More consumers now begin their product research on Amazon than on Google, with 56% of consumers using Amazon as their starting point. This search dynamic is driving an inundation of advertising dollars from brands and agencies, which are relatively inexperienced in rolling out Amazon ad campaigns. L2’s Amazon Marketing Playbook helps advertisers establish best-in-class practices for marketing on Amazon. Here are a few highlights:
Sponsored Products boost sales and conversion. These are keyword targeted listings appearing within the organic search page, and they’re influential in initiating the Amazon flywheel effect—boosting clicks, sales and organic visibility.
Headline Search Ads drive switching behavior. These are keyword targeted banner ads that appear above organic search results and are key in building brand equity and driving product volume. Traditional brands with large product portfolios and expansive distribution dominate Headline Search Ads, while Sponsored Products are more of a level playing field.
Traditional brands need to be more strategic with Sponsored Products. Traditional brands still account for 63% of top ten brands by share in Sponsored Products. In contrast, successful indie brands are very strategic with their keyword bids; they ensure that only a core set of ASINs are featured in their Sponsored Product campaigns, boosting the number of Sponsored listings that appear in top-three positions.
Among indie and private label brands, 71% of Sponsored Product Impressions land in top-three positions, while the number is only 52% for traditional brands. Indie brands also incorporate a more focused strategy, typically featuring only 27 products across 3.7 categories, while traditional brands have an average of 62 products across 5.7 categories.
Indie beauty brand Aesthetica uses this strategy extremely well, with 90% of its Sponsored Products appearing in top-three positions during the study period. The brand focused on only 30% of its 50 products on the platform and used clearly demarcated Sponsored Product campaigns to ensure that products were aligned with the right keywords. This eliminated chances of product overlap and ensured that highly relevant Sponsored Products appeared in top positions on the search page.