A health and fitness brand
The Power of Single Word Targeting in Amazon Advertising
A health and fitness brand aiming to improve its top-line revenue on Amazon, found itself falling below its target ACoS (Advertising Cost of Sale). With room to take calculated risks, it sought a strategy to uncover hidden opportunities that would boost overall sales without compromising margins. PointStory proposed a test focusing on a single generic key term, aiming to measure its impact on product sales rank, organic sales, ad sales, and total sales.
The primary goal was to drive overall topline sales profitably by leveraging targeted advertising on Amazon.
The success of the test was evaluated based on the following metrics:
- Total Sales
- Ad Spend
- Ad Sales
- Sales Rank
PointStory conducted a test using a key term with moderate traffic that incorporated a key selling feature. To maximize visibility, the “top of search” percentage was adjusted to +150%, ensuring a higher likelihood of securing first-page search placements. Over the course of 45 days, the following outcomes were observed:
- Total ad spend increased by $21 per day.
- Ad sales decreased by $163 per day.
- Total sales increased by $773 per day.
- Sales rank improved by 16%.
By solely examining the advertising metrics, one could have mistakenly concluded that the campaign was unprofitable due to the decrease in ad sales. However, taking a holistic approach and analyzing the complete picture revealed an essential insight. The additional $21 in ad spend not only drove an increase in ad sales but also had a significant impact on organic sales, resulting in an additional $773 in revenue. Therefore, considering the overall sales impact was crucial in accurately evaluating the campaign’s profitability.
This case study emphasizes the importance of considering various measurable metrics when running ad campaigns across platforms like Amazon, Facebook, or Google. While metrics such as ad spend, ad sales, and return on ad spend are essential, overlooking the influence on organic sales can lead to prematurely ending successful advertising initiatives. By examining the comprehensive impact of advertising efforts, brands can identify clear winners that drive top-line revenue while maintaining healthy profit margins.
- Aug 5, 2022