Extreme Ads Makeover – Amazon

In this series of “Extreme Ads Makeover”, I will be tearing down ads on Amazon and having them completely remodeled to have better targeting and ROI.

Check out more ad makeover case studies such as Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made.

About Amazon

Amazon has experienced rapid growth since its founding in 1994. It surpassed $100 billion in annual revenues in 2015 and reached $386 billion in 2020. Net income grew from $2.4 billion in 2016 to $21.3 billion in 2020. Amazon has over 200 million Prime members worldwide who pay for perks like free shipping and streaming. It also owns other major brands like Whole Foods and has over 1.3 million employees. The company continues to expand into new industries, though its growth has led to antitrust scrutiny over its market power. Amazon Web Services, its cloud platform, accounts for most of its profits. AWS reached $45 billion in revenues in 2020.

AboutAmazon’s marketing agency

Amazon does not have a traditional external marketing agency. The company handles its marketing and advertising internally through its Global Corporate Affairs group.

About Michael Nguyen – CEO of Produce Results Agency, aka the “Extreme Ads Makeover” Host

Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue.

In this post, I will perform an ad audit on Nature Made ads, analyze what’s missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform.

I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms.

Table of Content

1. Ads Audit

2. Gaps Analysis

3. Ads Makeover

4. Validate New Ads

5. Insights/Takeaways

6. Next Steps

Ads Audit

Promoted Product: Gold Zodiac Anklet for Women

Landing page: https://www.amazon.com/dp/B08CSM7L67?ref_=pfb_spv01_aaf6ef9a60f08a557d9e104f36eb7956&th=1

Facebook Ads: The Amazon team created one ad set to promote.

Ad set #1 (see link)

Analysis

While this product is not an Amazon product and its seller is Lcherry shop, I can understand that Amazon has little motivation to promote this product to other sellers.

However, I still do think Amazon needs to do a better job no matter whom they are advertising for because:

1. When you do stick your name “Amazon” on anything, there would be a brand experience/interaction and users have higher expectations for that. In other words, anything less than stellar will lead to a negative point in customer experience. When doing it for a long time, negative points accumulate.
2. The better the ads, the more buyers know about this product leading to the more resources the seller will be willing to use Amazon’s platform. It’s a flywheel effect. Getting more traffic & clicks is the first checkpoint for the whole flywheel effect to blossom.

What goes wrong with this ad?

• I am disappointed to see the lack of effort in promoting this product when there is only one control ad. Once again, I totally understand the lack of motivation here because it’s not an Amazon product. It’s not Amazon’s fault but the lack of effort does concern me.
• Specificity: The ad is vague. What are these “favorite finds”? Are they clothing, gadgets, home decor, or something else? Specificity can increase the relevance of the ad to its intended audience.
• Value Proposition: Why should someone care about these favorite finds? What makes them unique, beneficial, or a must-have? A strong value proposition can significantly increase conversion rates.
• Urgency or Scarcity: Incorporating a sense of urgency (e.g., “limited time offer”) or scarcity (e.g., “while supplies last”) can motivate potential customers to take action more quickly.
• Social Proof: Testimonials, ratings, or references to how many people have already purchased or loved the item can increase trust and desirability.
• Benefit Focus: While “favorite finds” suggests these items are preferred or curated, it doesn’t specify any tangible benefits. Highlighting how these finds improve the customer’s life or solve a problem can enhance the ad’s appeal.
• Personalization: Using segmentation or dynamic content to tailor the ad to specific audience segments can increase relevance and conversion. For instance, favorite finds for young professionals might be different from those for retirees.
• Price or Promotion: While not always necessary, if there’s a discount, promotion, or special price for these finds, it could incentivize action.
• Branding: The ad doesn’t mention any brand. While not always needed, brand recognition can be crucial in markets where trust plays a significant role in purchase decisions.

Effect on Ad Performance:

• Reduced Engagement: Without emotional appeal or a clear value proposition, the ad might not capture attention or resonate with viewers, leading to lower engagement rates.
• Lower Conversion Rates: Without urgency or a clear CTA, viewers might not feel compelled to take immediate action, leading to lower conversion rates.
• Less Memorability: Without strong visuals or emotional triggers, the ad might be less memorable, meaning consumers might not recall the brand or offer later on.
• Broad Targeting: Without specifying a target audience, the ad might reach individuals who aren’t interested in the offer, leading to wasted ad spend.
• Lower Click-Through Rates (CTR): Without a compelling reason to click, viewers might just scroll past.
• Lower Conversion Rates: Even if they do click, they might not be as motivated to purchase without clear value, differentiation, or emotional resonance.
• Less Retention: Without a clear connection or reason to remember the brand or offer, even those who click might forget about it shortly after.

Here are the disadvantages when having only one control ad:

Lack of A/B Testing

• Limited Insights: With only one ad, you won’t be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren’t.

Targeting Limitations

• Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities.
• Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover)

Creativity and Message Fatigue

• Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect.
• Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility.

Risk Management

• Higher Risk: If your one ad doesn’t perform well, you don’t have other ad sets to fall back on. This all-or-nothing approach can be riskier.
• Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility.

Optimization Challenges

• Limited Learning: If your single ad isn’t performing well, it’s harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize.
• Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can’t take advantage of this feature.

Data and Analytics

• Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics.

Attention:

If you had multiple product lines and currently ran paid ads, there’s a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made.

Maybe you are perfectly okay with one control ad and burn your ad budget without ROI.

But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads.

Gaps Analysis

The Landing Page (see link )

Audience avatar: Based on the landing page, my best guess for the avatar would be:

Younger female between 18-35 years old with a middle to upper-middle class income. She has an interest in astrology and appreciates delicate, on-trend jewelry that allows her to express her style. She frequently shops online, enjoys treating herself, and buys gifts for others. The dainty anklet evokes a sense of femininity, confidence, and excitement. The marketing focuses on gifting, parties, quality materials, and convenient online shopping via Amazon Prime to encourage easy purchase. Overall, the anklet is positioned as a fun, stylish accessory for young women who take pride in their zodiac identity and like showing it off.

I think their landing page is quite decent. Any additional improvement can lead to a marginal result.

Meanwhile, a huge improvement can be made from the ad creatives. As a result, I’ll use my 17 analysis model to come up with 9 different ad angles.

Ads Makeover

Here’s the disease that most marketing agencies and businesses running paid ads:

“They think they’ve tested 20 ads but they really just tested 2 ads 10 different times.”

Headline Options

1. “Embrace Your Stars: 14K Gold-Plated Zodiac Anklets”
2. “Shine Bright with Your Zodiac Sign – Fashioned Just for You “
3. “Sagittarius Elegance: A Delicate Statement for Your Ankle!”
4. “Gold-Plated Luxury, Astrology Love – All in One Anklet “
5. “Let Your Zodiac Dangle Elegantly with Our 14K Anklets!”
6. “Stay Stylish, Stay Starry – Dainty Anklets for the Modern Woman “
7. “Sick of Mediocre Jewelry? It’s Time for a Zodiac Glow Up! “
8. “Jealous of Stellar Anklets? Grab One Before They’re All Snatched Up! “
9. “Had Enough of Tacky Bling? Show ’em What Real Style Is! “
10. “Ready for a Zodiac Anklet that Turns Heads? “
11. “Missed the Last Trendy Anklet? Don’t Be Left in Tears Again. “
12. “Whaaat?! Didn’t See This Zodiac Bling Coming, Did Ya? “
13. “Anticipating Your Next Fave Accessory? It’s Written in the Stars! “
14. “Sad About Lost Style Opportunities? Let’s Change That Story. “
15. “Surprise, Diva! Got the Anklet That’ll Make ‘Em All Jelly! “

Body Copy Options

Body Copy 1

Adorn your ankle with the sparkle of your zodiac constellation. Made with genuine 14K gold plated over brass, our anklets promise quality and style. Perfect for beach days or night outs. Gift-ready in a sleek box. ? Free & Fast Amazon Prime Shipping. Easy returns! ?

Models applied: Imagery, Emotions, Proof, Numbers, Language Devices, Locations, Direct Marketing Offers, Ad structure.

Body Copy 2

Dive deep into the universe of fashion with our dainty zodiac anklets. Made for those who wear their star sign with pride. Exclusive Amazon Prime offer with fast delivery and hassle-free returns. Wear the stars, be the star. ?

Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure.

Body Copy 3

Dreaming of the perfect summer accessory? Channel celestial vibes with our 14K gold-plated anklets. From Sagittarius to Leo, choose your sign and shine on. Prime members enjoy faster delivery! ?”

Models applied: Imagery, Emotions, Time, Capability, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure.

Body Copy 4

“Unlock the magic of the stars! With our dainty zodiac anklets, carry a piece of the cosmos wherever you go. Hypoallergenic, elegant, and perfect for any occasion. Prime members, gear up for quick deliveries and free returns. ✨”

Models applied: Relationships, Imagery, Emotions, Proof, Capability, Numbers, Language Devices, Direct Marketing Offers, Ad structure.

Body Copy 5

Astrology lovers rejoice! Wear your star sign elegantly around your ankle. Made with 14K gold, designed for the stylish woman of today. Fast shipping with Amazon Prime and hassle-free returns. Elevate your style, effortlessly! ?”

Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure.

Body Copy 6

Celebrate you, with our zodiac anklets. Delicate craftsmanship meets 14K gold-plated brilliance. The perfect gift for you or your loved ones. Dive into the cosmos and express yourself. Fast, free shipping for Prime members! ”

Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure.

Body Copy 7

Are you fed up with flimsy ankle chains that turn your skin green? Don’t get played by trashy jewelry! Our 14K gold-plated zodiac anklets are the real deal. You’ve battled enough with fashion faux pas, it’s time to shine for real. Plus, with Amazon Prime, we ain’t messing around – speedy delivery’s on us. Beware: if you miss out, it’s on you!

Models applied: Emotions (Anger & Disgust), Future: warning, Language devices: slang, Types of statement: condition, Shame: defeat.

Body Copy 8

Green with envy seeing all those divas rockin’ rad anklets? It’s time to step up your game! Don’t be left in the dust, jealous of the trendsetters. Our 14K gold-plated zodiac anklets are the ultimate envy-inducer. But be warned, they’re flying off the shelves – snag yours now or be doomed to watch from the sidelines!

Models applied: Emotions (Envy), Future: warning, Language devices: slang, Types of statement: condition, Tragedy.

Body Copy 9

Ready to rebel against the mundane? Flip the script with our zodiac anklets! If you’ve been feeling trapped in a style rut, it’s time to break free and defy the norms. With our 14K gold-plated anklets, your ankle won’t just look bomb, it’ll be a straight-up revolution. But heads up, slowpokes – they’re selling like hotcakes. If you snooze, you lose!

Models applied: Emotions (Defiance), Future: warning, Language devices: slang, Types of statement: condition, Shame: defeat.

Body Copy 10

“Ever feel that buzz of excitement, knowing something fab’s on the horizon? Well, hold on to your hats, ’cause our 14K gold-plated zodiac anklets are about to shake up your style world! Question is, are you ready to set the trend before everyone else catches on? Promise, it’s gonna be epic! ?”

Models applied: Emotions, Future: promise/prediction, Language devices: slang, Types of statement: question, Shame: Stupidity.

Body Copy 11

“Ever felt the pang of regret, watching a trend pass you by? We feel ya, girl. Don’t let history repeat its tragic tale. Our zodiac anklets are not just a fad, they’re a mood. Why wait and feel blue later when you can rock it now? Don’t sleep on it, or it’ll be déjà vu all over again. ?”

Models applied: Emotions, Future: promise/prediction, Language devices: tragedy, Types of statement: question, Shame: Vulnerability.

Body Copy 12

“Bet you didn’t think anklets could make a comeback like THIS, huh? Our 14K gold-plated zodiac beauties are the twist nobody saw coming, but everyone’s talking about. You might ask yourself, ‘How’d I ever miss out on these?’ Don’t play yourself – snag it before everyone else does! ?”

Models applied: Emotions, Future: promise/prediction, Language devices: slang, Types of statement: question, Shame: Stupidity.

Body Copy 13

“Gearing up for a style surprise? Our zodiac anklets are like nothing you’ve ever seen. You might wonder, ‘Is this the accessory I’ve been dreaming of?’ Trust us, when you see the magic, you’ll know! If you ain’t quick though, you’re gonna miss the plot twist of the fashion season! ?”

Models applied: Emotions, Future: prediction, Language devices: slang, Types of statement: question, Shame: Vulnerability.

Body Copy 14

“Felt the sting of a missed style opportunity before? Yeah, it hurts. But what if we told you a golden opportunity awaits? Dive into the world of zodiac anklets and turn that frown upside down. Will this be the piece that redefines your style? Only time (and a click) will tell! ?”

Models applied: Emotions, Future: promise, Language devices: tragedy, Types of statement: question, Shame: Vulnerability.

Body Copy 15

“Ever had a fashion curveball that left you shook? Well, brace yourself! Our 14K gold-plated zodiac anklets are dropping jaws left and right. Are they the unexpected game-changer of 2023? You bet! Dive in, and don’t be left scratching your head later. ?”

Models applied: Emotions, Future: prediction, Language devices: slang, Types of statement: question, Shame: Stupidity.

Validate New Ads

This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers.

Here’s how I set the adset on Facebook

• Budget: $10 Lifetime
• Product/Service: Anklet
• Targeted audience:
  • Location: Texas
  • Women 18-35
• Placement: News Feed
• Optimization: Optimized for Traffic

Here are all the 15 ads being launched.

Fast-forwarding 24 hours to let the ads run.

Here’s the results

Campaign Numbers:

• • Ad budget: $16.11
  • Total Impressions: 1,842
  • Total Reach: 1,698
  • Total Clicks: 53
  • Cost Per Click (CPC): $0.30
  • CTR (all): 2.88%

Ad results

Summary

1. Reach and Impressions:
   • “Headline 5” has the highest reach and impressions, indicating that it was viewed by the most number of unique users and had the most number of total views.
   • “Headline 14” has the lowest reach and impressions, suggesting it was the least viewed ad.
2. Amount Spent:
   • The highest amount was spent on “Headline 5” ($3.43), followed closely by “Headline 12” ($3.03).
   • The least amount was spent on “Headline 14” ($0.20).
3. Cost Per Mille (CPM):
   • “Headline 7” has the highest CPM at $10.00, meaning it costs $10 for every 1,000 impressions. This could indicate that while the ad might be targeting a niche audience, it’s relatively more expensive.
   • “Headline 6” offers the best value in terms of CPM at $6.97.
4. Link Clicks and Engagement:
   • “Headline 5” has the highest number of link clicks (16), suggesting it was the most engaging or had the most compelling call-to-action.
   • “Headline 8” has an impressive CTR of 6.98%, the highest among all ads. This means that out of all the people who viewed the ad, almost 7% clicked on it. This is a strong indicator of the ad’s effectiveness in capturing the audience’s attention.
   • “Headline 15” has the lowest CTR at 0.94%, indicating it might not be as engaging to the audience as the other ads.
5. Cost Per Click (CPC):
   • “Headline 8” has the lowest CPC at $0.12, making it the most cost-effective ad in terms of driving clicks.
   • “Headline 9” and “Headline 15” have the highest CPCs at $0.54 and $0.83, respectively. This could be due to various reasons, such as the ad’s placement, targeting, or the overall appeal of the ad content.
6. Ads Without Clicks:
   • “Headline 4”, “Headline 1”, “Headline 6”, and “Headline 14” have no recorded link clicks. This could be due to various reasons, such as the ad’s content not being compelling enough, or there might have been issues with the ad’s call-to-action.

In summary, while “Headline 5” has the highest reach, impressions, and link clicks, “Headline 8” stands out in terms of engagement with the highest CTR and the lowest CPC.

On the other hand, ads like “Headline 4”, “Headline 1”, and “Headline 14” might need revisiting due to their lack of engagement in terms of link clicks.

Analytics:

Winning Ads: 

• If the goal is to get maximum reach and impressions, ‘Headline 5’ is the top performer.

• • Headline: “Let Your Zodiac Dangle Elegantly with Our 14K Anklets!”
  • Ad body: Astrology lovers rejoice! Wear your star sign elegantly around your ankle. Made with 14K gold, designed for the stylish woman of today. Fast shipping with Amazon Prime and hassle-free returns. Elevate your style, effortlessly!”
    • Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure.
  • Total Impressions: 391
  • Total Reach: 371
  • Clicks: 16
  • CPC: $0.21
  • CTR: 4.09%
• If the objective is to get the most clicks at the lowest cost, ‘Headline 8’ stands out.
• 
  • Headline: “Jealous of Stellar Anklets? Grab One Before They’re All Snatched Up!”
  • Ad Body: Green with envy seeing all those divas rockin’ rad anklets? It’s time to step up your game! Don’t be left in the dust, jealous of the trendsetters. Our 14K gold-plated zodiac anklets are the ultimate envy-inducer. But be warned, they’re flying off the shelves – snag yours now or be doomed to watch from the sidelines!
    • Models applied: Emotions (Envy), Future: warning, Language devices: slang, Types of statement: condition, Tragedy.
  • Total Impressions: 86
  • Total Reach: 83
  • Clicks: 6
  • CPC: $0.12
  • CTR: 7%

Takeaways/Insights

So in this thorough case study, I extensively analyze, examine, and audit Amazon’s ads relating to the zodiac anklet, then come up with new ad ideas based on 17 analysis “lenses”, and finally validate ad ideas by running them through paid FB traffic to determine the winning ad.

• It’s not surprising when ad #8 with “envy” emotion stirs up a complex emotion of shoppers and registers a whopping 7% CTR. There are several reasons:
  • Effective Ad Content but Limited Exposure: A high CTR suggests that the ad content is compelling and resonates with the audience that sees it. When those who see the ad are likely to click on it, it means the ad is effective in its messaging. However, the low number of impressions means that the ad isn’t being shown to many people.
  • Narrow Targeting: The ad might be targeted to a very specific or narrow audience. While this can be good for reaching a niche market, it can limit the overall reach and number of impressions the ad receives.
  • Budget Constraints: If the advertising budget is limited, the ad platform might not display the ad as frequently as it could. This can result in fewer impressions and, consequently, fewer total clicks—even if the CTR is high.
  • Mismatched Message on the landing page: Obviously when shoppers see the message with “envy” emotion, they are curious and click on the ad leading to Amazon landing page which doesn’t connect the “curiosity” with the right message to complete the feedback loop.
• Ad #5 is connected well with the shoppers with an upgraded feature/benefit.
  • Control version (feature-driven keywords): Gold Plated Anklets for Women
  • Upgraded version: “Let Your Zodiac Dangle Elegantly with Our 14K Anklets!”. The usage of the auditory word “dangle elegantly” adds a subtle dimension + feature-driven “14K. As a result, this version amplifies the richness of this ad.
• As you realize, having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Without creating 15 ads, there’s no way you would have known the existence and the realm of possibilities for ad #5 & #8.
• Having multiple analysis “lenses” is the foundation to come up with ad ideas addressing customers’ needs, wants, objections, pains, and frustrations. Without additional analysis “lenses”, you are more likely to get “stuck” with boring and mediocre “features & benefits” angle.
• You probably discover at this point that ideas & creatives are the name of the game.
• I’d recommend Amazon create more ad angles for each of their products. The path of “Extreme Ads Makeover” doesn’t stop and should be continuously evolving with the market.

What-If Revenue Impact Analysis

• What If Amazon went ahead and doubled down on ad #8 with the lowest CPC,  what would be the revenue impact?
• Let’s make some assumptions:
  • The conversion rate is 1% (given the normal conversion rate of 2%)
  • Anklet’s price: $11.98
  • 
  • Profit Margin: 20%
  • Double down on ad #8 by increasing the number of clicks to 10,000 clicks (Cost = 10,000 clicks x $0.12 = $1,200)
  • With a whopping CTR of 7% (indicating strong interest of the ad), we can logically make the assumption that the sales conversion rate is between 1-3%
• Let’s calculate the potential revenues
  • At 1% conversion rate, 10,000 x 1% = 100 shoppers purchased
    • Revenue = 100 x $$11.98 = $1198
    • ROI = -0.67%  ($1198- $1200) / $1200)
    • Obviously, a 1% conversion rate leads to a negative ROI.
  • At 2% conversion rate, 10,000 x 1% = 200 shoppers purchased
    • Revenue = 200 x $$11.98 = $2396
    • ROI = 100%  ($2396- $1200) / $1200)
  • At 3% conversion rate, 10,000 x 3% = 300 shoppers purchased
    • Revenue = 300 x $$11.98 = $1198
    • ROI = 200%  ($1198- $1200) / $1200)

Next Step

• Double down on the winning ad and amp up the budget on it because I’ve done the homework for you, all you need is to increase the ad budget.
• I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I’ve used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That’s why I want to introduce the…
• “Second Opinion” Package

If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my “Second Opinion” package.