Amazon's operational weapon of advertising
Amazon advertising types
"For advertisers, Amazon advertising has always been a must for advertisers, and this importance has been increasing. In addition, due to the epidemic of the new crown epidemic, more brands and retailers are willing to consider advertising on Amazon." ——Perrin, principal analyst of eMarketer, Insider Intelligence
According to data from eMarketer of Insider Intelligence, a foreign authoritative data analysis platform, Amazon's advertising market share in the United States has increased from 7.8% in 2019 to 10.3% in 2020. Advertising revenue will grow to 15.73 billion U.S. dollars in 2020. According to eMarketer, Amazon's US advertising business will exceed 20 billion U.S. dollars for the first time in 2021, and is expected to exceed 30 billion U.S. dollars before 2023. Among these advertising revenues, Amazon e-commerce channel advertising accounts for about 90%;
This shows that Amazon's advertising business is expanding rapidly. 1. More and more sellers are pouring into the Amazon platform, and sellers are investing more and more in Amazon advertising. The competition has become more intense, and the cost of acquiring traffic has also become more expensive. High; 2. Amazon has been increasing the functional section of advertising, starting from only product promotion (Sponsored Product), and then gradually increasing brand promotion (Sponsored Brand), video promotion (Sponsored Brand Video), and display promotion (Sponsored Display); this On the one hand, it greatly enriches the display types of ads on Amazon. On the other hand, whether it is a search result page or a product detail display page, the proportion of advertising space is also increasing;
This is in line with what Perrin, chief analyst at eMarketer of Insider Intelligence, said, "For advertisers, Amazon advertising has always been a must, and this importance has been increasing."
I believe that you are now an Amazon seller, and no seller will give up its advertising function and only hope that it can beat his competition by relying on natural traffic. For Amazon sellers, giving up the advertising function is tantamount to self-determination. One arm; Next, I will briefly introduce the four major sections of Amazon site advertising: product promotion (Sponsored Product), brand promotion (Sponsored Brand), display promotion (Sponsored Display), DSP advertising.
In the traditional sense, the Amazon site can be divided into active and passive ads:
Active type of advertisement: The seller actively targets the advertisement to him through the consumer's past shopping behaviors, attracts his attention, improves his awareness of the seller's brand and products, and promotes him to place orders or conduct search conversions. The audience placement of DSP advertisements and display advertisements belongs to this type. It can be based on the user’s lifestyle, hobbies, life events, buying tendency, and past browsing behavior. Reach these users;
Passive advertising: After a consumer has a shopping impulse and a search behavior occurs, the search advertisement passively appears in front of him through the keywords he searched, and promotes the conversion of the order after the consumer clicks. Keyword placement for product promotion and brand promotion belong to this type. The buyer must have a certain tendency to buy and actively search before the advertisement can be displayed to the user;
There is also another type of advertising, that is, product positioning for product promotion, brand promotion, and display promotion. Its target is users who are interested in certain products and categories. It should be considered to be between the active type of advertising and passive type of advertising;
For these different types of advertisements, we have to deliver them. If only active type advertisements are used, the conversion rate of the advertisements is too low. Buyers have an impression of your products, but when searching for your products with keywords Can't search, then the advertising cost is wasted? If only passive advertising is used, it can only passively wait for users with shopping tendency to appear, but cannot actively arouse users' desire to buy, and the effect of advertising is prone to bottleneck periods;
As for product positioning advertising, its importance is on the one hand to defend, through product positioning advertising to achieve the closed loop of its own product traffic, as much as possible to reduce the loss of user traffic; on the other hand, it is offensive, by positioning to the competitor's page, so as to seize Competitor traffic, suppressing competitors;
Just like the slogan of some training institutions:
We nurture your child
You are not coming
We nurture your child’s competitors"
The same is true for Amazon's advertising. If you use it, there is no guarantee that your product will stand out from the competition, but if you don't use it, then this part of the traffic will be in the hands of your opponents; advertising is just like sailing against the current and has become indispensable for sellers. Tool of;
The role of Amazon advertising in the operation of the new product period
Let's briefly talk about the role of Amazon advertising in the new product period from three aspects:
We often say that we need to increase the weight of the listing to make a product, so what factors are related to the weight of the listing? It is related to your order quantity and also to your review score;
As we all know, Amazon strictly cracks down on sellers' reviewing behaviors. Recently, many big sellers have been blocked because of manipulation of reviews. At the same time, Amazon has also cancelled the early reviewer program, which makes it more difficult to accumulate reviews for new products.
By paying for advertising, new product listings can obtain exposure opportunities outside of natural search, accumulate natural orders, and cooperate with Request Review and other urging work, which can accelerate the accumulation of Reviews on the basis of compliance with the platform policy, which is the product maturity period. Lay a good foundation for the take-off.
Amazon Advertising Test
Advertising data reflects the needs of real users and can better reflect market demand and competition. It can measure product flow through exposure, clicks, and click conversion rate, and verify market demand; with the help of CPC and ACoS, it can evaluate market competition and measure products. Whether the advertising input-output ratio is reasonable to provide data support for subsequent adjustments to operating strategies.
A. Whether a product has a large enough market can be seen from the amount of its advertising traffic. If a product has a poor advertising traffic, it means that there are few buyers who will search for the product, then its market demand is certainly not large;
B. When using the Amazon advertising test, you can refer to the recommended bidding for automatic advertising, let it accumulate enough advertising traffic (for example, 1000 clicks), and observe how long it takes to accumulate so much advertising traffic. Is the input-output ratio of advertising acceptable?
C. It is possible to make certain corrections to the advertising traffic, such as whether the remaining traffic is sufficient after some keywords are negatively excluded, and whether the advertising input-output ratio after the correction is acceptable;
D. If there is enough traffic, it means that the market demand is large enough; if the advertising input-output ratio is better, it means that the product is relatively competitive;
Accelerate the growth period of new products
1. Increase new product exposure, traffic, and increase product orders, which can accumulate reviews more quickly; 2. Increase the keyword weight of listing through search → click → conversion of advertisements;
A. On the premise of a fixed retention rate, the more orders are issued, the more comments will be left; for products in the new product period, the proportion of advertisements issued can reach 70% or more, which leaves natural traffic far behind; Issuing orders through advertisements can exponentially speed up the accumulation of listing comments;
B. In the new product period, due to the lack of reviews, the conversion rate is lower. If you want to have a better advertising input-output ratio, you need to pay attention to two aspects. One is low-bid traffic and temporarily abandon high-bid to preempt. The idea of the search result homepage, because even if the position of the search result homepage can be obtained through high bidding, it may be difficult to generate conversions; the second is to increase the conversion rate of traffic, do a good job of negative keywords, and exclude irrelevant traffic, traffic and products The more relevant is, the higher the conversion rate of advertising traffic;
C. Try different traffic channels as much as possible. We want to get as much low-cost traffic and accurate traffic as possible in the new product period, but there is a limit on the eligible traffic in an advertising channel; try different traffic channels to get More qualified traffic; product promotion, brand promotion, video promotion, display promotion, Amazon Post, bundled sales, associated promotion, A+ association, etc. are all worth trying, and there are some free traffic channels;
D. In the new product period, you can also give products a competitive pricing or appropriate discount; competitive pricing or appropriate discounts can greatly increase the click-through rate and conversion rate of advertisements;
E. After the new product gradually accumulates enough reviews and listing weights, the competitiveness and conversion rate have risen at this time. We can try to obtain high bidding traffic, and the traffic of big words, or increase the price of the product. Profit margin.
Even if the product has passed the new product period, advertising is still an important weapon that cannot be ignored. It plays an irreplaceable role in accumulating reviews of products, increasing the weight of keywords, and listing rankings; in winning him, the sales generated by advertising account for about total sales. 50% of the total amount; the importance of advertising to operations is evident from this, and it is worthy of the weapon of Amazon's operations.