Many cross-border e-commerce sellers face a common dilemma: while operating in relatively less competitive blue ocean markets, they struggle to quickly gain traction with low-priced standardized products. This case study examines how the Single Keyword Ad Group (SKAG) strategy can effectively address this challenge.
Characteristics of Low-Priced Commodities in Blue Ocean Markets
Blue ocean markets typically present lower competitive pressure, while standardized products mean high homogeneity and limited keyword options. In such scenarios, advertising budgets often concentrate on a handful of core keywords. Relying solely on Sponsored Products (SP) ads may secure some ad placements but limits overall exposure. For low-priced commodities in blue ocean markets, achieving multi-channel, comprehensive visibility becomes crucial.
Implementation Strategy: Leveraging SKAG for Rapid Scaling
The seller in this case developed an effective campaign centered around targeting 3-5 core keywords through SKAG strategy:
- Keyword Selection: Prioritize high-search-volume core keywords while including moderately-trafficked terms that closely align with product relevance.
- SKAG Structure: Create individual ad groups for each keyword, ensuring precise budget and bid control for maximum relevance and quality score improvement.
- Organic Ranking ASIN Analysis: Input SKAG-targeted keywords into Amazon's search to identify top-ranking ASINs (Amazon Standard Identification Numbers) in organic results, which then serve as targets for related product placements.
- SBV Testing: For high-traffic, high-conversion keywords, implement Sponsored Brands Video (SBV) ads to enhance product presentation and engagement.
- Automatic Close Match Supplement: Utilize automatic ads' close match functionality to capture long-tail keyword traffic within the category.
Strategic Rationale
This approach combines SKAG's precision targeting with expanded visibility through related product placements and video advertising. The methodology ensures efficient budget allocation while broadening reach to potential customers through multiple touchpoints.
Performance Validation and Risk Management
The case demonstrated significant sales growth shortly after September implementation. Post-initial data accumulation, sellers can either expand keyword targeting for further scaling or adjust overall budgets to maintain profitability.
Potential risks include underperforming keyword conversion rates, requiring prompt keyword replacement. Continuous monitoring of campaign performance remains essential for optimal results.
Conclusion: A Replicable Methodology
This case presents a reproducible framework for low-priced commodity success in blue ocean markets. By combining SKAG precision with expanded visibility channels, sellers can achieve rapid scaling while maintaining the flexibility to adapt strategies based on performance metrics.