Enterprise Body Care Retailer Grows Revenue on Amazon

Amazon AdvertisingEnterprise

BACKGROUND

Our client, a global body care retailer, had a wide product catalog—but not much presence on Amazon. They needed to effectively scale their advertising program. They sought an agency that would go above-and-beyond by tailoring their campaign management, actively managing bids, and helping them continue to expand their brand presence in the US market: Omnitail.

95%
Increase in Revenue Year/Year
104%
Increase in Total Orders Year/Year
33%
Increase in % Sales New to Brand Year/Year
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95%

Increase in Revenue
Year/Year

104%

Increase in Total Orders
Year/Year

33%

Increase in % Sales New to Brand
Year/Year

INVESTIGATING THE ACCOUNT

This company was running some campaigns on Amazon prior to working with us, but they weren’t driving a great deal of revenue or helping to grow the brand in the US.

Omnitail was willing to work with them to craft a strategy that helped them achieve those goals. Here are some of the challenges we encountered:

1. Bidding Didn’t Prioritize Profit

Our client’s previous campaign philosophy wasn’t designed to maximize profit. Because their strategy didn’t account for the cost of goods, commission, or seller fees, the client didn’t know the full impact of their ads on their bottom line. We needed to implement a profit-driven management strategy.

2. Limited Campaign Structure

The client had a number of products across a variety of brands, but not many were being advertised. We needed to analyze the profitability of each product segment and decide which ones to advertise. Then, we needed to build a comprehensive campaign structure to efficiently scale the program.

Omnitail's Advertising Strategy

Our approach to this account was twofold. We first needed to build a scalable, custom campaign structure to advertise all of the clients’ products efficiently. Then, this campaign structure would require a bidding solution that could use automation to make frequent adjustments, while preserving analyst oversight to make sure adjustments fit a profit-driven strategy.

Scalable Custom Campaigns

We started by tailoring campaign structure to the client. The program was originally very limited, covering only a few products. We first analyzed the profitability of each product, weighing cost of goods, commission, and seller fees to ensure every product we advertised had the potential for profit. Using our proprietary Amazon technology, our analyst was then able to build out PPC campaigns that segmented products logically by category, available margin, and more.

For this client, we needed to better manage Amazon targeting to maximize the campaigns’ efficiency. To do so, our analyst designed a unique automatic campaign structure that gave us more granular control over the four targeting types on Amazon (close match, loose match, complements, and substitutes). We could now increase or decrease bids for each of the targeting types, according to whether that targeting was producing profit.

An example of a typical Amazon campaign structure, in which all targeting types are in the same ad group.
An example of the new campaign structure, in which targeting types are segmented into individual ad groups.

Sophisticated Automated Campaigns

Of course, this type of granular campaign structure would be almost impossible to manage without some level of automation in bidding. Omnitail’s proprietary bidding software factors real-time margin data, commission, and seller fees to ensure every ad group is contributing to overall profit. The system is automated – but is overseen by analysts, meaning campaigns can benefit from frequent, granular adjustments while ensuring every adjustment is carefully engineered to maximize profit.

BEATING THE ALL-CATEGORY AVERAGE

By building a new, logical campaign structure and implementing profit-driven bidding, we made significant improvements in profitability and efficiency across campaigns.

The result? ROAS across all campaigns beat the all-category average on Amazon (a major achievement!) and in the case of Sponsored Products campaigns, we did it while keeping costs per click below the category average! Revenue doubled in their first few months with Omnitail, and even better: profit increased, too!

95%

Increase in Revenue
Year/Year

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Profitable Smart Shopping.

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