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Amazon Marketing Cloud Case Study

Utilizing the Amazon Marketing Cloud to Optimize Ad Spend for a CPG Brand in the Health and Wellness Space

Client Overview

A health and wellness CPG brand with a range of products sold on Amazon

The Challenge

The client’s internal marketing and data science teams were struggling to identify which campaigns were making the largest impact on driving topline sales on Amazon. They were unsure of how to optimize their ad spend to maximize sales and increase ROI. This led to insufficient ad spend and limited revenue growth.

Solution

Our internal data science team worked with the client to identify areas of optimization for their ad spend. We utilized the Amazon Marketing Cloud to write custom queries to understand the path to conversion across DSP and sponsored ads campaigns and correlations with changes in toplines sales. Using this data, we created a hypothesis on how to optimize the client’s ad spend.

To test our hypothesis, we conducted a series of A/B tests on the campaigns we identified. For campaigns that were having a limited impact on driving topline sales, we recommended pausing those campaigns to save ad spend. This led to savings of roughly $20,000 in ad spend in a little over a month. After pausing the campaigns, we observed almost no impact on topline sales.

For campaigns that were having a higher level of impact on sales, we recommended increasing their budgets by 20%. This led to an overall increase in sales of about 30%.

To optimize the process further, we developed an algorithm to test our hypothesis at scale. This helped us identify additional areas of optimization and drive better results for the client.

Conclusion

By utilizing the Amazon Marketing Cloud and our data science expertise, WBX Commerce was able to help our client optimize their ad spend and drive better results. Our approach of utilizing data, testing hypotheses, and developing algorithms helped us achieve significant cost savings and increase revenue for the client. This demonstrated the value of data-driven marketing strategies and our ability to drive measurable impact for our clients.