In this Case Study, Profit Whales shared the actual proof that poorly performing PPC ads, including auto-campaigns, can critically impact the size of the reached audience, ad sales, and total profit.
Company Background
Health & Household Brand is a company that for 7 years has sold antibacterial cleaning products and various helpful products to make homes cozier. The company is selling on different marketplaces in the USA. The main distribution platform is Amazon.
The 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.
The Challenge
At the end of 2019, the brand detected a drastic decrease in the number of sales. As a result, ACoS was much higher than the break-even point of the brand. The company’s requirements to Profit Whales were to minimize the risks of high costs and work with a tight budget. Additionally, it was necessary to improve the advertising and brand’s website conversion rate.
The aim was to find the solution that could help to have total control over the advertising budget.
The Solution
The first step Profit Whales undertook was to redirect traffic with the help of the right keywords from Product Pages to the Top of Search. This action had to increase the conversion rate of the driven traffic as most of the purchases are made in Top of Search.
The second step was to create carefully elaborated Sponsored Display campaigns which allowed to protect product pages. One of the main tasks of Sponsored Display ads is to distract customers from competitors’ products. Also, those ads are a tool to protect products from competitors’ advertising through proper targeting. Therefore, the correct structure of PPC campaigns can increase ad sales and improve organic sales.
Afterward, it was necessary to add all keywords in the negative part of auto-campaigns to find indirectly relevant keywords and attract additional traffic.
The next step was to create a pool of high-performance keywords and direct 70% of the budget into their functioning. High bids on those keywords would let product listings show up to the most relevant searches and increase the chances for a better conversion rate.
And, finally, as one of the most crucial tasks was to minimize risks of unnecessarily high costs, but to enlarge the number of sales, the external PPC ads were launched to maximize the amount of drive to the listing traffic. Additionally, it increases the activity on the product detail page when customers integrate with the product detail page and rank higher because Amazon sees external traffic as organic.
Results
As illustrated in the graph below, Profit Whales began to work with the brand at the beginning of 2020. It was essential to stabilize ACoS and find the weak spots of the brand performance where the budget was wasted and eliminate them.
After the meticulous analysis of the keywords and their bids, it was clear that the utilized keywords weren’t trending anymore. That’s why keywords harvesting turned out to be the decisive point in the improvement of the results. However, the redirection of the traffic to the Top of Search also played a key role.
Profit Whales performed the ad campaigns restructuration that brought normalized ACoS. It decreased from 30% to 15%.
When the keyword pool was renewed, the number of impressions grew more than twice. As a result, ad sales changed significantly as well. The bar chart below represents the difference in metrics improvement before and after Profit Whales cooperated with the brand.
The Profit Whales testing of the PPC auto-campaigns proved the assumption that Sponsored Products don’t perform at their full potential. Adding keywords to the negative part of campaigns and launching advertising on third-party platforms helped to outreach the three times bigger audience.
Advertising and website conversion rate grew significantly, the advertising conversion rate by 6%, and website’s – by 70%. As a result, the sales level increased by 350%.
The provided Case Study shows again what a powerful tool Amazon PPC advertising is when used properly. Because of irrelevant keywords, the brand can’t attract the customers interested in the product and waste the budget on irrelevant traffic that might click on them and won’t buy.
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Additionally, Profit Whales conducted A/B testing to determine whether Amazon users interact more actively with the listing that has an old image of the product or a new one. The new image was created after Profit Whales gave marketing recommendations to the company. The new picture had a better response from the customers.
The company plans to launch new products in 2022, and further cooperation with Profit Whales is foreseen.
