Domin8 Commerce

Two Oversimplified Approaches to Show Up on Amazon Search

Wed, 28 Feb 2024 00:19:30 GMT

Most brands with an established customer base will consider launching on Amazon at some point.

And why not?!

With over 310 million active users, it’s the most popular e-commerce marketplace in the U.S.

AND chances are a lot of your customers frequent Amazon already for online shopping and may even be wondering if your brand has a presence there.

For brands that don’t have an Amazon storefront, two things can happen if a customer searches for your products on their search engine:

Customers who can’t find your brand on Amazon will return to your website and purchase.

Worst case scenario: They end up buying a competing product from Amazon instead.

To battle these issues, the Pilothouse Amazon team sees a lot of brands take these two approaches when selling on Amazon:

1. Focusing on branded keywords

Build it, brand it, and forget it. A lot of DTC brands will create an Amazon storefront, target only branded keywords in their ad campaigns, and then leave it at that.

To do this, you’ll need to build an optimized Amazon listing, send in some inventory, and add some advertising dollars on branded keywords so you show up first in search results.

Branded campaigns are a great way for your existing customers to find you with ease — Just make sure your competitors aren’t stealing away your customers!

This can be a viable option for brands at a decent scale who don’t have the bandwidth to take a more comprehensive approach to Amazon selling.

While this can add some profit to your bottom line, with this approach your Amazon revenue will only ever be as large as your branded presence.

This means you're:

✅ Only targeting customers who are aware of your brand and products

❌ Not acquiring brand new customers

2. Focusing on generic keywords

Now let’s talk about generic keyword advertising. A generic term is a non-branded term.

For example, if you are selling a Nike Pegasus Trail Runner, “trail runner” would be a generic term and “Nike trail runner” would be a branded term..

Ranking well for generic keywords is a major win since these shoppers are net new customers for your brand with a strong intent to purchase.

This approach is an investment at first but has the potential to result in huge gains.

Here are two ways to achieve growth:

Slow Profitable Growth

In addition to branded campaigns that generate a high return, generic campaigns are built slowly and consistently on long tail low volume keywords that generate a profitable ACOS (Advertising Cost of Sale).

Minimal budget is invested into ranking (high volume generic terms) in order to maintain a target-ACOS that is profitable to the brand.

Fast Unprofitable Growth

Allocate the bulk of your budget to campaigns that are designed to generate rank and combine this with an aggressive discounting and pricing strategy to boost CVR.

Purposely running the account below a profitable Total Advertising Cost of Sale is the fastest way to achieve sales volume. Once volume and rank is achieved, the account is shifted to a profitable position.

This is a cash investment approach and can generate great results, (provided the business is in a position to invest).

Ultimately how and when you approach Amazon depends on the current goals of the business, the current cash scenario, and the long term goals for the Amazon channel.

Cookies are going away in 2024, but the ad industry can’t seem to kick the habit

Wed, 28 Feb 2024 00:13:31 GMT

The journey towards a cookieless future may be fraught with uncertainty, but it also offers an opportunity to innovate and redefine the boundaries of digital advertising.

As 2024 approaches, the digital advertising world stands on the brink of a significant transformation. The anticipated phase-out of cookies by Google has been a topic of discussion and speculation for years, yet the ad industry seems to be in a holding pattern, with many clinging to old habits as the deadline looms closer.

Despite Google's history of delaying its timeline, the move towards a cookieless future is inevitable. Data from 33Across shows that all 10 industries tracked continue to rely heavily on cookies for programmatic ad buys, suggesting a slow adaptation to alternative identity solutions. This resistance to change could spell trouble, as the deprecation of cookies will not only affect tracking but will also necessitate a shift in how we approach digital advertising strategies.

The Reality of Transition

The transition is set to trigger a consolidation in the identity provider market, with a current oversaturation of services unlikely to be sustainable in a post-cookie environment. This consolidation could lead to a stronger, albeit smaller, group of providers emerging to lead the way in the new era of digital advertising.

Apple's Move into Advertising

Interestingly, Apple's foray into advertising appears to be gaining traction, with the company making moves to establish its own demand-side platform (DSP). This development is not only indicative of Apple's ambitions in the advertising space but also highlights the evolving landscape where privacy and advertising strategies need to coexist more harmoniously.

The Path Forward

As professionals in the marketing and publishing industries, the time is now to pivot and prepare. Embracing new technologies, exploring alternative tracking methods, and fostering a deeper understanding of consumer privacy will be key to thriving in this new reality.

The journey towards a cookieless future may be fraught with uncertainty, but it also offers an opportunity to innovate and redefine the boundaries of digital advertising.

4 data-backed tips to improve ecommerce conversion rates

Mon, 26 Feb 2024 17:19:40 GMT

In the digital marketplace, where the line between browsing and buying can be as thin as a click, brands are constantly seeking strategies to not just attract eyeballs but convert them into sales. Based on recent insights, here are four strategies that are critical for enhancing online conversion rates:

1. Transparency is Key: Before consumers commit, they want to know what they're getting into—especially when it comes to shipping and returns. Recent data from Wunderman Thompson highlights the importance of offering free and fast delivery, along with hassle-free returns. Yet, many brands wait until the checkout process to reveal these details.

Strategy: Make shipping and returns information clear and accessible right from the get-go. This transparency builds trust and can significantly reduce cart abandonment rates.

2. Simplify Your Ad Strategy: While it's tempting to utilize every advertising avenue available, a focused approach often yields better results. According to a survey by PwC, 37% of consumers find direct links to offers or promotions the most influential.

Strategy: Employ lower-funnel tactics like direct promotions to drive conversions, but don't abandon upper-funnel activities that build brand awareness. The goal is to create a cohesive journey from discovery to purchase.

3. Product Descriptions Matter: A comprehensive product page can be the difference between a sale and a pass. Incomplete or vague descriptions send potential customers elsewhere.

Strategy: I nvest in detailed product descriptions, high-quality images, and even customer reviews to provide a full picture of what you're offering. This not only aids in decision-making but also enhances the overall customer experience.

4. Personalization with Privacy: Finding the sweet spot between personalized experiences and privacy concerns is crucial. While AI and machine learning offer advanced personalization capabilities, they can sometimes cross the line into being perceived as intrusive.

Strategy: Start with personalization based on past purchases and slowly experiment with more advanced techniques on a smaller scale to gauge consumer reaction.

As we navigate the complexities of digital advertising and ecommerce, these strategies provide a roadmap for not just reaching but engaging and converting the modern consumer.

#DigitalMarketing #Ecommerce #ConversionRateOptimization #OnlineShopping #Personalization #Privacy

Retail media ambitions fuel marketplace expansion

Tue, 13 Feb 2024 14:56:38 GMT

The expansion of US retail ecommerce and the intertwined growth of marketplaces and retail media represent more than just numbers. They signify a profound evolution in how brands connect with consumers, offering insights into the future of shopping, advertising, and digital engagement.

As we navigate the post-pandemic landscape, one thing is crystal clear: the ecommerce revolution is far from over. According to a recent article by Sky Canaves, while the explosive growth of the pandemic era may have plateaued, the trajectory for US ecommerce and marketplaces is set on a remarkable path of expansion, with a projected increase of $588 billion over the next five years. Interestingly, marketplaces are expected to claim nearly 40% of this growth.

What does this signal for the future of retail ecommerce? A definitive shift towards more integrated, marketplace-centric models where brands are not just participants but active architects of consumer experience. Giants like Walmart have led the charge, rapidly scaling their third-party sales platforms, alongside others like Macy’s, Kohl’s, and The Kroger Co., each adopting unique strategies to harness this growth.

Retail Media: The Fuel Powering Marketplace Expansion

The nexus between retail media and marketplace expansion is where the future of digital advertising is being rewritten. Retail media, the fastest-growing segment in digital advertising, is not just a revenue stream but a strategic tool for marketplaces. By leveraging their digital platforms, retailers are not just facilitating transactions; they're creating ecosystems where advertising is as much a part of the shopping experience as the products themselves.

Amazon may lead the pack, capturing a significant share of US retail media ad spend, but Walmart's ad revenue growth tells a story of emerging dynamics and opportunities within this space. With ad revenues expected to surpass $3 billion in 2023, Walmart’s investment in an open marketplace and enhanced ad targeting is setting a new benchmark.

This era also sees other players like eBay and Etsy carving out their niches, with innovative approaches to seller engagement and advertising. Even Macy’s, in partnership with The Trade Desk, is expanding the horizons of retail media to encompass a wider array of ad formats and channels, leveraging rich customer data to power more targeted and effective campaigns.

Instacart pushes its smart carts into in-store retail media

Tue, 26 Dec 2023 14:56:38 GMT

The news: Instacart will begin testing ads on its AI-powered Caper Cart smart shopping carts at Good Food Holdings ’ Bristol Farms stores in Southern California. Launch partners include Del Monte Foods , Dreyer’s Grand Ice Cream , and General Mills .

The personalized, dynamic ads will showcase new products, brands, and deals, as well as product recommendations based on shoppers’ real-time behaviors or cart contents.
For example, if a customer adds ice cream cones to their cart, they might see a recommendation for Dreyer’s ice cream, along with directions that steer them to the aisle where they can find it.
Instacart will share smart cart advertising revenues with retailers.

The big picture: As Instacart’s grocery delivery business slows, it has leaned into its high-margin advertising business to drive growth.

We noted in November that while advertising accounted for 30% of the company’s overall revenues in Q3, its growth potential had a ceiling given its tight ties to its grocery delivery business.
Expanding into in-store retail media addresses that potential challenge. By weaving advertising into its smart carts, Instacart is positioning itself (and the retailers it is partnering with) to reach consumers where the vast majority—86.3%, per our grocery non-ecommerce grocery sales forecast—of grocery sales take place.

The in-store retail media opportunity: In-store retail media enables advertisers to access massive audiences that are an average of 70% larger than digital audiences for leading brick-and-mortar retailers, per data from Placer.ai and Comscore Media Metrix Multi-Platform.

Instacart’s Caper Cart ads have a captive audience, which will enable brands to build awareness and consideration, in addition to in-store sales.

Of course, caution is warranted given that it is very early days for both in-store retail media and smart carts. Our US in-store retail media ad spending forecast expects spending will reach $370 million this year, up 35.3% year-over-year. That’s a tiny fraction of the $59.61 billion that US advertisers will spend on retail media this year.

Instacart has only deployed a small number of Caper Carts at stores including those operated by Good Foods, Kroger Co., and Wakefern Food Corp. It expects to deploy “thousands” by year-end, CEO Fidji Simo told Bloomberg Television.

The big takeaway: Because Caper Carts could enable Instacart to present consumers with products finely tuned to the items in their carts, they offer significant promise. But the proof will be in the pudding.

5 predictions on the future of digital advertising, from Meta to Google, Apple, and Amazon

Mon, 19 Jun 2023 13:56:38 GMT

In an era where change is the only constant, the digital advertising landscape is poised for some groundbreaking shifts. Insights shared by analyst, Andrew Lipsman, during a recent virtual summit, shed light on pivotal movements we can expect. Here are five predictions that could redefine the industry:

#Meta’s Potential Foray into Search : With AI and the social graph at its disposal, Meta is uniquely positioned to make a significant play in the search domain, tapping into the evolving integration of search within social platforms. This move is anticipated as a strategic pivot to leverage retail media and social search trends.

#Google and YouTube : Google may soon recenter its retail media strategy with YouTube as its cornerstone. The synergy between streaming TV, closed-loop measurement, and YouTube’s vast audience presents an unparalleled opportunity for Google to innovate within retail media.

#Apple’s Ambitious Leap into CTV : With eyes on premium, high-quality advertising, Apple’s potential acquisition of NBA rights could catapult it into a leading position in the Connected TV (CTV) space. Sports advertising represents a premium environment that aligns perfectly with Apple’s brand ethos.

#Amazon’s Television Network Acquisition : To expand its ad-supported inventory, Amazon might acquire a major TV network. This strategic move would not only bolster Amazon’s CTV footprint but also enhance its ability to offer diverse advertising solutions.

#Microsoft and Instacart Partnership : A potential acquisition of Instacart by Microsoft could signal a significant push into in-store retail media. Instacart’s neutral positioning and innovative approach to connected stores present a unique opportunity for Microsoft to deepen its retail media capabilities.

Why Does This Matter?

These predictions underscore a broader trend: the blurring lines between digital platforms and traditional media, and the increasing importance of integrated, multi-channel advertising strategies. As these tech giants pivot and adapt, the implications for marketers, advertisers, and consumers will be profound.

The future of digital advertising is on the brink of a major transformation, with retail media, CTV, and search at the heart of it. The question now is, how can businesses and marketers best prepare for these shifts?