A national leader in the commercial security industry, our client was seeing poor results from Sponsored Products and Sponsored Display campaigns, including low ROAS and high TACoS compared to industry averages. Channel Key’s challenge was identifying why these campaigns were underperforming and implementing a solution that would deliver profitable results.
The primary goal of this campaign was to increase total ad sales while maximizing ROAS and minimizing TACoS. The benchmarks for improvement were the KPIs established in January 2023. During this month, our client saw a ROAS of only 2.24 and a TACoS of 15.43%. To remain profitable, we had clear objectives to improve each of these metrics by at least 50%.
Approach
- Remove Unauthorized Resellers and Listings
Utilizing the “Report a violation” tool provided by Amazon Brand Registry to protect and safeguard the brand’s intellectual property and listings - Increase Average Purchase Order
Leverage Brand Analytics to identify customer demand for particular ASINs in bulk - Drive Sales with Sponsored Ads
Sponsored Products and Sponsored Display ad campaigns that were CPC-conscious to maximize visibility at a reduced cost - Target B2B Customers
Use B2B Central’s enhanced selling features to expand our customer base and increase sales to other businesses
Key Results
- 612% total increase in sales from January 2023 to May 2023
- 106% increase in ROAS from January 2023 to May 2023
- 50% decrease in TACoS from January 2023 to May 2023
Conclusion
By leveraging Brand Registry, enforcing MAP policies, and closely monitoring/reporting unauthorized resellers, our client was able to maintain control over the Buy Box and protect its overall reputation on Amazon.
After regained control over their brand and launching on B2B Central, ad campaigns saw an immediate improvement in all areas. Most importantly, our client reached their initial KPI goals of improving ROAS and TACoS by at least 50%. From January 2023 to May 2023, ROAS increased by 106%, TACoS decreased by 50%, and total ad sales increased by 612%.
The success of this campaign is underscores how success on Amazon requires a multi-pronged, comprehensive strategy.
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