Our client operates in the beauty category, offering sunscreens for daily sun protection that are dermatologist-recommended. Their products are water-resistant, have a broad spectrum of protection, and contain vitamins C & E. With a high SPF 50 rating, their formulas are made with EWG-rated safe ingredients and stay water-resistant for up to 80 minutes. They have strategically partnered with multiple distributors to sell their products both in physical stores and online retail channels.
The brand has many competing resellers on detail pages, which makes it challenging to gain the buy box on the product listings. Due to profit reasons, we had to pause several campaigns on AMS and could not use the repricer to win back the buy box. This represented a high challenge for our advertising strategy to increase brand revenue in Q4.
REMARKETING STRATEGY WITH DSP
Due to the buy box issues, we were very limited in AMS and had to focus only on sponsored products for top-selling items that were not affected by this problem. As this wasn’t enough to increase the brand’s revenue, we decided to leverage Amazon DSP for retargeting purposes.
We created 2 order items to retarget the bestseller sunscreens on DSP using product views and purchases with a look-back window of 90 and 60 days respectively. Since retargeting is based on customers’ prior interests and interactions, this is a very useful strategy to bring external traffic back to the Amazon product detail pages, while still maintaining high ROAS and boosting sales.
Q4 ADVERTISING SALES PERFORMANCE
New-to-brand sales during Q4, all while maintaining a ROAS of 2.10, which also increased by 27%:
Yearly Advertising Sales Performance
Additionally, we can see how YoY the total product sales increased by 63% and the New-to-Brand sales increased by 23%:
The highest-performing order during Q4 resulted in $10,605 in total product sales, with 55% of those sales being attributed to New-to-brand purchases. For this order, we used a views retargeting audience with a lookback window of 90 days.
ORDER ADVERTISING SALES PERFORMANCE IN Q4
Key Takeaways
- Strategic Adaptation: Despite challenges with competing resellers and limitations on Amazon Marketing Services (AMS) due to buy box issues, the brand strategically shifted focus to sponsored products and leveraged Amazon DSP for retargeting, demonstrating flexibility and adaptability in overcoming obstacles.
- Effective Retargeting Strategy: Utilizing Amazon DSP for retargeting proved highly effective in driving external traffic back to Amazon product detail pages, resulting in significant increases in impressions, clicks, total product sales, and New-to-brand sales.
- Successful Performance Metrics: The implementation of the retargeting strategy led to substantial year-on-year increases in total product sales (83%) and New-to-brand sales (300%) during Q4, showcasing the effectiveness of the approach in driving revenue growth despite challenges.
- Cost-Efficient Optimization: Leveraging Amazon DSP's automatic exclusion of customers who have already purchased the product from retargeting efforts helped save money and impressions by targeting audiences with a higher probability of conversion.
In conclusion, this case study highlights the effectiveness of strategic adaptation and innovative use of Amazon DSP for retargeting in overcoming challenges posed by competing resellers and buy box issues.
Overall, the results show the value of agility, creativity, and data-driven decision-making to drive success within the competitive landscape of Amazon in the beauty category.
If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to contact the BellaVix Team.
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