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Lighting Equipment Case Study: Zero to Hero + PPC Automate

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Profit Whales Team on Oct 04, 2021

Lighting Equipment Case Study

 

Profit Whales takes PPC campaigns to a whole new level.

PPC sales vs Acos vs Orders

 

Company Background

In early 2021, Profit Whales settled the PPC campaigns for a home Lighting Equipment Brand that sells chandeliers, solitaires, table and floor lamps, wall sconces, and professional lighting equipment. The client decided to check if Amazon’s advertising department could do a better job with Amazon PPC.

 

The Challenge

Orders vs CPC

 

After examining the results of campaigns run by Amazon, we can say (with some degree of certainty) that our old PPC campaigns sold the product better than the competitor’s settings.

orders vs spend

 

We have resumed our work on the client’s PPC campaign on August 15, 2021. We aimed to recreate and exceed the performance of our original campaigns (running from March to June 2021).

 

“Our ultimate goal (we consider to be a real success) in most of the campaigns we run is to provide our customers with consistent (and less ad spent-dependent) sales.”

–Ihor Dubovetskyi, Profit Whales

 

The Solution

Before reviewing the old campaigns, we removed ineffective search terms that had ACoS over 40%. We’ve set up the net margin for the product, selected a Profitable PPC Optimization Strategy. Voila! Selected Profitable PPC strategy forced the algorithm to always lower bid for keywords with ACoS higher than calculated Target ACoS. 

The real-time algorithm completely controlled the campaigns on autopilot. In three days, we’ve solved the problem with 40% ACoS keywords. Our software also added search terms (and competitive ASINs) to our updated campaigns that had acceptable sales figures, good ACoS, and CTRs.

We proceeded with the software to test bids for the most relevant (exact, obviously) search terms until we saw our Sponsored ads on page 1 in the top 5 items for all relevant keywords. We knew from our previous experience that some keywords show the best CTR and ACoS when ads are shown on page 1 (top of search), while others will eventually have to be bid-down to achieve optimal ads costs. 

The ultimate goal of our work, however, was to make sure the Amazon A10 also sees our sales growth across a large number of keywords (which should boost organic sales in the long run). 

What used the following strategies to accomplish this:

  • Top 1 in organic strategy: a fixed bid for the Top of search position in Sponsored Products advertising for a large pool of relevant keywords;
  • 12 PPC campaigns for 1 product with different aims (like an auto campaign that catches long-tail keywords with a ton of negative exacts), focused on different types of keywords, A/B tests of bid strategies;
  • Profit Whales Amazon PPC Automation Software with Profitable PPC Strategy. 

The client’s ad strategy is still in its PPC-stimulation stage, but we do expect the organic part of sales to rise steadily and become 60-70% of total sales (as opposed to the current 40%) over the next 2-3 months. Our goal for the next six months is to decrease MACoS (total ACoS) by up to 15%. 

Profit Whales managed to overtake the lost sales from old campaigns in a matter of 3-4 weeks (starting with 60 orders/day and currently providing 250/ day). Now, we slowly push to increase both PPC and organic sales further – while maintaining target ACoS below 35%.

 

“We’ve decided to use Profit Whales Software because of its user-friendly interface and ready-made full optimization toolset. There wasn’t anything that we have wanted that the Profit Whales Team said couldn’t be done with their Automation tool. You specify your business goal – and the program makes the changes itself.

–Lighting Equipment Brand, CEO

 

Increasing Brand Discoverability

Our team turned to Amazon Advertising to drive the discovery of our client’s products and brand name by promoting relevant keywords and optimizing the campaign’s bid price. It took them a year to implement their first campaign, which was in the form of Sponsored Products. But on each campaign, they partnered with Profit Whales to figure the right strategy for their brand, such as what content best communicates their message. For every campaign, they adhered to their mission and adopted a unique brand voice.

We used a combination of tools like Amazon DSP and OTT video for two purposes: reaching new audiences and building brand awareness. With the help of Amazon DSP, the brand was able to reach an audience exclusive to Amazon-owned services and websites and grow off-Amazon.

Using a notable homepage placement where shoppers usually visit the site propelled the company’s message in front of its target audience on Black Friday and Prime Day. The company also used a prominent homepage placement to bring its message front and center as shoppers visited Amazon on Prime Day and Black Friday. It also hosted an Amazon Live live stream with the founder, providing an opportunity for customers to engage with the company directly. 

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