Founded in 1887 by an Italian immigrant, Capezio has shaped the dance landscape with innovative dancewear and footwear, catering to dancers at every level. Its products have become indispensable in dance schools and are prominent in TV shows, movies, Broadway productions, and international tours.
However, the COVID-19 pandemic presented sales growth challenges for the retailer. Therefore, the Capezio team understood that they required a deeper understanding of their customer profile and a more sophisticated approach to scale its sales effectively, focusing on attracting new-to-brand customers as well as increasing sales among its existing customer base.
Quartile’s team of seasoned e-commerce experts first focused on developing an ad placement optimization strategy using Amazon Marketing Stream (AMS) to calculate—and adjust—the conversion rate of each ad placement. Because these placement adjustments occur at the campaign level, the AI-powered technology leveraged data from over 21,800 active campaigns spanning over 2,400 promoted products (ASINs) on an hourly basis.
The Quartile platform then calculated bids and placement adjustments for each advertised keyword associated with each promoted ASIN, in each placement, at each hour of each day, and each day of the week. Based on the conversion rate for each ad placement (top of search, rest of search, and product page), the system adjusted the bids to maximize conversions.
This process ensured Capezio’s products were displayed in the right places and at the right time, effectively engaging shoppers with the highest intent to purchase using real-time customer signals.
Quartile team prioritized a “defense” strategy using Sponsored Display (SD) ads and Sponsored Product (SP) ads inside the brand’s product ASIN pages to “own” the advertising space on its product pages. This approach ensures that relevant ASINs from the same brand appear on the product page, preventing competitors’ ads from appearing on Capezio’s most valuable or popular product pages.
This strategy is also an upsell and cross-sell opportunity to increase average order value (AOV) and improve the return on ad spend (ROAS). The Quartile team, supported by Amazon Marketing Cloud, ran queries for ASIN Purchase Overlap for Upselling ASIN matches. By mapping purchase signals from customers on frequently purchased products, the related ASIN ads were placed next to the promoted product, increasing retention and AOV.
Additionally, Quartile pursued a “conquest” strategy using Amazon’s Product Recommendation API to map the top related products to each promoted Capezio ASIN. The results signals were essential to effectively target competitor products with SD ads and place Capezio’s product ASINs as alternative options to top competitor products, using a scalable, data-driven approach.
The strategy also used Amazon’s Keyword Recommendation API to rapidly expand keyword coverage, creating data-driven lists used for campaign expansion. This tactic helped identify the top competitor products and keywords to target—for each advertised product—and replicate the campaign across SP, SD, and Sponsored Brand (SB) campaigns.
The Quartile team then created campaigns using different match types, including exact, phrase, broad, and product targeting, to guarantee comprehensive coverage of top-performing keywords. Based on individual conversion rates, the algorithm connected to Amazon’s API and adjusted bids dynamically for maximum return.
Overall, the hourly insights into engagement and conversion metrics obtained through Amazon Marketing Services (AMS) allowed Quartile to adjust bids in near-real time, eliminating wasted spend and helping Capezio achieve a record seven-figure result in sales in the first quarter of 2023.
Implementing a multitouch advertising strategy and adjusting campaigns based on AMS insights enabled Capezio to react to customers with high-intent purchase signals in near-real time. This empowered the brand to grow sales on Amazon—regardless of seasonal challenges and budget constraints.
Quartile’s technology based on
automation, machine learning, AI, and
integrated with the Amazon Ads API
helps clients manage their large product
portfolio and optimize their advertising
campaigns at scale.
Quartile is the world’s largest retail media optimization platform. Leveraging six patented machine learning technologies, the platform offers automated and optimized advertising services for over 5,300 global brands and agencies. With more than $2 billion in annual ad spend under management, Quartile empowers brands and sellers to achieve unparalleled success through strategic insights cutting-edge AI-driven technology.
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