Why You Shouldn’t Move Your Online Advertising Budget From Google to Amazon

Why You Shouldn’t Move Your Online Advertising Budget From Google to Amazon

Google

In the advertising world, the meteoric rise of Amazon Advertising is capturing a lot of buzz and inspiring commentary, including posts we’ve published on our own blog. At the same, Amazon Advertising’s biggest competitors, Google and Facebook, are as strong as ever. Consider the growth of Google’s own advertising business, which dominates the world of online advertising, even as Google’s share of the online ad market drops slightly, per eMarketer. Here’s the skinny:

Alphabet Reports Strong Earnings

Alphabet, Google’s parent company, surprised analysts recently by reporting stronger-than-expected earnings. As reported in Search Engine Land, Google produced $32.6 billion in advertising revenue in Alphabet’s second quarter. That’s a 22 percent increase year after year, and an uptick after several quarters of slowing growth.

The surge in advertising revenue for Google has a lot to do with Alphabet’s strong earnings. And advertising simply grew a lot better than expected. As Business Insider reported, “A resurgence in Google’s core advertising business, after a weak performance in the first quarter of the year . . . pushed Google’s net revenue up.” Interestingly, the earnings report came out on the same day that Amazon announced mixed results.

Why did Google Report Strong Growth for Its Advertising Business?

No one knows exactly why Google’s been nailing it with its advertising, because the company remains mum about the details. But as The Street pointed out, YouTube probably had something to do with it. Ruth Porat, Google’s Chief Financial Officer, revealed that YouTube revenue represented the second-highest growth of any segment for the search behemoth. And as management noted, “[W]e are building momentum with our subscription services, YouTube Music and YouTube Premium, now available in over 60 countries, up from five markets at the start of 2018.”

We also believe Google is succeeding because the company isn’t standing still and taking success for granted. As we discussed on our own blog, Google continues to launch new features and tools such as artificial intelligence (AI) to help advertisers launch smarter, more targeted campaigns. The headline is this: whether through paid search ads or display ads, Google has been making it easier for advertisers to do the work.

What You Should Do

What does Google’s trajectory mean to the savvy marketer? We recommend that you:

  • Stay abreast of the industry, and keep your options open. That includes staying calm in the face of inevitable fluctuation. For example, according to ad industry sources, some advertisers are defecting from Google and moving 50 to 60 percent of their ad budgets to Amazon. But news like this isn’t a reason to get rattled—or abandon Google. It doesn’t mean advertising should be an either/or between Amazon, Google, or Facebook. Ebbs and flows notwithstanding, the opportunities Google represents can’t be discounted. And no matter how much Amazon grows, Google is not going away. Brands that devote all their advertising resources to one outlet are likely to get burned—or miss out on opportunity.
  • Understand how Google is evolving. Google will continue to grow its ad business, drawing on several key advantages:
    • A head start in using AI with the specific aim of making advertising smarter and more effective. It’s true: AI is hot, and Google faces competition from Amazon and Facebook in this arena. But as noted above, the company is holding its own with a battery of AI tools.
    • An established global presence that reflects Google’s efforts to tailor advertising products in support of international ad campaigns.

Google continues to sense and respond to consumer tastes, even when Google’s profit motive is not evident. A good example is the forthcoming release of Stadia, the cloud-based gaming platform that Google announced recently. How Google will make money off Stadia is not clear immediately. But one thing is clear: Google is finding a way to keep people using Google by launching new products accessible through Google.

Contact True Interactive

Contact us to learn more about how online advertising might figure into your strategy. We’re here to help.

Three Ways to Capitalize on Amazon Search

Three Ways to Capitalize on Amazon Search

Amazon

We already know that Amazon is the Number One website for people to do product searches: according to a 2018 Jumpshot report, from 2015 to 2018, Amazon overtook Google in this area, with Amazon growing to claim 54 percent of product searches while Google declined from 54 percent to 46 percent. Now we know something more. According to Marketplace Pulse, a majority of Amazon searches—78 percent, in fact—are nonbranded. Instead of pinpointing a specific company like lululemon, say, many customers are making broad searches such as “yoga pants for women” and seeing what comes up.

This data demonstrates the opportunity that exists — indeed, just how wide open the playing field on Amazon is for businesses that sell products there. People are searching with intent on Amazon: they want to buy something. But they haven’t yet decided on what to buy. And here’s where the savvy marketer can make inroads.

Amazon Is Growing as an Ad Platform

The data also underscores just how big Amazon has become as an advertising platform. As we recently blogged, Amazon continues to grow, and is biting into other companies’ share of the spoils. eMarketer’s report that Amazon is projected to capture 8.8 percent of U.S. digital ad spending in 2019 is telling. So was the GeekWire article from January 2019, which discussed record 2018 profits for Amazon, and gave props to advertising for contributing to that success. According to GeekWire, “Fueling its bottom line is Amazon’s growing advertising arm that generates revenue by charging companies to promote their products on Amazon properties.”

Three Ways to Capitalize on Amazon Searches

How can a business take advantage of these developments? That is, what sort of strategy should businesses embrace in order to capitalize on the possibilities Amazon affords?

1 Advertise on Amazon

First of all, make sure you advertise on Amazon and that you know how to do so. Familiarize yourself with the complete listing of Amazon Advertising offerings.

And check out our blog. We’ve published numerous posts to help businesses understand Amazon’s many advertising options, including:

  • Sponsored ads, the pay-per-click (PPC) advertising approach that takes a shopper directly to a product page or brand site within Amazon. Sponsored ads are available to sellers, venders, book venders, and Kindle Direct Publishing.
  • Video ads, which complement display ads by expanding beyond a single image to tell a compelling story. Video ads can be used to target a certain audience on Amazon as well as Amazon-owned and third-party sites (e.g., Twitch) and devices.
  • Display ads, which, like video ads, can be employed to reach people in a specific target audience.

Additionally, be aware that Amazon is constantly refining and improving its advertising offerings and creating new ones. Stay abreast of the changes.

2 Make Sure You Have Good Reviews on Amazon

Reviews carry a lot of weight and can help you. According to an oft-cited 2012 Nielsen release, 70 percent of respondents had some or complete confidence in online reviews of products, whether they knew the reviewer or not. Online reviews also tap into basic human psychology. In a description of Dr. Robert Cialdini’s six principles of persuasion, the Influence at Work website describes consensus as the phenomenon where “people will look to the actions and behaviors of others to determine their own . . . especially when they are uncertain.” Note that in the case of consensus, at least online, more is more. Five hundred positive reviews will impress consumers more than three will, no matter how glowing those three reviews happen to be. Ask customers to review you.

3 Be Aware That Advertising on Amazon Is Not a Slam-Dunk

Amazon has flooded its site with its own private label products. Understand Amazon’s generic product strategy — it’s huge —especially if you are a commodity brand such as a seller of batteries, vents, or paper towels. You’ll have to work hard.

There’s a lot of money to be made on Amazon. If you already have products there, know how to capitalize on Amazon’s tools to attract customers. If you don’t, think about making that happen.

Contact True Interactive

True Interactive knows how to build your business via advertising on Amazon in context of broader online advertising strategies. Want to learn more? True Interactive can help. Contact us.

Coming to the Amazon App: Video Ads

Coming to the Amazon App: Video Ads

Amazon

As consumers increasingly shop online, Amazon’s app is a popular go-to destination, and the company is clearly paying heed. Recent Mobile Marketer and Bloomberg articles underscore Amazon’s sensitivity to consumer habits and the way the company is responding to what it sees: for example, by testing video ads in the Apple iOS version of Amazon’s shopping app. The move makes Amazon a stronger advertising alternative to Google and Facebook, and signals not only the e-commerce giant’s increased focus on advertising, but also its recognition of the public’s hunger for mobile ads.

Savvy and Lucrative

Incorporating video ads on the Amazon app is a savvy move. As an intent-based app, Amazon tends to draw consumers who already possess a desire to buy. The video spots, which pop up in response to users’ search results in Amazon’s shopping app, are meant to capitalize on this intention. It’s also a lucrative move for the company: though prices range depending on the ad category and not everyone pays a fixed rate, Amazon is charging roughly a $35,000 ad budget to run the spots at five cents per view for 60 days. The plan is to start with iOS, then expand to Google’s Android mobile operating system later this year.

Growing Along with Digital Advertising

As we’ve been discussing at True Interactive, the news is a sign of Amazon’s continued growth as a platform for businesses to advertise on—not just sell products on. And although Amazon’s April 25th first quarter earnings announcement reports a slowdown in that growth, the announcement also makes it clear: Amazon’s advertising business remains strong and highly profitable.

Furthermore, Amazon is making inroads into others’ share of the spoils. eMarketer reports that Amazon’s advertising business will capture 8.8 percent of U.S. digital ad spending in 2019, eating into the percentage enjoyed by the duopoly of Google and Facebook (Google, while still enjoying the lion’s share of digital ad spending, is projected to drop by one point in 2019). And Amazon, though still trailing behind Facebook and Google in advertising spend share, seems uniquely positioned to step up. As eMarketer forecasting director Monica Peart notes, “Amazon offers a major benefit to advertisers, especially CPG and direct-to-consumer [D2C] brands. The platform is rich with shoppers’ behavioral data for targeting and provides access to purchase data in real time.”

It’s a good time for Amazon to expand in this way: as we discussed in a recent post, mobile ads are on the rise. Forrester reports that between 2017 and 2022, mobile will drive 86 percent of growth in U.S. digital ad spending. The digital dollars are being siphoned from other, more traditional ad spending shares, according to eMarketer: directories like the Yellow Pages, for example, and traditional print resources like newspapers and magazines. “The steady shift of consumer attention to digital platforms has hit an inflection point with advertisers, forcing them to now turn to digital to seek the incremental gains in reach and revenues which are disappearing in traditional media advertising,” Peart said.

What You Can Do

Whether or not you advertise on Amazon, the news offers a compelling reason to have a mobile ad strategy. We recommend that you:

  • Remember that mobile is its own beast. Take a page from Amazon’s book: listen to the signals of consumer behavior and shape your mobile advertising accordingly.
  • Watch for Facebook and Google to respond with more mobile ad products, and see how they do it. Watching these giants maneuver and attempt to one-up one another can be a great way to learn what works.
  • Consider how video plays into your advertising mix. Video has its own set of requirements for production and creative concepting: what does that mean for your business and the resources you have at hand?

True Interactive works with businesses all the time to develop their video advertising campaigns Call us, and see our recently published case study with Snapfish, to get an idea of the kind of work we do.

Photo by You X Ventures on Unsplash

 

 

 

 

Advertiser Q&A: Amazon Display Ads

Advertiser Q&A: Amazon Display Ads

Amazon

All eyes are on Amazon this holiday season, with eight out of 10 shoppers planning to search Amazon for holiday deals. In September, Amazon organized all its advertising tools under one offering, Amazon Advertising, to help businesses capitalize on the gushing river of shoppers flooding the site. Our clients have been asking about the tools available under Amazon Advertising. Perhaps you are wondering, too. Recently I blogged one of those products, Amazon sponsored ads. Now let’s take a look at Amazon’s display advertising solutions.

1 What is Amazon’s Display Advertising Solution?

Amazon has two very different display advertising options. The first, which was discussed in the last post in this series, consists of product display ads. This ad type is part of Amazon’s pay-per-click (PPC) offerings, has limited reach and ad options, but is available to everyone who wants to advertise on Amazon.

The second option, and the main focus of this post, consists of Amazon display ads. These ads use specific audiences with custom creatives to target people on Amazon and Amazon-owned and third-party sites, apps, and devices. An advertiser can manage the ads themselves through the Amazon demand-side platform (DSP), or they can work with a team of experts.

2 Why Would an Advertiser Use Display Ads?

Just like any programmatic display strategy, an advertiser would use display ads on Amazon to show relevant ads to people who are in their target audience. The seemingly endless list of ad sizes, formats, and placements means that there is just as many options for creative customization, reaching consumers on all devices, both on and off Amazon. Couple that with the advanced audience options available, and almost anything becomes possible. An advertiser can reach current and new audiences at any stage in the search funnel:

  • Build awareness of a brand or product by using look-alike audiences based off of current customer information.
  • Get people when they are in the research phase through product or interest-based targeting.
  • Reengage with customers during their purchase decision using audience lists based on buy behaviors and what pages they’ve visited on and off Amazon.
  • Send customized messages to people who’ve already made a purchase encouraging them to become repeat customers.

3 Are There Any Limitations to Display Ads?

The main limitation with Amazon display ads is the price. Amazon requires a $35,000 budget for a campaign before they will let you have access to any of these features. The product display ads that are part of the sponsored ad solutions do not require any minimum spend amounts and may be a better fit for smaller advertisers or advertisers looking for a smaller test on Amazon.

4 How Can Advertisers Maximize the Value of Display Ads?

Think about your brand and what’s already on the plan for the year. Is there a big product launch or holiday push coming up? Are you noticing declining new customer sales? Is it time to reengage previous purchasers? Taking the time to identify what you really want to achieve with the display ads is the first step in maximizing the value of this ad format. Identify what the goal is, what the important metrics are, and how success will be measured.

Next, don’t rush the creative process. Have unique ads for each audience and goal, if there’s more than one. Understand that someone seeing an ad while they’re relaxing at home during the evening might respond differently than someone actively searching Amazon on their lunch break.

Finally, consider using display ads as a part of a larger tactic strategy. Display ads may not result in immediate direct sales, but do have an impact in other areas. Product searches and subsequent purchases typically go up once a display campaign has been launched. Visits to the brand website can also be expected to go up.

If you’re interested in Amazon display ads, but don’t know where to start or need assistance strategizing and managing them, please reach out to us at True Interactive.

Watch our blog for the final post in the series on Amazon video ads.

Image source: https://www.udemy.com/amazon-pay-per-click-advertising-ppc/

How to Succeed in Amazon’s World

How to Succeed in Amazon’s World

Amazon

One of the most significant advertising stories of the year is the rise of Amazon as an ad platform. As we discussed on our blog earlier this year, Amazon’s advertising products have been enjoying phenomenal growth albeit off a much smaller base compared to Google and Facebook.

And Amazon shows no signs of slowing down. In September, eMarketer reported that in 2018, Amazon will become the third-largest digital advertising platform behind Google and Facebook. On October 8, CNBC reported that some advertisers are moving as much as half of their search budgets from Google to Amazon. According to CNBC, “Amazon appears to be emerging as the most credible threat to Google’s cash cow advertising business since Facebook conquered mobile advertising beginning shortly after its 2012 IPO.” Those reasons include:

  • Amazon’s continued growth as an ecommerce platform beyond retail, which gives Amazon a larger pool of advertisers.
  • Amazon’s popularity as a search engine. According to Survata, about half of product searches begin on Amazon.
  • Amazon provides a seamless search-and-purchase option. Per CNBC, unlike the case with Google, “Using a Google search ad to lead to a purchase may require a person to set up an account and input their credit card information with a separate website. Especially for smaller brands, there’s not really an advantage between selling direct to the consumer versus selling through Amazon.”

Google holds a strong lead over Facebook and Amazon. But especially for businesses that sell products on Amazon, Amazon’s advertising products are increasingly attractive.

To help our readers better understand how to succeed with Amazon’s advertising solutions, on our blog we are casting a spotlight on three Amazon products: sponsored ads, display ads, and video ads. The first post in our series, “Advertiser Q&A: Amazon Sponsored Ads,” is live. As my colleague Samantha Coconato writes, Amazon’s sponsored ads are Amazon’s pay-per-click (PPC) advertising solution. They are available to sellers, venders, book venders, and Kindle Direct Publishing. Sponsored ads take a consumer directly to a product page or brand site within Amazon.

To maximize the value of sponsored ads, advertisers should spend time to really think through which products and offers would make the most sense on this platform. For example, putting up ads for a seller’s entire inventory all year round would probably not be a wise use of your money. Pulsing the ads on and off during seasonal or clearance sales and using a promotion or discount would be a better way to generate sales and to raise awareness of your products or store.

For more insight into Amazon sponsored ads, check out our post. And stay tuned for more insight. If you have questions about maximizing the value of digital advertising, contact us. We’re here to help.

Photo by Christian Wiediger on Unsplash

Advertiser Q&A: Amazon Sponsored Ads

Advertiser Q&A: Amazon Sponsored Ads

Amazon

Amazon is creeping up on Google and Facebook as an online advertising platform. According to eMarketer, Amazon will become the third largest online ad platform in the United States in 2018, generating $4.6 billion in ad revenue. Amazon’s online advertising market share is way behind Google’s and Facebook’s – but the trillion-dollar company is making strong moves to strengthen its services. In September, Amazon consolidated all its digital advertising services under one offering, Amazon Advertising, which provides the following products:

  • Sponsored ads: sponsored products and brands.
  • Display ads: reach audiences on Amazon sites, apps, devices and third-party sites.
  • Video ads: showcase brand messages on Amazon sites, devices and third-party sites.
  • Stores: create multipage brand stores within Amazon.
  • Measurement solutions: gauge advertising impact across Amazon and third-party sites
  • Amazon DSP: programmatic advertising solutions (formerly Amazon Advertising Platform).

These services have sparked a number of questions among advertisers, such as:

  • What exactly are these services?
  • How and why should an advertiser use them?
  • Do they have any limitations?
  • What’s the best way to maximize their value?

I’m going to answer those questions through a series of blog posts that focus on three products especially relevant to True Interactive’s clients: sponsored ads, display ads, and video ads. Today let’s take a closer look at sponsored ads.

1 What Exactly Are Sponsored Ads?

Sponsored ads are Amazon’s pay-per-click (PPC) advertising solution. They are available to sellers, venders, book venders, and Kindle Direct Publishing. Sponsored ads take a consumer directly to a product page or brand site within Amazon.

To reach customers, sponsored ads use keywords (either your own list or a list suggested by Amazon), products, and product categories for targeting. There are three types of sponsored ads:

  • Sponsored products.
  • Sponsored brands (previously headline search ads).
  • Product display ads.

2 How and Why Would an Advertiser Use Sponsored Ads?

Sponsored ads should be used when advertisers want to drive sales and awareness while maintaining more control over budgets. Since sponsored products and brands ads only incur costs if they’re clicked on, it’s easier to see the return on investment of this ad type. Amazon recommends using sponsored ads to showcase offers, clearance items, seasonal offerings, and unique items.

            How to Use Sponsored Products

Sponsored products are used to promote a single product and take the consumer directly to the product page. Additional creative such as images and text are not needed, making sponsored products the simplest ad to set up. Use keyword targeting to match products to a consumer’s search and show ads on the search results page or product detail page. 

            How to Use Sponsored Brands

Sponsored brands allow for multiple products or titles to be promoted together using a custom headline and logo. Consumers are taken to a product page if they click on a product, or to a designated landing page if they click on the image or ad text. Sponsored brands are good for driving awareness, in addition to sales. For example, advertisers can pair new or seasonal items with a related top seller in an ad to increase visibility in other product offerings. Or if a seller has multiple versions of the same product, say different versions of the same phone, using sponsored brand ads would showcase the variety available within a single ad.

            How to Use Product Display Ads

Product display ads use relevant products, product categories, and interests to target consumers and show image ads within product detail pages, reviews, and merchandise emails. These are a great ad to showcase complementary or competing products. This ad format is also a self-service option and is specific to the individual ASIN (Amazon Standard Identification Number) of a product. Think of product display ads as a conquesting campaign, or as a last chance way to capture interest away from another product or brand.

3 Are There Any Limitations to Sponsored Ads?

The keyword targeting can be somewhat limited for sponsored products and sponsored brands. Although Amazon uses the same match types as other PPC platforms, the keywords must be relevant to the metadata on the product page. So, for example, if you’re selling toys around the holidays and want to boost holiday sales, it’s unlikely having keywords around “Christmas Toys” will generate impressions of your ads unless the product page metadata contains those words. But if you’re selling a toy specific to the holiday, then your ad more than likely will show.

In addition, for product display ads, due to the competitive nature of the ad format, it may be harder to generate sales unless the product has a great offer or discount attached to it. Since product display ads are only visible after a consumer shows interest in a related product, the offer has to convince the consumer that the product they were originally interested in is not as good of a product as in the display ad.

4 How Can Advertisers Maximize the Value of Sponsored Ads?

To maximize the value of sponsored ads, spend time to really think through which products and offers would make the most sense on this platform. For example:

  • Putting up ads for a seller’s entire inventory all year round would probably not be a wise use of your money.
  • Pulsing the ads on and off during seasonal or clearance sales and using a promotion or discount would be a better way to generate sales and to raise awareness of your products or store.

Knowing about the competition on Amazon is another way to increase the value of sponsored ads. If you sell unique items that someone may not know how to look for, do a quick search on what related items are already for sale on Amazon. Using that information, you can target those products and categories so that your product ads show up when people search for those items.

Although you also want to give your campaigns time to collect enough data to see what works and doesn’t work, Amazon Advertising isn’t a “set it and forget it” platform. Things can change quickly, and someone else can emerge with better offers or newer products. Updating promotions and switching out products regularly gives you a better chance at figuring out what works best for your inventory.

If you’re interested in Amazon sponsored ads, but don’t know where to start or need assistance strategizing and managing them, please reach out to us at True Interactive.

Watch our blog for follow-up posts on Amazon display ads and video ads.

Amazon Gears Up for Holiday Advertising – and So Should You

Amazon Gears Up for Holiday Advertising – and So Should You

Analytics

Amazon is testing a new attribution tool as it ramps up its platform for holiday advertising. According to Digiday, Amazon has invited a select number of advertisers to test Amazon Attribution, which “lets advertisers compare whether ads on its sites are more effective than those on its rivals.” Amazon Attribution includes page views, purchase rate, and sales among the conversion metrics advertisers can select to understand the impact of their display, search, or video ads outside of Amazon.

As we have reported, Amazon’s advertising services are growing as more brands capitalize on Amazon’s popularity for search. As Marketing Dive notes, Amazon is positioning itself for an uptick in brand advertising for the 2018 holiday shopping season. Even if you are not one of the businesses using Amazon Attribution, I suggest you get a jump on the holidays by building awareness now inside and outside Amazon. You don’t need to do holiday advertising just yet – but you should prime the pump for the holidays by:

  • Building your name awareness on Amazon by using some of the advertising tools that Amazon has rolled out. Amazon has launched products such as display advertising designed to make it easier for merchants to reach its vast audience with paid media. Some of those products also help businesses advertise outside Amazon. Amazon’s advertising products were recently bundled under Amazon Advertising. For more insight, check out this Amazon page.
  • Step up digital advertising outside Amazon, too. Rolling out holiday ads in September is not the point – priming the pump by building general name awareness is.

You can measure the effectiveness of your pre-holiday campaign by expanding the conversion pixel of your display ads for a maximum of 90 days. Per Google, a conversion window is the period of time after a customer clicks your ad during which a conversion, such as a purchase, is recorded in Google Ads. The default window is 30 days.  But you can change the conversion window as often as you’d like. Doing so can makes it possible for you to track behavior all the way back to the click someone made on your display ad.

A Caveat

A caveat is in order: if you use the Google Ads conversion pixel as your primary source for tracking purchases, then it may not be the best idea to expand the pixel window to 90 days. Doing so can cause results to become inflated. If you are using another source as your true north (e.g. Google Analytics, Adobe Analytics, or a third-party platform like Marin or Search Ads 360) then the inflated conversion totals aren’t as much of an issue.

How are you preparing for the holiday season? Contact True Interactive if you need help. We collaborate with brands on all aspects of digital marketing every day.