Background
Magnus Home Products sells kitchen and bathroom sinks, bathtubs, and other home appliances through their eCommerce website and Amazon. The appliance company was using Logical Position (LP) to manage their paid search efforts, but was trying to advertise on Amazon using an in-house team. Magnus realized their advertising strategy wasn’t working on Amazon, and decided to let LP take over in an effort to streamline their digital marketing efforts.
Key Metrics
$77K
Sales Generated within One Year of Advertising on Amazon
Generated the biggest sales month in history for Magnus
$4
Earned Back for Every $1 Spent on Advertising within the First Month
“As a small company, our vendor partnerships are crucial. Our Amazon store has grown into a successful extension of our business thanks to LP; we’re experiencing a strong 4x-5x return on our marketing efforts. I sincerely recommend Logical Position as a key player to help grow your business.”
-Michelle Voss, Owner
Strategy
We broke the campaigns out by product type, and further split the campaigns by automatic targeting or manual targeting. Next, we built out single product ad groups for our automatic campaigns and single keyword ad groups for our manual campaigns to ensure maximum visibility into what products are working. Building ad groups at the product or keyword level allowed us to maintain greater control of the budget and get competitive with our bidding strategy.
Results
In our first month of managing Magnus’ Amazon Ads, Magnus earned $326 back for every $1 they spent on advertising. As time went on, Magnus increased their Amazon spending, which increased their overall revenue generated significantly. In January 2020, Magnus earned over $77,000 in revenue from Amazon, a return of $4 for every $1 spent on advertising. November 2019 was a banner month for Magnus, and they saw their biggest sales month in company history. Amazon Advertising accounted for 25% of those sales, all which would not have been possible without LP’s management.
