Challenge: Moen, an American product line of kitchen and bath fixtures, faced the challenge of optimizing their advertising strategy on Amazon amidst increasing costs and competition. While they traditionally invested heavily in branded campaigns, they needed to explore more competitive, non-branded avenues to enhance their market presence and profitability.
Solution: Under the guidance of Rithum, Moen embarked on a strategic evolution of their advertising approach. They shifted to a broader focus that included their usual investment in branded campaigns, where a keyword or query contains the brand name, but also nonbrand and competitive targeting, among other tactics. This shift allowed Moen to tap into Amazon’s full range of capabilities, targeting broader consumer segments with a full-funnel Amazon marketing approach. Rithum facilitated close collaboration between Moen and Amazon’s marketing team, enabling Moen to leverage Amazon’s platform more effectively. This partnership encouraged Moen to experiment with new advertising formats like sponsored video and optimize their ad spend without compromising on revenue growth. By adopting a test-and learn mentality, Moen continuously refined their approach based on performance data and market insights.
Overall Results year over year:
- 10.6% – Increase in ad revenue from 2022 to 2023
- 10.3% – Increase in ad revenue in Q1 2024 compared with Q1 2023
Moen achieved these gains and also increased their POS growth by optimizing their SKU mix and focusing on efficiency.
The products in Moen’s focused initiative saw exceptional growth.
- 194.5% growth of ad revenue from Q1 2023 to Q1 2024
- 109% growth of owned products SCOGS from Q1 2023 to Q1 2024
The success of this initiative demonstrated that Moen could effectively grow incremental POS and take share. Senior Director of Ecommerce Account Management Zack Rowe said, “Optimizing our advertising mix on Amazon is a key component of incremental growth. With Rithum’s help, we evolved from a company in its shell and protecting a brand, to get into more non-branded and competitive activity and now taking it further to leverage Amazon’s full range of marketing capabilities.
Looking ahead, Moen plans to sustain and build upon their success by refining their SKU investment strategy and exploring deeper consumer segmentation. Always testing, they are keen to try an approach that concentrates on core products that resonate with specific customer segments. With guidance from the Rithum team, Moen can fully understand the story of their advertising performance and how to optimize their positive results. That includes refining budget allocation based on performance metrics, scaling investments in profitable areas and reevaluating those that yield diminishing returns.
Moen continues to collaborate with Rithum to leverage insights gained from successful peak season performances, such as Prime Day and holiday sales, to refine future promotional strategies. Furthermore, there’s increased appetite to continue testing strategies like automated dayparting schedules and bid management optimization that can be implemented at scale. With a mix of ad types & targeting strategies, Rithum was able to expand Moen’s audience size and grow their total GMV while improving efficiency and market agility. Now the team is ready to reinvest those gains to bring more brand awareness and lower funnel expansion.
