Nozzle drives insights for ValuMeds with Amazon Advertising API
A partnership is formed
ValuMeds, part of Cabinet Health Inc., is an over-the-counter medicine brand selling FDA-certified products in the United States since 2017. In 2020, ValuMeds launched a new brand called Cabinet, which provides high-quality and fairly priced medicines, directly to your door.
Nozzle focuses on e-commerce and advertising optimization solutions, helping sellers and agencies understand their audiences and advertising campaigns on Amazon with precise artificial intelligence (AI) insights and actions. With three core products (Amazon PPC Audit, Analytics, and Activation), Nozzle provides advertisers with comprehensive reporting and campaign management.
The challenge: to better understand audience profitability
ValuMeds sought a deeper understanding of its customer lifetime value (CLV). This key metric answers the fundamental question: “How much can I spend on ads to acquire new-to-brand audiences on Amazon?” Given the high propensity of customers to purchase multiple times from ValuMeds, this metric was of strategic importance as it is directly tied to advertising spend optimization and therefore achieving growth targets.
Integration with the Amazon Advertising API enables valuable tools and insights
Nozzle uses the Amazon Advertising API to offer advertisers a robust suite of Amazon Ads campaign management and reporting functions such as campaign setup, campaign optimization, and custom reporting dashboards. Nozzle’s tools provide insights into wasted ad spend and missed revenue opportunities, keyword best practices, detailed analytical reports on performance, and bid management solutions.
ValuMeds started working with Nozzle in May 2020, and within one month of partnership received the insights required to make decisions about advertising budgets and strategy. Nozzle used their analytics tool to help ValuMeds build a strategy for pay-per-click and search engine optimization (SEO), specifically helping to understand where to spend time and money on an individual product level based on the CLV metric. Nozzle provided ValuMeds with a number of custom dashboards that helped ValuMeds with key decision-making data for their business—in addition to CLV, the dashboards showed optimal dayparting times for up-weighted budget periods and how long to wait to launch a retargeting ad campaign. ValuMeds used these insights to validate hypotheses and justify reallocation of sponsored ads campaign spend to acquire new customers.
Insights drive new advertising strategies
ValuMeds optimized their advertising spend and used insights to define specific strategies for decision-making.
– Rael Cline, Co-Founder and CEO, NozzleBy answering the fundamental question of how much we could spend to acquire customers on a per ASIN basis after accounting for all repeat purchases, we were able to fine-tune the targeting and pricing strategy to acquire a new-to-brand customers, safe in the knowledge that it would be profitable in the long term.
After insights received from their partnership with Nozzle, ValuMeds increased spend on Sponsored Products by an average of 15% across all products, and 40-50% on key products. Overall, the reallocation of advertising spend helped drive a 156% increase in total sales for ValuMeds in the second half of 2020. The success that ValuMeds realized through Sponsored Products campaign performance inspired them to launch Sponsored Brands, Sponsored Display, and Amazon DSP campaigns.