The company Tradora has been selling electronical parking discs on Amazon since the end of 2017. These parking discs detect when the car comes to a stop and automatically set the arrival time so that there are no more parking tickets for forgotten parking discs. The products are officially approved by the German Federal Motor Transport Authority. Amazon is currently the most important sales channel for Tradora. The parking discs have an average of 5 stars and the company was also able to secure a bestseller badge for a variant of its parking discs.
The starting position
Besides organic visibility, Tradora advertises its products with Sponsored Product Ads and Sponsored Brands. In order to take advantage of further sales opportunities and test another advertising option, Tradora decided to test the Amazon DSP. Since digital parking discs are still unknown to many drivers, DSP advertising was intended, among other things, to create additional awareness for the products.
„Many people do not know that digital parking discs exist and Amazon DSP should change that.”
When looking for a DSP partner, Tradora decided to work with BidX, among other things because of the low management fee.
After discussing all general conditions and goals of the DSP measures, BidX implemented the setup of the DSP campaigns. A target value for the Return-on-Advertising-Spend (RoAS) was determined in order to be able to evaluate the profitability of the DSP ads at a glance during the later analysis. For Tradora it was important that the campaigns remain profitable and that a RoAS of over 3 to 4 is achieved from the beginning.
BidX decided to first run campaigns for users with a high degree of interaction with Tradora products. In the beginning, users who already had contact with the parking discs should be addressed via retargeting. Amazon visitors were targeted, who have viewed a Tradora product in the last 90 days and have not bought it in the last 365 days.
These campaigns were initially only displayed within Amazon. Since the RoAS already achieved a very good value after two weeks, further campaigns were added in the next step for a placement off Amazon.
In order to reach undecided customers in the decision phase, competitors were also targeted after further weeks. Thus, users who viewed parking discs from other providers could be reached with Tradora's advertising on various placements on and off Amazon.
Since these campaigns also achieved very good values in terms of sales and RoAS and in order to generate even more attention for the parking discs, the first video ads were placed in addition to the display ads for testing purposes.
The strategy of first addressing "warm" users in the form of retargeting and setting up the campaigns as detailed as possible has been a complete success. The campaigns deliver very good performance values and the previously defined target ROAS of 4 was exceeded positively.
The first display ads delivered a RoAS of over 9 with daily editions in the lower three-digit range after the campaigns were launched in mid-September. Through further optimizations, the RoAS increased to almost 11 in October with double the budget. Due to these outstanding performance values, a new target RoAS of 7 was set, which was achieved with three times the budget compared to the initial budget and almost as high an increase in sales.
„The results of the DSP advertising have clearly exceeded our expectations”
The first video ads achieved a click-through rate twice as high as the display ads, but the latter deliver better RoAS values. Video ads are particularly well suited to attract attention to Tradora's products, but due to the lower RoAS and higher cost-per-mille values, the focus is on display ads.
The following screenshot shows an extract of Tradora's DSP console in the period from September to mid-November 2020. The light green bars show the impressions, the orange graph shows the RoAS and the blue graph shows the sales during this period. (Click on the image to enlarge the screenshot.) Over 4.5 million impressions and six-digit sales figures were generated at five-digit costs. The average RoAS was 9.93.
A detailed DSP setup was crucial for achieving these performance values. This was the only way to set up bids specifically for each placement and product variant and to control the budget so that the target ROAS was achieved. In addition, Tradora has the best prerequisites for successful DSP advertising due to the large number of positive reviews and its strong position in the competitive environment.
Opinion on Amazon DSP
Tradora is very satisfied with the DSP results and with the mix of PPC and DSP Ads it can cover the sales funnel completely. The positive performance figures confirm the great opportunities that Amazon DSP offers to sellers.
The cooperation between Tradora and BidX is very positive. Since BidX as DSP partner takes care of the complete setup of the campaigns and the ongoing control of them, Tradora has very little time for the management of the ads. Through a dashboard created by BidX, they can view the performance values of the campaigns at any time. This transparency is very important to Tradora. There are also regular status calls where the current development and possible new proposals for alignment etc. are discussed. Tradora especially appreciates the very easy and uncomplicated communication with BidX as well as the fast implementation of the planned campaigns.
„We feel very well supported by BidX as our DSP partner”
Although PPC advertising is the most important advertising instrument for Tradora to generate sales, the display ads provide further increases in sales and the possibility to address target groups that have not yet been reached. Therefore Tradora definitely recommends Amazon DSP to others.
The positive results show how different advertising formats from Amazon can benefit each other. With PPC advertising, first contacts can be generated, which also have an effect on organic visibility. DSP Retargeting helps to bring these contacts to the end of the purchase. In addition, other target groups that have not yet had any contact with the corresponding brand can be addressed by DSP even off Amazon.