Marketplace Strategy Assists with 82% ROAS Increase

Implementing AI campaign bidding and automated rules on a third-party platform boosted return on marketplace sales.

Client Background

A leading Ecommerce manufacturer of incontinence products sought to expand its reach and sales through Sam’s Club’s marketplace. While their products were successful, the company faced challenges in optimizing their Sponsored Product Ads due to Sam’s Club’s Member Access Platform limitations. The lack of real-time campaign optimization and delayed feedback loops hindered their ability to achieve desired results.

The Challenge

The company aimed to improve its return on ad spend (ROAS) for Sponsored Product Ads without sacrificing sales volume. However, the existing platform’s constraints made it difficult to make data-driven adjustments promptly and react to campaign performance in real time.

The Goal

The primary goal was to significantly improve ROAS compared to previous campaigns while maintaining or increasing sales volume. This required a more efficient and responsive approach to campaign management.

The Solution

To address these challenges, Greenlane implemented a multi-faceted strategy:

1. Platform Migration: The client transitioned from Sam’s Club’s Member Access Platform to Pacvue, a third-party platform offering comprehensive reporting and real-time optimization capabilities across multiple levels – keyword, item, placement, platform, and hour.
2. Refining Performance Metrics: Recognizing the limitations of ROAS for this specific client, Greenlane shifted focus to Click ROAS. This metric measures sales directly attributed to ad clicks on relevant products. This refinement provided a more accurate reflection of campaign effectiveness for the client’s goals.
3. Strategic Campaign Structure: Campaigns were divided by gender, allowing for more targeted bidding strategies and optimizations. Combining auto and manual campaigns was utilized to maximize reach and flexibility.
4. Advanced Bidding Techniques:

• Pacvue Campaign AI: Greenlane leveraged Pacvue’s Campaign AI to automatically adjust bids based on ROAS goals, optimizing campaigns with minimal manual intervention.
• Automated Rule for Click ROAS: An automated rule was implemented to adjust keyword bids based on Click ROAS performance over a two-week period, maximizing returns.
• Weekend Bid Adjustments: Recognizing lower weekend performance, automated rules were established to adjust bids accordingly, improving overall efficiency.

The Results

The results of the implemented strategy were remarkable:

• 82% Increase in ROAS: The company achieved an 82% increase in overall ROAS compared to their previous campaign flight.
• 86% Increase in Click ROAS: This metric, closely aligned with the client’s goal, saw a substantial improvement due to the refined focus on ad-attributed sales.
• 51% Increase in Click Sales: The optimized campaigns not only improved ROAS but also significantly boosted sales directly linked to ad clicks.

Conclusion

By migrating to a more robust platform, refining performance metrics, strategically structuring campaigns, and implementing advanced bidding techniques, the company successfully overcame its challenges and achieved outstanding results. The combination of Greenlane’s expertise and AI-powered optimization proved to be a winning formula, driving a substantial increase in ROAS while maintaining sales volume.