Problem

Diversified Hospitality Solutions (DHS), a bulk toiletries brand for hospitality settings, faced challenges in reaching its target audience on Amazon. Traditional keyword targeting using generic terms like “shampoo” and “body wash” resulted in low relevance, wasted ad spend, and limited reach to new customers.

Goal

DHS wanted to reach new-to-brand customers while maintaining efficiency and increasing sales. This would be measured through increased DSP exposure, higher user purchase rates, and ultimately, increased new-to-brand (NTB) sales without sacrificing return on ad spend (ROAS).

Solution

Teikametrics leveraged Amazon Marketing Cloud (AMC) to create custom audiences tailored to DHS’s target market. By targeting specific keywords like “bulk toiletries,” “hotel amenities,” and “bulk shampoo,” AMC enabled the creation of lookalike audiences to expand reach. The AMC overlap report was also utilized to identify high-engagement segments for optimization.

Execution

New DSP campaigns were launched targeting the custom AMC audiences. These campaigns focused on delivering relevant ad creative to potential customers actively searching for bulk toiletries.

Results

The AMC-powered DSP campaigns delivered impressive results:

  • Increased reach: DSP unique user reach surged by 90%.
  • Improved engagement: DSP purchase rate climbed by 40%, and add-to-cart rate soared by 231%.
  • Boosted sales: Total sales increased by 24%, driven by a 373% increase in NTB purchases.
  • Enhanced efficiency: DSP ROAS experienced a remarkable 100% improvement, demonstrating increased return on ad spend.
  • Improved conversion: Conversion rate rose by 18%, indicating better campaign performance.
  • Optimized cost: VCPM (cost per thousand impressions) decreased by 83%, showcasing improved ad efficiency.

Key Learnings

  • The power of custom audiences: AMC’s ability to create highly targeted audiences was instrumental in reaching the right customers.
  • Beyond generic keywords: Focusing on specific, relevant keywords and qualifiers significantly improved campaign performance.
  • Data-driven optimization: Utilizing the AMC overlap report to identify high-engagement segments led to refined targeting and increased efficiency.
  • Holistic approach: Combining upper funnel tactics with targeted DSP campaigns drove substantial new-to-brand growth.

Conclusion

By leveraging Amazon Marketing Cloud to create custom audiences and optimize DSP campaigns, Diversified Hospitality Solutions achieved remarkable growth in new-to-brand customers, increased sales, and improved overall campaign efficiency. This case study demonstrates the power of data-driven advertising and the importance of understanding the target audience to drive successful Amazon marketing campaigns.