Case Study
SellerKO helps auto-parts brand boost sales using real-time insights with Amazon Marketing Stream
SellerKO is an operation-management software tool provider that specializes in offering advertising analysis and optimization for sellers of Amazon Global Selling. With SellerKO’s real-time data-stream feature powered by Amazon Marketing Stream, they helped a China-based auto-parts seller use hourly advertising insights to optimize their campaigns on Amazon. By adjusting bids, ad budgets, and ad-placement bid ratios by time slot, SellerKO helped the auto-parts brand rank in the top 10 of the “Gas Cans” category for auto parts in two months.
While on a hiking trip to North America, the eventual founder of the auto-parts brand noticed that motorcycle enthusiasts carried fuel tanks and hoses to refuel their motorcycles. The hoses were essential and consumable items for these riders to refuel during their hiking trips. After researching the industry, the founder established their own auto-parts brand and started selling their first fuel-hose product on the Amazon store. However, the founder realized that they needed help managing the brand’s advertising strategy on Amazon, which led them to partner with SellerKO.
Increasing bid ratios for ad placements
A primary issue for the seller was noticing that the click-through rate (CTR) and conversion rate were less than half of their goal. Using SellerKO’s real-time insights feature on Amazon Marketing Stream, the seller identified high-performing ad placements. This led them to increase the bid ratio of their best-performing ad placements during peak hours.
To optimize CTR and conversion rates, the seller used SellerKO’s real-time insights to conduct a deep analysis of the Sponsored Products campaign. Insights showed that one ad placement garnered 90% of the entire campaign’s impressions on the product detail page. However, the ad had an average CTR of only 0.2%, considerably lower than the homepage ad’s average CTR of 13%.1 Additionally, the homepage ad placements generated 4x more orders than the product detail page. These findings led them to believe that excessive impressions on the product detail page ad were the main reason for the ad campaign’s lower-than-expected performance.
With this new finding in mind, the seller decided to find a way to increase the impressions of the top spot on the homepage of the Sponsored Products campaign. Using the real-time data feature of SellerKO, the auto-parts brand set the bid ratio of their campaign’s homepage ad to 150% during peak traffic hours (8 a.m. to 5 p.m.), aiming for more homepage ad impressions.2
Noting a difference in CTR and optimizing budget
After a month, the Sponsored Products campaign generated a significant increase in homepage impressions during peak hours. The average CTR of the homepage ad increased from 13% to 35%, with a conversion rate of 20%, doubling the overall CTR of this Sponsored Products campaign (0.2% vs. 0.4%), and increasing the conversion rate by 2.2x.3 Another challenge was dealing with the traffic of a Sponsored Products campaign when it reached a bottleneck and failed to generate new traffic while maintaining the current advertising cost of sales (ACOS). Using real-time ad data powered by Amazon Marketing Stream, the seller was able to optimize their advertising budget during peak hours to help the brand generate increased traffic and orders.
SellerKO helped the brand analyze the real-time spending and budget exhaustion trend of their ads each day. First, the agency obtained the real-time ad-spending information through Amazon Marketing Stream, and calculated the percentage of this spending to the overall budget of the ad campaign. SellerKO’s software then optimized budgets based on the ACOS performance of that day.
When the spending of ad campaigns reached 80% of the daily budget while ACOS dropped by more than 32%, SellerKO’s tool enabled automatic increases in the campaigns budget by 30 USD.4 Each day, the ad campaigns budget would reset to the amount before the budget increase at midnight, which allowed the seller to not worry about overspending during other periods.
Analyzing final campaign results
Two months after the implementation, the daily impressions of this ad campaign increased by 100% with daily orders increasing by 29%. At the same time, ACOS was also controlled within their goal of 32%, helping solve the brand’s previous pain point.5
Similarly, SellerKO also used this real-time budget adjustment feature to help the brand reduce their ad budget during low-performance hours to control the overall ad cost.
1-5 Source: SellerKO, China, 2023.