Case Study:Amazon Marketing – Optimizing Sponsored Product Ads

Challenge

Like most ecommerce and retail companies in today’s market, New Era Factory Outlet uses Amazon Advertising platform in order to sell their product to new and existing customers. However, as very busy business owners in Manhattan, you can imagine that their time to dedicate to optimizing their Amazon advertising is extremely limited.

Online Optimism took over New Era Factory Outlet Amazon advertising account in August 2018 and has been able to both increase sales month over month but decreased the cost of advertising to the company. How can Online Optimism help a family owned business improve their sales and decrease the cost at which they are advertising for those sales starting during their off season?

Amazon logotype printed on cardboard box

Insights

Taking an initial look at the campaigns, there was a lot of disorganization happening within their account. Many of the products had descriptions that weren’t optimized for advertising or for organic searches. We realized there was a few things that needed to be done in order to improve their advertising strategy:

Product descriptions needed uniformity and optimization
Analysis of bids and budgets to find the best bids for product ads
Improvement of keyword and negative keyword lists
Eliminating low performing ad groups and keywords
Decreasing ACoS from 18-20% to 10% or lower.

Solution

Online Optimism took over the Amazon Advertising for New Era Factory Outlet in August 2018. First, we accessed their past performance and top selling products. We determined which keywords need to be added to the negative keywords list and which need to be added to our targeting based on purchase history. We looked at the different product groups to determine which had the highest ACoS and how that could be brought to a more reasonable level.

Results

Using these optimizations, Online Optimism has been able to make significant month over month improvements to the Amazon advertising campaign for New Era Factory Outlet. Not only are we able to increase revenues, but most importantly, we’re able to decrease New Era Factory Outlet’s costs. In the end of the day, your bottom line is king, and we make sure to not just build sales, but profits as well.