How to win at Amazon Advertising
August 12, 2021
Yesterday we were honored to co-present at a private, invite-only webinar in partnership with Amazon Advertising – and there were too many takeaways to count, but we wanted to share at least a few…
1. The full-funnel approach to Amazon
Traditionally, brands have viewed Amazon and its ad products as falling into one or two buckets, like driving top-line growth or capturing share. But as the company has grown, so has its ad products, and today you can achieve additional outcomes such as brand awareness, product education, cross-sell and upsell.
A few examples:
Sponsored Brands is a way to enter into the brand journey and learn more about the lifestyle that the brands are trying to create. Leverage these customizable ads to drive discovery of your brand and increase awareness of your product portfolio. Over the past three years, interest in this unit has increased as it went from 10% to 20% of overall spend in 2021.
Cross-sell & upsell
Sponsored Products is what we call the “workhorse for Sponsored Search,” to reach consumers searching for similar products. By looking at what search behavior is like on Amazon, you can get ahead of what consumers are seeking and show up on Page 1 associated with your priority keywords.
We also learned more about the role of Sponsored Display, and when to utilize automated ads that look endemic to Amazon to advertise on and off its platform, driving traffic to Amazon listings. The best combination of these ad units comes from having a clear overarching strategy and prioritizing against strategic objectives.
2. Take advantage of Amazon shopper data
More than a third of all Amazon sellers are increasing their ad investments on Amazon in 2021, according to data from 3,500 brands, agencies and third-party sellers. A driving force behind this shift is privacy changes on iPhones that make advertising on social media platforms like Facebook and Instagram far less effective – so far, only 25% of Facebook users have opted in to tracking, which means targeting and reporting only applies to 1 in 4 consumers.
Amazon is impervious to these privacy restrictions because its search and shopper data are first-party; they don’t need additional permissions to leverage it for targeting to reach both upper and lower funnel goals. For example, if you have a strong brand in a particular category, you can see exactly who those shoppers are, and then go target lookalike consumers who are not yet customers or even aware of your brand.
3. Cross-channel insights & ASIN-level profitability
During the webinar, we took a poll to ask about the most pressing challenges that brands face today, and 67% of attendees noted that it was about cross-functional coordination, followed by lack of ASIN-level profitability.
To inform effective ad campaigns, for instance, brands need more than just reporting on ROAS. They require unified business views spanning retail, marketing, operations and finance to see the true impact of their spend. This, coupled with automated alerts and actionable insights, is how they can move forward intelligently both in high-level strategy and day-to-day execution.
And, recognizing that advertising affects profitability both in terms of driving sales and a line item against net margin, having sightlines to ASIN-level P&L metrics is key. With a flexible budget that optimizes for profit, you can drive sales and delight consumers.
Curious to know more? Contact us today for a deeper dive into these insights from the webinar or to talk with us about your specific business needs.