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Beyond the CPC: A Case Study in Amazon Sales Volume and Profit Growth

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Profit Whales Team on Jul 08, 2024 in Case Studies

Project Brief

The client approached us at the beginning of their market entry, requiring a comprehensive strategy from scratch. Their product range includes four interrelated items. We provided optimization advice for the listings to effectively promote each product by consolidating all listings under a single parent listing.

 

Problem

The primary challenge was the low-margin nature of the products, making advertising campaigns expensive and difficult to sustain. The high Cost Per Click (CPC) was a significant barrier to profitability. Our objective was to devise a strategy that would increase sales volume, thereby lowering the CPC and enhancing overall profitability.

 

Solutions

To address these challenges, we implemented a “zero-to-hero” structure focused on promoting exact match keywords. This approach aimed to improve rankings for highly relevant search terms and boost organic traffic. The key steps included:

  1. Keyword Research and Optimization:
    • Conducted in-depth keyword research to identify high-potential exact match keywords.
    • Optimized product listings with these keywords to enhance relevance and searchability.
  2. Exact Match Campaigns:
    • Launched PPC campaigns targeting the identified exact match keywords.
    • Monitored and adjusted bids to maximize the efficiency and effectiveness of these campaigns.
  3. Organic Growth Focus:
    • Prioritized strategies that would enhance organic rankings over time.
    • Integrated organic growth metrics into our overall performance tracking.

While the initial results showed an increase in sales volume, the CPC remained higher than desired. To address this, we analyzed our broad match campaigns, which had a lower CPC. Based on this analysis, we decided to shift our focus towards broad match keywords. The key steps in this phase included:

  1. Broad Match Campaign Expansion:
    • Expanded the campaign structure to include a broader range of keywords.
    • Shifted the primary traffic to broad match campaigns to capture a wider audience.
  2. Bid Optimization:
    • Continuously monitored and optimized bids in broad match campaigns to ensure cost-effectiveness.
    • Employed dynamic bidding strategies to balance traffic volume and CPC.
  3. Performance Tracking and Adjustment:
    • Implemented robust tracking mechanisms to measure the performance of both exact and broad match campaigns.
    • Made iterative adjustments based on real-time performance data to optimize results.

 

Results

Our strategic shift yielded significant positive outcomes. The key results included:

  1. Stable Sales Growth:
    • Achieved consistent and substantial growth in sales volume.
    • Maintained a steady upward trajectory in sales, reflecting the effectiveness of our strategies.
  2. Improved Organic Rankings:
    • Enhanced organic search rankings as a result of increased sales volume and keyword optimization.
    • Achieved first-page positions for our client’s products within their category, boosting visibility and credibility.
  3. Reduced CPC:
    • Successfully lowered the CPC through strategic bid adjustments and keyword optimization.
    • Increased overall profitability by reducing advertising costs while maintaining high sales volume.

 

Next Steps

To ensure continued success and growth, our next steps involve:

  1. Sustaining Growth Momentum:
    • Continue optimizing campaigns to maintain and enhance the current growth trajectory.
    • Implement strategies to capitalize on emerging market trends and opportunities.
  2. Further Optimization:
    • Conduct ongoing analysis and optimization of keyword strategies, bid management, and campaign structure.
    • Experiment with new ad formats and targeting options to further improve performance.
  3. Market Expansion:
    • Explore opportunities to expand the client’s market reach by introducing new products and targeting additional segments.
    • Leverage insights gained from current campaigns to inform future market expansion strategies.

 

Bottom Line:

Through targeted strategies and continuous optimization, we successfully transformed a low-margin product line into a high-performing brand on Amazon. By focusing on high-frequency keywords, leveraging competitor traffic, and enhancing content, we achieved substantial sales growth and maintained profitability. This case study highlights the effectiveness of a well-rounded approach to Amazon advertising and the potential for significant market impact when leveraging targeted PPC strategies and external traffic sources.

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