Advertising on Amazon is a must for any seller who is serious about gaining or maintaining a strong foothold on the #1 online retailer in the world, but it is especially advantageous for launching a new product or boosting sales on existing listings. Read on below to learn more on what to do and look for during each phase of the Amazon advertising lifecycle.
When you are launching a new product on Amazon, it is critical to hit the ground running by advertising. But before you do, you should make sure your listing is fully optimized. Amazon looks at multiple factors to determine what products should show up for search queries.
If you do nothing when listing a new product, it will likely sit around and gather dust. This is because the product doesn’t have any sales velocity yet and, consequently, Amazon doesn’t deem it relevant to shoppers’ search queries. You have to remember that Amazon always prioritizes the buyer and wants to show them only the products that it thinks they will like. If there is no data to support the new product and its popularity, it likely won’t show up on search pages for any given search term.
In order to be proactive and start driving some sales, you will need to get the flywheel effect going and advertising is one of the easiest levers to pull. You can do this either through sponsored ads on Amazon or through external paid advertising platforms such as Facebook, Google, Pinterest, etc. Ideally, you should begin by advertising on all of them, testing different campaign strategies, and finding which platforms work best for your audience.
For instance, according to Statista, Pinterest’s users are 77% female, meaning that a male-centric product may perform better and have a higher Return on Ad Spend (ROAS) on other platforms. However, 23% of the 300+ million active users are male or unspecified, so you can’t know for sure until you’ve tested.
Whatever type of ad you choose to use, you should remember that the first and most important step is to generate maximum exposure for your product while targeting as many new (and relevant) shoppers as possible. This is when you will want to keep a close eye on impressions, which indicate the number of times a customer sees your ad. Next, you should focus on clicks to make sure your ad is helping to increase detail page views. Amazon considers both of these metrics when ranking products, which is another added bonus from advertising.
The first phase of the advertising life cycle usually lasts about three months and should be considered as an opportunity to test your hypothesis on which keywords, product targets, and audiences are the right fit. You should mainly focus on how to drive maximum traffic to your detail pages while discovering new keywords.
The purpose of the second phase is to drive incremental orders and sales through advertising. Thousands of impressions don’t mean anything if they don’t result in product sales. It becomes less important to generate ample, but mindless, traffic and more important to target the right customers who are likely to purchase your product.
This is also when the click-through-rate (CTR) becomes a focus point. While clicks tell you how many users clicked your ad, CTR takes into account how many impressions the ad has had, giving you a better picture of how well the ad performs. If a keyword has a high CTR, it is eliciting a consistent, positive response from shoppers, which indicates that the product is relevant to their search. However, if the CTR is high but sales are low, it means that the keyword may not be relevant to the product and isn’t meeting the expectations of the user.
It doesn’t make sense to pay for clicks that don’t lead to any conversions. On average, if a keyword has more than seven to ten clicks in Amazon without driving any sales, then the product is likely not a good match. However, the number of clicks to watch for depends on the product price: the higher price points require more clicks. If your keyword is not a good match, you should consider pausing the keyword or adding it as a negative. The goal is to start getting rid of wasted spend on keywords that are irrelevant to the product.
This phase lasts about six months and focuses on improving the conversion rate by matching your product with relevant search terms. It is important to build a sales history around these to increase the organic rank within Amazon.
This is the last phase of the advertising life cycle. The main objective is to drive profitable ad sales. Most advertisers have an advertising cost of sale (ACoS) target. Staying below the ACoS threshold assures that the advertising efforts are driving incremental sales at a rate that is higher than the cost of business.
You also need to consider the cost per click (CPC) and conversion rate of each keyword in order to optimize your campaign appropriately. A keyword could be generating many ad sales at a cost that negates the profit. By lowering your bid you may have to sacrifice some ad sales, but you will be more profitable in the attained sales.
You should prioritize category keywords that are driving the most incremental sales; the CPCs may be a little higher for these but remember that this improves the organic rank. You can then offset the high CPCs with lower ones on keywords that are less important to you. It is important that the overall ACoS of the campaign is below your threshold but other than that, you have room to choose which keywords to bid on and where to use your resources.
Advertising benefit’s are multifaceted; you can collect relevant data for your product while placing it in front of as many shoppers as possible. You can then utilize the data to optimize your product detail page by including high performing keywords, which in turn will help to improve your organic rank.
Amazon advertising, done right, can help you capture and maintain a strong foothold on Amazon. Pattern, on the other hand, can help you capture, maintain, and scale a strong foothold in the global ecommerce market.
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Peak season is almost upon us and with all signs pointing to it starting earlier than ever, with Christmas gifting searches now ramping up in August and September, it’s time to start preparing for peak. In this article, we’re sharing our top five tips for planning and preparing for peak season with Google Ads and the strategies required to get your Paid Search ready so you can drive success over this crucial period.
In 2021, gifting search terms started increasing in popularity in August. The general trend is that people are looking, researching and weighing their options early, so it’s best to start your Paid activity early to ensure that you’re capturing that early research traffic. This will help drive revenue alongside aiding those consumers who are in their research phase.
From 2020 to 2021, spend during Cyber Week actually only rose 2% but in the weeks leading up to it, it increased by 16%. However, Cyber Week is still the biggest period during the latter half of the year, accounting for 23% of all online spend by consumers over peak. Being prepared and starting early will help you to maximise your time during this period.
According to Google, 48% of global consumers have stopped buying or using a service due to privacy concerns. Privacy is front of mind when consumers are shopping online and we know that Google is phasing out 3rd party cookies in 2023. This is going to make it much harder to track users online and it’s something that brands need to think about this now – waiting isn’t an option.
From a Google Ads point of view, you want to ensure you have set up the Google Ads tag across your site and have enabled ‘Enhanced Conversions’, which ensures all conversions are tracked and allows you to monitor other actions such as ‘Add to Cart.’ This is relatively easy to set up, especially if you use ‘Google Tag Manager’.
It’s also vitally important that you build up your first-party data during this time as this is data you own and it can be used when targeting consumers that have provided your brand with their email address. Pattern’s own experience shows that by segmenting and using first-party data, you can see a 10% improvement in revenue and ROI.
A full-funnel approach is now more important than ever as consumers become more discerning and have more choices than ever of where to shop.
Pattern has seen success with Google Ads’ ‘Discovery Campaigns’ (image-based ads that appear on Google platforms such as Gmail and the Google app), which have driven success both from a traffic and revenue perspective.
The performance of these campaigns is significantly enhanced by adopting a segmented and nuanced approach to first-party data and incorporating these into your campaigns. Other options for a full-funnel approach include YouTube and testing bidding on keywords that are more representative of the research phase. (e.g. ‘best baby clothes’ for a baby clothes brand)
Earlier this year, Google announced that they were moving away from Smart Shopping and launched Performance Max. This is a new campaign type that incorporates features and placements from Smart Shopping but expands them onto other platforms such as Gmail but also alternative creative options, such as images and videos.
Since Google has already started automatically upgrading Smart Shopping campaigns to Performance Max, expect to see some fluctuations in the first 2 weeks following the switch over but results generally seem positive. We recommend upgrading sooner rather than later to limit any potential impact to peak period.
Peak period will be even more competitive than in 2021 and you’ll need your budgets to support this period, we recommend boosting budgets in October to start capturing that early peak traffic. As we enter November and the Cyber Period, start early and make sure you are capturing those consumers looking for early bargains, ensuring you are being nimble in your optimisations and reacting to the data that you are seeing.
Overall, peak period is vital to help drive your sales and by preparing early, you will see strong results and drive success for your brand. If you want to discuss how your brand can navigate this next peak period, contact us to discuss your options with our performance team now.
Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces.
Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.
So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.
Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products.
An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.
An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.
Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.
At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services.
It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.
It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.
The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.
Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces.
With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.
Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.