BI 334: How to Leverage the Latest and Greatest from Amazon's Ad Platform

On the show with me today is Brett Curry; CEO of OMG Commerce - a digital marketing agency for eCommerce that has now twice ranked on the Inc 5000.

Brett has an extensive background in online advertising, so I invited him onto the show to talk about how the Amazon ad platform has evolved over the last few years and the conversation that we had is jam packed with all the latest tactics and strategies for leveraging all the latest resources on the Amazon ad platform. Specifically, we talked about 3 new types of ads: Sponsored Display, DSP, and Sponsored Brand Video.

If you are part of a CPG brand that isn't yet leveraging all the latest advertising tools that Amazon has made available, then you are definitely going to want to listen to this episode.

As always, if you have any questions, you can either contact Brett on social, or leave me a voicemail at https://brightideas.co/asktrent

Episode Highlights

[03:59] — Brett introduces OMG Commerce

OMG Commerce is a digital marketing agency working exclusively with e-commerce companies. It has ranked twice on the Inc. 5000.
Their agency has two divisions: Google/YouTube and Amazon.
The Amazon advertising platform is rapidly growing in terms of digital advertising.

[05:53] — The evolution of Amazon’s advertising platform

Sponsored Products and Sponsored Brands are still a staple and the foundation of most Amazon advertising strategies.
Sponsored Display ads and Sponsored Brand Videos are a few examples of new ways to advertise on Amazon.

[08:33] — The first aid for clients struggling in Amazon advertising

Figure out your advertising cost of sales goals and your total ad cost of sales.
Find out which products you are willing to spend more on to advertise.

[10:58] — How ad campaigns help your product rank higher

Search bar-sponsored products are the most efficient initial ad campaigns.
Conversion rates are high, and the cost is manageable for Sponsored Products and Sponsored Brand Videos.
Display ads can reduce the conversion rate and hurt organic rankings.
Discounted sales count in your sales velocity only if they’re at a normal range and not reaching 90 to 100% discount.

[14:35] — Ranking a product organically

It all depends on a client’s ad cost goals.
Know your budget and your tolerance.
You can take a slow and steady approach to ad spending.
You can also take an aggressive initial approach and then narrow it down once you gain velocity.

[17:00] — The benefits of Sponsored Display ads and Amazon DSP

People have wanted to try Amazon DSP because it allows sellers to remarket to their product detail page viewers.
You have more control and flexibility with Amazon DSP than with Sponsored Displays because of its rich behavioral data.
You can also target the Google Display Network and reach people across the web.
To measure the effectiveness of your Amazon DSP, compute the ROAS or return on ad spend (conversion value divided by cost).

[23:10] — How to sell on Amazon & the value of retargeting

Any business needs to focus on retargeting, be it through remarketing, loyalty campaigns, or competitive conquesting.
Target people who viewed your competitors’ products but did not buy.
If Amazon shoppers see your ad and it's clear it's an Amazon listing, that boosts your click-throughs and conversions.

[26:28] — How competitive conquesting works

Once a shopper looks at a competitor’s product but does not purchase it, you may target that shopper throughout Amazon’s advertising platforms.
These platforms range from the Amazon app itself, the Amazon website, and even Amazon-owned sites such as IMDb.

[30:48] — Sponsored Brand Videos, CPC & PPC advertising

Videos capture a shopper’s attention immediately.
Sponsored Brand Videos are better scroll-stoppers compared to static ad images.
Some people animate their images to make them into videos.
The click-through rate of videos is three to ten times higher than that of sponsored ads.
The cost per click is also 10 to 40% lower.

[34:16] — What makes a video ad great?

Making great videos doesn't need high production value.
Get into the mindset of the shopper.
Think of it less like a TV commercial and more like a product demonstration.
Optimize for mobile applications, and keep it 15 to 30 seconds long.
Make sure to highlight the features and benefits even without sound.

[38:48] — How search engines are connected to an Amazon listing

Amazon is the largest advertiser on Google; therefore, Amazon's number one traffic source is Google.
The traffic comes either organically or through Google advertising.
If someone searches for the brand, they are redirected to the company website. But if someone searches for a category, they are redirected to the Amazon listing.
Amazon attribution can track URLs. The platform sees it as external traffic and converts well.