As Amazon and e-commerce become increasingly dominant, strong performance across multiple e-tailer platforms is critical to a brand’s success.
Based on L2’s coverage of the evolving CPG landscape, here are a few key takeaways on smart e-tailer strategies for brands looking to stay ahead in digital:
E-commerce rescues brands. CPG brands that create engaging e-commerce features have a chance to stand out from the competition. Drano loads its site up with how-to videos that connect to product pages, speeding up the path to purchase.
Visibility can outdo authenticity. Thanks to Amazon’s best-seller status algorithm, consumers are increasingly more likely to purchase CPG products that appear first within searches, rather than established brands. By failing to use Amazon Marketing Services to build search momentum and not executing a tighter grip over third-party distribution on the platform, brands are setting themselves up for low visibility, and by extension, sales.
Go mobile… Consumer brands must adopt a mobile-first approach to their online strategy, especially in search, where the scarcity of space on mobile leads to different outcomes than desktop.
…but don’t ditch desktop. Brand sites play a valuable role in product research, even though they have lower search visibility and site traffic than major e-tailers. Product pages garner nearly twice as many views as content hubs, indicating that brands should place relevant content pieces on product pages to optimize their visibility. However, many brands in L2’s Digital IQ Index: FMCG UK fail to take this into account when designing site content.
Acclimate to Amazon. With only 17% ownership of sponsored product ad space on branded and unbranded terms, brands have left themselves vulnerable to disruptors, which have taken key ad spots across categories. To compound the issue, many brands are burning their budgets on less visible placements. Pay-per-click ads on Amazon search, which are served through an auction similar to Google AdWords, provide both new and established brands with an opportunity to stand out.
For more on brand performance on CPG, read L2’s relevant reports: