Unlocking Incremental Growth in the Catalog
45%
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.
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.