Amazon Marketing

ACOS, Keywords & Product Optimization for a Wellness Company

Industries

eCommerce

Project Overview

A health and wellness company focused on selling nutritional supplements suffered from a poor ROI on their Amazon marketing efforts. After analyzing over a year’s worth of data in 2019, the company determined they had spent roughly $340,000, up nearly 9 times year on year, yet overall profits on those campaigns increased only in the single digits. Not only did this have a major impact on the business as whole, overall profits were hit substantially when factoring in other costs associated with listing on Amazon, such as FBA fees and shipping costs through Amazon Prime.

Graph showing Amazon Marketing Results

Brandography inherited this account in December 2019 and by March 2020 had revamped their entire account campaign portfolio to make it profitable. Brandography was able to decrease the ACOS across their entire account to 30%, down from an average of 80%, which produced a 333% return on ad spend (ROAS). The company’s Amazon performance turned profitable even after Amazon and shipping fees and the client continues to grow both with Brandography and in business as a whole.

Amazon Marketing results graph
Pictured here is an example of the ACOS that ran over several months.
Amazon ACOS comparison
Pictured here is the ACOS drop after Brandography’s optimization.

Challenge

The company had nearly 200 campaigns, all of which contained roughly 80-100 targeted keywords. Keyword bidding was inconsistent, bidding strategy both on the automated and manual side was not set up effectively, and keyword to product relevance was weak. Moreover, landing page copy for targeted campaigns was weak, there was a lack of reviews and the Q/A sections needed more updates.

Amazon marketing campaign stats

Further, the company had yet to find how to position itself over competitors and stand out in the market. Brandography’s challenge was to not only think strategically on the campaign setup, but also use a comprehensive marketing and business strategy to help position the company to succeed.

Services

  • Strategy
  • Content Creation
  • Search Engine Optimization

Solution

A comprehensive marketing and business approach that optimizes Amazon PPC campaign performance, improves landing page experience and positions the company as a unique provider of solutions for specific needs.

Amazon PPC Strategy

Solutions & ROAS Optimization

  • Review entire account conversion history
  • Pause non-converting keywords and add non-converting search terms to negative keyword list
  • Add newly targeted keywords based on keyword research and search terms that have converted
  • Adjust bidding strategies per campaign, including moving from automatic campaigns to manual campaigns where best fitting
  • After switching to manual bidding, made bidding adjustments at the individual keyword level so that cost per click would align with cost per conversion goals
  • Test the campaigns in their newly optimized format
  • Report on results

Using this methodology, Brandography was able to achieve substantial drops in ACOS and CPC while maintaining sales. Note - No branded keywords were used in the targeted keywords. Further, this company competes in the supplements space—one of the most competitive arenas on Amazon.

Example 1 - “Glutamine”

Below is one example of the many campaigns listed within the company’s account. ACOS was over 86% and the CPC was at $3.76 as of November 1, 2019.

L Glutamine campaign graph

Following Brandography’s optimization, by January 1, 2020, we brought the ACOS down to just over 20%—cutting it by more than 4 times—and decreased the CPC by about a third to $1.18.

L Glutamine campaign graph

Example 2 - “Potassium”

This campaign had an ACOS of over 73% and an average CPC of $3.35 when Brandography inherited this campaign.

Potassium campaign graph

Within 1 month, Brandography dropped the ACOS to just over 12% and the CPC went down to $0.67.

Potassium campaign graph

Amazon Product Content

Optimizing Landing Page Conversions

In addition to optimizing campaign performance, the relevance of targeted keywords to landing page experience plays a big role in ACOS and overall conversion rates. Following success with the optimized campaigns, Brandography examined product pages to best determine how conversion rates could increase even more.

The following methodology was performed:

  • Identify targeted keywords that have proven to convert on the paid side and add them to relevant landing pages
  • Monitored search terms that have best converted on the site
  • Cross-referenced data conversion on the company’s main website to best understand what kind of user converts and tailored messaging on the Amazon page

Amazon Business Strategy

As part of your ongoing campaign, our team will actively monitor product performance to ensure a stronger ROI.  We'll help you develop strategic messaging for your campaigns that align with your brand voice and help engage shoppers to make a final purchase at checkout.

Throughout the campaign optimization process, Brandography monitored the best performing products and also made note of CPC price changes and competition. Doing so helped the company determine what products should be listed on Amazon using PPC dollars, which ones would result in poor ACOS and what products could be better pushed using alternative marketing channels.

Our comprehensive approach takes all facets of digital marketing into consideration and works in the best interest of the client.

Results

The company’s overall campaign ACOS decreased from an average of 70-80% per a campaign to 25-35%. The company started turning profits, has regained confidence in the Amazon platform, and has since moved into building out even more products on the platform.

CPC vs ACOS graph

Brandography continues to work with this client and continues to expand its presence in Amazon PPC marketing and SEO.

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