The Challenge
This client produces golfing and gaming tech that has gained strong popularity and usage in Asia. The brand was looking to bring its flagship product to market in the U.S. with an Amazon launch. The brand first launched its own Amazon campaigns, achieving a 29% ACoS over the first month – a good start, especially for a high-price point product with a brand new listing and few reviews.
But with the holiday season fast approaching, the client needed to get ACoS down and free up more budget for scaling up sales volume.
The Strategy
Our team reviewed the account to determine which product-keyword combinations were hitting goal and what was dragging performance down. It was a tall task as the previous agency had intermingled hundreds of ASINs into the same campaigns with keywords of varying degrees of relevancy. We needed to completely revamp the account structure.
We connected the account to our Amazon PPC Ads Management software, set the goal of 20% ACoS and built out hundreds of new campaigns. The campaigns were set at the most granular level possible – 1 product and 1 keyword per campaign with a mix of auto campaigns for search term prospecting and manual campaigns for maximizing volume and efficiency on profitable keywords.
We launched the new structure and ACoS immediately started to come down.
The Tactics
We used a 1-to-many structure with an auto campaign and an exact match manual campaign for each product/keyword combination. This allowed us to find new profitable search terms every day, move those terms into manual campaigns and bidding up for more volume on our most profitable keywords. At the same time our software was adjusting bids hourly to reign in wasted spend and increase efficiency account-wide.
The Bottom Line
ACoS improved right out of the gate, even during the initial data gathering period, which typically takes about 2 weeks. Following the software’s learning phase, things really started to take off. ACoS was beating goal at around 18% by the end of Month 1. By Month 3 we were down to 12%.
From there it was a matter of increasing sales volume while maintaining these high levels of spend efficiency. Over the first month back in growth mode, sales increased 65%.
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