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- Going From Loss to £7.4k profit in 4 months
Going From Loss to £7.4k profit in 4 months
Amazon Advertising Lessons - Jun 1
George Reid
June 01, 2023
In this week’s email, we would like to share another interesting case study of how we were able to go from no profit to over £7.4k in 4 months.
But before, let’s take a look at the overall stats:
Overall profit went up from -£59 to £7,445
TACoS dropped significantly from 30.20% to 7.86%
The organic share of overall sales increased from 65.10% to 85.39%
Find out what’s wrong with your Amazon Ads. Book a PPC Audit.
How did we do it?
We implemented simple yet effective strategies that include keyword research, grouping, and campaign structure. Additionally, we measured the impact of the advertising spend on the overall account, to align with the business goals. Most of our strategies were based on profitability as the key goal for the Client, to recover losses in the past. Let’s take a closer look:
🚀 #1 Keyword Research
We started with effective keyword research to reach out to the right audience that would convert more. We primarily relied on Amazon’s 1st party data available through the new Search Query Dashboards and expanded via another Cerebro from Helium 10. We found many new keywords not being targeted before particularly the long-tail ones.
🚀 #2 Keyword Segregation & Grouping
Researching keywords only helps to expand reach, but grouping keywords helps drive more efficiency. As part of our best practices, we categorize keywords into small groups, from high relevancy to low and set bids accordingly. At a high level, these groups are:
Rank keywords: These are high-search traffic keywords related to the product
Highly relevant keywords: These are specific, long-tail keywords that are highly relevant to the product, such as "marathon uk 8 shoes for girls".
Relevant keywords: Keywords that are related to our product, but not as closely as the highly relevant keywords.
Generic Keywords: Keywords somewhat related to our product, but not as highly. These were part of our awareness strategy, but we spent less on them compared to other groups.
🚀 #3. Campaign Setup
We set up multiple campaigns to target keywords. These included: Sponsored Products, Sponsored Brands Video, and Sponsored Display. We allocated a budget based on their ROI and impact on overall sales. We targeted:
KW groups through all match types but in separate campaigns: Exact/ Phrase/ Broad/Broad Match Modifier
similar products where we had a competitive advantage, e.g. fewer reviews, lower ratings, or higher prices.
🚀 #3. Regular Optimisation
We analyzed data regularly to make informed decisions and made made changes to bids and budgets.
🚀 Additionally,
We factored in product margins
Measured the correlation between increased traffic and overall and organic sales
Analyzed customer LTV and considered it in the cost of New to Brand customers. Increasing NTB customers helped us to significantly increase repeat sales.
As you can see, there's nothing complicated here. It's doing the basics well. Plus we're granular and customer-obsessed.
Other learnings:
Amazon adds new options for SB budget rules. You can now select Top of search IS, and % of sales New-to-brand as performance indicators, in addition to ROAS, for the budget increase. [Read more].
Amazon Attribution Traffic Insights of 2022. Amazon's Brand referral team shared interesting insights about engagement. These include Search being the highest contributor, email conversion rates being high across categories, and external traffic increasing sales on Amazon by avg. 24.5%. [Read more].
Amazon highlights 'Popular products in last 7 days'. Amazon recently rolled out a new spotlight on product pages for items with high sales in the past 7 days.[Read more].
Time to level up your defense strategy. With the growing number of ad placements on Amazon, brands need to leverage SB and SD campaigns, a killer brand story, as well as A+ and premium A+ content. [Read more].
Thanks,
George
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