ML based targeting and campaign optimization increases ROAS on Amazon by 10x
A kids nutrition brand partnered with Sigmoid to increase spend efficiency and accelerate sales on Amazon by identifying the right target audience and optimizing campaign settings like budgets, bid value, and ad frequency for each campaign.
With the rise of eCommerce, the customer wanted to tap into innovative ways of driving purchases for its nutrition range of products. They used targeted display ads on Amazon to promote products and had also integrated with 3rd party data providers for customer intelligence insights to build better campaigns. They wanted to leverage multiple datasets including Amazon campaign insights and use it in conjunction with the first party data to improvise the target audience for higher conversions, allocate the right budget and identify the right campaign settings such as bid value and ad frequency.
Sigmoid built an ML based solution with data from multiple sources, such as Customer Data Platform (CDP) for buyer loyalty, placed orders, and subscriptions, Amazon Ads for campaign reports, and other media partners for audience intelligence reports. Sigmoid’s ML solution recommended relevant Amazon Ad campaigns with suggestions on ideal target audience groups for each campaign based on the budget. By identifying audiences with high purchase potential, Sigmoid enabled their marketing team to target them frequently and increase conversions and eliminate low-potential audiences from future campaigns. We also followed a test and learn approach relying on historical data for predictions and adjustments based on actual performance enabling inflight campaign changes to derive the maximum return on ad spends.
Sigmoid's solution enabled the client to improve target audience conversion rate on Amazon ads portal by leveraging extensive data from both first party and external data sources. Alongside increasing the overall conversion rate of nutrition products, we also observed a halo effect that boosted sales of over 270 supplementary items on Amazon.
improvement in ROAS
boost in conversion rate
increase in purchase per $