campaigns.
Results Achieved: Tripled Sales and Decrease in ACOS
We started by optimizing existing advertising campaigns and updating listings, which allowed us to reduce the ACOS to 41% in the first month of collaboration. Then we actively worked on expanding the structure of advertising campaigns and the assortment of goods, applying our SkyRocket setup system.
Our approach, based not on increasing bids but on developing a broad campaign structure, includes strategic scaling and precise tuning of various advertising formats.
By December 2021, sales had more than tripled, reaching $325,500, and ACOS had dropped to 28%.
By significantly expanding the gift theme, we were able to triple sales turnover, and we reduced the ACOS from 60% to 35% on average.
In December 2022, we managed to maintain a good sales figure of $292,400 and reduce ACOS to 25%.
Our client had about 70 different ASINs related to gun themes (Gun Related). However, starting January 1, 2023, Amazon tightened its advertising policy, banning many products related to weapons. As a result, the client’s sales volume began to decrease, as it became impossible to advertise almost half of these products.
Conclusion
Our relationship with this client transcends typical PPC management, adopting an integrated approach starting from an in-depth business analysis. Our team of marketers, PPC, and SEO experts ensures a comprehensive evaluation and optimization of advertising strategies. Interested in enhancing your business through expert PPC strategies? Sign up for a free audit with us.