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AMAZON ADVERTISING - THE GAME CHANGER IN(E-COMMERCE) MARKETINGFH Oberösterreich | 17.10.2019 | Stefan Bures
\\ AGENDA
1. Short Introduction
2. 5 fundamental Trends (re-)shaping Commerce
3. Playbook for a successful digital Business
4. Visibility with Amazon Advertising
2metoda GmbH \\ 2019
SHORT INTRODUCTION
3metoda GmbH \\ 2019
- Born 1983 in Frankfurt/Main (36)
- Diploma in Business Administration, Master in Technology Management
- 10+ years of experience in Online Marketing, SaaS, and E-Commerce
- Founder and managing director of metoda
- My fields of interest:
- Data analytics & BI
- Agile working & culture
- The business fundamentals of growth
4metoda GmbH \\ 2019
\\ ABOUT ME
WE KNOW E-COMMERCE.
WE EMPOWERBRANDS, RETAILERS, AND AGENCIESIN DIGITAL COMMERCE.
5metoda GmbH \\ 2019
\\ ABOUT METODA
Amazon AdvertisingVisibility AnalysisMarket InsightsE-Commerce Data
5 FUNDAMENTAL TRENDS (RE-)SHAPING COMMERCE
6metoda GmbH \\ 2019
Social Media platforms have billions of active users. This influences the entire customer journey from awareness to purchase.
7metoda GmbH \\ 2019
\\ TREND 1
Source: https://www.nielsen.com/ph/en/insights/article/2016/connected-commerce-is-creating-buyers-without-borders/ and https://techcrunch.com/2017/06/27/facebook-2-billion-users/
Multiple digital touchpoints areinvolved
51% of Shoppers in Q1 2018 bought via mobile, an increase of 35% YoY.
8metoda GmbH \\ 2019
\\ TREND 2
Source: http://www2.publicisgroupe.net/shopper-first
Mobile becomesthe most relevant channel
Platforms and marketplaces like Amazon, eBay, and Zalandoattract the majority of e-commerce purchases. With ~50% Amazon is the leading player in the US and in Europe.
9metoda GmbH \\ 2019
\\ TREND 3
Source: https://www.emarketer.com/Chart/Top-10-US-Companies-Ranked-by-Retail-Ecommerce-Sales-Share-2018-of-US-retail-ecommerce-sales/220521 and http://go.jumpshot.com/rs/677-KZC-213/images/Jumpshot%20Retail%20Winners%20Losers%20and%20Amazon%20Data%20Report.pdf
Platformsdominate themarkets
57% of shoppers bought products across the border in Q4 2015. Cross-border commerce is enabled via marketplaces.
10metoda GmbH \\ 2019
\\ TREND 4
Source: https://www.nielsen.com/ph/en/insights/article/2016/connected-commerce-is-creating-buyers-without-borders/
E-Commerce is gettingglobal
More and more retail channels require advertising for above the fold (top of the page) visibility. Furthermore, comprehensive audience data increase reach and impact.
11metoda GmbH \\ 2019
\\ TREND 5
Source: https://www.netzoekonom.de/2018/06/22/600-millionen-euro-umsatz-mit-retail-media-in-deutschland-erwartet/
Retail Advertising is evolving
Amazon has a ~50% share of the market in Germany (2018)
12metoda GmbH \\ 2019
\\ THE AMAZON & RETAIL ADVERTISING MARKET
Source: ttps://www.northdata.de/Amazon+Online+Germany+GmbH,+M%C3%BCnchen/HRB+200765and https://www.horizont.net/marketing/nachrichten/auf-der-ueberholspur-wie-retail-media-in-diesem-jahr-weit-nach-vorne-kommt-174668
WE ARE ENTERING THE D2C AGE…
13metoda GmbH \\ 2019
\\ WHAT DOES THIS ALL MEAN?
brand
customer
WE ARE ENTERING THE D2C AGE…
14metoda GmbH \\ 2019
\\ WHAT DOES THIS ALL MEAN?
brand
customer
HOW?
PLAYBOOK FOR A SUCCESSFUL DIGITAL BUSINESS
15metoda GmbH \\ 2019
16metoda GmbH \\ 2019
\\ FACTORS FOR SUCCESS IN A (DIGITAL) D2C WORLD
RetailReadiness
Multi Channel Selling
OperationalExcellence
VisibilityBoost
17metoda GmbH \\ 2019
\\ PLAYBOOK
RetailReadiness
• Products andBrands
• Content• Pricing• Reviews /
Ratings
• SEO• SEA• Display Ads /
Audiences• Influencer• CRM / Loyalty
(performance focus)
Multi Channel Selling
• Marketplaces• Own shop(s)• Social Media
• Availability• Forecasting• Feedback
Management• Logistics
OperationalExcellence
VisibilityBoost
18metoda GmbH \\ 2019
\\ PLAYBOOK
RetailReadiness
Multi Channel Selling
OperationalExcellence
VisibilityBoost
Retail Advertising
• Products andBrands
• Content• Pricing• Reviews /
Ratings
• SEO• SEA• Display Ads /
Audiences• Influencer• CRM / Loyalty
(performance focus)
• Marketplaces• Own shop(s)• Social Media
• Availability• Forecasting• Feedback
Management• Logistics
VISIBILITY WITH AMAZON ADVERTISING
19metoda GmbH \\ 2019
AMAZON IS NOT ONLY THE LEADING RETAILERIN THE WESTERN WORLD, IT IS ALSO THE
#1 SPOT TO RESEARCH PRODUCTS
20metoda GmbH \\ 2019
Source: https://go.jumpshot.com/Q2-18-Data-Report.html
21metoda GmbH \\ 2019
\\ VISIBILITY (ON AMAZON) IS CHALLENGING
22metoda GmbH \\ 2019
\\ VISIBILITY (ON AMAZON) IS CHALLENGING
Above the fold(no scrolling)
23metoda GmbH \\ 2019
\\ VISIBILITY (ON AMAZON) IS CHALLENGING WITHOUT ADS
Paid searchresults
Above the fold(no scrolling)
Amazon brands
Organic searchresults
VisibilityBoost
24metoda GmbH \\ 2019
\\ VISIBILITY (ON AMAZON) IS CHALLENGING WITHOUT ADS
Paid searchresults
Above the fold(no scrolling)
Amazon brands
Organic searchresults
Sponsored Ads on product detail page
VisibilityBoost
25metoda GmbH \\ 2019
\\ AND IT IS MORE THAN LEVERAGING SEARCH PLACEMENTS
ON AMAZON OFF AMAZON
Audience 1 Audience 2
Audience 3 …
Three basic questions need to be answered
26metoda GmbH \\ 2019
\\ HOW TO START
What is my Budget? What Products to advertise? What is my Goal = ACoS?
1 2 3
Three basic questions need to be answered
27metoda GmbH \\ 2019
\\ HOW TO START
What is my Budget? What Products to advertise? What is my Goal = ACoS?
1 2 3
10 € PER PRODUCT PER DAY
28metoda GmbH \\ 2019
\\ SIMPLE BUDGET RULE
0 €
5 €
10 €
15 €
20 €
25 €
30 € Prime Day
Except forseasonalevents
29metoda GmbH \\ 2019
\\ AVAILABLE ADVERTISING OPTIONS DEPENDING ON YOURBUDGET
COM
PLEX
ITY
SponsoredProducts
SponsoredBrands
ProductDisplay Ads
AVAILABLE BUDGET
DSP Awareness
DSP Remarketing
Three basic questions need to be answered
30metoda GmbH \\ 2019
\\ HOW TO START
What is my Budget? What Products to advertise? What is my Goal = ACoS?
1 2 3
Tip: take the top 20% ASINs in terms of CR
31metoda GmbH \\ 2019
\\ WHAT PRODUCTS TO CHOOSE
ATTRACTIVE PRODUCT PRICE GOOD RATINGS & REVIEWS
RELEVANT CONTENT HIGH ORGANIC VISIBILITY
RetailReadiness
32metoda GmbH \\ 2019
\\ WHAT PRODUCTS NOT TO ADVERTISE
BUYBOX ISSUES AVAILABILITY ISSUES
PROFITABILITY ISSUES PAYMENT ISSUES
OperationalExcellence
Three basic questions need to be answered
33metoda GmbH \\ 2019
\\ HOW TO START
What is my Budget? What Products to advertise? What is my Goal = ACoS?
1 2 3
Tip: define a clear strategy / ACoS goal matrix
34metoda GmbH \\ 2019
\\ WHAT ACOS TO SET
o Novelties vs. mature products
o Short tail vs. long tail products
o Seasonal products
o Visibility (branding) vs. sales orprofitability (performance)
o Attack vs. protect
o CLV-based vs. one-time-purchase
PRODUCT CHARACTERISTICS STRATEGIC GOALS
35metoda GmbH \\ 2019
\\ DEFINE A STRATEGY FOR EACH OF YOUR PRODUCTS
BOOSTREVENUES
SUPPORT LAUNCH
CREATE AWARENESS
INCREASEPROFIT
Mid to high budget
All ASINs
Mid to high ACoS
Mid to high budget
Selected ASINs over time
High ACoS at start, decreasing
Low to midbudget
All ASINs
Low to midACoS
High budget
Selected ASINs
ACoS not themain target
RE-ENGAGEAUDIENCE
Mid budget
Selected ASINs
Low to midACoS
36metoda GmbH \\ 2019
\\ SUMMARY
Identifythe top
Products
ExtendReach
Fix theBasics
IncreaseVisibility
Retail Readiness Retail Readiness, Operational Excellence
Visibility Boost Visibility Boost, Multi Channel Selling
metoda GmbH | we know e-commerce
bayerstraße 69 | 80335 münchen
EMPOWERING DIGITAL COMMERCE
mail:
office:
web:
STEFAN BURES
+49 89 124 137 800
www.metoda.com
37metoda GmbH \\ 2019
