June 21, 2023
Stratably hosted Brock Gettemeier from Sellozo, a Netrush Company, to share three tactical opportunities on Amazon Advertising.
- How to best influence organic rank via paid search placement multipliers
- More efficient alternatives to large Prime Day discounts
- Changes to the Sponsored Brand Video Ads
Here’s what we found most interesting:
- Small coupon + paid search for Prime Day: While many brands offer 20-30%+ discounts to secure a Prime Day deal, an alternative approach is to combine a small coupon offer (~5% off) and then reinvest the balance (15-25%) into paid search activations. It’s a non-obvious approach to Prime Day that accounts for the opportunity cost involved with deep discounts. It also took brands that employed this strategy a few years to fully understand its advantages, making it a lesser adopted approach.
- Stream increased optimization datapoints by 24%: In the past, brands were limited to dayparting or trying to optimize for total sales. Stream now enables advertisers to see the exact hours of the week when campaigns perform best. The tool is most impactful to brands with highly cyclical shopping patterns across the week. Office products, typically bought during business hours, were shared as an example, as were mattresses, coffee, and even some sports and outdoors sub-categories.
- Sponsored Brand Video Ad (SBVa) top of search change: Advertisers must select the “Store on Amazon (including subpages) criterion for their SBVa in order to show at the top of search. Many have not done so after this change took place resulting in an average 27% improvement to ROAS on these ad units.
- Media to drive organic rank: Brands can improve organic ranking more efficiently by focusing on a the highest CTR and CR during hours of the week combined with top of search ad placement secured via placement multipliers. This approach has greater influence on the algorithm helping an ASIN rise faster through the search engine results page.
- Sponsored Brands (SB) and SBVa gaining budget: SB and SBVa were called out as the fastest growing ad units inside Amazon. Display and DSP are also growing but attribution is more challenging there. Despite losing some share, Sponsored Products remains the lion share of spend (70%+ for most advertisers)
- Amazon three years from now: Amazon is making a big push towards making its site a shopping destination versus only a transactional buying platform. Efforts around Posts, Stores, Inspire, and Live are all tests aimed at making this a reality. Brands should be testing and learning in this area in the event Amazon is succesful, particularly around video, lifestyle content, and emailing shoppers through Amazon’s platform, so long as they have the foundational elements for their business already in place.