Instinct increased ad sales 121% and grew their ROAS 33% on Amazon

The Challenge 

Instinct had previously employed only single-ASIN advertising campaigns with a limited number of keywords. They also knew that they had a large competitor in their primary category on Amazon, and they were consistently battling for #1 Share of Voice in the category, especially for certain high-volume keywords. 

The Solution 

In January 2020, Instinct began leveraging Pacvue to manage their paid search strategy on Amazon. Almost immediately, they began to see increased Ad Sales, lower CPCs, and higher ROAS for new campaigns. 

The Results 

Using the Pacvue platform to improve campaign and keyword segmentation, implement page placement bid modifiers, and identify new product category and keyword opportunities with Share of Voice data, Instinct achieved: 

IMPROVED CAMPAIGN AND KEYWORD SEGMENTATION

Instinct moved towards a multi-ASIN campaign structure, which bid on a higher number of keywords, including hundreds of newly discovered mid- to low-funnel keywords. These new mid- and low-funnel keywords were identified using Pacvue’s Keyword Research Tool, which uses millions of data points to identify new keyword targeting opportunities. In total, the number of active campaigns decreased by -48%, but the number of actively targeted keywords grew by more than 2x. This focus on a smaller number of campaigns with more targeted keywords led to a +62% increase in CTR on an average CPC that cost -19% less. These results were primarily possible due to Pacvue’s programmatic optimization technology, which allowed the brand to manage and optimize thousands of incremental new keywords at scale.

PAGE PLACEMENT BID MODIFIERS

By partnering with the Pacvue team and leveraging the platform, Instinct was able to identify hero ASINs with a strong likelihood of performing well in Amazon’s expensive and ultra-competitive ‘Top of Search’ placement – the 2-4 Sponsored Products placements on the first page of search results. Once these items were identified, bid boost modifiers were applied to a select number of campaigns containing these ASINs, with the intention of providing increased exposure to profitable and top-performing items. After these bid boosts were applied, the number of impressions and clicks for the brand’s items in these premium Top of Search placements more than doubled. Most notably, however, was the impact that these incremental Top of Search impressions had on overall paid search efficiency: even though Top of Search CPCs were +15% more expensive than ‘Rest of Search’ or ‘Product Detail Page’ placements, CTR was +390% higher and ROAS was +137% higher for ads in these premium slots. In the first week that bid boost modifiers were applied to the brand’s paid search campaigns, paid search impressions grew by +41% and the business’ total Retail Glance Views grew by 7x the YTD average.

SHARE OF VOICE DATA AND COMPETITIVE INTELLIGENCE

In their primary category on Amazon, Instinct had a large competitor that was consistently battling them for #1 Share of Voice. Through the use of Pacvue’s Share of Voice data, Instinct was able to identify which keywords the competitor was bidding on, the amount of Paid and Organic Share of Voice they were winning on a daily basis, and whether the competitor was focusing on Sponsored Products or Sponsored Brands campaigns. This information allowed them to craft a highly targeted strategy that prioritized must-win keywords and areas in which the competitor was vulnerable to share loss. As a result of this strategy, Instinct gained over +290 bps of Paid Share of Voice across the category in just four weeks. Most importantly, they gained an average of +1,255 bps of Paid Share of Voice for their must-win keywords while their competitors lost -356 bps.

A leading Premium Pet Food brand partnered with Dentsu agency Merkle to drive strategic and efficient ads management on Chewy

Overview 

Chewy is a premium pet food brand dedicated to improving the lives of pets and their parents. Launched in 2011, Chewy combines the tailored services of a local pet store with the convenience of eCommerce. With more than 20 million active customers, Chewy generated over $10 billion in net sales during the 2022 fiscal year.  

The Challenge 

Chewy needed to scale its Sponsored Products Program and partnered with Dentsu agency, Merkle, who launched ads through Pacvue’s platform to manage campaigns, budgets, and bids. As an early adopter of Chewy Ads, Pacvue and Merkle were able to take advantage of less competitive opportunities for their client. The result has been an increase in average monthly sales and improved return on Ad Spend. 

The Solution 

Pacvue enabled the brand to scale its Chewy Ads program utilizing Share of Voice (SOV) to gauge what percentage of the search and browse results they were winning and to understand the full scale of growth opportunity. Merkle set up bid optimization rules on the premium pet food brand’s campaigns to prioritize spending on the highest efficiency terms, saving the team time on optimizations, and allowing them to focus on their client’s overall Chewy Ads strategy. 

The Results 

The Merkle team who manages clients across various retailers on Pacvue are consistent adopters of our automated rules to improve performance.  

As Merkle scaled the brand’s advertising via Pacvue bid rules, budget management and SOV tools, the average monthly sales grew 90% and the average Return on Ad Spend improved by 50%. This allowed Merkle to drive more growth with their client’s advertising dollars. 

“Pacvue has been key to scaling our premium pet food brand’s Chewy Sponsored Products program. Sales volume and efficiency have improved notably since onboarding. Campaign management is streamlined, allowing the Merkle and client teams more time to focus on big picture strategy and optimizations. Pacvue’s unique SOV reporting has also helped inform strategy with more visibility to competition.” Luc Watson, Associate Manager eRetail, Merkle 

“Since incorporating Pacvue into our Chewy Ads platform management, we’ve seen significant improvement in execution and efficiencies. These include improved ROAS, improved monthly sales, SOV reporting, and automated optimizations. Our business continues to reap the benefits of this service. Chewy is a major retail partner of ours where our target customers are shopping. It was important that we were early adopters of onsite ad offerings to help accelerate our brand’s growth on Chewy.” – Director of Ecommerce at Premium Pet Food Brand