The Challenge
Goal Zero, a renowned portable power products brand, found itself in a tough position at the end of 2023. The brand faced increasing competition, had seen its market share erode, and was grappling with performance across several key metrics. Return on ad spend (ROAS) had been below expectations, branded search volumes were lagging, and the cost per detail page view was uncomfortably high. Goal Zero needed a fresh approach that could boost ad performance, expand reach, and make the most of every dollar spent on advertising.
Goals and Objectives
With ambitious targets set for 2024, Goal Zero aimed to drive a 25% year-over-year sales growth despite the intensifying competition. This required not only recapturing market share but also maximizing efficiency across all advertising activities. The brand's strategy was built around three key objectives:
- Increase TROAS while reducing cost per key engagement metrics like branded searches and new-to-brand purchases.
- Grow the brand’s presence on Amazon, ensuring higher engagement through more precise targeting.
- Reevaluate how advertising spend was distributed across different ad types, including Sponsored Ads and DSP formats, to boost overall impact.
Strategy and Solution
Xmars stepped in with AMC Hub, a comprehensive tool for unlocking valuable insights from Amazon Marketing Cloud (AMC). Our five-step approach aimed to realign Goal Zero's advertising strategy, drive growth, and improve overall campaign efficiency:
- Smooth transition and real-time data integration
The journey began with migrating advertising management from previous agencies to Xmars' platform. This included setting up multiple Amazon Ad API connections for real-time reporting and data integration.
- Rapid audience activation with baseline segments
We quickly implemented initial audience targeting strategies using custom AMC audience segments. These included high-value groups like "add-to-cart but didn’t purchase" and "branded searchers." By targeting these baseline segments, the brand could immediately begin optimizing its ad spend for higher engagement and conversions.
- Data-driven expansion of targeting capabilities
To further refine audience targeting, we integrated Amazon Ad Tags on Goal Zero's direct-to-consumer website. Additionally, first-party customer data was uploaded in hashed form for lookalike modeling, allowing for precise targeting of potential customers who resembled Goal Zero’s existing buyers. This approach expanded reach while maintaining relevance.
- Ongoing campaign optimization using pre-built models
The AMC Hub Model Gallery provided insights through nine pre-built models, which included multi-touch attribution (MTA), customer lifetime value (CLTV), path-to-conversion, and overlap analysis. These models were applied to assess the effectiveness of different ad types and optimize budget allocation month by month, helping Goal Zero adapt to evolving market dynamics with agility.
- Advanced custom audience segmentation
Leveraging AMC Hub's Audience Creation tool, we developed a total of 97 custom audience segments across different product categories, including solar generators, power banks, and portable power stations. These segments were based on in-depth behavioral data such as clicks, conversions, and browsing history, allowing for highly targeted and effective advertising strategies.
The Results
“Xmars has been a game-changer for Goal Zero. After struggling with previous agencies to achieve our target ROAS, Xmars not only helped us reach it but surpassed expectations, elevating our TROAS by an impressive 80% from a monthly average below 5 to 9.”
—Jesse Nuttall, Head of E-Commerce at Goal Zero
Results exceeded expectations, with Goal Zero not only achieving but surpassing its ambitious targets. The brand saw over 30% year-over-year growth in Amazon sales, a 20% improvement in TACOS, and a 16% increase in shopper reach. Here’s a closer look at the specific outcomes:
- Multi-Touch Attribution insights from AMC Hub revealed opportunities to shift ad budgets from traditional Sponsored Ads to DSP Display and Video formats. This strategic reallocation resulted in a dramatic acceleration of sales growth—from a 16% increase in Q1 to an impressive 55% in April 2024.
- The custom audience segments developed using AMC Hub’s tools led to a significant reduction in key costs: a 36% drop in cost per branded search, a 56% decrease in cost per add-to-list, a 46% reduction in cost per add-to-cart, and a 34% drop in cost per new-to-brand purchase. This precision targeting enabled Goal Zero to maximize its ad budget’s impact across different stages of the purchase funnel.
- By leveraging models like CLTV, Cross-Product Association (CPA), and Path-to-Conversion, Goal Zero could identify the most effective ad type combinations and sequences for driving customer engagement. Insights from these models helped inform upselling and cross-selling strategies, optimizing the timing and placement of ads to improve overall campaign performance.
- The no-code interface of Xmars AMC Hub not only made complex data analysis accessible to non-technical team members but also saved more than 24 hours of data science time and 12 hours of ad management time each month. This allowed Goal Zero to focus its resources on strategic growth rather than manual data processing.
To learn how you can easily unlock powerful insights with Xmars AMC Hub, schedule a personalized demo.
