Case study

Petnet

Petnet – producers of the SmartFeeder automatic home pet feeder – was struggling to take advantage of low-cost sales opportunities due to its inefficient and high-cost campaign structure.

amazon paid media

Petnet – producers of the SmartFeeder automatic home pet feeder – was struggling to take advantage of low-cost sales opportunities due to its inefficient and high-cost campaign structure.
dog drinking out of a water bowel

Challenge

Amazon presents an opportunity for ecommerce companies to reach high-intent consumers at or near their time of purchase decision. Despite hundreds of thousands of dollars in ad spend on the platform, Petnet was only earning 65% returns, with staggering Cost per Order and Cost per Click figures, and a relatively low conversion rate.

Approach

  • Terminated short-term campaigns in favor of evergreen campaigns for optimization and learning
  • Increased and optimized sponsored product campaigns
  • Reduced bids on low-intent keywords
  • Reallocated Petnet’s advertising budget to high-intent branded, competitor, and non-branded keywords

amazon paid media

This poor performance could be largely attributed to the fact that Petnet’s prior campaigns had run for only weeks, or sometimes even just days before expiring. Hawke adjusted the focus to evergreen campaigns that allow for optimizations based on analytical insight. Another factor was Petnet’s history of overspending on inefficient broad-match keywords and general categories like “pets” and “electronics”. We reallocated Petnet’s advertising budget to high-intent branded, competitor, and non-branded keywords for sponsored products and headline search campaigns, partitioning ad groups by similar keywords to make them far more efficient and easier to scale.

This granular, more diversified mix reversed Petnet’s unprofitable fortunes on Amazon. Within just 2 months of making these optimizations, overall impressions increased by 98.6%, while CPC dropped 11.3%. Overall ROAS tripled from 65% to 192%, contributing to a monthly revenue increase of 80%. With substantial CPA reductions, Petnet realized a 146% increase in gross profit from Amazon operations.

www.amazon.com/petnet

smart feeder on amazon
increased impressions

%

increased gross profit

%

Results

increased revenue

%

increased roas

Results

increased impressions

%

increased gross profit

%

increased revenue

%

increased roas