$
10
K
X
%
Return on Ad Spend
DSP Advertising to Drive Conversions and Sales
InDUSTRY:
Pet Supplies
TOPICS:
Advertising
A/B Testing
Demand Side Platform (DSP)
Agency Transition
Healthy Pet, a pet supply company that makes consumable products, that includes ökocat and their cat litter, was struggling to retain customers and reach new-to-brand shoppers.
As a result, Healthy Pet was losing out on sales it should have been obtaining and not growing at a fast enough rate.
Challenges
1
Retaining Customers
2
Reaching New Customers
3
Inefficient Advertising
4
Wasteful Ad Spend
Solutions
Adoption of Amazon Demand Side Platform (DSP):
- Purpose: Amazon DSP allows brands to maximize their visibility through display and video ads. These ads target specific, curated audiences across both Amazon’s ecosystem and partner publisher sites.
- Target: Achieve a Return on Ad Spend (ROAS) of 4x by tapping into new market segments and leveraging retargeting and remarketing tactics.
Retargeting Strategy:
- Action: DSP retargeting ads were set up to re-engage audiences who had visited Healthy Pet's product pages but refrained from making a purchase.
- Purpose: Drive conversions from potential customers already familiar with the brand.
Top-of-Funnel Customer Acquisition:
- Action: Designed ads focusing on shoppers actively seeking products similar to Healthy Pet’s offerings.
- Purpose: This approach was crucial in attracting new-to-brand customers and diversifying the customer base.
Remarketing for Repeat Purchases:
- Action: Nectar rolled out remarketing ads targeting previous customers who hadn’t made recent purchases.
- Purpose: Given the consumable nature of Healthy Pet's products, the aim was to induce recurrent sales and ensure consistent customer engagement.
Results
These DSP strategies added 36% in revenue with a conversion rate increase of 12%.
The first month provided a 8x ROAS, the second month provided a 10x ROAS.
Prior to working with Nectar, Healthy Pet had attempted DSP with another agency with poor results.
Our team’s thorough understanding of Amazon’s DSP ads and A/B testing allowed us to double our ROAS goal.
When DSP is properly managed and used for the appropriate products, it can be an extremely powerful tool.
Before Nectar, we worked with another Amazon agency for advertising management but the performance was inconsistent. In contrast, Nectar has consistently delivered great results for ökocat and Carefresh for Amazon PPC and DSP by being proactive in their planning and strategy while also being extremely responsive to our needs and in addressing any unexpected changes.
Before
After
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