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How to Optimize Your Sponsored Products Strategy for Amazon Prime Day Recording

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Despite consumer complaints over last year’s Amazon’s ‘Prime Day’, Amazon sellers still saw a dramatic increase in incremental revenue on this day with millions of consumers flocking to Amazon.
With the increased traffic to Amazon on this day, Amazon sellers need to prepare their marketing arsenal – especially their sponsored products strategy – to take full advantage of Amazon Prime Day.

Published in: Retail

How to Optimize Your Sponsored Products Strategy for Amazon Prime Day Recording

  1. 1. How to Optimize Your Sponsored Products Strategy for Amazon Prime Day Amazon Prime Day Strategy
  2. 2. Logistics Session Recording Will Be Sent out Tomorrow Morning Q&A Throughout the Presentation Submit Questions In the Chat Box to the Right Resources In the Handouts Section to the Right Today’s Resources
  3. 3. OVERVIEW • Founded in 2007 • Recognized as an Official Google Shopping Partner • 300+ Active Retail Clients • Top 50 fastest growing company in San Diego 3 years CLIENTS SOLUTIONS • Retail-focused Paid Search (PPC) • Google Shopping Management • Shopping Channel Management • Amazon Sales Acceleration About CPC Strategy
  4. 4. Upcoming CPC Strategy Events June 23rd 11am-12pm (PST) Register: Link in Chat Box
  5. 5. Today’s Speakers Jeff Coleman Director of Account management David Cooley Lead Marketplace Channel Analyst
  6. 6. Poll For The Audience… Which describes you best? A. Third Party Reseller B. Third Party Brand Manufacturer C. Vendor to Amazon (Access to Vendor Premium Services) D. Not currently selling on Amazon
  7. 7. Overview •Amazon Prime Day Overview •How to take advantage of the ‘halo effect’ prime day traffic •Manual vs. Automatic campaigns - which to choose from? •Refining & Sculpting your target audience with negative keywords •Controlling Sponsored Product campaigns with Advanced match types •ROI vs. Rank-Driven Campaigns •Bulk Operation Bidding •LIVE Q&A
  8. 8. Amazon Prime Day
  9. 9. What is Amazon Prime Day?  Amazon Prime Day is a shopping event held annually around July 15th and is likely to be one of the biggest sales days of the year for a majority of sellers.  Exclusively for Prime members, the sale offers more deals than Black Friday on a variety of products including electronics, toys, video games, movies, clothing, patio, lawn and garden, sports, outdoor items, and more.  The shopping event provides special offers including “Lightning Deals” and “Deals of the Day” on products to new and existing Prime members as often as every 10 minutes.  Last year, Amazon Prime U.S. memberships grew by 47 percent, offering thousands of deals to its database of an estimated 54 million members.
  10. 10. Pros Vs. Cons of Amazon Prime Day  Amazon Prime Day was a great way to spike numbers as sellers enter Q3  Additionally, it was a chance for sellers with inventory sitting on FBA shelves to liquidate and make room for their Q4 inventory investments  Regardless of your take on Prime Day, there was definitely a steep increase in traffic.  The con is that many sellers experienced a dip in the ratio of overall traffic to qualified traffic due to the fact that many shoppers were engaging in more browsing than actual purchases  Also, there was a higher advertising cost of sale (ACOS) in Sponsored Products, as many competitors sought to capitalize on the interest of purchase hungry consumers.
  11. 11. Prime Day | Inventory & Pricing Inventory Planning  Sellers should stock-up on inventory and treat it similarly to Q4 holiday sales. Especially for imported goods, you want to make sure you are prepared and allow enough time for FBA shipments.  Effective inventory management will ensure you don’t run out of products to sell when customers are looking to buy and your cash is properly invested in the right products so you can keep turning inventory over for a profit. *Pro Tip* If you think your lead time is going to be 30 days and it’s actually 45 days – then you have a high likelihood of having a 15 day stock out- which can be very expensive for a seller. Price Planning  Before jumping the gun and offering the lowest price on the market, sellers should take a step back and factor in a holistic view of their total costs.  Discounts and promotions are encouraged but it’s important to remember Prime Day isn’t a race to the bottom - although many sellers have made the mistake of offering pricing well below what they could offer - leading to a disruption in overall revenue.  A lot of high volume sellers and resellers will be using repricers to their full effect on Prime Day, so if you aren’t using one, closely monitor your hero ASINs. Price Planning: Experiment with price drops ahead of Prime Day to measure impact on sales velocity & profit in order to find the optimal price to sell at on Prime Day. Measure price elasticity & profit fluctuation at different price points to establish optimal price (can do that outside of Prime Day as well)
  12. 12. Amazon Prime Day - Promotions, Discounts & Lightning deals Lightning Deals & Deals of the Day  An Amazon Lightning Deal is a promotion with a limited number of discount offers on an item for a short period of time  These premium deals can be found throughout Amazon.com, including the Gold Box page and are available one per customer, until either the promotional period (typically 4 hour blocks) for the deal expires or all the available promotional discounts are claimed When a Lightning Deal is available, sellers will see:  The item featured in the deal.  Any available variations of the item (for example: different sizes or colors).  The promotional discount amount and final price.  A status bar indicating the percentage of deals currently in customers’ carts or purchased.  A timer showing how long you have to add the item to your Cart and claim the promotional discount.  An “Add to Cart” button if there are available promotional discounts. Whether or not Prime members get early access to the deal. *Pro Tip* - Products that are featured in Amazon’s Lightning Deal spaces typically enjoy a significant bump in sales throughout the duration of the deal.
  13. 13. How to Approach Your Sponsored Products Strategy on Amazon Prime Day
  14. 14. How sellers should approach Sponsored Products for Prime Day  As competition continues to grow on the Marketplace on Prime Day, sellers will need to tap into high level resources and marketing tactics to ensure they are optimizing and utilizing the most sophisticated practices to stay ahead  In our experience as an agency managing a variety of product verticals for many sellers, we’ve seen consistent success from using Amazon’s dynamic advertising platform―Sponsored Products  The goal of Sponsored Products is to create an advertisement that is compelling enough to capture the attention and convert a shopper. The more customers that discover your products, the more sessions, clicks, and purchases are likely to occur This leads us to a question many sellers are now asking: On Amazon Prime Day should I bid up to leverage higher traffic? “On the PPC side, we consider breaking out separate Sponsored Products and AMS campaigns specifically for Amazon Prime Day with elevated bids on key items. That way the variation in data you’re likely to see doesn’t throw off the data for your other campaigns,” - Jeff Coleman
  15. 15. Manual vs. Automatic campaigns - which to choose from?
  16. 16. Manual Vs. Automatic Campaigns? Automatic Campaigns  Once, you’ve registered for Sponsored Products, we recommend sellers build out Automatic Campaigns first, to help them better understand which ASINs they can and should run for Sponsored ads.  Automatic campaigns are designed to drive more impressions and traffic of your products by casting a “wider net” than Manual Campaigns.  With Automatic campaigns, Amazon will serve your ads to all relevant customer searches based on your product information. Pro Tips: Tip 1: Give All Your Products a Chance to Perform PRO-TIP: For Automatic Campaigns, we recommend sellers start with an initial bid level of $.15 to $.25 per product. Let the winners rise to the top and remember to let the data do the talking. Don’t try and select your top ASINs before hand. Tip 2: Listen to Your Search Term Data PRO-TIP: Sellers should also keep in mind that the keywords their customers are using to search for their products now might not be the same popular keywords in 6 months. It’s important to keep Automatic campaigns up and running (even after you’ve built out your Manual Campaigns, Phase 2) - so you can continue to harvest new popular search terms and other valuable data. Tip 3: Allow Sales Metrics to Catch Up PRO-TIP: Typically you’ll see a 48-72 hour delay in Sales metrics compared to Click and Spend metrics to catch up in the sponsored product campaigns.
  17. 17. Manual Vs. Automatic Campaigns? Manual Campaigns  Unlike Automatic Campaigns, Manual Targeting is based on keyword(s). This is why usually recommend sellers start off with Automatic Campaigns before building out their manual campaigns  We recommend selecting a name for your Ad Group(s) that you will easily recognize, for example “bath towels” or “phone cases”. Amazon will prompt sellers to scroll or search to select all the relevant products to include in this Ad Group Pro Tips: Tip 1: Goals Will Determine Ad Group Differentiation PRO-TIP: Segmenting your products is just one of the ways sellers can start to dissect and optimize their catalog. This ultimately can reduce wasted ad spend and increase the opportunity for your products to be found organically Tip 2: Build a Relationship Between Your Keywords & Custom Bids PRO-TIP: It behooves sellers to have a human analysis of their products to gauge how customers are actively searching for and finding their products in the Marketplace (for example recent seasonality or popular trends).
  18. 18. Refining & Sculpting your target audience with negative keywords
  19. 19. Negative Keyword Sculpting  Negative keywords allow sellers to refine and sculpt their target audience to improve the performance of their Sponsored Products campaigns.  The goal for Negative Keywords is to make sure sellers are getting their products in front of search terms that are actually relevant to the products they are advertising, while at the same time avoiding allocated spend to keywords which are generating clicks without conversions. Example: Excluding Weak Search Terms • Negative Keywords can have a positive impact on campaigns if implemented properly. • For example, a seller that manufactures a stress relief toy was serving ads to customers based off of the search term “cool stuff”. • Unfortunately, the product never saw a conversion from a customer using that search term. We saw an estimated 3480 total clicks in a 60 day period with about $760 in spend across a few campaigns related to the term “cool stuff”. • This is a good example of how “cool stuff” was identified as a negative keyword. Example: Refine Product Targeting • You can also use Negative Keywords to refine your targeting to exclude less relevant terms or terms you do not want associated with your products or brands. What this means is, you may use Negative Keywords to keep your ads from displaying to less relevant customer search terms or terms that you simply do not want associated with your brand. Prime Day Relevancy: Many Shoppers are “Just Browsing” • A lot of the traffic on Amazon on Prime Day will be unqualified customers just browsing for deals with little to no purchase intent. They may be using search terms like “cool stuff” or “hot deals on Amazon” that clearly indicate they are nowhere near the bottom of the conversion funnel
  20. 20. Controlling Sponsored Product campaigns with Advanced match types
  21. 21. Advanced Match Types ● Advanced Keyword Match Types help control which searches can trigger an ad to show. Amazon offers 3 Match Types, including: Broad Match: ● This match type offers your ad broad traffic exposure. A shopper's search query will match it if it contains all the keyword terms or their synonyms. The shopper's search query can contain keyword or synonyms in any order. Phrase Match: ● The shopper's search query must contain the exact phrase or sequence of words. Exact Match: ● The shopper's search query must exactly match the keyword in order for the ad to show, and will also close variations of the exact term.
  22. 22. Broad Match Type Summary: ● Maximize volume and visibility on Amazon. Ads triggered by words in your key phrase regardless of the order. Impact: ● Provides the biggest opportunity to get in front of the most people. Great for “new” products on the Marketplace. Prime Day Strategy: ● If volume is your goal, bidding up is a great way to increase traffic. ● If you want to remain ROI focused, bid down slightly
  23. 23. Phrase Match Type Summary: ● Only triggered when the user types in the exact string of words, however there can be other words “before or after” that exact string of words Impact: ● Not as restrictive as Exact Match, but can still filter out searches that might not be relevant Prime Day Strategy: ● Use similarly to Broad Match as this match type will probably perform similarly ● Good way to increase visibility while still refining target audience
  24. 24. Exact Match Type Summary: ● The most specific and restrictive match type. Ads will only be triggered when shoppers type in the exact string of words Impact: ● Less volume, but if you select your Exact Match keywords properly, high ROI Prime Day Strategy: ● Bid up on Exact Match Type Keywords that have proven performance in the past to take advantage of additional Prime Day traffic
  25. 25. Example of Match Types Amazon Seller: ● Premium hiking gear manufacturer Issue: ● Large number of clicks and spend based on general searches for “all purpose consumer backpacks and camping gear”, which was making their ad spend extremely inefficient. ● Customers searching for a generic backpack and some mid level hiking gear are not likely to invest and purchase premium tactical hiking gear Implemented Strategy: ● Instead of just using Broad Match, we implemented Exact and Phrase Match to filter out searches like “cheap backpack” and “discount camping gear”. ● Used Exact Match around performance hiking gear and other similar terms more related to the intent of the seller Results: ● What this did was help funnel more relevant shoppers, likely to convert and shorten the gap between the intent of the search query and product on market.
  26. 26. Using Phrase or Exact Match for Each Negative Keyword ● Sellers can also apply advanced match types to their Negative Keywords ● However, sellers may also use Phrase Match to exclude that term in additional contexts ● Sellers can add their Negative Keywords at the Ad Group or Campaign level ● Negative Keywords are available at the campaign or ad group level for manual and automatic targeted campaigns
  27. 27. ROI vs. Rank-Driven Campaigns
  28. 28. Setting Goals – Direct ROI vs. Visibility ROI-Focused Campaigns • Every $ spent needs to bring $X back in revenue • Lower volume, but higher ROI • Focus: long-tail keywords • Primary KPI: ACOS Ranking-Focused Campaigns • Goal of the campaign is to maximize sales velocity • Higher volume, but lower ROI • Focus: popular keywords • Primary KPI: Organic Ranking Why are these competing goals? Let’s use an example for Keyword “XYZ” • Bid level: $1 • ACOS: 100% • Monthly spend: $1,000 • What do I do?
  29. 29. ROI-Focused Strategy Rules of Thumb ✓ Start with Automatic Campaigns ONLY ✓ 1 product per Ad Group • Search Term data only exists at the campaign & ad group levels ✓ Keep bids low & scale up slowly as ROI allows • $0.10 starting point • $0.05 - $0.10 increments per week if ROI is positive OR if bid is too low to rank ✓ Harvest keywords as necessary to move into Manual campaigns
  30. 30. Keyword Harvesting from Auto Campaigns ✓ Start with Automatic Campaigns • Only source of On-Amazon keyword performance data • Safe way to harvest keywords at a positive ROI • Amazon won’t give you SKU data in this report so it’s important to limit your ad groups to 1 product each
  31. 31. Keyword Harvesting from Auto Campaigns ✓ Columns To Pay Attention To For Keyword Harvesting: • Campaign Name (Only look at your automatics) • Customer Search Term • ACOS • Orders Placed • Ad Group
  32. 32. Ranking-Focused Campaigns ✓ Manual campaigns to target key terms you know you want to rank for ✓ Keyword Sources • Automatic campaigns – high-volume search terms • Common-sense terms • Tools like Merchant Words or AMZ Tracker to identify best variations to rank for • Use existing organic rank to qualify keywords to target
  33. 33. Ranking-Focused Campaigns Using Existing Organic Rank ✓ If Rank > 300, SP alone probably isn’t going to impact your ranking for that term in a meaningful way ✓ However, it can move products that rank well for the target keyword farther up the SERP ✓ VAVA Voom speaker highlighted here currently at position 45
  34. 34. Bulk Operation Bidding
  35. 35. Bulk Operations Bidding? What is Bulk Operations?  Hassle free way of downloading SP metrics over a given time period as well as a scalable way to upload changes to existing Campaigns, Ad Groups and Keywords  Also allows you the ability to create campaigns and edit Campaign through an Excel file in bulk
  36. 36. Benefits of Bulk Operations Bidding? Scalable  Can adjust just a few bids or several thousand with a single upload Precise  No longer a “guessing game” as to how much you increase or decrease a bid Customization  Pull data from customized time periods, up to 60 days Efficient  Get more done in less time
  37. 37. Poll For The Audience… Would you like to speak with one of our Sponsored Products analysts about your current strategy? A. Yes, Please. B. No, Thank you.
  38. 38. Questions for the Experts? Submit your questions in the chat box on the right www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com cpcstrategy.com/amazon-evaluation Schedule A Free 60 min. Audit

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