Since early 2020, they have been working alongside our Amazon team and they recently implemented a new bidding model within Sponsored Display ads, which has led to some amazing results!
Sponsored Display ads have been an under-utilised ad set for many businesses on Amazon, due to the sporadic placements and the limitations in targeting.
However, Amazon introduced a new bidding model within these ads, called vCPM (viewable cost per mile) which means that, instead of being charged per click, you only pay per 1000 views of your ads.
The main challenge here, was that vCPM was still early into its launch and therefore, it was hard to predict the effectiveness of this bidding strategy.
The team recognised that there was an opportunity here to reduce the cost per sale through this ad type, compared to other ad types – like Sponsored Products and Sponsored Brand ads.
Working closely with The Hairpin Leg Co., the team implemented three new Sponsored Display campaigns that used the new vCPM bidding model.
Since the introduction of these new campaigns in November 2021, The Hairpin Leg Co. have achieved a HUGE 1,577% return on ad spend (ROAS) – with the best performing campaign of the three, achieving 2,260% ROAS.
During this timeframe, 15% of their sales have come through this ad type alone and in comparison to other existing ad campaigns on their account, their vCPM campaigns were seeing a 2.6% higher conversion rate.
It’s really exciting to see these results and demonstrates how trying new marketing strategies can be transformational for SMEs!
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