Outdoor furnishings brand Keter generates $1+ million in Amazon sales
Increasing awareness using a combined advertising strategy
In the hopes of driving revenue across all their categories, Keter—one of world’s largest manufacturers of outdoor and garden furniture and storage—enlisted e-retail strategy agency Labelium to launch on Amazon Ads. The overall brand advertising strategy for Keter was to use all possible channels to increase sales and reach on Amazon.es while keeping the ACOS (advertising cost of sales) of the account within Keter’s objectives.
Since Keter has close to 600 ASINs already on Amazon—from garden furniture and sheds to planters and pet beds—Keter and Labelium created a strategy that combined both Sponsored Brands that linked to a Store and Sponsored Products to increase brand visibility.
– Pilar Martínez Sanz, Senior Consultant, LabeliumSponsored Brands is a visually appealing advertising format and we believed it was important to incorporate it into the strategy from the beginning, especially because it can be the first thing that appears when someone searches for anything relevant on Amazon. We knew based on prior experience there was demand for that ad space and we wanted to appear in results before our competition.
Expanding reach by launching a Store with Sponsored Brands
Even if it might have higher ACOS, Keter and Labelium realized there was an inherent value in Sponsored Brands, which appear higher on search results and feature brand logos, custom headlines, and multiple products. With this in mind, they created a strategy that used Sponsored Brands to direct customers to Keter’s Store on Amazon.es to gain traffic and promote its products and promotions. They evaluated the performance with Stores Insights, using metrics like the number of views, visitors, traffic, and sales. For customers still researching products, linking to a Store was an effective way of featuring Keter’s entire product catalog and its brand story.
– Pilar Martínez Sanz, Senior Consultant, LabeliumStores gave us the creative freedom to curate Keter’s shopping experience on Amazon, using text, imagery, and videos. Coupled with Sponsored Brands, Stores allowed us to showcase Keter’s brand and vast product offering in a visual and effective way.
Sponsored Brands allowed the Labelium team to:
- Customize ad copy, giving it the option to test different messages.
- Send traffic to different pages of Keter’s Store, allowing customers to find the most relevant products.
- Send traffic to a curated list of products in case Keter wanted to give more visibility to certain products or promotions.
To kick off the campaign, Labelium started with a high bid to increase visibility and generate impressions quickly. Next, it fine-tuned the CPC (cost per click) for each keyword based on profitability and number of impressions.
Because Sponsored Brands are visual, the images and copy played a large role in the success of the campaign. Labelium chose product images based on whether they featured new or best-selling products, had a high volume of customer requests, or had a favorable customer rating. As for the copy, the agency adapted the message to the image and keywords, then performed A/B testing in order to increase the conversion rate.
Lastly, in addition to Sponsored Brands campaigns—which helped to build awareness and branding—Keter and Labelium also decided to use Sponsored Products as part of its strategy to gain sales momentum for Keter’s product offerings, increase brand visibility, and drive conversions.
Evaluating performance through campaign optimization
Throughout the campaigns, Labelium used a variety of optimization tools and tactics, including:
- Search term report (once a week). This report, which includes customers’ search queries, is available only for Sponsored Products. Labelium used the report in both manual and automatic campaigns to find relevant keywords and have control over bidding in the former and to discover new keywords in the latter.
- Keywords (once a week). Labelium paused the keywords where the ACOS was too high, depending on the category of products (think high-priced items like garden and home products). For Sponsored Products, it replicated the strategy with ASINs, pausing those that weren’t performing well.
- Placement report (once a week). Labelium increased bids for ads that did not appear in the top of search placement.
- Bids and budgets (twice a week). Labelium adjusted bids and budgets (up or down) based on the seasonality of products, customer needs, and campaign results. Labelium also took into account the total number of impressions from each campaign and the amount it spent per keyword.
- Testing to improve CTR (click-through rate) (once a month). Labelium tested headlines and imagery periodically to determine which variants would generate the most clicks from customers.
Generating $1+ million in Amazon sales and 6+ million impressions
Since January 2018, Keter’s campaigns have produced nearly $1.1 million in total sales attributed to advertising, and as of May 2019, Keter has seen a 223% increase in total sales attributed to advertising and an even lower ACOS (7% versus 12%) compared to the same period last year on Amazon.es.
Additionally, 30% of the total sales of the Store came organically from Amazon, driving additional sales for Keter’s products. As of May 2019, Keter has generated over 6MM impressions with Sponsored Brands, with a nearly 2% higher CTR than with Sponsored Products.
Overall, Labelium’s strategy not only drove sales but also helped improve performance over time.
– Carla Gomez, Key Account Manager, KeterWith so many potential sellers, advertising is important and can help your products to appear in search results and product detail pages. Our collaboration with Amazon Ads has been one of the most important key actions to generating incremental revenue for our brand.