PAEZ: Amazon PPC Strategy Increases Channel Sales by 800%
3 min to read
PAEZ is an Argentinian shoe brand that has become synonymous with their top selling product- the espadrille. An espadrille is a flat canvas shoe with a braided, esparto rope sole, most commonly worn during the summer.
PAEZ was founded in 2006, however it was only brought into Portugal and Spain in 2009, relying solely on word of mouth. By that time, the product had become a trending fashion symbol, helping the brand to quickly gain traction in these markets.
Besides selling physically, PAEZ’s eCommerce store sells products throughout all of Europe. However, the brand quickly noticed that the consumers’ behavior was shifting: a large portion of consumers started shopping on Amazon, as opposed to directly on branded e-commerce.
The Challenge: How to Sell on Amazon
To meet this shift in buyer behavior, PAEZ started selling through Amazon with a main focus on the Spanish market.
But with a lot of competitors also selling on the platform, it wouldn’t be easy for PAEZ to claim their space. Additionally, some of these competitors have been selling on Amazon for much longer, giving them an advantage of more product reviews and higher organic visibility.
Like Google SEO, gaining organic visibility on Amazon takes time and consistent work; they do not simply rank products overnight. Having that in mind, an effective Amazon PPC Strategy would be necessary to reach potential customers.
What we did: Optimized Amazon PPC Strategy
Codedesign took over PAEZ’s Amazon PPC Strategy for the Spanish market in July 2019.
Although PAEZ already had campaigns running, they were not fully optimized. Consequently, they were not reaching their full potential. And, with the high season already underway, they were missing out on a large portion of search volume and potential sales.
We started by optimizing their existing Sponsored Product campaigns with two main objectives in mind: increase number of orders and decrease ACoS (Advertising Cost of Sale).
Sponsored Product Campaigns
Sponsored Products Campaigns are keyword, or product-targeted ads, that promote your individual listings and appear in search results and product detail pages on Amazon.
As soon as we took over the account, we made sure that PAEZ’s products would show up every time a costumer searched for “alpargatas” (the Spanish term for espadrilles) for competitors’ products, and, of course, for PAEZ products. Even though this may seem simple, since some of their bigger competitors were already established on Amazon, that was not happening.
With that in mind, our campaigns targeted alpargatas for men, women and kids, as well as their competitors’ names.
After improving the performance of the Sponsored Products campaigns, we wanted to scale the results by layering in two different campaign types: Sponsored Brands and Sponsored Display Campaigns. Adding these new campaign types would allow us to work all areas of the conversion funnel, from Awareness to Purchase.
Sponsored Brands Campaigns
Sponsored Brands Campaigns are ads that feature the Brand’s logo, a custom headline, and up to three of your products. These ads appear right below the search bar, and above the search results.
The Sponsored Brands’ Campaigns were created from scratch. Through keyword research, we were able to understand the most used search terms for the products that PAEZ sells.
The headlines were then customized considering their audience.
The main objective for these campaigns was to generate more awareness and brand recognition, thereby adding more users into our conversion funnel.
Sponsored Display Campaigns
Sponsored Display Campaigns can be used to target specific keywords or products, and are a great way to build brand awareness and recognition.
We strategically segmented PAEZ’s audience to make sure that our display ads would only appear to people who might be interested in their products.
We wanted to use these ads to proactively reach potential customers and generate consumer interest, as opposed to waiting for them to search for the product. As such, we didn’t simply place display ads on similar products listings, we also targeted new product territories, such as clothing.
The Results: More Amazon Sales with Less Investment
Through our optimized Amazon PPC Strategy, we were able to achieve an ACoS of 26% during high season.
ACoS indicates the ratio of ad spend to sales. It is calculated by dividing the total advertising investment by the total number of sales.
According to benchmark data, the average ACoS on Amazon is around 30%, so our results show higher than average performance.
Most importantly, since we started working with PAEZ, we increased the number of orders through our campaigns by 800%!
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