Snapshot
Client Problem
- Continued -20% YoY and -45% MoM sales decline
- Too much Amazon Ads spend on branded keywords
- No Catalog Strategy that aligns with their DTC
Client Objective
- Reverse sales downtrend
- Better Amazon Ads Campaign Structure and Segmentation
- Increase share of voice and BSR in their respective category
Results
- +80% Sales>>$3M 📈
- -40% TaCoS reduction 📉
- +120% Share of Voice in its respective Category 🗣️
- +30% Conversion Rate across the entire brand 🎯
Client Summary
Opopop is a gourmet popcorn brand that redefines the snacking experience with its Flavor Wrapped Popcorn Kernels and innovative microwave popcorn kits. Known for bold, creative flavors like Chedapeno and Vanilla Cake Pop, Opopop elevates popcorn into a fun and flavorful treat. With a focus on premium ingredients and imaginative taste combinations, the brand brings a fresh, modern twist to this timeless snack.
Client's Problems and Pain Points
Sales Decline
As with many CMOs and Founders, the key concern for Opopop has been a downtrend in sales. The sales have gradually decreased months after Q4, when the brand made most of its sales.
The major concern is the YoY decline experienced by the brand. The brand’s CMO Alex McAvoy also believes the ad spend is not being spent to achieve incremental sales.
Low Amazon Ad Spend on non-branded Keywords
Unfortunately, he has no clarity on what the Amazon ads are spending on. The previous Amazon ads solutions were hundreds of single keywords/target campaigns, with no way to segment where the specific ads are going to.
For example, the percentage of ad spending going into branded vs non-branded or to a particular portion of the catalog is simply not there.
Lack of Catalog Strategy
Another key concern is that a few top-selling SKUs in the DTC channel are not getting the same sales velocity on Amazon that one would expect based on their DTC performance.
Solution Provided by SellerMetrics
Catalog Optimization
We optimized the entire catalog by variating the products with similar keyword clusters into their proper Parent/Child relations. By doing so, we uplifted ASINs on the long tail portion of the catalog and harmonized the performance of these ASINs to that of their DTC counterpart.
We unpacked poor ASIN variations with low review ratings to boost the review ratings from 4.1 to 4.4 stars.
Finally, virtual bundles were created on top-selling ASINs to give free visibility to the rest of the catalog and increase AOV further.
Ads Campaign Restructuring
To fix the issue of Amazon Ads attribution, the ads campaign was segmented by the following:
- Product type (similar keywords and margins)
- Branded vs Non-Branded
- Automatic vs Manual Targeting Campaigns
We also made sure to negate branded search terms inside the Non-Branded campaigns to make sure don’t brand search terms don’t appear in Non-Brand campaigns.
Allocated Ad Spend to High Sales-Uplift Amazon Ads Types
After the restructuring, we reallocated 40% of the branded ad spending to non-branded campaigns giving the top-performing ASINs further organic sales uplift.
Results
A full year’s results after implementing SellerMetrics' strategy are as follows:
- +80% Sales>>$3M ARR 📈
- -40% TaCoS reduction 📉
- +120% Share of Voice in its respective Category 🗣️
- +30% Conversion Rate across the entire brand 🎯
Client’s Response
"Rick and Sellermetrics are true experts in the Amazon space and I would highly recommend them to anyone else."
- Alex McAvoy, CMO Opopop