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Case study cover

The CPAP Shop Embraces a Multichannel Approach to Achieve Double-Digit ROAS Growth

HEADQUARTERS

West Berlin, NJ

RETAIL CATEGORY

Health/Beauty

WEBSITE
CHANNELs

13%

Lower ACoS In Amazon Advertising in First Six Months with Sidecar

16%

Revenue Increase on Google and Bing Shopping in First 90 Days with Sidecar

62%

Higher ROAS on Google and Bing Paid Search YoY with Sidecar

664%

Increase in Orders on Amazon In First Six Months with Sidecar

13%

Lower ACoS In Amazon Advertising in First Six Months with Sidecar

16%

Revenue Increase on Google and Bing Shopping in First 90 Days with Sidecar

62%

Higher ROAS on Google and Bing Paid Search YoY with Sidecar

664%

Increase in Orders on Amazon In First Six Months with Sidecar
HEADQUARTERS

West Berlin, NJ

RETAIL CATEGORY

Health/Beauty

WEBSITE

THE GOAL

A Scalable Multichannel Approach

The CPAP Shop is an online retailer that sells sleep therapy and CPAP equipment. It is a subsidiary of Agile Medical, which owns a portfolio of medical device retailers, including The Oxygen Concentrator Supply Shop and Sleep Care Online. The retailer advertises across Google, Bing, and Amazon.

Prior to working with Sidecar, The CPAP Shop managed its Google and Bing accounts with assistance from a partner agency. Although its paid search and shopping strategies were successful, the company’s growth soon outpaced its advertising infrastructure.

As it moved into an enterprise solution, The CPAP Shop team engaged Sidecar to build an integrated AI-based advertising strategy. By automating campaign optimization, the retailer aimed to identify products in its catalog that could increase average order value (AOV) and allocate proper budget to these products to improve return on advertising spend (ROAS).

“We were interested in the data-driven approach to retail marketing that Sidecar provided,” said Pooja Shah, Director of Corporate Marketing at Agile Medical. “Its AI technology could give us insight and recommendations on where we should bid to remain competitive and to see the biggest return.”
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Overcome Amazon’s Obstacles

At the time The CPAP Shop engaged Sidecar, the company was active in Amazon’s Marketplace for roughly 12 months. The retailer used the platform sparingly to test campaigns and drive a small portion of overall revenue. The account was managed by a single internal team member responsible for organizing product categories and managing day-to-day inventory levels.

As its multichannel strategy grew, The CPAP Shop understood the importance of Amazon in its advertising mix; both from a competitive standpoint and a compliment to its business strategy. It wanted to maximize its visibility and grow revenue in the channel. However, as a provider of medical devices, the company faced unique challenges on Amazon.

Amazon restricts the sale and promotion of products that require a prescription to purchase or must be used under the supervision of a medical professional or prescribed by a physician. As a result, The CPAP Shop cannot sell many core catalog products via Amazon. The retailer partnered with Sidecar to develop a strategy that prioritizes complementary and eligible products on Amazon, like filters, cushions, and other accessories. 

"We needed scalability with our digital advertising. Sidecar’s machine learning approach and its focus on retail marketing were dealmakers for us."

POOJA SHAH

Director of Corporate Marketing at Agile Medical

tHE STRATEGY

Connect With a Unique Audience Across Channels

In addition to increasing scale and efficiency, The CPAP Shop looked to engage its unique audience and support its customer service mission through Google and Bing’s paid search channels. To accomplish this goal, the company teamed up with Sidecar to develop keyword and dayparting strategies that would help reach consumers in-market for breathing assistance and sleep therapy equipment.

LEVERAGE INTENT TO DRIVE ROAS ON GOOGLE AND BING SHOPPING

Sidecar’s team developed a filtering strategy to maximize the value of The CPAP Shop’s investment in Google and Bing Shopping. Catalog items and search queries were divided into categories that could be used to increase total ROAS in both channels.

Using Sidecar for Shopping, Sidecar’s team segmented The CPAP Shop’s entire catalog based on expected AOV. CPAP machines flow into a high-AOV campaign while accessories are assigned to a low-AOV campaign. This allowed the Sidecar team to apply a unique, AI-driven bidding strategy to each segment in order to maximize campaign performance.

Additionally, by separating CPAP machines from accessories, Sidecar was able to maximize impression share for CPAP machines while keeping CPCs in check across the accessories category. “The biggest challenge we faced on Google and Bing Shopping was scalability,” said Shah. “Sidecar offered not only a machine learning component, but also a team to help us make sense of the significant amount of data flow.”

Search queries flow into intent-based campaigns. Broad search terms were considered to be indicators of low-intent, and shoppers who were early on in the process of researching CPAP machines. High-volume terms were indicative of medium intent, and a proprietary set of top search terms were used as indicators of high-intent. Sidecar also developed a filtering strategy for trademark searches indicating high intent. 

Automate Dayparting to Increase Google and Bing Paid Search Engagement

Sidecar’s team developed machine learning and trademark campaigns using Sidecar for Paid Search to help realize The CPAP Shop’s paid search potential. Because shoppers typically research CPAP and oxygen concentrator machines extensively before making a purchase, the machine campaigns captured this initial interest, while the trademark campaign delivered the final conversion.

Sidecar’s team also set up a dayparting strategy to target shoppers researching CPAP machines between midnight and 1 a.m. This strategy allows The CPAP shop to capture a unique audience of high-intent customers searching because they can’t sleep while also taking advantage of a less competitive shopping time—and at a lower cost-per-click. 
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Narrow the Product Focus on Amazon

Because many of The CPAP Shop’s high AOV products were medical devices restricted from Amazon’s ecosystem, Sidecar’s team used Sidecar for Amazon to focus on generating revenue through high-volume and high-frequency accessories, such as filters and cushions.

Rather than splitting out products across thousands of campaigns, Sidecar’s team breaks out The CPAP Shop’s products at an ad group level. Sidecar’s technology assigns products to different ad groups based off of rules Sidecar’s team assigns to each ad group. The technology runs every four hours to ensure it captures new products the retailer uploads and pauses any products that go out of stock.

Sidecar’s team was also able to identify niche audiences and allow The CPAP shop to narrow its focus and avoid direct competition with Amazon itself, often a risk for other retailers in categories where Amazon is dominant. “Our initial challenges with Amazon were focused on setting up the products and organizing the categories,” said Shah. “We were constantly dealing with red tape, item restrictions, and incorrect labeling that required time and resources to correct.”

Sidecar bypasses these challenges by running The CPAP Shop’s Amazon account across one automated and two manual campaigns. The automated campaign is an auto-targeting sponsored product campaign. Amazon controls what items display based off of four match types where Sidecar’s technology sets bids. Sidecar’s team then utilizes this campaign to harvest new keywords for the manual campaign: high performing products receive higher bids while lower converting products are bid down.

Keyword bidding is prominent in the manual-targeting sponsored product campaign. Using broad, phrase, and exact match keywords, Sidecar’s technology focuses on branded terms and top converters. Additionally, a manual product targeting campaign targets categories, such as CPAP accessories or Respiratory Aids & Accessories, to display for specific keywords.
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THE RESULTS

More Orders & Revenue on Google and Bing Shopping

As a result of Sidecar’s filtering strategy, the retailer saw an 8% increase in orders and a 16% increase in revenue on Google and Bing Shopping over the partnership’s first 90 days compared to the previous 90 days. These improvements, combined with higher bidding efficiency across both channels, resulted in a 26% increase in ROAS.

Year-over-year results were even more dramatic. The retailer saw an 89% increase in Google and Bing Shopping ROAS YoY. The average value of an order resulting from a machine campaign conversion was seven times that of a non-machine-campaign conversion, justifying the 21% CPC increase.

"With Sidecar’s technology, we’re able to convert a ton of data into actionable insights. We know that the algorithms are working for us 24/7 and allowing us to optimize bids in real-time at an individual level."

HIGHER ROAS ON GOOGLE AND BING PAID SEARCH

Results from the retailer’s paid search campaigns were equally dramatic. The CPAP Shop saw a 62% increase in ROAS on Google and Bing paid search YoY. The majority of this increase was driven by the trademark campaign, which achieved two times greater ROAS than any other campaign launched by any brand within the Agile Medical portfolio during the same time period.

Meanwhile, CPCs for these trademark keywords were substantially lower than branded keywords and allowed The CPAP Shop to achieve significantly greater efficiency in paid search. CPCs rose by just 4% year over year. 

A REINVIGORATED REVENUE STREAM ON AMAZON

Overall, Sidecar was able to help The CPAP Shop to launch its Amazon strategy and increase its visibility across the platform. By partnering with Sidecar, the retailer was able to turn Amazon from an inconsistent source of revenue into an additional revenue stream producing consistent results. The CPAP Shop increased its Amazon budget with Sidecar after seeing initial results, which helped surpass its revenue goals for the channel while maintaining efficiency goals and month-over-month revenue growth.

At the six-month mark of Sidecar’s management of the Amazon channel, The CPAP Shop showed an increase of 349% in month-over-month clicks, 664% in number of orders, and 338% in Amazon revenue.

“Working with Sidecar allows us to have a dedicated team to focus on three important marketing channels,” said Shah. “We treat them as an extension of our business and work collaboratively to share ideas, insights, and opportunities. Because of Sidecar, we have a cohesive multichannel advertising portfolio.”

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