Enhancing Amazon Ads Efficiency: OMD Elevates Philips’ ROAS by 8% through Skai’s Budget and Dayparting Capabilities

Philips, a pioneer in the electronics industry, runs a diverse Amazon Ads program with multiple campaigns across multiple brands, consistently tracking progress and seeking innovative approaches to enhance efficiency.

During campaign review, the team identified a recurring issue where several Amazon Sponsored Products campaigns were exhausting their budgets prematurely, limiting the potential for capturing peak opportunities later in the evening and hindering substantial revenue growth.

Collaborating closely with OMD as a part of Omnicom for Philips, its esteemed global agency partner, Philips looked to resolve this issue.

Through their strategic collaboration, Philips and OMD leveraged Skai-unique capabilities to implement a comprehensive strategy focused on precision budget management and intricate dayparting.

The following steps were undertaken:

1. Budget Estimation: OMD utilized Skai’s™ ‘Retail Media Campaigns Out of Budget by Hour of Day’ scheduled report to assess the frequency and impact of campaigns exceeding budget. This report allowed them to quantify the potential revenue loss due to campaigns running out of budget. By calculating the cost of maintaining campaign activity per hour, OMD determined the incremental budget required to extend campaign runtime during peak periods, thereby maximizing potential revenue.
2. Dayparting Strategy: Leveraging Skai’s Dayparting feature, OMD strategically scheduled campaigns to align with high-converting periods. A baseline setting was established, pausing campaigns from certain hours when purchase rates were historically lower. This optimized budget allocation during times of low conversion potential.

The implementation of the optimized strategy yielded promising results, particularly benefiting smaller countries and categories with limited budgets:

• ROAS Increase: The smaller countries and categories observed a significant 8% increase in Return on Ad Spend (ROAS).
• CPC Reduction: The Cost Per Click decreased by 5%.

This improvement was a direct result of the enhanced budget management and strategic dayparting, ensuring campaigns were active during high-converting hours.

Philips Electronics, a prominent global technology company, has been a pioneering force in the electronics industry for over a century. The company has consistently delivered innovative solutions across a wide spectrum of sectors, including healthcare, consumer electronics, lighting, and beyond. Renowned for its advancements in medical imaging, energy-efficient lighting, and consumer products, Philips continues to shape the modern technological landscape with its commitment to improving lives through meaningful innovation.

OMD, part of the Omnicom Group, is a global media and marketing communications agency that has consistently demonstrated its prowess in delivering strategic and innovative advertising solutions. With a widespread presence across numerous countries, OMD has established itself as a leader in media planning, buying, and optimization, helping clients effectively reach and engage their target audiences. OMD continues to drive impactful campaigns and leverage data-driven insights to navigate the evolving landscape of media and advertising.