The Final Result
Success in positioning a new product line on Amazon and driving sustainable incremental sales every month for the past six months. This product started with zero reviews.
Ad spend increased by +84% (over $7,000k) generating +93% higher ad sales ($24,000 incremental) – this resulted in a +67% uptake of more than $24,500 in retail sales with a simultaneous +4% increase in organic sales!
CTR improved from 0.19% in December 2022 (the peak before onboarding with Laser Sight Digital in February) to 0.63% in June 2023.
Grew discoverability by improving indexing and increasing the number of keywords the product ranked on.
Brand Overview
A men’s underwear brand sought to optimize its Amazon advertising strategy for increased revenue. In February 2023, they partnered with Laser Sight Digital to achieve this. In this case study, we delve into how Laser Sight Digital successfully positioned a new ASIN through strategic adjustments and insightful tactics, that led to measurable outstanding results. The goal was for the new product to achieve long-term growth and reduce reliance on demand seasonality. Laser Sight Digital was able to harness the potential of Amazon´s platform to create a sustainable and prosperous growth trajectory for the new product line.
The Challenges
The brand launched a new ASIN on November 2022. Supported by the Amazon “honeymoon phase”, the product was able to deliver healthy sales levels during the Holiday season (December 2022).
- Honeymoon phase: Period after a new ASIN is launched where Amazon heavily promotes the products in search results and recommended products. It usually lasts from a few weeks up to a couple of months (duration varies for each product).
Here were some of the challenges:
- Differentiation between the new underwear product with the existing one, the goal is to increase market share, not to replace the product revenue like you would if you discontinued an existing product.
- Discoverability. A new product with no reviews competes with numerous competitors, making it hard to stand out and attract potential buyers. The lack of discoverability not only affects advertising revenue but also impacts organic sales.
- Higher priced product versus the average competitors. The key is to effectively communicate competitive advantages and complete thorough targeting research to reach relevant potential consumers.
- Drive profit as fast as possible but develop a long-term perspective to build sustainable and scalable revenue over time.
The Approach
The first step was to audit the existing campaigns and conduct thorough targeting research. Followed by a new campaign structure launch in February 2022, implementing a strategy designed to deliver healthy sustainable growth with the intention of scaling month-over-month.
- The new campaign increased scope, diversifying ad types and match types as well as leveraging new targets that were missing from the previous structure. Advertised ASINs in campaigns were also updated, as well as creatives in mid-funnel ad types.
February was the transition month and the new campaigns were in the learning phase and optimizations were being made to avoid inflating CPCs while making sure reach was increased.
- This month delivered a 0.32% CTR compared to the previous 0.19% in December 2022 (highest up to that point).
Ad spend was increased every month thereafter, and each one resulted in higher retail sales (retail sales = organic sales plus advertising sales), and higher advertising spend compared to the previous month – independently from variations in organic sales.
- Through consistent campaign optimizations, Laser Sight was able to maintain ROAS performance above the profitability break-even point while simultaneously increasing ad investment.
The Impact
By understanding how the Amazon algorithm works, Laser Sight was able to leverage advertising to increase overall retail sales velocity, improve CTR, drive higher ad sales, and feed into the Amazon flywheel (leading to both direct and indirect benefits of ad spend).
- Ad spend increased by +84% (over $7,000k) generating +93% higher ad sales ($24,000 incremental) – this resulted in a +67% uptake of more than $24,500 in retail sales with a simultaneous +4% increase in organic sales!
- BSR Sub-Category: previous variation between #165 to #730, current variation between #45 and #75 best seller rank.
- Notable improvements in discoverability on both advertised and organic efforts:
- The product indexed for 7x more keywords (+4,276) that are organically in the top 306.
- The ASINs now rank on 57 more keywords within the top 10 results.
- Total search volume based on total keywords increased by +3,781,710.
- Combined search volume generated by the top 10 keywords increased by 10,025.
- CTR improved from 0.19% in December 2022 (the peak before onboarding) to 0.63% in June.
