Driving New Customer Acquisition Through Amazon DSP

Scenario: Addressing Negative YoY Growth

In the competitive world of e-commerce, Amazon stands as a giant marketplace where brands strive to establish their presence and drive sales. Our agency, PointStory, recently took on the challenge of revamping the digital strategy for a pet supplements brand struggling with new customer acquisition. The brand had been facing a discouraging YoY decline of -18% in this critical metric, prompting the need for a comprehensive and innovative approach.

Strategy: Crafting a Multi-Funnel Approach

Recognizing the importance of a multi-funnel approach, PointStory initiated a strategic overhaul to reverse the negative growth trajectory. We embarked on this journey with a two-fold strategy.

Sponsored Ads Optimization

The first step was to optimize the existing sponsored ads, concentrating efforts on the lower funnel. By fine-tuning the targeting parameters, optimizing ad creatives, and refining keyword selection, we aimed to enhance conversion rates and attract customers who were closer to making a purchase decision. This immediate focus on the lower funnel allowed us to capture the low-hanging fruit while our broader strategy took shape.

Leveraging Amazon DSP for Comprehensive Reach

With Sponsored Ads optimized, we proceeded to the next phase of our strategy. Recognizing that customer journeys vary, we implemented the Amazon Demand-Side Platform (DSP) to target audiences across the entire sales funnel. This involved reaching potential customers at various stages – bottom, mid, and upper funnel – ensuring that we were not only converting high-intent prospects but also constantly engaging with new prospects.

Solution: Engaging the Full Sales Funnel

PointStory’s approach hinged on the creation of tailored Amazon DSP campaigns. We meticulously designed campaigns that catered to the diverse needs of customers across the funnel.

Bottom Funnel Campaigns

For those at the bottom of the funnel, who were ready to make a purchase, we curated dynamic retargeting campaigns. These ads displayed personalized product recommendations based on their past behavior, providing that final nudge toward conversion.

Mid-Funnel Campaigns

Mid-funnel prospects, who showed interest but hadn’t reached the decision stage were nurtured with responsive ecommerce ads. Once landed on the product detail page, they were shown informative videos, customer testimonials, facts, and features to establish brand authority and foster trust.

Upper Funnel Campaigns

At the upper funnel, where potential customers were not familiar with the brand, we utilized awareness-focused campaigns. Engaging display ads, OTT video ads, and targeted placements to precisely carved out in-aisle audiences helped raise brand visibility and piqued curiosity.

Results: Transforming Growth Metrics

PointStory’s integrated approach yielded remarkable results for our pet supplements brand:

  • New Customer Acquisition: The YoY decline of -18% transformed into an impressive growth of +10%. The brand was no longer losing ground; it was thriving.
  • Cost per Acquisition (CPA): Our efficient strategy drove down CPA to $24.50, ensuring that every acquisition was achieved at a favorable cost.
  • Target Return on Advertising Spend (TROAS): The brand achieved an excellent TROAS of 3.5, illustrating the effectiveness of our approach in generating revenue beyond ad spend.

Conclusion: The Power of Holistic Engagement

PointStory’s endeavor with the pet supplements brand exemplifies the impact of holistic customer engagement. By utilizing Amazon DSP to target audiences across the entire sales funnel, the brand not only reversed its declining customer acquisition trend but also fostered consistent growth. This case study underscores the importance of understanding customer journeys, tailoring content to specific stages, and leveraging the full spectrum of available tools to drive success in the competitive landscape of Amazon.