Promixx - Becoming A Best Seller
Analysis of the Account
Promixx are Europe's leading electric shaker bottle brand that had been consistently growing using the quartile system for their ads. Personally, I believe Quartile to be an adequate solution for companies that are looking for a quick, cheap and relatively efficient ads solution. Promixx are all about growth and were looking to continue on the trend they'd been on for the past year.
Naturally, ads will always be a fundamental component in growing any amazon business but with top selling brands it becomes much trickier. It's vital to ensure that ads are not cannibalising organic sales and are focusing on growing the account by bringing in new customers. The tricky part is many people are already searching for a promixx shaker and we don't want to be spending our budget on acquiring those customers because, although they will run at a very low ACOS, they are not positive to the overall goal as they're not adding sales.
After our full audit we were able to uncover a few potential areas of growth.
- Wasted spend was at 25%. Wasted spend is any spend that is not generating sales. On average our clients run at 15% wasted spend so by reallocating that 10% wastage towards more positive keywords we knew we'd see additional sales.
- Poor segmentation of targeting. As I mentioned above, separating out our targets to ensure we are spending our budget in the areas where we are going to be adding customers, not recycling old ones, is the key to long term growth. The existing campaign structure did not allow this which meant by separating out our branded terms, from generic terms, and even competitor terms we would be able to push our budget more accurately to the areas it would help most.
- Lack of keyword targeting. The account's sales were primarily built on product targeting which mean keyword targeting was lacking. There is a general split of around 80/20 keyword to product targeting we'd expect to see from any account and Promixx was closer to 40% product targeting. This doesn't mean we want to reduce product targeting, but instead it shows there are areas for improvement in the keyword targeting.
- Lastly, there was a lack of sponsored brand and display ads. Quite similarly to the body revolution situation, see here https://www.amzppc.co/project/bodyrev, running more sponsored brand and sponsored display ads is one of the biggest ways to add massive amounts of views, clicks, and therefore sales. Similar to the product targeting situation, there is an expected split of sponsored products, brand and display ad sales. In Promixx's case they were very lacking on both sponsored brand and display ads, which should make up a good 40% of the sales, and were running closer to 20%
Below you can see the six weeks prior to our takeover. Around $550k in sales. Unfortunately our system won't pull TACOS this far back but they've always been around 10-11%
The First Three Months
The first three months are where we can take advantage of all the low hanging fruit. This mainly entails solving the problems we listed before. Therefore we did the following
- Restructured the campaigns. The aim of this was twofold. Firstly, to segment the targeting in a way for us to understand exactly where sales were coming from, limit brand sales and focus on aggressive competitor contesting campaigns and keywords with high search volume we want to rank for organically. Secondly, it allowed us to fix the wasted spend issue by reallocated the spend more accurately using our funnels campaign structured.
- Building out keyword targeting. We did keyword research to identify the keywords with the best organic ranking potential and high search volume. This was one of the main underdeveloped areas in the original campaigns .
- Adding sponsored brand and display ads. This was always going to be our best way to increase overall impressions. These campaigns have enormous visibility and focus heavily on top of funnel traffic allowing us to bring in new customers who had not heard of Promixx before.
Below are the results.
Going into peak season we were able to achieve 92% Year over Year growth while maintaining an 11% TACOS.
The Next Three Months
Now that we had taken the low hanging fruit and we were going into the slow season. We did some analysis into the current ad set and found that one area that was still lacking was the sponsored brand ads. They had never really picked up the sales we were expecting and they're a very significant ad type so it made sense to make this a focus thorough this next period as we knew this would be a great route to continue increasing traffic.
Sponsored brand ads are very interesting as there is a headline and an image that can be used on the store ads and a video on the video ads. This gives us many creative options to test, which also happens to be why they can sometimes be tougher to run efficiently, as there are more variables. Over the course of three months we focused on testing new creative across all markets to find optimal click through and conversion rates in order to find the top performers to focus on. This is time consuming but it is the only way to find a top performing sponsored brand ad that can truly outperform the rest of the market.
The second, and arguably bugger focus, was the launch of a new product. Launching a product can be intimidating without a clear plan, but it's also the best way to grow revenues when they begin to stagnate as we hit the top end of the market. Our focus was an aggressive launch out the gate to pick up as much sales volume as we could for the first two months and then scale back towards a breakeven position after that.
We reached best seller position in the UK for the first time ever. 90% Year over Year growth and still hovering around 11% TACOS
The new launch was a great success in the UK and DE markets where we actually ran into some stock problems and had to pull back spend a little to keep up with the demand in the UK. Total sales continued to grow and we were able to achieve the number 1 BSR in the shaker bottle category in the UK for the first time in the company's history.
Over the full six-month period we observed the following changes. We've estimated profit based on their 32% profit margin
Our six month sales
Total ACOS: 10.8%
Estimated Profit: $828,743
Comparable previous year sales
Total ACOS: 10.19%
Estimated Profit: $448,731
Improvement Over 5 months
SALES: $1,851,710+ (+90%)
Total ACOS: +0.61%
Estimated Profit: +$380,012