As marketers and consumers, we know Amazon is an uncontested advertising powerhouse, dominating everything from e-commerce sales to search traffic to ad spend. In this article, we’ll discuss how CPG advertisers can leverage Amazon’s advertising platform to drive full-funnel marketing results.
The Amazon Advertising Platform offers multiple ways for brands to engage with Amazon’s vast audience by advertising on-site or leveraging their customer data to serve ads across the open internet. With retail media’s recent explosion in popularity, Amazon Ads is expected to exceed $32B in revenue by 2023. Although many players are entering the market, Amazon is the clear leader with approximately 76.2% of US e-commerce channel ad spending in 2021.
Amazon is a common tool for conversion-based, point of purchase advertising. However, there are other underutilized opportunities in the platform for brands to expand their audiences through awareness and consideration tactics that will ultimately lead to sales. Let’s explore how to reach customers at all stages of the consumer journey using Amazon Ads.
How To Establish Awareness With Amazon DSP Prospecting
Nearly 75% of product research starts with Amazon. Brands cannot ignore this and should ensure they are using the platform to serve awareness-based messaging to new audiences as well as optimizing for search within the site. The Amazon DSP allows brands to use in-market data for first touch prospecting efforts, typically with video or display channels.
How To Build Brand Consideration With Amazon Sponsored Brands
Sponsored Brand ads place products in front of users during the consideration phase. These ads appear on the search results, generating brand recognition and promoting discovery. They also help users find the information they are looking for, allowing your brand to position itself as a useful solution to their inquiry.
How To Increase Amazon Sales With Sponsored Products
Sponsored Products are keyword-target ads promoting an advertiser’s individual listings. They appear in the search results and on product detail pages on Amazon to drive purchases. Advertisers can select their products to advertise and choose keywords which will trigger ads to appear. Similar to Google Adwords, advertisers purchase bids on a cost-per-click auction.
Ensure Performance With Ad Quality
Ad quality on Amazon depends on various factors. Implement these best practices to ensure your ad ranks at the top of the search results:
- Calculate your max CPC to be profitable based on cost per sale
- Ensure your product has a strong image and title quality
- Monitor product reviews as they will affect ad quality
Targeting Amazon Shoppers
Amazon provides visibility into millions of consumers’ shopping behaviors as they move through the purchase journey. We are able to collect real-time data based on browsing and purchase intent signals from customers across all channels and touchpoints including AAP, Mobile, Kindle and Fire TV. Any time a customer takes an action on Amazon.com, they can be included in targeting segments.
Brands can utilize in-market targeting to reach audiences actively searching for related products or apply lookalike targeting to reach new people with behaviors similar to their best customers. Additionally, the platform offers a number of targeting variables to layer onto campaigns, including keyword, product, and category targeting.
Incorporate Amazon Into An Omni-Channel, Full-Funnel Strategy
Despite its broad capabilities, Amazon is still a walled garden. Their data is siloed within their own DSP, which can be a challenge for brands looking to measure cross-channel results and track audiences across all commerce and marketing touchpoints.
At Coegi, we work with our CPG clients to build connected commerce strategies that connect all points of the customer journey together. For CPG brands, this often includes many factors such as DTC, offline and online sales as well as programmatic, social, traditional and even experiential marketing channels.
Holistically managing your advertising efforts together puts Amazon activity into the context of your broader marketing strategy. Managing all efforts with one team allows you to share performance trends and learnings across tactics. Optimize different tactics and budgets in a complementary, strategic manner to improve overall performance.