Let's take a closer look at few strategies in action.
Focus Area: SKUs
Case 1 : Pausing SKUs with low Selling Price
Strategy to be Adopted : Pause advertising on SKUs with low ASP to focus ad budget on high value SKUs
Objective(s) | Improve Retailer Profitability |
Scope | SKUs |
Condition | Low Average Selling Price (ASP) |
Action | Pause AMS SKU |
Priority | Low |
Tip : To be used when the advertising spend needs scaling down and this also often improves ROAS.
Case 2 : Pausing SKUs with low RoAS
Strategy to be Adopted : Pause advertising on SKUs that have a low RoAS majorly due to pricing/availability PDP issues
Objective(s) | Improve Retailer Profitability |
Scope | SKUs |
Condition | Low RoAS | High Clicks/Spend |
Action | Pause AMS SKU |
Priority | Low |
Tip : Set a conservative RoAS threshold for this, and monitor which SKUs are affected by this strategy from Action log to diagnose any broader issues.
Case 3 : Pausing Advertising on low Inventory SKUs
Strategy to be Adopted : Pausing advertising on SKUs that have advertising on low inventory SKUs to to avoid accelerating sales and causes products to go Out of Stock faster. Pause advertising on them until the retailer refreshes the inventory.
Objective(s) | Reduce Out of Stock Risk |
Scope | SKUs |
Condition | Weeks of Cover (AVC) |
Action | Pause AMS SKU |
Priority | High (Always ON) |
Tip : Weeks of Cover (WoC) is a measure of the number of weeks the current inventory is projected to last based on the sales velocity. Adjust the threshold for WoC based on the supply chain.
Case 4 : Re-enable SKUs with replenished Inventory
Strategy to be Adopted : Re-enable advertising on SKUs when inventory on hand is replenished to accelerate the Flywheel Effect and win back organic ranking.
Objective(s) | Reduce Out of Stock Risk |
Scope | SKUs |
Condition | Weeks of Cover (AVC) |
Action | Enable AMS SKU |
Priority | High (Always ON) |
Tip : This is an anti-strategy that takes into consideration all entities impacted by the Strategy WoC < 2 Week Pause. One must Always use Weeks of Cover (WoC) while defining an anti-strategy.
While defining an anti-strategy always select the impact strategy prior to applying other conditions.
The order in which you apply the filters play a role. First select the impact strategy and then apply the other conditions. Because if you apply the conditions first, the system will look for strategies with the exact same conditions.
Case 5 : Retail Readiness Pause SKU
Strategy to be Adopted : Pause SKUs which are unable to ship even though the Buy Box is open.
Objective(s) | Increase Conversion Rate |
Scope | SKUs |
Condition | Availability Status - Unavailable |
Action | Pause AMS SKU |
Priority | Medium |
Tip : This strategy uses Availability status, derived from scraping. This is a good way to optimise strategy based on scraped information.
Case 6 : Retail Readiness Re-enable SKU
Strategy to be Adopted : Enable SKUs which are in stock and ready to be shipped.
Objective(s) | Increase Conversion Rate |
Scope | SKUs |
Condition | Availability Status | CIQ Weeks of Cover |
Action | Enable AMS SKU |
Priority | Medium |
Tip : With 'Retail Readiness Pause SKU' strategy in the condition, one can ensure to include the SKUs which were paused and re-enable them once they are available again.
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