Haier enlists Xingu to drive Amazon Ads campaign improvement in EU

Haier Smart Home (Haier) is a global leader in home appliances that has been listed on the Shanghai Stock Exchange since 1993 and is present in all five continents. In 2018, Haier became the first Chinese company to enter the D-Share Market of the China Europe International Exchange in Frankfurt, with the aim of promoting their brands (Candy, Hoover, Haier, Rosières, GE Appliances, and Fisher & Paykel) and driving growth in Europe. They began selling and advertising on Amazon across EU marketplaces shortly after, recognizing the opportunity to connect with new shoppers. In 2020, Haier began working with Italy-based agency Xingu to help develop a holistic EU strategy that would help drive efficiency and unify the brand shopping experience across EU marketplaces.

Overcoming the challenges of developing a multi-marketplace strategy

Xingu’s first and primary goal was to unify Haier’s approach to Amazon Ads across EU marketplaces before they tackled return on ad spend (ROAS) improvement across campaigns. The brand wanted Xingu to create a holistic EU strategy, but tailor and adapt where necessary to meet the nuances of shoppers in each locale. For example, “Hoover” is an important brand keyword for Haier, but in the UK, it is also a category keyword with a high cost-per-click (CPC) and broad advertiser interest, as it’s the term used by many UK shoppers when looking to discover vacuums. Xingu worked with the brand to outline these marketplace-specific challenges, make recommendations, and align on a path forward.

Maximizing ROAS with a focus on key branded terms and discovery

To drive ROAS improvement, Xingu looked to improve Haier’s coverage of key branded shopping terms, as they’d consulted previous campaign performance metrics and found that branded terms drove strong results. While ROAS was in focus, Xingu was careful not to abandon category-level shopping terms within their strategy so that the brand was still actively helping shoppers discover and engage with their products. For category-level terms, Xingu applied a model where they performed daily optimizations to invest more heavily into terms driving the strongest click-through rate (CTR).

Implementing a full-funnel strategy across Amazon Ads products

Xingu’s strategy for scaling Haier’s budget while improving ROAS took shape across multiple sponsored ads products, with different tactics leveraged across each:

  • Sponsored Products campaigns were divided by category and brand keywords. In each campaign, the adgroups were divided by exact and broad match to add a dynamic approach to covering key terms. They deployed a down-only approach to bidding to have greater control of how they allocated budgets.
  • Sponsored Brands was used to complement Sponsored Products campaigns focused on key brand and category terms, and helped drive visibility while encouraging shoppers to explore category pages within the brand Store. Sponsored Brands video also helped the brand to showcase premium models in strategic categories while standing out.
  • Sponsored Display campaigns proved to be a valuable tool to help ensure ad placements on the brand’s product detail pages offered the opportunity to engage with other products from their catalog. Xingu leveraged Sponsored Display campaigns to cross-promote other Haier products on their own product detail pages.

“Before creating a campaign, think about your strategy, your goals, and your strengths or weaknesses. According to the analysis, decide where you should start. Advertising can really help drive growth, but you need to assess your catalogue and product quality before making the decision to invest.”

— Mattia Stuani, Founder and CEO, Xingu

Generating sales attributed to advertising in EU marketplaces with attention to detail

In June 2020, Xingu helped scale Haier’s Amazon Ads investment by 106% compared to the previous year across all EU marketplaces. Haier stated that Xingu leveraged the increased investment efficiently, with the new EU multi-marketplace strategy delivering +209% increase in sales attributed to advertising and a ROAS improvement of +50%, well above the goal they’d initially set with the brand.1

“Amazon is full of opportunities, but it can be intimidating for brands that lack strong sales channel experience. The first step is acknowledging that your brand could benefit from Amazon-specific expertise and whether it makes sense to build that expertise within your company or outsource it to a trusted partner who is able to support strategic decision making and daily operation of their advertising investment."

— Francesco Bellomo, Media and Consumer Insights Manager, Haier

1 Advertiser-provided data, Europe, 2021.