Unlocking Incremental Growth in the Catalog

$

44

K

X

%

Increase in Ad Revenue in 30 Days

In the ever-evolving landscape of e-commerce, finding avenues for sustainable growth can be a daunting task. Nostalgia, a leading home appliance brand, faced this challenge as they sought to maximize their advertising efforts. They were performing well through focusing ad spend on the top 10% of their catalog but were struggling to find more opportunities for growth and recent years had made them conservative about raising ad spend or reallocating the budget.

Nectar's advertising team offered a seemingly risky strategy by suggesting a redistribution of the budget to more of the catalog risking sales of the top sellers in exchange for an overall gain. Nectar sought to achieve an ACOS below 10.6% while increasing top-line sales on the entire catalog.

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Challenges

1

Existing advertising efforts not driving desired growth

2

Inefficient ad spend allocation

3

Conservative Budget

4

Risk to top sellers

Solutions

Data Insights for Incremental Growth:

To address Nostalgia's objectives, Nectar utilized various Amazon Ads solutions, leveraged customer insights, and conducted market research. They analyzed Nostalgia's advertising campaigns and performance data, leveraging data to uncover untapped potential for incremental growth. They segmented Nostalgia's catalog by brand, category, and seasonality to identify high-converting parent ASINs and profitable products. This approach not only maximized advertising effectiveness but also enabled Nostalgia to capitalize on previously unexplored opportunities.

Strategic Ad Spend Reallocation and Optimization:

From their findings, Nectar developed a comprehensive campaign strategy that reallocated ad spend, strategically prioritizing the highest-converting and most profitable ASINs, considering seasonality. They implemented segmented Sponsored Product campaigns structured by product category to efficiently manage budgets and optimize performance. This approach aimed to increase impressions and sales on products that weren't getting ad spend before and, conversely, reduce overspending on top sellers and products that were cannibalizing organic sales.

Leveraging Additional Advertising Solutions:

Nectar harnessed Sponsored Brand and Sponsored Brand Video campaigns to drive traffic to the updated Brand Store and feature key product categories. They used DSP campaigns to promote top-priority product categories, activate retargeting, and implement conquesting campaigns.

Insight and Measurement:

The team at Nectar used insights and measurements via Amazon Ads solutions to optimize and scale the campaign strategy, ensuring Nostalgia's advertising efforts were fine-tuned for optimal performance. This comprehensive approach, rooted in strategic ad spend and data-driven insights, drove sustainable growth while avoiding the cannibalization of organic sales.

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Results

In the first 30 Days:

Ad revenue increased by 44%.
Conversions improved by 12%, reaching an impressive conversion rate of 7.1%.
ACOS (Advertising Cost of Sales) decreased by 28% to 9%.
Impressions surged by 74%.
Clicks grew by 57%.
Shipped Revenue Grew by 10.5%.
DSP drove an increase of 82% in new-to-brand sales.

By implementing data-driven strategies and optimizations, Nectar propelled Nostalgia's advertising campaigns to new heights, delivering exceptional performance through unlocking incremental growth opportunities in the catalog.

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Before

After

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