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Performance Marketing

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The importance of good performance marketing for success

Amazon is a “pay-to-play” market where you cannot be successful without campaigns, since “above the fold”, there  are almost only advertising spaces to see.

“Only the visible ones are able to sell something.

And visibility is not given (anymore) “

Here are the reasons why you can’t achieve significant success without performance marketing:

Well-designed campaigns

… ensure more visibility and more sales of your offers

sorgen durch Conversions auf einschlägige Suchbegriffe für ein verbessertes Ranking und dadurch für mehr organischen Traffic

… provide conversions on relevant search terms for an improved ranking and thus more organic traffic

… keep competitors away from your offers and search terms

… ensure that you gain market share even from competitors

…. help with better cross-selling and thus generate higher shopping carts

… guarantee that your brand becomes more known and sought-after on the #1 product search engine and the largest marketplace.

In in a nutshell: Good performance marketing ensures that you achieve your selling and marketing goals on Amazon.

More arguments needed? Here are some exciting facts.

70%

of sales take place on the first page

90%

of consumers view Sponsored Products ads (as if they were organic)

67%

of consumers view Sponsored Brand Headline Ads

50x

higher click-through rates (CTR) are shown in the top search than in other placements

3x

higher conversion rate (CR) are shown in the top search than in other placements

40%

of the campaign share is also for established products

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Why is good performance marketing essential for success?

Amazon is a “pay-to-play” market where you cannot be successful without campaigns, since “above the fold”, there  are almost only advertising spaces to see.

Human Intelligence:

We develop and operationalize dedicated marketing hypotheses, which we then consistently test. Because it’s not just about generating a little more sales. Rather, we want to know all the scaling levers and how well they work for the offering.

Data Intelligence

A comprehensive channel-specific keyword and competitor analysis forms the basis. This makes the different marketing hypotheses concrete and gradually expands them through “harvesting” from other campaigns.

Creative Intelligence

There’s not much room for maneuver in the tight corset on Amazon, so you have to be even more creative with your options. When deriving marketing hypotheses, advertising texts and landing pages, we rely on proven creativity techniques.

Business Intelligence

Accurate testing, optimization and scaling requires a granular campaign setup that is “mece”. This means that the marketing hypotheses are described as comprehensively as possible without overlapping each other. You have to know all the adjustment screws in the campaign setup and adjust them skillfully.

Automation Intelligence

To manage the complexity, we rely on our own BI suite, the VALUEZON Performance Cockpit, for controlling and optimization. This ensures 100% transparency with maximum clarity for both our performance marketers and our customers and we always focus our attention on the areas with the greatest optimization potential.

Performance Marketing Intelligence

Of course, we also use automation tools – where it makes sense – which then carry out optimization measures in our interests 24/7 based on the first four principles. We know the best of breed solutions and know exactly where they should be used and in which cases they fail.

Our philosophy: spreading in concentric circles

We always process our marketing hypotheses along concentric circles – from the narrow to the extended hypotheses, because…

Quick insights into the most important questions are a “must have” and provide security

Any tight media budgets can be used in a very targeted manner

As quickly as relevant keyword conversions are generated, the organic ranking can be improved

This is the quickest way to identify scaling levers and generate sales

This generates cash flow, which is necessary to test the extended hypotheses

Newcomer? What forms of advertising are there on Amazon?

Advertisers can create Cost-Per-Click (CPC) ads for their products, where they go to an auction for a defined search term and pay for clicking on their ad. Daily budgets for campaigns and the cost-per-click for a specific targeting can be defined in advance. When a customer clicks on the ad and is redirected to the product detail page, the advertiser will be charged the agreed amount.

Sponsored Products offer advertisers the opportunity to promote their products and increase their visibility on Amazon. By using relevant keywords and placing the ads in strategic locations, advertisers can better reach their target audience and draw potential customers’ attention to their products.

This form of product advertising is the most important advertising form of the Amazon Advertising Console.  Sponsored Products Campaigns generate about 80% of ad spend and ad sales. This is due to the fact that the number of impressions is highest with this advertising format, but also the Click-Through Rate and the conversion rate is often higher than with other advertising formats, such as Sponsored Brand and Sponsored Display.

Furthermore, ad placements can also be determined via Sponsored Products Campaigns. Here, placements on top of search and detail pages can be influenced by percentage surcharges via bid placements. It should be noted that placements on Top of Search usually offer the best Click-Through Rate and Conversion Rate, but also cause the highest click costs. Here, it is important to find the sweet spot based on targeted data analysis.

We recommend to channel and strategically target the keywords and the ASIN’s that are being advertised. One approach we often use is targeting by strategy, where we target campaigns by defensive (brand search), generic (generic search) and competitive (direct competitor targeting). This has the advantage of being able to control different areas separately, analyzed and defined with different targets. To illustrate the whole, we offer an example here.

Let’s imagine that we sell coffee machines by the brand Jura, and we think the following campaign structure is recommended:

Defensive (Brand Search): Applies to all search terms related to “Jura”.

Generic (generic search): The generic campaigns include search terms such as “coffee machine”.

Competitive (targeting direct competitors): Here, the focus could be on keywords such as “WMF coffee machine”, or “Tschibo coffee machine”.

 

Amazon Sponsored Brands is a powerful tool that allows sellers and brands to strengthen their presence on Amazon by placing prominent ads. With Sponsored Brands, you can connect to your own Amazon store or specific landing pages to drive customer loyalty and increase sales.

Unlike Sponsored Products Ads, which appear in variable positions in the search results, Sponsored Brands Ads are placed either at the top of the search results or at the bottom. This can lead to higher attention for your brand and your products.

One of the special features of sponsored brands is that they can not only display individual products, but also present a label with a slogan and up to three individually selected articles. This opportunity gives sellers and brands the chance to effectively present their brand and offers and address potential customers.

Depending on how strong the brand is, the share of sponsored brands is about 8-15% of ad spend and ad sales. With particularly strong brand names, the proportion can also be significantly higher. Sponsored brand campaigns also give you the opportunity to generate traffic to your own brand shop and thereby increase the shopping cart (average basket).

Sponsored Brand Video is an advertising option on Amazon where sellers or brands can create and display videos as ads to promote their products or brands. These videos are displayed in search results and on Amazon product pages and are also billed on a CPC basis.

To create a sponsored brand video, sellers or brands must create a campaign in Amazon Advertising and upload a video that complies with Amazon policies. The video can be up to 45 seconds long and should contain relevant information about the product or brand. The videos are designed to start playing automatically as soon as a shopper scrolls over the ad and at least 50% of the preview image is visible to the user. This allows brand awareness to be created before the potential buyer clicks on the video ad. Sponsored brand video campaigns can also be played at the top of the search results if the video ad is not linked to a product, but to an Amazon brand store.

Sponsored brand videos are an effective way for sellers and brands to attract customers’ attention and promote their products or brands. They can also help increase customer engagement and increase sales.

Sponsored Brand Video campaigns often have a very Good Click-Through Rate and Conversion Rate. However, the number of playouts is very limited and The Cost-Per-Clicks are usually very high.

Sponsored Display is a CPC-based advertising format on Amazon that allows advertisers to show ads outside their own offering on Amazon. With Sponsored Display, advertisers can target their products to potential Amazon customers looking for similar products or have recently purchased similar products.

The ads appear in different formats in search results or on product pages. The advertiser has the possibility to customize the label in addition to the cover image and headline. In addition, there is also a Sponsored Display Video function, with which videos of up to 45 seconds can be created to present products attractively and address potential customers.

Sponsored display ads are placed using Amazon targeting methods based on interests, search terms, products, and categories. In addition, there is a retargeting feature that allows advertisers to target audiences who have already viewed or purchased products. This feature allows advertisers to target their ads more specifically to relevant audiences and use their advertising budgets more efficiently. When setting up the ads, a bid optimization strategy can be defined. This shows that Amazon optimizes the bids for scope, page visits or conversions.

Furthermore, so-called Sponsored Display vCPM campaigns can be created. VCPM stands for “viewable cost per mille” and refers to the price the advertiser pays for a thousand visible impressions. A Sponsored Display vCPM campaign is a Display Ad Campaign that displays the ads on the product detail pages, search results pages, and other relevant locations on the Amazon website. The ads can have different formats, such as image or text ads, and are presented to customers who have already searched for similar products on the Amazon website or are interested in similar products.

The share of sponsored display campaigns is usually about 5-15% of the ad spend and the ad sales. Sponsored display campaigns are ideal for attacking direct competitors on their product detail pages, or for protecting your own product detail pages and building targeted cross-selling strategies.

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