Case Study
Oceanwing drives significant ASP growth for Lider through targeted ad strategy
Goals
- Increase average selling price (ASP) by 10%
- Improve the bundle purchase rate
- Boost Sponsored Brands ads sales by 50% for Lider
Approach
- Utilized the sponsored ads ASIN Conversion Path Report and Ads Type and Keywords Report.
- Analyzed high-conversion HAQM Standard Identification Number (ASIN) combinations that drive multiple purchases within a specific time frame.
- Filtered keywords and ASINs where the first-touch attribution is Sponsored Brands ads and the sales are above average.
- Increased Sponsored Brands spending to maximize ad impact and brand exposure
Results
- CTR increased by 100%
- ASP increased by 12.5%
- Sponsored Brands ads sales rose by 78%
Lider, a brand offering a wide range of home decoration and electronic products, began selling on HAQM at the end of 2022 to expand its market reach in North America. Lider's product line includes power strips, USB ports, sensors, timers, and dimmers, positioning themselves in the mid-to-high-end market segment. Despite an initial period of growth, Lider faced challenges that impacted their advertising efficiency and profitability.
As Lider's catalog grew and the number of SKUs increased, managing ad spend effectively became more difficult. Their heavy reliance on Sponsored Products ads led to a highly dispersed budget across various ad placements, resulting in low traffic efficiency for individual ASINs. This diluted the effectiveness of their advertising and made it challenging to generate consistent sales returns. Furthermore, Lider struggled to identify the most effective ASIN combinations for Sponsored Brands campaigns, which hindered their ability to optimize for the best average selling price (ASP) and conversion rate.
To address these challenges, Lider partnered with Oceanwing, an HAQM Ads partner specializing in ad optimization. Their goal was to adjust their current strategy to increase ASP by 10%, boost the bundle purchase rate, and improve Sponsored Brands ads sales by 50%.
Utilizing AMC for Targeted Insights
Oceanwing utilized HAQM Marketing Cloud (AMC) to conduct in-depth analyses and inform their strategy. They focused on two key AMC reports: the ASIN Conversion Path Report and Ads Type and Keywords Report. These reports provided valuable data on customer purchase behavior, ad type performance, and effective keyword targeting.
The ASIN Conversion Path Report allowed Oceanwing to identify high-conversion ASIN combinations that drove three or more purchases within a specific timeframe. These combinations contributed to the top 20% of sales revenue, highlighting the most valuable ASINs. The Ads Type and Keywords Report further aided further clarified which ad types and keywords were most successful in driving customer engagement and conversions.
Armed with these insights, Oceanwing refined Lider's Sponsored Brands advertising strategy. By combining high-performing ASINs with targeted keywords, they optimized ad placements to increase conversion likelihood.
Implementing a Refined Sponsored Brands Strategy
Using the data from AMC, Oceanwing restructured Lider’s advertising approach by doubling the budget for Sponsored Brands campaigns. These campaigns were carefully crafted using high-conversion ASINs identified from the ASIN Conversion Path Report. Targeted keywords from the Ads Type and Keywords Report were incorporated to ensure that ads captured customer attention at top-of-search positions.
This advertising strategy focused Lider's advertising budget on campaigns with the highest potential for success, maximizing exposure for high-value ASINs while improving the efficiency of Ads spending.
Significant Gains in Advertising Performance
From April to July 2024, click-through rate (CTR) doubled,1 ASP increased by 12.5%,2 and sales from Sponsored Brands as the first-touch ad type rose by 78%.3 This result demonstrated the effectiveness of combining detailed data analysis with a targeted advertising strategy, enabling Lider to achieve substantial improvements in advertising performance and profitability.
Through close collaboration with Lider, we achieved significant improvements in advertising effectiveness using AMC. The powerful data analysis capabilities of AMC allow us to accurately identify ideal conversion combinations for target customers and optimize advertising strategies, resulting in a substantial increase in the client's return on advertising investment.
–Joe Wu, CEO, Oceanwing
1-3 Lider, 2024