Background

Beech-Nut Nutrition Company, an industry leader in the Baby Food category, realized their daily ad campaigns for Snacks and Pouches across Walmart Sponsored Products were running out of ad spend every day before peak-purchasing windows. Worse yet, these missed opportunities were happening just as supply chain challenges were driving higher purchase rates across the category.

Approach

The Out of Budget (OOB) report showed that a leading campaign was running out of daily funds at approximately 4:30 pm PST on average. THIRD EAR calculated the daily budgets needed to sustain campaigns throughout the whole day, then applied a Pacvue Bid Multiplier Rule, increasing daily budgets and search placements. This strategy was implemented from September 1 through October 31, 2022, allowing a “pre-test” comparison period of July through August.

Results

Beech-Nut Snacks and Pouches sales skyrocketed by 66% with only a modest increase in Cost-per-click (CPC), compared to the previous 2-month period. Pacvue’s Bid Multiplier also produced a 25% increase in Click-through rate (CTR) and 93% increase in total clicks, with only a small decrease in return on advertising spend (ROAS).

“ROAS did decrease, but the added sales volume made up for it. We learned our spend levels were not yet near our point of maximum yield (when incremental spend produces negative returns). Third Ear and Pacvue are terrific partners & problem solvers, especially for CPG brands who do not sell directly to consumers via first-party eCommerce platforms” -Julia Durgee, Senior Manager Omnichannel Marketing & Insights at Beech-Nut Nutrition Company.