Maximizing incremental budget to drive greater Amazon Advertising efficiency with Sponsored Display
What We’re Celebrating:
We drove improved advertising efficiency despite a +22% increase in budget by optimizing our Sponsored Ads approach, leaning heavily into Sponsored Display tactics.
When comparing month over month, we increased impressions and return on ad spend (ROAS) by +21.9% and +4.4%, respectively, and decreased cost per purchase (CPP), advertising cost of sale (ACOS), and cost per click (CPC) by -4.6%, -1.23 pts, and -12.1%, respectively.
Overview:
GO works with an HPC brand that had a large promotional budget set for Amazon in 2023. We soon discovered that the amount they had planned to spend on promotions wasn’t feasible, so we decided to shift half that budget toward Sponsored Ads in May 2023, increasing the monthly advertising budget by 22%. Our team needed to determine how to adjust the brand’s advertising approach to achieve efficiency despite the increase in spend while also reaching the brand’s goals of maintaining its current ROAS, experiencing consistent sell-through, and continuing to be dominant in the category.
The Challenge:
Yielding the same (if not better) efficiency metrics despite a significant increase in advertising dollars.
The Strategy:
Prior to the budget adjustment, we had been running Sponsored Product, Sponsored Brand, Sponsored Brand Video, and Sponsored Display ads for our client. We continued to run these ad types when the budget increased in May, but we also began to dive deeper into these specific areas:
Category keyword targeting
Competitor product detail page (PDP) targeting
Sponsored Display remarketing
The purpose of this was to move beyond brand protection and increase our client's visibility within the category to connect with new customers and increase conversion.
Sponsored Display was the ad type that ended up being the main source of efficiency for us. The initiatives we implemented with this tool included:
Protecting our client’s PDPs utilizing vCPM. This ensured that competitors weren’t stealing traffic from our detail pages and helped encourage basket-building and cross-selling.
Targeting category shoppers with appropriate lookback windows for each of our client’s sub-nodes. The purpose of this was to direct traffic away from competitors with lower star ratings and higher listing prices. The lookback windows were critical in retargeting shoppers at the exact right time to increase the likelihood of conversion.
Running auto campaigns to ignite further conversion on our client’s highest sales drivers. These campaigns educated us on which search terms were driving sales, enabling us to apply those learnings to manual campaigns and strengthen our offensive tactics.
The Results:
Even with a 22% increase in budget, we were able to employ an efficiency-focused advertising strategy to experience the following success metrics (April 2023 vs. May 2023):
Impressions: +21.9%
ROAS: +4.4%
CPP: -4.6%
ACOS: -1.23 pts
CPC: -12.1%
When our client saw these results, they were so elated that they asked us to draw up a spend proposal for an increase in advertising moving forward.
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