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Moving Inventory Through High Intent Buyer Ad Strategy

Advertising
SEO
Product Placement
Sponsored Brand
Sponsored Product

$

685

K

X

%

Increase in Ad Revenue

In the midst of the COVID era, Fitness Reality emerged as a standout player in the fitness category. They experienced a surge in demand, prompting them to order a significant amount of inventory. However, as the market normalized, they found themselves with an excessive stock of certain products. 

Sales projections fell short of expectations, causing the need to sell through this surplus inventory that was slated for phase-out or simply overstocked. In October, with the 2022 peak season approaching, and cash flow issues, it became crucial to move the inventory while maintaining profitability. If they did not move the inventory quickly, it would be at a loss when it did. Financial constraints would prevent them from ordering new equipment and models from the manufacturers with the surplus inventory still on hand—selling through the existing inventory would allow them to procure new units at a lower cost, enhancing their overall profitability.

The peak season represented an opportunity to leverage ad campaigns to move the inventory but it also represented the challenges of Q4 seasonality meaning competition would be higher, and therefore, CPC during a time when cash was already tight.

Nectar's advertising team came to the rescue with a plan for success.

challenges

1

Two Months Until Peak Season

2

Overstock of Aging Inventory

3

Conservative Ad Budget

4

High Seasonal CPC

Solutions

Nectar developed a comprehensive approach to deliver against Fitness Reality's goals:

The core approach was to increase the brand’s share of voice while scaling their spend with a similar or better total ACOS. The plan was to increase Fitness Reality's ad spend relative to the overall organic sales while also delivering more impressions and click-throughs with Amazon’s sponsored campaigns for better reach and brand awareness. As reach and profitability were the main objectives, Nectar opted for individual target ASINs with Sponsored Display and Sponsored Product ads to hone in on specific targets that were most similar to our products while also focusing spend on unbranded and generic terms for higher impressions within their category.

The breakdown:

  1. Targeted Advertising: Leveraging Amazon's robust targeting capabilities, Nectar implemented aggressive middle and bottom-of-funnel advertising campaigns. By strategically placing Sponsored Display campaigns beneath the buy box and targeting competitor listings, they aimed to capture customers at the point of purchase intent.
  2. Revenue-Focused Optimization: Nectar optimized campaign performance by targeting high-value audiences and allocating the advertising budget towards ASINs with the highest revenue potential. The strategy involved targeting unbranded and generic terms to increase impressions and visibility within the fitness equipment category.
  3. Data-Driven Insights: Nectar utilized Amazon's insights to refine the strategy and identify key trends. They analyzed branded search impressions, ad spend, and return on ad spend (ROAS) to make data-driven decisions and continuously improve campaign performance.

Nectar had a challenging Return on Advertising Spend (ROAS) target of 7 or higher. Additionally, they prioritized generating over 50% of the revenue from New-To-Brand Sales, further expanding our customer base and driving sustainable growth.

Comparison

results

Nectar's targeted advertising campaign delivered exceptional results for Fitness Reality:

  • 10x ROAS
  • 100% Increase MoM Sales

Overall from Oct-Dec:

  • 685% Increase in Ad Revenue
  • 15.6% Decrease in ACOS on 6-figure Ad Spend to 9%
  • 90% of Ad Revenue from New-To-Brand Sales
  • 384% Increase in Impressions
  • 33.2% Increase in CTR

Through Nectar's targeted Amazon advertising strategy, Fitness Reality experienced remarkable revenue growth and improved advertising efficiency. By strategically optimizing campaigns, focusing on revenue-generating ASINs, and leveraging data-driven insights, Nectar successfully increased sales and enhanced visibility for Fitness Reality's surplus inventory.

Before
After

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