fbpx
+49 (0) 7181 - 207 22 00 info@iconic-sales.com

CASE STUDY

Turnover growth
with
DSP

white bar
athletic athlete with ropes in studio portrait format

Turnover growth

WITH DSP

Display Advertising, compared to PPC, is a form of advertising that enables a wider and broader outreach to potential customers, even beyond Amazon! It operates at a different level of the sales funnel and enables unique revenue growth.
Arrow down dark

The Challenge

The manufacturer has pursued several goals:
  • Professional campaign structure

  • Awareness building

  • Optimise Total ROAS
By setting up a granular campaign structure with a three-part focus on remarketing own products, remarketing competitor products and building awareness, an increase in efficiency was achieved. With an initially unchanged budget, the total ROAS (total return on advertising spend) could be more than doubled, almost tripled. The client was so pleased with the results that he agreed to a 50% increase in the budget and, a few months later, to extend the campaigns to other European marketplaces. On these marketplaces, very good results were achieved with the same strategy. As a result, the budget was increased more and more and the turnover could be increased from month to month. The client approached us in the autumn to analyse their DSP campaigns, as they were not satisfied with the profitability and set-up of the campaign. The campaigns had previously been managed by Amazon for 15 months and had a TROAS of 6.6. The ads were served both on and off Amazon.

In the analysis of the campaign, the DSP team noticed that some target groups were addressed in the campaign that were too general and thus contained considerable wastage. On the other hand, other target groups that were doing very well were addressed less. In addition, the target groups were not neatly divided, which meant that a granular structure was not recognisable and obviously led to problems during optimisation. This was communicated to the client and the staff in charge, but no optimisation was carried out.

For this reason, the client commissioned us to set up the campaign according to our ideas in order to eliminate these problems and lead the campaign to greater success. Specifically, his idea was that the TROAS should climb to over 10. The budget should be the same as in the previous campaign.
Arrow down dark

The solution

In the first step, a portfolio analysis of the products to be promoted was carried out, there it became clear that a few of the promoted products had to be replaced by new products. Afterwards, a competitive analysis was carried out and competitor products were identified whose customers should be won as new customers. Furthermore, the client was convinced that it is also important to invest in brand awareness in order to attract new customers and gain recognition in the category. For this purpose, special target groups were formed that fall into the client's category.

This resulted in a three-part campaign. Half of the budget of 10,000€ was invested in remarketing own products in order to bind existing customers to the brand and to stimulate re-purchases, as well as to address customers who have already shown a certain inclination towards the brand by having already looked at products or searched for them. 3,000€ was invested in acquiring new customers by targeting competitors' customers and 2,000€ in awareness. For the three different orientations, different banners were designed and created in coordination with the client.

Our strategy includes the following targeting options:

  • Granular campaign structure

  • Remarketing on own products

  • Remarketing on competitor products
After the launch of the campaign, the most important KPIs of the three alignments were analysed at regular intervals and the campaigns were adjusted to achieve the client's overall goal (TROAS > 10).

The results

Arrow down white

The
results

icon eye small

30 million

Ad-
Impressions

Icon shopping cart

1 m €

Turnover
in 6 months

Column chart icon white

16,1

generated
Total ROAS

icon statistics white

+143%

ROAS
Optimisation

Average monthly Sales increase in % compared to March (July: deviation
due to Prime Day)
statistics
Arrow down dark
In the first three months after the start of the campaign, a total ROAS of 16.1 was achieved on average across all alignments. The client was so pleased with this result that they agreed to increase the budget by 50%. This additional budget was invested in awareness and new customer acquisition via competitor products, so that all three orientations were subsequently advertised with the same budget of €5,000. The result of this measure was that the TROAS dropped. The reason for this is simply that it is less profitable to acquire new customers than to persuade existing customers to buy again. However, the TROAS could still be kept above 11 and thus a bit above the customer's target.

In the next step, the client, who had in the meantime successfully expanded his activities to other European marketplaces, was recommended to run DSP campaigns there as well. As a result, country after country was opened up with DSP campaigns over the next few months, following the waterfall strategy. Depending on the success, these were expanded faster or slower and the budget was gradually increased. With ROAS values of sometimes well over 5 (which was the client's initial target), it was thus possible to scale the expenditure and turnover quite quickly.
statistics

Any questions?

Would you like to find out more or obtain a
non-binding offer?

AMAZON MANUAL

Are you selling on Amazon or would you like to start selling?
Our free expert manual explains the most important levers and functions on Amazon. Helpful for both experienced sellers and newcomers!