L’OREAL CASE STUDY
L’Oréal is a leading global cosmetics company with a portfolio of over 20 popular beauty brands. In order to maximise their online sales and reach a wider audience, L’Oréal partnered with Xingu to manage their Amazon Sponsored Ads campaigns.
The main challenge faced by Xingu was to deal with cannibalisation, which occurs when multiple brands within the L’Oréal portfolio compete for the same keywords and ad placements, leading to decreased performance and increased advertising costs. To solve this issue, Xingu implemented a carefully crafted campaign setup that utilised a combination of target audience segmentation and product grouping. By dividing the L’Oréal brands into specific target segments and creating individual ad campaigns for each brand, Xingu was able to avoid any overlap and reduce competition between the brands. Additionally, Xingu used Amazon’s product targeting feature to group similar products together and optimise ad placements, resulting in increased visibility and higher conversion rates.
The result of Xingu’s efforts was a significant increase in online sales for L’Oréal, with a reduction in advertising costs and improved return on ad spend. The successful resolution of the cannibalisation issue demonstrated Xingu’s expertise in Amazon Sponsored Ads management and solidified the partnership between Xingu and L’Oréal. In conclusion, Xingu successfully overcame the challenge of cannibalisation in L’Oréal’s Amazon Sponsored Ads campaigns by implementing a well-structured campaign setup and utilising Amazon’s product targeting feature. This resulted in increased sales and improved performance for L’Oréal.