Overview
A thriving beauty brand in the US approached us due to a growth plateau. The brand faced stiff competition from key players like L’Oréal, CeraVe, and Neutrogena. Apart from its official website, the brand exclusively sells on Amazon as a direct-to-consumer (DTC) channel. The challenge lied in the brand’s premium pricing compared to global giants. To address this, the brand aimed to capitalize on its non-price competitive advantages and its esteemed value proposition. This was to be supported by strategic expansion of advertising efforts on a larger scale. Additionally, the brand was actively pursuing innovative breakthroughs to capture a larger market share.
Challenges
1
Ad Fatigue
2
CLV Optimization
3
Product Line Complexity
4
Stagnant AOV
SOLUTION
Ad Fatigue:
1. Rotating Ad Creatives: Regularly update ad visuals and copy to keep audience engagement fresh and prevent ad fatigue.
2. Segmented Targeting: Refine audience segments to show ads to different subsets of your audience, enhancing relevance.
CLV Optimization:
3. Personalized Upselling: Implement targeted email campaigns suggesting complementary products based on individual purchase history.
- Loyalty Programs: Introduce tiered loyalty programs offering exclusive perks to incentivize repeat purchases.
Product Line Complexity:
5. Segmented Marketing: Create distinct marketing campaigns for product segments, focusing on unique benefits and use cases.
Margin Erosion:
6. Value-Added Bundles: Bundle related products to offer perceived value, maintaining higher margins through cross-selling
RESULTS
Ad Fatigue eliminated:
Rotating ad creatives reduced ad fatigue, contributing to a 25% increase in CTR for Sponsored Brand Ads.
Segmenting targeting led to an 11% decrease in click costs for Sponsored Products, enhancing relevance.
CLV Extended:
Personalized upselling via Sponsored Display Remarketing drove a 30% increase in CLTV and repeat purchase rate.
Leveraging Sponsored Brands with Amazon Coupons resulted in a 40% rise in participation, driving a 35% increase in member purchases.
Product Line Complexity Resolved:
Segmented Marketing Efficiency: Sponsored Brands Video campaigns targeting distinct categories yielded a 34% increase in clicks, effectively showcasing brand diversity.
AOV Increment:
Value-Added Bundles Boost: Sponsored Products Aggressive ASIN Targeting achieved a 25% rise in AOV through upselling.
Strategic Pricing Gains: Inch-Up bidding led to a 12% reduction in ACoS for high-margin products in Sponsored Products campaigns.
Major tools used in Ad types:
Sponsored Product:
◾Broad Discovery/Research Campaigns-Non Branded Kws
◾Phrase/Exact Non Branded Kws
◾Asin Targeting-Aggressive & Defensive Campaigns
◾Category Targeting
◾Auto Placement
◾Ranking CampaignssSponsored Brand:
◾Exact & Phrase-Branded Kws
◾Branded Kws-Creative Assets
◾Category Targeting-StoreFront
◾Phrase-SBV-Non Branded KwsSponsored Display:
◾Categories-VCPM
◾Views Remarketing-VCPM
◾Remarketing-Conversions
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