Marketing
14 November 2022
Amazon advertising strategies for 2023
Brand awareness, margins and keywords are key to making the most of a marketing budget, writes SalesDuo CEO Arjun Narayan.
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A great approach to starting a business and earning money is by selling goods online, and Amazon is the best place to sell if you're going to do it anywhere. Fortunately, the Amazon market is vast and expanding rapidly as more and more people switch to online buying for virtually every kind of product.
It takes more than just doing what everyone else is doing and addressing the essentials to get exceptional results with Amazon. Following these tactics will place your brand in the best possible position for success. You’ll also improve brand recognition, generate more advertising revenue, and cut your Amazon advertising expenses. This will help you make the most out of your marketing budget.
Improve brand awareness
Amazon is the world's leading retailer and has quietly risen to the top of the list of websites used for advertising. Why is this such a fantastic chance for sellers? The advertising for Sponsored Brands on Amazon is primarily responsible.
Sponsored Brands advertisements appear on the search results page of an Amazon product search in the first column of the header. As a result, sponsored advertisements have a huge impact.
Regardless of whether or not customers had looked for the intended goods, this prominent placement of this ad type has demonstrated a sales conversion rate of 18% for products put on the search results page. Combined with keyword phrases and exact-match keywords that showcase your product, these ads are excellent for boosting top-of-the-funnel brand awareness and product reach.
Examine product profitability
Understanding your Amazon products' margins may seem silly, but it is crucial in structuring your Amazon advertising efforts.
You can examine the unique selling data points for each SKU. Assessing whether your profit margins are sufficient to invest more money in advertising for that specific product using the data, which ranges from cost to promotion to manufacturing and selling costs.
Before you consider investing more in paid advertising, determine which items have the highest profit margin. The last thing you want to do is spend money on advertisements for an unprofitable product. By eliminating underperforming goods and allocating resources to more profitable ones, you can change your product lineup with the aid of this analysis.
Utilize Amazon Sponsored Display Ads
The self-serve display advertising option Amazon offers is Amazon Sponsored Display Ads (formerly known as Amazon Product Display Ads). With the help of the Amazon Brand Registry, marketers may use this advertising technique to target and retarget customers both on and outside of Amazon with automatically created, product-focused ads.
Sponsored Display Ads, Sponsored Product Ads, and Sponsored Brand Ads have different target audiences, but Sponsored Display Ads are the most specific. Sponsored Display Ads target customers according to their buying preferences rather than using keywords. Amazon Sponsored Display Ads make use of simple, retail-focused controls that are adapted to the specifications of your brand and product.
While customers are perusing individual detail pages, Amazon's homepage and other third-party apps and websites, an Amazon display ad can help draw them in. According to Amazon, vendors who utilized Sponsored Display Ads had an average of two times as many impressions and one-half as many clicks on their listings.
Focus on keyword relevancy and reanalyzing keywords
Although you might have done keyword research when you first put up your product detail page, purchasing habits can now be different. Researching keywords is something you should do regularly, and you should make sure the terms are used throughout the product detail page. The title, description, and bullet points are crucial aspects of this.
This is more than just cramming your article with keywords. You still need to write to convert readers into customers. The algorithm may rank your product, but it is not purchased by it. Consumers are the ones who read and decide whether to buy. They need to be persuaded by your copy that your product is the best option.
Just like you, Amazon wants more sales and satisfied consumers. Although it can seem like it at times, it's not you versus Amazon. It's you vs. the alternatives on Amazon that a customer might pick over yours. Keep your strategy's emphasis on conversion and awareness. If you use the appropriate approach, Amazon should give you better rankings.
Arjun Narayan is the founder and CEO of SalesDuo, a full-service Amazon agency.
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Marketing
09 June 2023
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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