eCommerce is moving fast. Amazon’s US sales saw unprecedented 44.1% growth in 2020 and the overall industry reached sales of over $800 billion! Getting started with Amazon advertising or ramping up your existing ad strategy can seem daunting as more and more brands and consumers flock to the marketplace.
As consumer buying behaviors shift online, Amazon advertising responded with new ad types and features for eCommerce advertisers. Amazon DSP, Sponsored Display ads, and new product targeting capabilities such as Negative Product Targeting are all eCommerce advances from 2020. Does your brand need to keep up with all these advancements and options?
Absolutely not!
Growing your eCommerce advertising or getting started advertising on Amazon can start simply and progress from there. Eventually, your brand will be able to stay up-to-date with the latest advancements and be in a position to gain a competitive advantage over your competitors. Here are a few steps you can take to get quick eCommerce wins on Amazon.
Use Benchmarks to Create Strong Amazon Content
Brands that improve their product content based on benchmarks set by bestselling products can see a 15-58% sales lift on Amazon. For example, adding video to product detail pages results in an average 34% more traffic and 19% more conversions, which equate to a 58% boost in sales. Conversely, one in four online carts are abandoned due to a lack of product images and two in three carts are abandoned due to a lack of information.
Assess your competitors and top performing products in your industry to determine what content, information and design elements contribute to more success on Amazon. Pacvue’s competitor research can help you identify which products and ads are winning search results to identify which product detail pages and ads to emulate. This research also provides which keywords to prioritize when optimizing product descriptions to win search results.
Test & Learn with New Ad Types to Expand Reach
One brand expanded their reach on Amazon by running multiple ASINs with new ad types, targeting new keywords to test performance and increase SERP coverage. This strategy resulted in improved Share of Shelf and a 133% increase in Organic Share of Voice.
This strategy worked for them, but may not for you. Test & Learn different strategies, keywords, and ad types to test hypotheses, learn what works for your brand, and gradually optimize your Amazon ad strategy. For example, Sponsored Display Audiences allow you to refine campaign targeting using key detail page attributes such as brand, price range, star rating, or Prime shipping eligibility. All of these targeting parameters are excellent opportunities to perform very granular tests and discover what works for you.
Improve Customer Lifetime Value Through Brand Loyalty
2020 was an excellent year for obtaining New-to-Brand customers. A major goal of your Amazon ad strategy should be to keep existing customers and work to improve customer lifetime value. Building brand loyalty is one of the best ways to achieve this. Consider using:
- Subscribe & Save: Using S&S messaging can improve detail page views by 467% and drive more than 500% increases in ROAS.
- Promote Larger Pack Sizes: Promote lower-ASP items in keyword targeted campaigns focused on generic search terms. For brand-loyal customers, promote higher-ASP items by targeting branded search terms.
- Amazon Posts: This Amazon marketing offering complements your ad strategy by allowing you to push new products or deals to loyal customers, building further brand loyalty.
Jump on Trends Early with Amazon Search Data
Once you’ve learned to walk on Amazon, you can start running ahead of your competitors. Starting small and expanding the scope of your keyword research and competitor analysis will allow you to scale up your eCommerce advertising and begin to detect new search trends to optimize product content and paid ads.
Amazon search data can help identify popular and surging search terms. This data can be used to forecast demand and optimize your product detail pages and keyword targeting accordingly. As more consumers use Amazon’s search as their first stop when shopping, ranking high in these search results is critical.
Fast Start Guide to Amazon Advertising
Ready to accelerate your business with Amazon? The above tips serve as a starting point for your Amazon advertising strategy. Creating and optimizing your ad strategy requires continuous education, demand generation, and analytics and insights to complement your digital shelf strategy.
Pacvue partnered with other eCommerce companies to provide you with our “Fast Start Guide: 10 eCommerce Quick Wins on Amazon.” Pacvue combines our capabilities and knowledge in promotion and programmatic retail media with the expertise of OneSpace, Profitero, and firstmovr to create an extremely valuable and concise guide to optimizing your Amazon advertising. Check out the full guide for more tips and quick wins to help you capitalize on the continued growth Amazon is expected to see this year.
