The holiday shopping season on Amazon isn’t just an opportunity. It’s a battleground where brands and retailers fiercely compete for shoppers’ attention. As the festive rush approaches, a meticulously crafted Amazon holiday advertising strategy is paramount for brands looking to pinpoint the best investments and maximize the return on those investments.
This is precisely where Jungle Scout Cobalt proved to be the game-changer for a client of Code3, a prominent digital marketing agency. Using Cobalt, they delivered extraordinary advertising results for a Home & Kitchen brand, achieving a remarkable 26% Year-over-Year (YoY) boost in Return on Ad Spend (RoAS).
In this post, we’ll delve into how Cobalt revolutionized Code3’s approach to their client’s holiday campaigns and elevated the brand’s performance during the most competitive time of the year on Amazon.
The challenge: Navigating the most competitive time of the year
With a commitment to sustainable practices and recycled materials, the Home & Kitchen brand had already forged a strong connection with eco-conscious consumers. Their product and pricing strategy made them a large competitor in several Amazon subcategories and earned them Amazon’s Choice Badges for a number of products.
Even with this solid foundation, however, the complexities of navigating the holiday season on Amazon were preventing them from reaching their goals.
Enlisting the help of Code3 and Cobalt, the brand analyzed past holiday campaigns and uncovered three pivotal challenges that had to be addressed during pre-holiday planning:
- Advertising campaigns frequently had a high cost-per-click (CPC)
- Campaigns often ran out of budget during peak-purchasing windows
- The brand was not hitting ideal RoAS targets on highly competitive keywords in their subcategories
The result: Improved KPIs and a more profitable holiday season
In addition to using Cobalt to analyze past performance, Code3 used Cobalt’s Ad Accelerator feature to automate and optimize the brand’s holiday campaigns. This facilitated optimal budget allocation and faster campaign optimization, as well as detailed, tailored reporting that highlighted their success as the season unfolded:
- Sponsored Share of Voice surged by 5-fold, from 1.07% in Q3 to 5.54% in Q4 for high-volume keywords.
- Overall RoAS increased 26% from the previous year, rising from $3.13 to $3.95.
- New-to-brand customer acquisition increased from 54% to 63% for all Sponsored Brand sales.
- One campaign set delivered 84% new-to-brand sales as a result of gaining traction on competitive keywords.
Through strategic planning and data-driven implementation, Code3 helped their client set the stage for a highly profitable holiday season – something that Advertising Strategist Kyle Kutchman says Cobalt was a vital part of.
“The successful results we saw for this client during the holiday season were a balance of three primary KPIs: share of voice, new-to-brand sales, and RoAS. Through a combination of budget and bidding control automations, as well as share of voice visibility, Cobalt was a vital component to helping us achieve this success.” – Kyle Kutchman, Advertising Strategist, Code3
Optimizing Amazon advertising beyond the holiday season
According to Code3, Cobalt goes well beyond a holiday-season advertising tool. The agency’s Advertising Team Lead, Kirk Lutz, says that each of Cobalt’s features has transformed how the agency delivers value to clients.
“Cobalt has unlocked many possibilities for our team – from more efficient budget management to quicker optimizations and ultimately more customized reporting capabilities. The various automation tools have allowed us to test new tactics and drive results for our clients.” – Kirk Lutz, Advertising Team Lead, Code3
As a strategic ally to their clients, Code3 must be able to clarify which tactics are driving sales and which may be diminishing profitability – whether during the holiday season or throughout the rest of the year. By harnessing Cobalt’s automation, budget optimization, performance insights, and reporting capabilities, they are able to cut through the fog of Amazon’s competitive landscape and get a clear view of the best path toward their clients’ ecommerce goals.
As the holiday fervor approaches, learn how Cobalt can elevate your RoAS, amplify your share of voice, and enhance your brand’s performance on Amazon.