Making $200k in 2.5 months
There are a lot of people out there sharing their case studies. Some are good. Others…not so much.
This one we are sharing today seems to be an interesting one. The results in particular are very interesting – $200k in 2.5 months, with a hefty 26% net margin. One up to Matheus Roriz who shared it.
Let’s dive into it!
- Product: Matheus says that you don’t necessarily need to sell something that solves a pain point. People on Facebook will buy things simply because they are cool and eye-catching. An impulse buy. The product of this case study is an “insanely cute” phone accessory.
- Angle: When your product isn’t about solving massive pain points, you have to incentivize your prospects by highlighting that friends, families, and strangers will take notice of them when seen with the product.
- Store structure: One-product-niche store. Different product pages showing several variants of the same product and a store that has also been named relative with the product. This, as well as being niche-focused, gives you an advantage over general stores and makes you look like the authority in that niche.
- Targeting: Given that a phone accessory could appeal to everyone, Matheus went with broad targeting. He used different approaches for targeting the interest:
- Literal: Interests that define the product. Do you sell mugs? Go for the “Mugs” Interest targeting.
- Niche: Selling skull cup? Go for “skull” interest.
- Lifestyle: If it is a shot cup, suitable for alcohol, you would target people into “Beer Festivals” or “Breweries”.
- Ad set structure: 10-15 ad sets at $5/day. Website conversions objective, optimized for Purchases. Age 18-65, all genders, FB feeds/Instagram feeds, Mobile Only, USA, 1-day click/view.
- Vertical Scaling: When an ad set reached a 2.5-3 ROAS, Matheus raised the budget to $15 per day. If the results kept coming, he increased the budget to $240.
- Horizontal Scaling: Given that the product margins were low, it was hard to scale with high budgets. Matheus went for horizontal scaling: He launched $5 ad sets targeted at as many audiences as possible (Cold interests, LLA’s, etc).
He killed every audience that exceeded a $10 spent without delivering sales. Then he vertically scaled every working ad set.
- Average Order Value: If you have low margins, you need a strategy to drive upsells and cross-sells. Or it will be hard to break even. How do you increase the AOV though?
Include “Frequently bought together” bundles on your product page, popups that show additional related items when users either press the “add to cart” button or “proceed to checkout” button. We suggest you to take inspiration from the number 1 ecom: Amazon!
- Abandoned Carts: Every marketer’s nightmare. Not to worry though – Set up an abandoned cart sequence. You can use a sequence of three emails to remind your customers to finish their purchase.
- Retargeting: He retargeted all website visitors, with the same creative but different copy. He also added a discount code in the copy.
- Emails: Matheus used to send 2 emails per week, offering a 30% discount to people who already purchased. And this delivered him good results. However, looking back, he says that it could be annoying for your customers to receive two deals per week. Especially if you’re looking to establish a brand.
Here we are. Finish line! All in all a very useful case study, I’m sure you’ll agree! It’s not rocket science, but it covers every aspect of e-commerce.
If you want to get more details from this case study, go check it here.
Lowering your advertising CPA
They were right. The analysts, that is, when they predicted that there would be a major influx of brands investing more into Amazon Advertising.
In fact, Amazon’s advertising revenue for 2018 went over $10B!
What does this mean?
More advertisers = More competition = Higher CPCs = Higher CPAs.
With so much competition around, how do you manage to lower your CPAs on Amazon?
While there are some common, ground-level strategies that we can take from our Facebook and Google ad campaigns, a team of Amazon advertising experts put together some strategies that are specific to Amazon. This should help you take control of your Amazon campaigns and hit your CPA goal.
Here are some valuable inputs from the Amazon team.
Just like Google search campaigns, negative keywords allow you to control what search terms not to serve ads for. This allows you to divert your ad spend on relevant terms that are more likely to convert and drive sales.
Tips for finding negative keywords before you’ve launched a campaign:
- Use tools like Viral Launch, Jungle Scout, or even Google Keyword Planner to create a list of keywords you want to negate first.
- Look for search terms that are not relevant to the ASIN or set of ASIN’s you are advertising for in that campaign.
Tips for finding negative keywords in existing campaigns:
- Create an auto-targeting campaign and a manual targeting campaign with Broad and/or Phrase match keywords.
- Once you have enough click data, use the search term query report and filter by search terms that have over 15 clicks and zero orders. Add those search terms to your negative keywords list.
Cool Tip: You cannot add negatives to Auto Campaigns through the Advertising Console (AMS), but it is possible to do so using the API.
Isolating search terms
When bidding on a broad/phrase match keyword, Amazon treats it as a bucket. Which means if you are targeting winter clothing, your ads might show for winter clothing for Llamas. Which is not what you are selling, right?
PS: Hit us back if you are selling llama clothes, we need a onesie for our Dolly.
Moving on, here are some steps to ensure your search terms are properly isolated:
- Run your search term reports frequently to look for terms that have at least one sale.
- Move these converting search terms into specific campaigns as an Exact Match keyword.
- Remove similar converting search terms from all other campaigns.
Effective bid management
This is an obvious one but very important. Especially if you are using a mix of Exact and Phrase/Broad match keywords. There are auto-bidding tools likePrestozon which allow you to determine the right bids needed to hit your CPA goals automatically.
Can’t afford or don’t want to purchase a subscription to such tools? No worries. Use simple math and this equation to determine your bids:
Bid = Average Sale Price x Target CPA (decimal) x Search Term Conversion Rate (decimal).
Whether you use automated tools, an agency or take this on yourself, these strategies should definitely help you save money on your Amazon Ads. Even if you are just getting started and aren’t hitting your desired goals yet, know that Amazon is just getting started with their advertising business. Things are about to get really crazy, really soon.
Pushing it forward – 219% ROI Push Case Study with PropellerAds
Today we’re moving into the financial vertical with an offer called Rapicredit that Roman, PropellerAds’ affiliate marketing expert, ran on their network in Colombia on push traffic. Payout for the offer was $2.
The icon was the Rapicredit logo. The banner was a hand holding a few Colombian peso bills. Very generic but make sure to localize banners: flag, bills, people, etc. You can see the full ad here.
The landing page
Branded by Rapicredit as well, no prelander was used. This was a direct-linking campaign effectively. You can see a screenshot of this offer page here.
Roman launched three push campaigns, targeting desktop and mobile (Columbia):
- 1: CPC, Android, bid $0.006, activity targeting – high, frequency 1/24.
- 2: CPC, Windows, bid $0.007, activity targeting – high, frequency 1/24.
- 3: CPC, Android, bid $0.005, activity targeting – average, frequency 1/24.
- 1: $154 budget, $550 in revenue
- 2: $83 budget, $218 in revenue
- 3: $42 budget, $122 in revenue
- Total: $279 budget, $890 in revenue for $611 net in just a few clicks.
The mobile campaign targeting high activity users was the best with 257% ROI as you can see. New, high activity users is something you can easily target in PropellerAds.
What we also notice here is that these results happened right off the bat and Roman didn’t try to scale. We’re pretty sure there was much more potential to scale this campaign after the initial test crushed it! You can check out the full case study on PropellerAds’ blog right here.
To get you testing quicker, we’ve worked out a deal with PropellerAds for our readers…
Use the code WTAFF200 to get a $50 bonus on your first $200 deposit. Sign up right here! Valid until March 15th!
Push traffic guide by iAmAttila
A traffic source that many affiliates are trying out is push traffic. It looks to be the in-thing for 2019. Following this trend, Attila came up with a complete guide to run offers using this source.
The guide covers every aspect of launching a campaign, including all the technical aspects such as setting up the tracker. We won’t cover that though; we’ll just share the marketing/strategic sides of the guide.
- Picking an offer: Attila’s way is to run offers that are proven and already converting. You can use spy tools to find them, or you can take the lazy approach and consult with your rep. His suggestion is to pick non-English offers: more struggle to translate your copy, but less competition!
- Spy your competitors: Once you pick an offer, it’s time to look around you. You must know which landers and angles are working.
- Build your landing pages and upload them. Make sure that your language is correct for the GEO where you are buying traffic.
- Set up the tracker: In the guide, Attila provides all the steps to correctly set up a tracker.
- Set up the campaign on the traffic source. On push traffic, you can have one ad per campaign.
Attila had 4 different ads, with 2 offers and 2 landers. This means 8 variables: 4 ads+2 offers+2 landers.
For every variable, you want to spend 4x the offer payout. In this case, the payout is $2.90. Hence, the spend is 8*4*2.90 = ~$80. Attila is rounding that up by allocating a lifetime budget of $100.
- Optimization: Once you have gathered all the data and spent the budget, it’s time to optimize it.
First, you look at the zones that had more clicks, then exclude the ones with 0 conversions. Next, look into the campaigns with more sales.
What to do here?
- Blacklist the placements that spent offer payout x4.
- Kill all the creatives except the one with highest CTR, and launch 2-3 variants of that creative.
- Run traffic to a voucher offer as it works great, and pause the other ones.
After this optimization and other $200 spent, the results weren’t so good. At this point, this is what Attila did:
- Load more $100 in the traffic source.
- Only run the campaign with the highest CR and revenue.
- Test new landers.
What happened after 24h? The optimization started to work. EPC (Earnings Per Click) jumped from $0.053 to $0.0686, so he kept optimizing it further, killing the zones with negative results. Eventually, the EPC went above $0.07. He was bidding 6 cents per click, so he’d hit the break even point.
The next step is to cut the worst performing landers and block everything that spent 4 times the offer payout and didn’t convert.
A day later the ROI finally went positive. The results? 1680 clicks paid at $0.06, thus a $100.80 spend in traffic and $139.2 in revenue. Yielding a very respectable 38% ROAS.
Not a lot of money for 3 days of working. However, the purpose of this case study was to show how to create, launch and optimize a campaign using push traffic.
If you want to discover more about the technical aspects and want to dive deep into the campaigns’ data, here is Attila’s guide. Let us know if you find it useful!
PS: If you decide to buy some push traffic, have a look at today’s sponsor! It’s another Push traffic case study! But this time with a huge 219% ROAS. Plus, the WTAFF Crew has got another gift for you!
PPS: Talking about Push traffic, yesterday we hosted Andrew Payne in the WHAT THE AFF Insiders group. A 7 figures push traffic affiliate marketer. Want to join us and discover his lessons? Check out our referral program! It’s so easy to join!
Shoppable ads in Image Search?
Instagram launched Shoppable Posts. Pinterest went with Product Pins. Now, Google are taking some cues too. To encourage more shopping in its search results, Google is testing Shoppable Ads in Image Search.
Googling for some inspiration for a comfy work chair? You can now tap a shopping tag button to see more details, with a link to buy it as well, of course.
Currently, these ads are visible only to a small percentage of users searching for some specific topics such as home offices and abstract art.
Depending on the results of this test, Google will take a call on its expansion.
Well, the majority of people are already using image search to look for product ideas on a regular basis. With this update, they will be much more likely to tap on relevant ads and make a purchase. Good going, Google!
Cool tech, (funny) business, lifestyle and all the other things affiliates like to chat about while sipping cocktails by the pool.
“The extreme teaser from The WTAFF Crew…”
Remember a couple of months ago we asked you what other types of content you’d like to see from us?
The votes are in…Tomorrow we will be premiering our very first Stacked Marketing Show to the world. Okay, it’s more likely just to some of you awesome ladies and gents but we’re not complaining.
Some lucky ones did get to watch it behind the curtain that is our WHAT THE AFF Insiders Facebook group. Those that told 5 or more friends to start reading this daily treat of a newsletter get dibs on this and everything else going on in the Insiders Group
Can’t wait until tomorrow? Witness the greatest trailer ever made, featuring 2 guys talking to their screens. It’s like nothing you’ve ever seen before!
Jokes aside, we’ll tell you more tomorrow. If you wanna get early access to the Stacked Marketing Show, featuring deep industry discussions with experts like Ian Fernando, Paul Jey, Depesh Mandalia and Servando Silva and comments on the latest news from our newsletter, you just have to click the image below, refer 5 friends and you’re in!