In this advertising case study, we wanted to test Amazon Advertising Services. To do this, we utilized Amazon Sponsored Brand Video (SBV) to decrease Macally’s ACoS through better-targeted campaigns.
Initial Budgeting: Starting bids were set in line with average CPCs of strong performing campaigns already running in the account. Budgets were initially set at $25 to avoid wasted spend pre-optimizing. Upon optimizing, budgets were set at $50-$100.
Optimizations: We optimized the Amazon video ads similar to any other ad type, with the slight caveat of not needing to bid down nearly as much. SBV tends to run extremely efficiently, and more often than not, the bids need to be increased to expand reach, rather than decreased to lower ACoS.
Large Portfolio Viability:
● The client was running 25 of their own Amazon Sponsored Brand Video campaigns before partnering with OMG in May 2020.
● $7-11k monthly ad spend from December through February. Lulling down to $2.5-3k April and May (22-24% ACoS).
● We set up 30+ more campaigns for various products and product launches between May and August 2020.
Month Over Month Growth
Lifetime KPIs: as of the initial implementation of SBV in Dec. 2019
● Ad Spend: $83,365 (6.4% of total account ad spend since 12/2019)
● Ad Sales: $416,743 (7% of total account ad sales since 12/2019)
● ACoS: 20%
Assisting product launches:
● The client launched a new product on July 29th
● Sponsored Product ads were spending $100-200/day with a 20% ACoS average ● Sponsored Brand Video added on Aug 21st
● SBV ads immediately started spending $70-100/day with a 20% ACoS avg ● Since its start, Amazon Sponsored Brand Video ads have contributed to 50% of all ad sales for products, which was limited as a result of throttling due to inventory limitations.
Next Steps & Ongoing Strategy
● Creating new Amazon video ads is a priority to continue testing with all products and to keep content fresh.
● Testing duplications of videos but using top-of-funnel search terms to spread the net and see what more may come.
● Some budgets could hit $200+ per day if inventory allowed for it - especially around holidays, on Prime Day and during promotions.
If you liked this Amazon advertising case study and want to learn more, you can read more about how you can utilize Amazon’s ad services in our Amazon Sponsored Brand Videos Guide.