Case Study:Ideoclick Triples Amazon ROAS for Beauty Brand Entering Highly Competitive U.S. Cosmetic Market

A leading Canadian cosmetic manufacturer wanted to enter the highly competitive U.S. beauty marketplace through Amazon. Partnering with Ideoclick, the goal was to increase brand awareness in the U.S. while maximizing sales in Canada for multiple product lines.
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Challenge

As a relatively unknown beauty entity in the U.S. ecommerce marketplace, vying for consumer attention among a deep assortment of preferred and proven brands meant facing headwinds. The approach to driving sales on Amazon’s marketplace needed to build on a strong, well-established reputation in Canada while uniquely capturing the attention of U.S. buyers. 

Strategies

Results

  • 3X ROAS compared to client’s previous campaigns
  • Top 10% page one placement for client’s product categories
  • Sustained organic sales within 4 months
  • 65% increase in COGS in U.S. and Canadian markets combined

Solution

The cosmetic manufacturer partnered with Ideoclick to amplify brand recognition and drive sales on Amazon. Ideoclick developed a comprehensive Amazon marketing plan, including Amazon Marketing Services (AMS) and Demand-side Platform (DSP), that generated revenue-increasing traffic with paid search and better shopper targeting data. Simultaneously, the plan set the stage for organically sustained sales through Ideoclick Share of Search® so that money didn’t need to be continuously spent solely on advertising.

Accelerate Ad Spend

Ideoclick recommended a three-month accelerated ad spend strategy to boost brand visibility, specifically using promotions to drive conversion. The strategy started with an aggressive AMS push of high bids and a monthly budget of $20-60k per month—which was 3X higher than the client’s average advertising budget. 

Although the aggressive ad spend meant temporarily sacrificing efficiency by accepting a 1X return on advertising spend (ROAS), the goal was to gain a 3X ROAS within the next three to four months. Putting in high bids for pop-up placements would also help land top organic placements quickly. That way, more reliance could ultimately be placed on sales from organic search results instead of high advertising spend.

Capture Share of Search

To augment the initial increase in advertising spend, Ideoclick strengthened the cosmetic manufacturer’s share of search across Amazon’s infinite digital shelves. With no defined aisles or physical sections on the platform, a search-based customer journey driven by high-traffic keywords was a critical part of the brand awareness strategy.

The Ideoclick Share of Search solution leveraged search share analytics and competitive benchmarking to target the manufacturer’s winnable search terms, develop relevance, and measure progress. As organic search rankings rose with strategic share of search, so did sustained, cost-saving organic sales. 

Optimize Details Page

Ideoclick optimized the Amazon details page to help boost differentiation and drive conversion. Recommendations included elevating the page content with beauty imagery that shows product application and texture, as well as showcasing product details to enhance the customer experience. 

Results

3X ROAS

The aggressive bidding strategy Ideoclick put into place gained 3X ROAS compared to previous campaigns, despite COVID-19 disruptions.

Top 10 Placement

Page ranking improved. The cosmetic manufacturer landed top 10 placement on page 1 for its product categories vs. the bottom of page 1 prior to Ideoclick.

Sustained Organic Results

Ideoclick elevated organic search rankings, making it easier to attract new customers on Amazon. After four months, organic sales sustained themselves. 

65% COGS Increase

Cost of goods sold (COGS) in the U.S. and Canadian markets saw a 65% increase—with a 22% increase in the U.S. market alone.

A pallet of eye shadows in shades of teal, brown, silver and black, with 5 makeup brushes.

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