Case Study
Perpetua helps brand increase sales by 127% with Amazon Marketing Stream (beta)
Heroes is a global consumer firm that acquires, operates, and helps scale Fulfillment by Amazon (FBA) businesses. They wanted to increase Sponsored Products campaign efficiency while growing sales in the Amazon store for their brand JNW Direct, which sells water and spa testing strips and kits.
To help reach relevant audiences in JNW Direct’s category, Heroes wanted to improve existing performance with metric-driven insights. The brand sought insights to help them optimize campaigns and budgets based on performance by the time of day and the day of the week. Their goal was to optimize campaign spend during hours where conversion rate was strongest and then balance that information with advertising cost of sales (ACOS).
Using hourly insights to help drive intraday campaign optimizations
Heroes teamed up with solution provider Perpetua to use Amazon Marketing Stream hourly performance insights to help build a strategy for intraday campaign optimization. Before Heroes began using Amazon Marketing Stream, these hourly insights were unavailable, and they could only estimate what times of day to optimize their bids, hypothesizing, for example, that CPCs were higher in the mornings.
Perpetua helped the brand shift hourly spend based on ACOS, using insights from Amazon Marketing Stream. This helped JNW Direct reduce their ACOS throughout the day and increase campaign efficiency.
— Abi Harmon, CEO, PerpetuaAmazon Marketing Stream has changed how our clients leverage insights to help drive incremental growth with their Amazon Ads campaigns. They can more easily draw conclusions about their advertising performance and create insights-driven, hourly dayparting strategies.
Using measurements tools viewable by hour of the day and day of the week via Amazon Marketing Stream signals, Heroes was able to identify that their ACOS was 4x higher than average on Tuesday, Friday, and Saturday mornings after midnight, likely indicating that shoppers had low intent to convert despite clicking through to product detail pages during these time periods.
Seeing that these spikes in ACOS were skewing daily ACOS and blended ACOS metrics, Heroes wanted to build out a dayparting strategy, which would optimize campaigns by adjusting bids throughout the day. They reduced their hourly bids to 60% of their regular bid price during these hours so budget could be better allocated to times with better ACOS and lower CPCs. By reducing bids during these times, Heroes was able to help lower daily ACOS, leveling it out across the entirety of their goal, while helping increase efficiency of their ad spend.
Performance improvements through metric-driven insights
The brand was able to improve their average ACOS throughout the day. Based on measurement tools provided through Perpetua’s app, which surfaces Amazon Marketing Stream hourly insights, they learned that hourly optimizations had helped decrease their ACOS by 21% overall.1 Additionally, as a result of Heroes’ experiments with Amazon Marketing Stream metrics and intraday optimization via Perpetua’s tool, the brand realized an 18% decrease in CPCs, helping them bid more efficiently during peak sales times of day. Looking at overall sales efficiency across the brand, implementing this strategy has resulted in a 127% increase in sales.2
— Max Lester, head of brand management, HeroesWorking with Perpetua to access Amazon Marketing Stream has been instrumental in helping increase campaign efficiency for JNW Direct. Building out dayparting strategies with accurate hourly performance metrics has helped us increase sales significantly, while simultaneously decreasing our ACOS target. Backed by these insights, we are now able to build out strategies that will help accelerate performance while maximizing the impact of our ad spend.
1-2 Source: Perpetua, United States, 2023.