Why Ads Don’t Always Work: Case Studies
Picture this: you’ve got a great product, a solid game plan, and an ad budget ready to roll. You launch your product on Amazon, expecting sales to pour in. But instead of the cha-ching of cash registers, you’re met with…crickets. This is exactly what happened to one of our clients who had high hopes for their tire inflator.
The truth is, running ads on Amazon isn’t a golden ticket to success. It’s a tool—one that needs the right timing, market conditions, and strategy to work. Let’s take a closer look at why ads sometimes fall flat and how to avoid the common pitfalls.
The Tire Inflator Story: A Hard Lesson in Timing and Competition
Our client came to us with a chosen tire inflator product. While the product itself was solid, what about the market? Before we launched our product, we decided to focus on the research and found that it was decent for entry. The client had a delay with the launch, and it took a few months to get ready. A few months passed before we were ready for the launch.
One issue we found when we launched was that the market had also been filled with new sellers selling similar products at lower prices. The timing of our launch seemed to have been a detriment, as we arrived late to a market that had become saturated while we were being delayed.
Another problem with selling tire inflators on Amazon is that the consumer is mainly looking for cheaper pricing and reliability. Our client’s pricing was higher than the competition’s with no other advanced features. When it comes to reliability, many of the competitors also had a lot more reviews. If our competitors had fewer reviews, then we would’ve had a better chance since our reviews were quite strong.
Our ads ran for 3 months, but the impressions didn’t translate into sales as buyers continually opted for lower-priced alternatives. Eventually, the brand paused its efforts and closed the account.
Key Insight: Timing is everything. If you enter a saturated market, you are too late to the party. Don’t wait too long if the opportunity is there where your market isn’t saturated; make a move now, or it may be too late.
Tip: We’ve seen many brands hesitate and wait to enter the market, losing opportunities for dominance. While it’s in the nature of Asians to be careful, sometimes we are too cautious and lose out on great opportunities. Be smart and take calculated risks while doing all the due diligence, but don’t be intimidated by failure. There is no success without a bit of risk.
How to Avoid These Mistakes
- Launch Early When Conditions Are Right: If your market research shows a promising opportunity, don’t wait too long to act. Delays can mean entering a saturated market, where it’s much harder to succeed.
- Price Competitively From Day One: Research your competitors’ pricing before launching and aim to stay competitive. If your product is premium, make sure to highlight what makes it worth the extra cost clearly. If your product is the same as your competitor’s and you are selling at a premium, we’d recommend you not even waste your time trying to do Amazon.
- Build Reviews Before Scaling Ads: Focus on generating reviews through excellent customer service and post-purchase follow-ups. A strong review base will make your ads more effective and increase buyer trust.
- Invest in a Killer Listing: Optimize your product page with great images, clear descriptions, and compelling bullet points. A strong listing can help you stand out even in competitive markets.
- Work with Experts: Don’t go it alone. Partnering with an experienced Amazon agency can help you navigate the complexities of Amazon, from market research, case resolution, to running PPC ads.
Get to know more about Amazon PPC
When diving into why ads sometimes fall flat, it’s helpful to understand the basics of Amazon PPC (Pay-Per-Click). Amazon PPC is like renting prime advertising real estate on the platform—your ads can pop up in search results or on product pages, boosting your product’s visibility. The catch? You pay a fee whenever someone clicks on your ad. It sounds simple, but success depends on nailing the right keywords, crafting quality ads, and managing your budget wisely.
If you’re curious about how Amazon PPC really works and how it fits into your advertising strategy, check out our detailed guide HERE
A Smart Risk is Worth Taking
Yes, Amazon is competitive, and yes, ads don’t guarantee success. But that doesn’t mean you should shy away from taking risks. At Real Digital, we believe in calculated risks backed by thorough research and strategy. If you’re ready to explore your brand’s potential on Amazon, we’re here to help.
We offer a free 30-minute consultation to analyze your market and a 3-month trial to show you what we can do. Let’s make your brand a success story—not a cautionary tale!
Book your Free Consultation with us, or get in touch here: [email protected]