E-commerce B2C

E-commerce Company Increases Revenue By 28% Using Amazon Ads

An e-commerce company selling home appliances in the United States had already optimized their Google, Facebook, and Bing Ads campaigns to their fullest and were looking for new channels that could help them increase traffic. They partnered with our Growth Lab team to research the market and reach new clients and markets.

The Results:

  • Implementing a new e-commerce channel: Amazon Ads.
  • We saw a 28% increase in revenue after one year of running ads on Amazon.
  • Amazon Ads ended up with an acquisition cost that is 18% lower than campaigns on other platforms.

The Client’s Challenge

Our client is an e-commerce company that sells home appliances throughout the United States. They have been in the market for over 10 years and since the beginning of their business, they have used paid ad platforms like Google, Facebook, and Bing Ads to get customers. 

Our team had already worked with this client for over 4 years, helping them increase sales by 52% during this time. They now wanted to scale their product sales further, while maintaining a good Return on Ad Spend (ROAS). Because of this, they asked our team to help them find new traffic sources of traffic for their e-commerce website. 

Centrico Digital’s Solution

Because the client had already been using Google and Bing Ads for a long time, our first step was to audit their accounts to understand which search terms had the best metrics. After performing the audit, we found that people were searching for phrases such as “buy [client’s product] in amazon”, “[client’s product] amazon prime”, “ [client’s product] home depot”, etc.

Additionally, we reviewed the auction insights report to build a list of all of the competitors for the client’s products. We then conducted extensive research to learn more about the competing products and find if these competitors were advertising on other websites or platforms. 

With this information, we recommended that the next place where the client should sell their products was Amazon. We helped the client set up their account and store, and we then created a campaign structure using Amazon Ads that would allow the products to appear only on relevant searches. For example, we had campaigns targeting the competitors’ products, we began showing our client’s ads on product categories related to home appliances, and we also created keyword campaigns targeting the client’s brand and relevant searches.

Once we implemented these campaigns, we worked on optimizations such as bid adjustments, adding negative keywords, and negative product targeting to make sure the client’s ads would only show up for searches that suited the client’s goals.

The Results

One year after beginning our work on Amazon Ads for our client the revenue incremented by 28%. In addition, the acquisition cost for Amazon Ads was 18% lower than in any other platform. Finally, Amazon is allowing our client’s product to reach a larger audience, which we hope will lead to an increase in direct traffic

We also conducted a variable analysis to understand which tactics worked and which didn't. For example, we found that showing ads on product pages was more efficient than showing ads on product category pages. Similarly, we saw that showing ads between 6 pm and 11 pm gave us a better conversion rate than ads shown during different time frames.  All this information helped us continuously optimize the campaigns to get the best results.

About Centrico Digital

At Centrico Digital, we provide a wide range of marketing services for a diverse set of clients. If you would like to improve your use of Marketing Automation platforms, your email marketing strategy, or your digital marketing efforts as a whole, then reach out today. 

Schedule a free discovery call. We will uncover the concrete steps you can take to find, tap, and magnify the potential for growth hiding in your company.