Case Study
Tinuiti helps The Honest Company drive sales with ads based on Flexible Shopping Insights from AMC
Goals
- Help increase new-to-brand (NTB) sales across their product line
- Uncover new, relevant audiences to engage with ad campaigns
- Help maintain cost efficiency for their advertising efforts
Approach
- Discovered audiences that had lower NTB purchase rates using Amazon DSP
- Used insights from Amazon Marketing Cloud (AMC) to help increase conversions across the product line
- Aggregated organic and paid shopper signals using AMC Flexible Shopping Insights
- Discovered and reached more than 20 new audiences to help drive NTB sales
Results
- 36% of total NTB purchases came from audiences discovered using AMC Flexible Shopping Insights during Q2 2024
- Only 17% of the total ad budget led to discovering new audiences using AMC Flexible Shopping Insights
- 20% higher NTB purchase rate than the category benchmark during Q2 2024
- 52% reduction in NTB cost per point when compared to the previous period
The personal care space often experiences rapidly changing trends, but products that are high quality, safe, and sustainable are well-positioned to stay through short-lived fads. The Honest Company sells home, body, and baby products that prioritize these fundamentals. The brand was using Amazon Marketing Cloud (AMC) to drive efficient ad campaigns and grow overall conversions, but they also wanted to grow new-to-brand (NTB) sales for their products.
The Honest Company engaged Tinuiti, an Amazon Ads Advanced partner, to help them test AMC Flexible Shopping Insights and uncover relevant incremental audiences that would help increase NTB purchases while maintaining an efficient advertising budget.
Analyzing organic and paid shopper information using AMC Flexible Shopping Insights
The Honest Company sells their products in both major retail stores and online. Despite strong brand awareness and ad campaigns that were efficient at generating sales, the brand wanted to boost their NTB sales and further drive growth by uncovering audiences with strong sales and return on ad spend (ROAS) but lower NTB purchases. They had already used the reporting tools in Amazon DSP to discover product audiences with lower NTB purchase rates, but they required deeper audience behavior analysis to determine the best way to grow incremental sales for these audiences.
The Honest Company has worked with Tinuiti since 2017 to optimize their advertising, and in July 2023 they began using AMC to help increase conversions across their product line. In Q2 2024, the two companies started collaborating on a 90-day test of AMC Flexible Shopping Insights to discover new opportunities and tactics to help increase NTB sales. AMC Flexible Shopping Insights includes organic and paid campaign insights, empowering brands to generate aggregated advertising and shopping insights for the products they advertise.
By coupling organic analytics derived from Flexible Shopping Insights along with their standard performance information, Tinuiti and The Honest Company were able to generate aggregated advertising and shopping insights for the brand’s advertised products. They also received support from the AMC Flexible Shopping Insights team as they launched the test and monitored the results.
Increasing NTB sales by reaching new audiences
Along with the ad performance signals they were already analyzing in AMC, The Honest Company and Tinuiti began gathering insights into their organic traffic using AMC Flexible Shopping Insights. They created a report showing that the brand had already achieved a high penetration rate for their core audiences.
The AMC Flexible Shopping Insights report also highlighted top-performing audiences that were buying The Honest Company products organically but hadn’t yet been reached by the brand’s advertising efforts. The Honest Company had to expand beyond these same audiences to help connect with NTB audiences and increase sales.
Based on their insights from AMC, The Honest Company built a test campaign to compare to their existing evergreen campaigns. They added more than 20 audiences across categories including baby, household, and grocery to complement their existing strategies. Then, they tracked NTB rates to measure how well their ads were turning potential buyers into new customers. The brand also analyzed ROAS to measure the cost efficiency of their ad campaigns and determine how to optimize them.
By combining AMC Flexible Shopping Insights with AMC, both the organic and performance data, we’ve been able to expand our upper-funnel audience strategy across multiple categories, which has helped us grow NTB sales.
– Lauren Wood, Senior Director of Amazon sales, The Honest Company
Driving incremental sales with efficient ad campaigns
In Q2 2024, the relevant audiences that the companies uncovered using AMC Flexible Shopping Insights contributed to 36% of their total NTB purchases during the campaign period while comprising only 17% of their ad budget.1
The 90-day campaign’s NTB purchase rate was 20% higher than the category benchmark and 24% higher than The Honest Company’s campaign average.2 That made it the brand’s highest driver of revenue for the quarter. They also reduced their NTB cost per point by 52% compared with the previous period.3
Using AMC Flexible Shopping Insights is now part of The Honest Company’s evergreen strategy. They continually evaluate the efficiency of their ad campaigns, comparing them with NTB purchase rates, and make ongoing adjustments to reach relevant shoppers.
AMC Flexible Shopping Insights has been an incredible tool for us to engage new shoppers and analyze impact outside of advertising. We’re excited as we continue to use this tool to grow the business.
– Jonathan Cole, Commerce Senior Manager, Tinuiti
1–3 The Honest Company, US, 2024.