The Amazon Ads Puzzle
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Rod Richmond discusses how to prevent leakage of ecommerce sales to Amazon. He outlines a 4 step process: 1) Measure the extent of leakage using tools like Auction Insight reports and monitoring search results, 2) Budget advertising spending between Google and Amazon Ads based on the measured leakage, 3) Prepare for the differences between Amazon Ads and Google Ads such as winning the buy box and limited bid strategies, and 4) Prevent further leakage by reevaluating direct customer relationships and using tools like Google Universal Checkout.
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The Amazon Ads Puzzle
- 1. @rodppc #heroconf The Amazon Ads Puzzle How to prevent Amazon leakage for your ecommerce brands Rod Richmond | @rodppc
- 2. @rodppc #heroconf Amazon has flipped the ecommerce PPC landscape on it’s head…
- 3. @rodppc #heroconf 1. Amazon provides a better UX than your website
- 16. @rodppc #heroconf 2. Amazon sells at lower price
- 19. @rodppc #heroconf 3. Amazon provides almost instant market access to new competitors, imitation products etc.
- 21. @rodppc #heroconf 4. Amazon is bidding on more Shopping and Search ads in Google than ever before
- 22. @rodppc #heroconf 1 2 3 4
- 27. @rodppc #heroconf So Amazon offers a better UX, sells my products cheaper, allows easy access to market for my competitors and are bidding against me on Google Ads. “Cool”
- 28. @rodppc #heroconf It will get worse as they grow & Amazon continues to… ➢ Be the first stop for consumers to purchase ➢ Increase Prime Users (2x spending power) ➢ Aggressively compete with Google and Facebook for those precious ad dollars Matters
- 30. @rodppc #heroconf “By 2023, could be 14% of total US digital ad sales, up from 9% in 2019” “In 2018…generated $10.1 billion in ad revenue, up 117% YoY from $4.7 billion” https://www.businessinsider.com/the-rise-of-amazon-advertising-2019-5
- 34. @rodppc #heroconf “OK people, we need to cook up a new holiday for the summer…” Mr Costington, The Simpsons Season 9 Amazon Dominance
- 35. @rodppc #heroconf Bit close to Halloween for all this scary stuff!
- 36. @rodppc #heroconf No puzzle is unsolvable!
- 37. @rodppc #heroconf About Me ➢ Head of Strategy at Clean Digital ➢ 6th Hero Conf I’ve presented at ➢ EDI > LHR > EDI > LGW ➢ Still gets lost on tube
- 38. @rodppc #heroconf About Me , Royal Mail, Delivery Matters
- 39. @rodppc #heroconf , Royal Mail, Delivery Matters 4 Point Checklist to Solve The Puzzle 1. Measure 2. Budget 3. Prepare 4. Prevent
- 40. @rodppc #heroconf Are we dealing with a drip or a full on “burst the banks” flood? Everyone is leaking sales to Amazon, the key point is to know how much ➢ How do we measure the leak? 1. Measure
- 41. @rodppc #heroconf Are we dealing with a drip or a full on “burst the banks” flood? ➢ Start with Auction Insight Report 1. Measure
- 42. @rodppc #heroconf Are we dealing with a drip or a full on “burst the banks” flood? Google SERP (search engine results page) Monitoring ➢ For your priority products ➢ Manual, use VPN, test incognito and with different devices at different times of day. ➢ Put yourself in the searchers shoes: who has the most appealing offer here? 1. Measure
- 43. @rodppc #heroconf Amazon SERP Monitoring ➢ Again, can fluctuate wildly (4,000+ experiments a day) ➢ Can be done manually (VPN, incognito, different times of day etc) ➢ More software & automated options 1. Measure
- 44. @rodppc #heroconf Are we dealing with a drip or a full on “burst the banks” flood? 1. Measure Don’t be like Nike…
- 49. @rodppc #heroconf 2. Budget You know the extent of your Amazon leakage, how do you react with your paid media budgets. ➢ Few industries can justify spending more on Amazon Ads than Google Shopping. ➢ However, how you do you know what end of the scale you are on?
- 50. @rodppc #heroconf , Royal Mail, Delivery Matters High End Fashion Low Value Consumer Electronics 2% 80%
- 53. @rodppc #heroconf 2. Budget cleandigital.co.uk/amazon Try it out for yourself!
- 56. @rodppc #heroconf , Royal Mail, Delivery Matters 3. Prepare Amazon Ads is an effective channel, but still in its growth phase. Sponsored Brands Sponsored Products
- 60. @rodppc #heroconf , Royal Mail, Delivery Matters 3. Prepare Amazon Ads is an effective channel, but still in its growth phase. Sponsored Brands Sponsored Products
- 62. @rodppc #heroconf 3. Prepare This is very different from Google Ads Retail Readiness ➢ Need to be selling on Amazon already ➢ Close relationship between marketing (agency) and trading or logistics teams. ➢ Data Studio Live Trading Dashboards ➢ Win that Buy Box!
- 63. @rodppc #heroconf Winning the Buy Box
- 64. @rodppc #heroconf ➢ 90% of shoppers click add to basket (aka the buy box) without evaluating other sellers ➢ No “Other Sellers” link on mobile ➢ You must consistently win the buy box
- 67. @rodppc #heroconf 3. Prepare Optimise for ACOS, not profit ➢ Amazon is a vacuum, so not to worry This is very different from Google Ads
- 68. @rodppc #heroconf 3. Prepare Limited Bid Strategies This is very different from Google Ads
- 69. @rodppc #heroconf 3. Prepare Attribution Discrepancies. How sales are attributed to ad spend depends on if you are using ➢ Seller Central (use Amazon to sell to consumer) ➢ Vendor Central (you sell to Amazon, they sell to consumer) This is very different from Google Ads
- 70. @rodppc #heroconf 3. Prepare Attribution Windows ➢ Seller Central = 7 days ➢ Vendor Central = 14 days This is very different from Google Ads
- 71. @rodppc #heroconf 3. Prepare Halo Attribution for Sponsored Products ➢ Can be another product sold by your brand, not the original SP they clicked on ➢ Segmented out in advertising reports This is very different from Google Ads
- 72. @rodppc #heroconf 3. Prepare Halo Attribution for Sponsored Brands ➢ Can be another product sold by your brand but by ANOTHER SELLER, not the original SP they clicked on. ➢ Not segmented in advertising reports This is very different from Google Ads
- 73. @rodppc #heroconf 3. Prepare This is very different from Google Ads Odd Search Term Reports
- 74. @rodppc #heroconf 3. Prepare Lack of automation/features This is very different from Google Ads
- 76. @rodppc #heroconf 4. Prevent Re-evaluate your direct sales relationship with your customers ➢ Give users a concrete reason to shop direct.
- 77. @rodppc #heroconf 4. Prevent Re-evaluate your direct sales relationship with your customers Think long term. ➢ Owning direct sales data helps you build loyalty with top customers. ➢ Helps you spot data trends ➢ Attract back via other channels i.e. remarketing, email etc
- 78. @rodppc #heroconf 4. Prevent Re-evaluate your direct sales relationship with your customers Google Universal Checkout ➢ Buy via Google Checkout (no website required) ➢ Price tracking in results (like they have in beta for Hotel/Flight Ads)
- 79. @rodppc #heroconf 4. Prevent Re-evaluate your direct sales relationship with your customers PPCers can win at Amazon Ads ➢ Marketers with a PPC background have the ideal toolkit for success ➢ Find the balance between on site and marketplace purchases to stay one step ahead of the evolving ecommerce consumer
- 80. @rodppc #heroconf Thank you & good luck plugging that leak!