The Challenge: Navigating a Plateau

When it came to Amazon's marketplace, a well-known LED lights brand found itself at a crossroads. Despite being a recognized brand with numerous best-selling products, they were wrestling with unpredictable product category rankings and inconsistent ad performance, resulting in a flatlining Advertising Cost of Sales (ACoS). Their growth, which once seemed limitless, was now stunted.

Their previous strategies, while effective for a time, had reached their limits. The brand's ACoS, although stable, showed no signs of improvement and offered little scope for further optimization. The challenge was clear: They needed to stimulate their Amazon product orders and sales and create a more reliable and scalable advertising strategy.

The Objective: Aiming for Consistent Growth

The brand's objectives were well-defined: Boost product orders, expand sales, and improve the consistency of advertising performance. And all this needed to be achieved without substantially increasing ad spend.

The Approach: Unleashing AI

To address these challenges, the brand turned to Xmars, our AI-enabled platform. The approach involved several key steps: Setting goals, analyzing data, benchmarking competitors, and optimizing bids.

Driving Growth Before vs. After AI Activation

1. Goal Setting: The first step involved establishing new ACoS targets that would be in line with the brand's campaign objectives, using recommendations provided by Xmars AI. By using the brand’s historical ACoS data from the past 14 days, our AI was able to offer ACoS target suggestions aimed at both driving sales growth and maintaining campaign consistency.

2. Data Analysis: Xmars' analytical capability was brought into play to scrutinize relevant marketplace data, keyword effectiveness, and high-performing ASINs, allowing for more informed bid adjustments.

3. Competitive Benchmarking: Using Xmars' Product Center feature, we analyzed competitor data and identified three high-value ASINs. These were added to the ad campaign to stimulate sales growth. Our AI also showed that the targeted ASIN was fourth in conversions, which led us to increase keyword bids by 4% to generate more clicks and sales volume. At the same time, Xmars flagged four underperforming keywords, allowing us to reduce bids by 3%-7% to better control the overall ACoS.

Campaign Consistency Before vs. After AI Activation

4. Bid Optimization: Thanks to Xmars' direct API connection to Amazon Marketing Stream (AMS), we were able to keep an eye on real-time data and quickly spot a decline in order volume. In response, we increased bids by 3%-5% for six top-performing keywords and replaced two low-performing keywords with three promising alternatives identified from historical data.

5. Time-Based Adjustments: Xmars also highlighted time-based trends from the granular data provided by AMS. This helped us to create a more strategic bidding plan, reallocating daily budgets and dedicating only 10% to early morning hours to avoid unnecessary spend. When we saw ahigh-ranking ASIN with a low conversion rate, we reduced the keyword bid by 5%.

The Result: Tangible Growth with AI

By incorporating Xmars' AI features, the brand saw a significant improvement in their campaign performance. The AI-powered campaigns saw nearly a 20% increase in orders and sales for just a modest 7% increase in spending. Their ACoS fell by 10% compared to the previous period, while conversion rates enjoyed a 9% boost, leading to better performance with a lower Cost Per Click (CPC).

What's more, by leveraging AI, the brand saved around 200 man-hours. This freed up time for the operations team to focus on optimizing other aspects of their business, driving overall growth and securing their standing in Amazon's competitive marketplace.

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