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.

  1. 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 Campaignss

  • Sponsored Brand:

    ◾Exact & Phrase-Branded Kws
    ◾Branded Kws-Creative Assets
    ◾Category Targeting-StoreFront
    ◾Phrase-SBV-Non Branded Kws

  • Sponsored Display:

    ◾Categories-VCPM
    ◾Views Remarketing-VCPM
    ◾Remarketing-Conversions

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