Case study
Marketing
Marketing management with service
A client from the e-commerce sector approached our agency for assistance in developing sales of their products on Amazon in the United Kingdom. This task required the optimization of existing campaigns and the creation of new, more effective marketing strategies to boost sales. The main goal was to increase sales through optimization and better visibility of products on the Amazon page.
Marketing activities began in August 2022, and within the first few months of collaboration, a significant increase in sales was noted. Thanks to the optimization of existing campaigns and the creation of new, more effective advertisements, the company achieved total sales of £289,863 in just one month. Over the 4 months of collaboration, the business achieved a sales increase of over £100,000, and the sales value from the campaigns increased more than 4 times.
Currently, the marketing campaigns are more profitable, and the TACOS rate has been reduced from 19.3% to 13%.
Amazon Ads Products - Descriptions of Amazon Ads Solutions
We utilized various Amazon Ads solutions to increase product sales. Among the tools used are Sponsored Products ads, Sponsored Display, and shopping solutions such as brand store.
1. Sponsored Products ads allowed us to display the client's products in the top positions of search results and on the product page. As a result, customers searching for similar products could come across the client's offer and click on the ad, increasing the chances of purchasing the product.
2. We implemented defensive campaigns, such as cross-selling, to attract customers' attention, keep them on our site, and encourage the purchase of additional products.
3. We optimized the current Sponsored Display ad, which allowed us to reach potential customers by displaying ads off the product page, such as on category pages or search results. Bid optimisation was employed – Viewable impressions. These ads allowed us to promote the client’s products in a more varied manner.
4. We utilized advanced shopping solutions, such as Storefronts. This solution helped increase sales and simplify the purchasing process for customers. In-store, we use an up-selling strategy, offering various product options to attract customers with larger budgets and increase sales value. Customers are thus presented with a wider selection of products. These actions contributed to achieving better sales results for our client on the Amazon platform. Through effective advertising campaigns, extensive shopping support, and strategies for cross-selling and up-selling, we enhanced sales efficiency.
Strategy - a description of the strategy that was used in the campaign
As part of the marketing campaign, we employed a strategy based on an in-depth analysis of existing campaigns, a thorough market analysis, and competitor analysis.
We also conducted a keyword analysis and bid rates to optimize the campaign for conversions. Subsequently, based on data from Amazon Advertising Console Advertising Reports, we monitored campaign results and carried out regular optimizations, including changes to bid rates and excluding non-performing keywords.
As our goal was to reach buyers along the entire path and increase campaign visibility at different stages of the purchasing process, we utilized a campaign strategy based on various types of ads, such as Sponsored Products (SP) or Sponsored Display (SD). By the third month of the campaign, we recorded a significant sales increase of 44.5% from £212,004.52 to £306,431.07.
The next step was to design a marketing action on Amazon for products from all three categories: pets/home/office. After launching additional campaigns for office supplies and home accessories, we observed another significant increase, achieving sales of £373,697.72 in March.
Observations and measurement tools
During the campaign on the Amazon platform, we focused on analysing the data collected from the Advertising Console/ Advertising Reports tool and data from the Business Report. Thanks to detailed reports, we were able to track campaign results accurately, including the number of impressions, clicks, costs, and conversions. This allowed us to respond quickly to changes in the campaign and adjust our strategy to achieve the best results.
One of our most important measurement tools was keyword analysis. By continuously monitoring popular phrases related to our products, we were able to adjust campaigns and target ads to the appropriate audience. By analysing keywords, we were able to determine which phrases were most effective in attracting customers' attention and leading them to purchase.
Using Business Reports, we were able to identify best-selling products and those that needed improvement due to low conversion rates. With these insights, we could better tailor our advertising strategy and optimise the client's Store.
A key element of optimisation was adjusting bid rates and placements. To achieve better results at lower costs, we conducted a series of tests to determine the optimal bid rates for each product group. Furthermore, we thoroughly analysed keyword usage and excluded those that were unprofitable or did not yield desired results.
We also focused on analysing customer behaviour. This allowed us to adjust the products displayed to better meet customer expectations and increase their interest in the offerings, as well as create marketing campaigns that were more effective and delivered better results.
Results - performance indicators
Thanks to the marketing activities carried out on the Amazon platform, we have achieved excellent sales results for our client.
Before optimization, the campaigns generated an average sales amount of £108,123 per month, while after optimization, they generate an average sales amount of £197,622.
Just 3 months after the campaign optimization, the campaigns started generating an average of 13,000 orders per month.
During our collaboration, we managed to achieve a ROAS of 5.11, which translates to an exceptionally high level of return on advertising investment. Thanks to the optimization of the campaigns, we also managed to reduce the advertising cost of sale (ACOS) to currently 19%, which was one of the main goals of the campaigns. Furthermore, there was a noticeable significant increase in revenue, which reached £249,400.99 in the first month and £306,431.07 after 3 months. As a result of our marketing activities, we managed to acquire new customers for the brand and also increase the number of purchases of new brands.
The conversion rate remains high at over 7%, confirming the effectiveness of the marketing actions and customer interest in the brand's offer. The number of sessions increased by 47%, from 179,418 sessions in June 2022 to 264,383 in April 2023. An important indicator of the success of our campaign was also the number of products sold monthly, which increased by 35%, from 13,841 units in June 2022 to 18,697 units in April 2023.
In addition, sales from the Store for the client's brands have significantly increased.
Thanks to our effective marketing strategy, we managed to exceed the goals set by the advertiser, who planned to increase sales by 30%. The actual sales results surpassed expectations, achieving a 65% increase in April compared to the period before the campaign optimization.
