EXCLUSIVE Study: Client Wasted Ad Spend Routinely Avoidable

By EXCLUSIVE Insights Team
TOPICSAmazon, Featured, Insights, Product Ads

When managing any sort of paid search, whether it be through Google, Bing, Amazon or another platform, a portion of your ad spend almost always goes to waste. “Waste” is defined as money spent on paid search that results in no sales or a sub-1X return. Whether testing a new targeting strategy, rolling out new products or working with a product catalog of 30,000 SKUs, wasted spend is bound to occur.  Not all of this spend is bad, but it should be carefully monitored and reduced over time.

EXCLUSIVE’s Amazon team recently performed an internal review of our Amazon Sponsored Products clients to calculate just how much spend was attributed to waste prior to us assuming management of their accounts. The results were staggering.

What We Discovered

Before retaining EXCLUSIVE for Amazon management, merchants wasted roughly 28.1 percent of their Amazon ad spend.  After EXCLUSIVE began management, we improved that figure by 41 percent on average.  That means our merchants see an average of 25 percent more profit when we implement our waste spend reduction strategy.

A visualization of wasted ad spend

The Solution

EXCLUSIVE has cultivated a methodology that reduces waste spend and promotes growth over time. Our methodology includes:

  • Continuous negative keyword updating: Amazon provides in-depth reporting on customer search terms, and these terms show a major source of wasted spend.  Whether it’s due to irrelevant traffic, or merely lower conversion rates, these terms are removed from campaigns.
  • Low bid catch-all campaigns: All products deserve some level of visibility. Low bid catch-all campaigns provide a platform to target top-of-funnel keywords at a low price to ensure you achieve profitable visibility, even during the customer’s research phase.
  • Top product campaigns: Our methodology focuses on matching the best product to each search.  We identify products that perform very well and make them the stars of more aggressive campaigns.  If the catch-all campaign is a tryout, products that make the cut are promoted to a top product campaign.  This helps accelerate growth.

How to access a Search Term Report in Amazon’s backend

Want to find out how much ad spend you’re wasting?  Schedule a free audit today. One search term report is all it takes to save thousands of dollars!

Featured photo credit: Dave Dugdale