How Montech Supercharged Their Sales by More Than 50% in One Year Through Sponsored Ads

Montech increased their sales 50% from an already strong performance, usingthe Newegg Sponsored Ads platform.

Montech has five years of experience selling on marketplaces offering a wide variety of products within the computer hardware and electronics space. Product categories include PC cases, power supplies, CPU coolers, and gaming peripherals. The consumer electronics company is committed to the spirit of innovating quality products for their customers. It was only fitting they became a Newegg Marketplace seller where a large part of Newegg’s customers are made up of tech DIYers constantly looking for opportunities to upgrade their rigs.

With millions of PC cooling products from different manufacturers on the Newegg platform, Montech searched for strategies that could strike the right balance between driving traffic and earning profit. They were already manufacturing products at affordable prices, and were in a prime position to win the buy box. Winners of the buy box placement typically see much higher conversion rates compared to those who do not. That said, winning and maintaining that placement means stiff competition.

“We wanted a comprehensive advertising solution where we could automate, gain critical consumer insights, and adjust. With the data and complete oversight, we could maximize our budget while driving meaningful results,” says Montech.

Montech discovered that securing Sponsored Ad placements is similar to owning the buy box position in that no one else shared that placement regardless of price. Montech was able to earn profitable sales by maintaining their price premium.

So, when Newegg announced its Sponsored Product Ads service, Montech were early adopters of the service. They quickly became a household name among Newegg customers. “Within 9 months of using Sponsored Product Ads, we exceeded our sales expectations, growing sales by at least 50%,” says Montech.

How Can Sellers Use Sponsored Product Ads to Produce Results?

Sponsored Product Ads is an advertising tool built to match relevant products with customer search queries. In order for a seller’s product to appear for a query, the seller must place a bid for the search term and win it.

There are two main benefits to winning the bid. One, the product listing appears in the first page of SERP’s (Search Engine Result Pages). Second, the seller owns the buy box position. Typical buy box factors aren’t used to determine who wins the Sponsored Ad placements. The tool gives sellers more control over their bottom line.

According to Montech, “Sponsored Ads allowed us to observe our daily and weekly average costs of spend (ACOS). We adjusted our bidding and keyword strategies to optimize the ads’ impact.”

“We first tested our bidding strategy by using automatic targeting. We simply listed our products, set our budget, and Newegg’s algorithms connected our products to the right customers.”

Sellers new to Sponsored Ads are encouraged to utilize the automatic targeting feature and track their campaign performance. The campaign performance report provides sellers critical information such as what keywords lead shoppers to their listing.

“When we launched our automatic targeting campaigns, we realized we were also harvesting a lot of potential keywords, and they performed better than expected. With Newegg’s help we used those newfound keywords for manual targeting. Through manual targeting, we redirected funds to well-performing keywords, improving our advertising ROAS (return on ad spend). We made more sales and spent less,” says Montech.

Montech’s use of both features has become normative as more sellers recognize the value of using both automatic and manual targeting. Since using the tool, Montech’s sales have grown by at least 50% and it has had a halo effect in other parts of their business. With the follow-up launch of the Sponsored Headline Ads service, new marketing doors have been opened for additional customer acquisition and branding opportunities on Newegg.

Montech isn’t the only seller benefitting from Sponsored Ads. Hundreds of sellers are seeing how Sponsored Ads is a cost-efficient advertising solution that produces profitability and critical consumer insights. Interested in learning more about Sponsored Ads? Read our eBook, “How to Supercharge Your ROI with Sponsored Ads.” The premium guide not only details what and how the service works, but also unpacks strategies and best practices that can help you earn profitable sales.