Insights

Stats your Amazon Agency Can’t Beat, and Probably Won’t Share

Pinky's Mixtape

The numbers speak for themselves. Of the last 1 billion Amazon ads Netrush has served, we’ve averaged better than 7.5X ROAS (13% ACoS) with a conversion rate of over 15%, generating tens of millions of dollars in top-line sales, profitably. That feat is accomplished with specific restrictions around the use of branded search terms (often maxing out at 5% of total spend) and can be independently verified by one of the most respected ad tech providers in the industry.
 

HOW IS THIS POSSIBLE?

I’d be lying if I said this was easy. We employ a large team of digital marketing analysts and execution experts that are equipped with some of the most advanced tools on the market for budget optimization and AI-powered testing (“the robots,” as we affectionately refer to them). But fancy robots and very smart people aren’t the only reason for our success.

“Unification makes 100% of the difference when it comes to account health and campaign performance.”

 

Results like these are possible because we’re not an agency at all. We’re a specialty retailer.

You might think of us as a “white label seller,” of sorts. Our focus is on the brand, and our aim is to operate as an extension of them in support of the total Amazon business. We are typically one of a select few authorized sellers working together with the brand on a unified Amazon marketplace strategy, and unification makes 100% of the difference when it comes to account health and campaign performance.

 

And don’t forget about agency fees

No matter how low your ACoS goes, it’s important to factor in all costs associated with running your ad campaigns. That includes people, time, and tools, in addition to your ad budgets. For those that work with third party agencies, this typically shows up as a “managed services” fee and is based on a percentage of the total amount spent on advertising, and/or a fixed monthly retainer. There is nothing wrong with paying a reasonable rate for quality services rendered, but agencies have a tendency to omit those costs in the context of total return on ad spend (ROAS), thereby giving the impression that more profit was generated than may actually be the case.

“This might come as a surprise, but our Amazon Advertising services are often included at no additional cost to our brand partners because we benefit from the sales themselves.”

 

Netrush solves a big problem that many brands don’t even know they have: friendly fire.

A conflict occurs when a brand and its sellers each run their own separate ad campaigns for the same product listings. Rather than increasing traffic to the listings overall, campaigns can actually compete against each other, driving up costs for every advertiser, reducing the value of conversions across-the-board, and limiting the brand’s ability to spend those dollars in more profitable/effective ways. If all parties would simply coordinate their advertising efforts, everyone would be better off, but it’s just not practical for brands that aren’t in control of who is selling their products on Amazon. Due to poor ad performance, many brands assume that unprofitable returns are par for the course, or opt-out of advertising through Amazon all-together, leaving their sellers to figure things out.

To solve this problem, Netrush pioneered an integrated advertising approach that supports the brand itself and all authorized sellers as part of one cohesive strategy. Every product, keyword, category, and ad type gets its own consideration, each with its own profitability requirements.
 

Inherently Aligned

This might come as a surprise, but our Amazon Advertising services are often included at no additional cost to our brand partners because we benefit from the sales themselves. Remember, we’re a retailer, not an agency. And while that might sound generous, take a look at that first paragraph one more time. On average, we return over 7X the amount of money spent on Amazon Advertising, into the tens of millions of dollars in top-line revenue. Rest assured, we run a for-profit operation around here, but we are inherently motivated to put the health and success of the brand first when it comes to planning Amazon ad campaigns.

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In our next installment, we’ve got some sugar for brand marketers. While you wait for the big reveal, check in with your Amazon agency and we’ll look forward to hearing how your results compare.

Are you interested in more of this kind of thing? We have plans and ideas for articles to come but are interested to hear the feedback from readers with specific questions and requests for future topics to cover. We’d love for you to join our email list, and welcome any feedback you may have through our contact form.

Until next time…

Love,
Pinky