How a CPG brand upped their lower-funnel game on Amazon Ads
Up until recently, a CPG parent brand only utilized static banners to drive down-funnel actions with their Amazon DSP campaigns. This multi-brand’s product lines include household, baby, beauty products and more. During promotional periods, the team created static banners to include copy highlighting specific deals, like “Save 40% off of razors”.
While static ads are strong drivers of awareness metrics, this creative type lacks the benefit of Responsive e-commerce Creatives’ machine learning capabilities, which allow for strong down-funnel performance.1 Responsive e-commerce Creatives auto-optimize to pick the best-performing creative variation (Shop now, Add to cart, Coupon) and product to render within the ad unit. Responsive e-commerce Creatives are customizable, in that they can include either a custom image, or a logo and tailored headline. Auto-generated Responsive e-commerce Creatives pull the product name, pricing, and product image directly from the detail page on Amazon.
By incorporating Amazon Ads’ e-commerce display creatives, this parent CPG brand also unlocked additional efficiencies. Responsive e-commerce Creative ads allow for up to 20 associated products to rotate in the ad unit, and will automatically “hide” products that are out of stock. e-commerce display creatives will also pull in any active deals into the dynamic portion of the ad, reducing creative production lift required to include copy into the static creatives.
Given the many valuable facets of e-commerce display creatives, the brand decided to test this ad format in their campaign strategy to optimize display campaigns on Amazon across EU locales.
Creative testing with e-commerce display creatives
Working with the Amazon Ads team, the brand set up a creative experiment to understand how leveraging e-commerce display creative ads could impact performance.
To start, the team ran a split test for one of their products in Spain. Three types of ad formats were implemented in this test: static banner with discount details, a custom image e-commerce display creative ad and an e-commerce display creative ad with logo and tailored headline.
The results of the experiment showed that the e-commerce display creative ad with logo and headline outperformed other creative types, driving 356% higher return on ad spend (ROAS) in comparison to static banner versions.2
Spain, toothbrush brand: increase in ROAS when using logo + headline e-commerce display creative instead of static image ads
The advertiser replicated the same test with one of their products in France, and similarly found that the e-commerce display creative with logo and tailored headline drove 200% higher ROAS.3 In Germany, the brand observed a 182% uplift in ROAS during the week of Black Friday when comparing both auto-generated and custom e-commerce ads to static banners.4
France, baby brand: increase in ROAS when using logo + headline e-commerce display creative instead of static image ads
Germany, baby and personal care brands: increase in ROAS when using auto-generated and custom e-commerce display creative instead of static image ads
Driving scalable results
Given the promising results from this initial creative experiment, the multi-brand tested e-commerce display creative ads in other locales across EU with some of its other CPG products.
Results from these additional tests continued to indicate that e-commerce display creatives helped to drive strong down-funnel performance for their various CPG brands versus static banners. In Italy, purchase rate was 341% higher across brands when comparing auto-generated e-commerce display creative banners to statics.5 Similarly, in the UK, they found that the Responsive e-commerce display ad format with a mix of auto-generated and logo + headline version for a hair product brand outperformed the static creative by 130%.6 Both purchase rate and ROAS were measured by splitting traffic evenly between the static and e-commerce creative banners within the ad campaign. These results reflect weighted averages based on impression totals per creative type.
Italy, hair and personal care brands: increase in purchase rate when using auto-generated e-commerce display creative instead of static image ads
UK, hair brand: increase in ROAS when using a mix of logo + headline and auto-generated e-commerce display creative instead of static image ads
1 Amazon internal, US, 2021
2-6 Amazon internal, EU and UK, 2021
Results are representative of performance of one advertiser and is not indicative of future performance. Please refer to the creative type insights interactive guide for average results per locale and KPI and note that those data are not specific to the CPG vertical.