The Importance of Sponsored Brands A/B Testing

Bailey Bezzant

August 13, 2021

What exactly is A/B testing?

As the name implies, A/B testing is essentially running an experiment testing two (or more) versions of something in order to learn which version of that something will work best according to a particular goal over time. An important note here is that in order to run an A/B test most effectively, you will want to ensure there is only one variable being tested. For a basic Sponsored Brand ad, this would be testing different versions of copy and keeping the product lineup the same or vice versa.

How to set up an A/B test for Sponsored Brands

1. Decide which variable you want to test

Establish your copy or product lineup–which variable are you planning on testing? Do you want to better understand if your customers resonate with certain pieces of copy more than others, or if they care about the star ratings and review count of a certain set of products more than another set?

Focusing on one variable will allow you to know with greater certainty what worked and what didn’t. If you test multiple variables, you won’t know which variable caused the success.

2. Establish your campaign naming conventions

A generic name for a product test could be naming the campaigns in a typical fashion but adding “ – Product Test A” or “ – Product Test B” to the end. This will make it easier to quickly search “Product Test” in the Seller Central Ad Console search bar and find them, as well as to see at a glance how each is performing over time side by side.

3. Build!

Having a great variable to test won’t help you until you actually test it. Create any needed assets and get into Seller Central to build out your A/B test.

4. Repeat

After two months (a solid test period in which a good or bad one-month period can be ruled out), test your next set of variables to determine the best possible performers within your product and copy sets.

**An Example:**

For a Dog Toy Brand, an A/B test was run testing which sets of products featured in a Sponsored Brand would resonate with customers and perform with the most efficient outcome in that particular market – two different version of a stuffed animal toy, two different versions of a treat, and their flagship dog toy in both.(An A/B test had been run previously testing different versions of copy, with an outcome that indicated which piece of copy to use for the Dog Toy Brand’s Sponsored Brand ads going forward.)

Beginning the product test, the copy for each Sponsored Brand remained the same, and the test was run for two months targeting the same keywords with the same bids and budgets. Over the course of the test period, Test A outperformed Test B handily with an overall higher return on investment of 3.42 compared to Test B’s 1.26, a higher click-through-rate (2.61% vs. 2.22%), and overall more consistent performance. After analyzing the learnings, Test B was turned off in favor of Test A which was then allocated the remaining budget.

Test A:

Dog Toy Test 1

Test B:

Dog Toy test 2

Why is A/B testing Sponsored Brands important?

While running an A/B test may seem like a small detail, it can save advertisers and brands a lot of heartache in the long run. In the test above, for example, running the A/B test allowed us to see what people were actually looking for and were more likely to convert on - simply choosing what products you think will be best without testing options leaves room for potential lost sales and a disconnect with the market.

If only the products/copy contained in Test B had been built out and we had not tested it alongside Test A, we may have been left with an underperforming Sponsored Brand ad and drawn incorrect conclusions about what needed to change. In the advertising space, adaptability will always be necessary as markets and circumstances change, and with A/B testing you can rest assured knowing that the best possible Sponsored Brand ad for your brand is the one that’s left standing at the end.

Want to learn more about advertising best practices? Check out our blogs on Keyword Match Types on Amazon and Hidden Tricks to Maximize Efficiency on Amazon DSP, or download our ebook: The Experts' Guide to Amazon Advertising Strategy.

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Sept 27, 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)
Sept 20, 2022

Global Ecommerce Weekly News: 20th September 2022

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Sept 13, 2022

Global Ecommerce Weekly News: 13th September 2022

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