AMAZON ADVERTISING - THE GAME CHANGER IN …...Playbook for a successful digital Business 4....

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.

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\\ 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.

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\\ 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…

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\\ 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

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\\ FACTORS FOR SUCCESS IN A (DIGITAL) D2C WORLD

RetailReadiness

Multi Channel Selling

OperationalExcellence

VisibilityBoost

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\\ 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

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\\ 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

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\\ 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

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\\ 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

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\\ 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

stefan.bures@metoda.com

+49 89 124 137 800

www.metoda.com

37metoda GmbH \\ 2019