Amazon is the world’s largest e-tailer, accounting for a quarter of e-commerce purchases in the U.S. In previous Insight Reports, L2 addressed how brands can improve their performance on the e-tailer. Based on the new Commerce IQ®, the latest series focuses on how brands can boost their search visibility through Amazon Marketing Services (AMS) advertising products. Here are a few key takeaways:
Invest in Headline Search Ads before it’s too late. These are the keyword-targeted, cost-per-click ads that appear above first-page Amazon search results. While most brands that invest in these products are smaller vendors, L2 predicts the placements will become more expensive as large enterprises get involved.
Get even more visibility with Sponsored Products. With sales volume heavily influencing search visibility, it can be difficult for brands to get on shoppers’ radar. One way to boost first-page search visibility is through Amazon’s Sponsored Product listings, which are similar to Headline Search Ads but are integrated directly into search results or product detail pages. Sponsored Products are utilized by only a small share of brands across L2 Indices, with the majority of ads served by small, independent vendors. Home Care Index brands are the most frequent purchasers of Sponsored Products, while Beauty, Fashion, and Hair Care brands opt for the listings least often.
Prioritize keyword spend. Not all keywords deserve equal ad spend. L2’s latest Insight Report recommends that brands focus investment on strategic search terms, based on an analysis of the “value” and “volatility” of the first-page results returned. In a case study of diaper-related keyword searches, for example, size-specific keywords including “Baby Diapers Size” 1, 3, 4, and 5 are considered “high-value” keywords, while more general terms like “Diapers” and “Baby diapers” are “low value.” These size-specific keywords have higher average first-page sales ranks than the generic terms, indicating that they should be the focus of diaper makers’ AMS Sponsored Product spending.
For more on Amazon advertising, read L2’s relevant Insight Reports: