Advertiser Q&A: Amazon Video Ads

Advertiser Q&A: Amazon Video Ads

Amazon

Earlier this year, advertisers complained in a Digiday article that Amazon lacked a robust video ad platform, which made Amazon less attractive to Facebook and Google as an ad platform. Amazon must have been listening. The company launched video ads as part of a broader reorganization of its ad offerings under Amazon Advertising. In recent weeks, I’ve been blogging about various Amazon Advertising products. Here’s a brief overview of video ads to help you understand them.

1 What is Amazon’s Video Advertising Solution?

Amazon’s video offerings are very similar to their display offering in the sense that they use specific audiences with custom creatives to target people on Amazon as well as Amazon-owned and third-party sites (such as Twitch) and devices. Unlike the display offerings, there isn’t a self-managed option – so you must work with a team throughout the whole process.

2 Why Would an Advertiser Use Video Ads?

Video ads are a great way to tell a story. They complement display ads by sharing the same sentiments but with the ability to expand beyond a single image to show the entire story. Video ads are mainly seen as a branding play, but by using highly specific targeting available on Amazon, video ads can also drive people to complete a purchase.

As reported in Digiday, Lego tested video ads in search results on the Amazon app in the United States in 2017. And Lego liked what it saw. James Poulter, Lego’s head of emerging platforms and partnerships, told Digiday, “The test reiterated the importance video and rich media can have when it’s part of the buying journey, especially when 70 percent of all purchase journeys start on Amazon. Surfacing your content in the same place that people are having those journeys has the potential to widen the funnel.”

3 Are There Any Limitations to Video Ads?

As with Amazon’s Display ads, the main limitation with Amazon video ads is the price. Amazon requires a $35,000 budget for both video and display ad campaigns. This hefty price prevents smaller advertisers from being able to test out these advertising features.

4 How Can Advertisers Maximize the Value of Video Ads?

Maximizing the value of video ads requires a goal, good story telling, and smart targeting.

  • Goals – Since most advertisers on Amazon are selling a product, getting a consumer to complete a purchase is the most obvious goal. Generating brand awareness and recall is another goal that would work well within the Amazon universe.
  • Stories – Visually show someone how purchasing a product will solve a problem for them. Walk them through a product demonstration, but without it feeling like a sales pitch. Showcase testimonials and reviews. Create an instructional video illustrating specific features of a product.
  • Targeting – Leverage Amazon’s targeting options to find highly relevant audiences. Take what you know about your customer and match that up with products they buy and shows and videos they watch. Be very specific to the product you sell.

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

Here are the other posts in my series about Amazon: 

Advertiser Q&A: Amazon Display Ads 

Advertiser Q&A: Amazon Sponsored Ads

Online Retailers Are Winning Big This Holiday Season

Online Retailers Are Winning Big This Holiday Season

Retail

We’re off to the races with the 2018 holiday season, and retailers are showing some strong results with online sales. Here’s what Adobe Analytics reported:

  • Cyber Monday hit $7.9 billion in sales, making it the largest online shopping day of all time in the United States — a 19.7 percent increase year-over-year.
  • Thanksgiving Day and Black Friday brought in $3.7 billion (28 percent growth year over year) and $6.2 billion (23.6 percent growth) in revenue.
  • Saturday and Sunday, November 24 and 25, set a new record as the biggest online shopping weekend in the U.S. ($6.4 billion) growing faster than Black Friday and Cyber Monday with more than 25 percent on each day.

Not every retailer is winning this holiday season. Only retailers that do these things are reaping rewards:

  • Focusing on mobile. As we have shared on our blog, technology giants such as Google have been launching tools that make it easier for businesses to showcase inventory with shoppable ads. That’s because shoppers are using mobile as a tool to buy, not just search for places to buy. PayPal, for instance, processed more than $1 billion in mobile payments on both Black Friday and Cyber Monday (a first for PayPal on either day). On Thanksgiving, mobile accounted for 54 percent of online sales, surpassing desktop for the first time, according to Salesforce.
  • Prepared their websites. According to Multibriefs, more people were hit with “out-of-stock” messages on websites than they were last year. “Even worse, some didn’t even make it to the company website,” wrote Multibriefs. “Lowes, Target and PayPal all experienced crashes on Cyber Monday.” The companies that failed to prepare for the online buying spike lost out to sites such as Amazon, which reported its biggest shopping day in history on Cyber Monday. Who says websites are dead? If you were ready as Amazon was, you won big.
  • Moving products quickly. Amazon long ago set the standard for speedy product delivery. But many retailers such as Best Buy are catching up. This holiday season retailers are using free shipping and convenient returns as a proving ground, as this news report discusses. Last month, I predicted shipping would provide an edge to retailers this holiday season — but this prediction applies only to those who have figured out how to fulfill the uptick in demand that online ordering brings. Walmart struggled to fulfill online orders during the 2017 holiday season – let’s see how the retailer does when the dust settles on 2018.

If you took steps to prepare yourself for the onslaught of online holiday shopping – especially by attracting mobile shoppers with a strong investment into online advertising and digital commerce – the 2018 holiday season is looking very bright. For more insight into how to win with mobile shoppers, contact True Interactive. We’re here to help.

Image source: https://pixabay.com/en/holiday-shopping-smartphone-phone-1921658/

Advertiser Q&A: Google Showcase Shopping Ads

Advertiser Q&A: Google Showcase Shopping Ads

Google Uncategorized

Google has been beefing up its showcase shopping ads product to help retailers spice up their holiday advertisements. Showcase shopping ads make it possible for businesses to group together related products to merchandise them more effectively. The format is tailored for mobile viewing. Recently Google added new features such as video to make these ads more powerful. At True Interactive, we’ve been applying showcase shopping ads with favorable results. One of our clients running showcase shopping ads has seen an 80-percent higher click-through rate over standard shopping ads. This blog post explains showcase shopping ads based on questions we’ve received.

What exactly are showcase shopping ads?

Showcase shopping ads appear as a collection of shoppable images displaying different products offered by an advertiser. The ads are built to capitalize on broad keyword searches such as “winter sweaters.” The showcase shopping ads work this way:

  • Someone making a non-brand search for, say, winter sweaters will see in their search results display ads from different retailers with winter sweaters and promotional ad copy.
  • When the shopper clicks on the ad, they are taken to a landing page with a merchant’s line of winter sweaters. The shopping ad display, or showcase, resembles a brand page to the user, consisting of products the advertiser wants the user to see.

A shopper may click on an inventory and complete a purchase.

A business can create multiple showcase shopping ads. The header image can be different based on what is uploaded into each showcase shopping ad. In the above example of winter sweaters, a retailer could run a header image that focuses on sweaters but have another header image that focuses on outerwear for a “winter coat” search. The Google algorithm chooses which products appear based on variables such as the product titles, description, and type.

Who is this a good fit for?

It is highly recommended that you have at least 1,000 products in your inventory. There is no minimum budget. The format is effective for anyone who wants to get their products in front of a large audience because it’s based on broad keywords. It’s not for people competing for specific keywords. For bigger advertisers, showcase shopping ads are a good way to display multiple products for broad keywords. You can create an engaging photo and additional messaging that smaller businesses may not be able to afford.

Why is Google beefing up showcase ads?

The main reason Google is pushing showcase ads is that they are optimized for mobile. Salesforce recently predicted that mobile devices would dominate both traffic and orders for the entire 2018 holiday shopping season (68 percent of traffic and 46 percent of orders). On Black Friday alone, retailers saw $2.1 billion in sales from smartphones, accounting for 33.5 percent of Black Friday sales. The rise of mobile reflects broader shopping trends, and Google wants to capture a share of ad revenue associated with mobile shopping by offering a shoppable ad format.

What is the pay model?

The pay format is cost per engagement, not cost per click. The user has to be on the ad for 10 seconds or more, at which time the advertiser is charged. This approach can be a drawback. A click is a specific action. But having a page open for 10 seconds is a passive way to measure user intent. A person may not be really engaged with a product while a screen is open.

Any tips for getting the most out of Google showcase shopping ads?

Yes. Advertisers need to do two things:

  • Ensure all your products are grouped together in an easily findable way.
  • Have your products accurately labeled in each ad group.

Bottom line: Google showcase shopping ads give multiple advertisers a way to showcase multiple products for generic keywords that can otherwise be very expensive. If you compete for generic keywords in a mobile centric world – and who isn’t? – then you should consider Google showcase shopping ads. If you need help getting started or if you are running Google showcase shopping ads and want to take your game to the next level, contact True Interactive. We’re here to help.

Retailers Ramp up Augmented Reality and Virtual Reality

Retailers Ramp up Augmented Reality and Virtual Reality

Retail

Last March we wrote about the increasingly important role that technologies like virtual reality (VR) and augmented reality (AR) have in the marketing field. Since then, major businesses have continued to apply AR and VR to support a number of functions. Retailers have been especially keen to use these technologies for shopping. For example:

  • To capitalize on the uptick in mobile holiday shopping, Macy’s has launched an AR app that lets shoppers see pieces of furniture virtually within their homes, following the successful pilot of a VR experience to make furniture shopping more immersive. According to Macy’s, shoppers using VR headsets to view Macy’s furniture had more than a 60 percent greater average order value than non-virtual reality furniture shoppers.
  • Walmart recently announced the launch of new AR scanning tool in its iOS app to help customers with product comparisons. Unlike traditional barcode scanners (which allow price comparison on one item at a time), Walmart’s AR scanner can be aimed at multiple products on store shelves to view details on pricing and customer ratings.

Some studies predict the global economic impact of virtual and augmented reality to reach $29.5 billion. Although this number may sound overly optimistic, I do believe there is a lot of value in these technologies yet to be exploited. Both VR and AR have the potential to be among the most valuable tools in any marketer’s arsenal simply because they offer intimate and engaging experiences. They allow brands to build a more profound connection with consumers by offering personalized, interactive experiences. In addition, when combined with artificial intelligence, these technologies have the potential to help make life easier by empowering users to take immediate action (like completing a custom order on the spot).

VR and AR Defined

Even though they may look similar, VR and AR are different:

  • Virtual reality: refers to any kind of experience that places the user “in” another world or dimension usually by way of a headset with special lenses.
  • Augmented reality: the term we use when we place content “into” the real world by using cameras (e.g., Pokémon GO)

Although some brands have rushed to experiment with augmented reality on social media platforms, others are using AR and VR to support commerce. One of the cleverest campaigns was that one from the Spanish fast fashion retailer, Zara.

Although their storefronts may have appeared empty to the naked eye, they came to life when people pointed their phone’s camera at the shop’s window (or in-store podiums) after downloading the Zara AR App. This app enabled users to see seven-to-twelve-second sequences of models Léa Julian and Fran Summers wearing selected looks from the brand’s Studio Collection and allowed the viewers to instantly order any of the looks shown at the touch of a button.

 

Tommy Hilfiger is another example of a retail brand that has also deployed AR technology to improve the shopping experience in their stores. By placing digitally enhanced mirrors inside the fitting rooms, Tommy Hilfiger gave customers instant access to information like styles, models, sizes and colors available both in-store and online. The experience also allowed shoppers to request a new size or color without leaving the room and suggested other products to browse. These smart mirrors made product discovery much simpler and promoted sales by helping users find the right style.

iMirror for Retail from Pieter on Vimeo.

But the business potential seems almost unlimited when AR/VR is combined with artificial intelligence. An example is Salesforce’s Einstein AI technology, which was subject to practical testing along with Coca-Cola. As noted in this article from Diginomica:

Einstein was trained to recognize, identify and count the varieties and quantities of Coca-Cola bottles stored in one of its cooler display cabinets, simply by analyzing a photo taken with an iPad or iPhone. […] Einstein can then take that stock count and combine the information with predictions based on known seasonal variations, weather information from Watson [the IBM AI system], and upcoming promotions, to automatically calculate a restocking order.

There is no doubt about the potential benefits of new technologies like augmented reality, virtual reality and artificial intelligence for both consumers and businesses. In the ever-changing and dynamic world of digital marketing, it would be safe to expect tech giants like Google, Amazon, and Facebook to soon develop and introduce new features that accommodate for these technologies in their portfolio of products and services.

The Key to a Successful Holiday Season: Shipping

The Key to a Successful Holiday Season: Shipping

Retail

Black Friday and Cyber Monday deals are just table stakes for retailers to compete in the first-ever $1 trillion holiday shopping season. The real competitive advantage is coming from shipping.

Based on the client work I do, I’ve always known that favorable shipping can help a retailer compete more effectively during the holiday shopping season. Low-cost, rapid shipping caters to the needs of today’s on-demand consumer who want products curated and sent to them and oftentimes at the last minute.

But what’s changed dramatically about the 2018 season is the Amazon effect. Earlier in November, Amazon announced free shipping with no minimum purchase required from November 5 onward. Amazon did not announce a cut-off date, but it will probably be December 22. Now, this change to its shipping policy is huge. Amazon accomplishes two objectives with free shipping during the holidays:

  • Beating Target and Walmart. These two retail giants had announced more liberal shipping and returns policies of their own in October. Walmart had announced it would expand two-day shipping to the entire Walmart marketplace beginning November 1. And Walmart also said that products purchased through its marketplace could be returned Walmart brick-and-mortar stores products purchased through its marketplace. Target had announced free two-day shipping with no minimum purchase or REDcard membership required from November 1-December 22. Amazon trumped both.
  • Luring shoppers to Amazon Prime. Amazon hopes that anyone using free shipping during the holidays will get a taste of what Prime members enjoy all the time – and, presumably, sign up for Prime, where many more benefits await. For example, Prime members get free same-day delivery on millions of items and free two-day shipping on many more. Prime is the center of Amazon’s on-demand world, which encompasses services ranging from entertainment to retail.

Smaller retailers have a harder time competing on those kinds of terms, but try they must. If you’re a brick-and-mortar retailer, advertising on-demand services such as delivery, shipping, and online ordering/in-store pick-up is key to winning this holiday season. It’s important that you manage your online advertising, including your paid search and display, to show how well you service the on-demand shopper. If you need help, contact True Interactive.

Image source: Walmart

Four Alternatives to Last-Click Attribution

Four Alternatives to Last-Click Attribution

Attribution Modeling

Advertisers have become accustomed to the belief that the final click that leads directly to the conversion is the most important click – hence the affinity for last-click attribution. But it’s important that businesses transition away from last-click attribution. That’s because last-click attribution fails to account for the value of the entire conversion path.

Most marketers would agree that their brand campaigns drive a large number of conversions and have very low costs per action (CPAs). Of course the cost per clicks (CPCs) in brand campaigns tend to be very low, but those campaigns are also benefiting from last-click attribution models.

Let’s think about a customer journey for a moment. With the holiday shopping season upon us, many of us will start our search for the perfect gifts with some online searching. Here’s how one of my searches might look:

Top electronic gifts 2018 -> Fitness Trackers -> Top Rated Fitness Trackers ->Apple Watch

In the example above, the brand campaign housing the keyword “Apple Watch” would get 100-percent of the conversion credit if you use the last-click model. Clearly, I did not start my search on a branded keyword, yet the brand campaign gets full credit. When marketers use last-click attribution, they generally see that non-brand keywords achieve low conversation rates and high CPAs, and brand keywords achieve high conversion rates and low CPAs. But is this approach really a fair way to evaluate our campaign and keyword performance?

Marketers have all seen non-brand keywords fail to work well in a campaign. They may be costly to run, and rarely do we see strong conversions. I have paused my fair share of non-brand keywords as I can’t justify their worth to my clients. Not surprisingly, I see search volume decline; and although my CPA often times improves, my overall number of conversions also begins to decline. What we have been missing is the ability to see the value of the entire conversion path.

Alternative Models

One of the main focuses for Google this year has been transitioning clients from last-click attribution into a model that gives credit to each paid click in the user journey. Currently, there several different attribution models available in Google Ads.

Let’s take a look at some of the choices:

Data-Driven Attribution

The model Google recommends most is data-driven attribution, which uses Google’s machine learning technology to determine how much credit to assign each click in the paid search journey. This attribution model is all based on an advertiser’s own data and continues to “learn” over time.

Data-driven attribution takes both converting and non-converting paths into account, and it’s powered by dynamic algorithms that assign credit to touch points based on fractional credit. Google recommends choosing data-driven attribution when available. Unfortunately, this attribution model is not always an option as it requires 15,000 clicks on Google search and 600 conversions over a 30-day period.  Although smaller advertisers will not have access to this attribution model, there are still some good options available.

Linear Model

The linear model distributes the credit for the conversion equally across all clicks on the conversion path. If it takes four clicks for a searcher to convert, each click receives an equal part of the total conversion credit.

Time Decay Model

The Time Decay Model gives more credit to clicks that happen closer in time to the actual conversion. For example, if the path to conversion takes five clicks, the time decay model would assign an increasing proportion of credit with each subsequent click, with the final click that led to the conversion receiving the most credit.

Position-Based Model

The Position Based Model gives 40 percent of the conversion credit to the first click, 40 percent to the last click in the conversion path, and the remaining 20 percent across the other clicks on the path.

A Recommended Approach

As mentioned above, if the data-driven attribution model is an option for your campaigns, always choose that. But if you don’t have enough data available for that option, how do you go about choosing among the other options? Google offers a few suggestions:

  • Choose a time decay model if your client has a conservative growth strategy, is a market leader, and has little competition. In this scenario, the final clicks in the conversion path will get more credit.
  • If your client is growth oriented, new to the market, and is facing a lot of competition, choose a position-based model where the first and last clicks in the conversion path will get the most credit while the clicks in between will receive a smaller portion.
  • If your client falls somewhere in between, you may opt for a linear model, giving equal credit to all the clicks on the conversion path.

There is no absolute right or wrong choice, and any of the models you choose will give you better insight into the complete conversion path more than the last-click model can. Google also offers an attribution modeling tool in Google Ads that allows you to change attribution models and compare results among the different model types.

Outcomes of Different Models

No matter what attribution model you choose, you should anticipate a decline in brand conversions and an increase in non-brand conversions. The actual number of conversions will remain the same regardless of the model you choose. But you will see fractional conversions reported, indicating each campaign/ad group/keyword that played a role on the conversion path.

So let’s revisit my holiday shopping search from above:

Top electronic gifts 2018 -> Fitness Trackers -> Top Rated Fitness Trackers -> Apple Watch

If I used a position-based attribution model, here would be the new breakdown for conversion credit:

  • 40 percent of the credit would be given to “top electronic gifts 2018.”
  • 10 percent of the credit would be given to “fitness trackers.”
  • 10 percent of the credit would be given to “top rated fitness trackers.”
  • 40 percent of the credit would be given to “Apple Watch.”

Using last-click attribution, I would see keywords “top electronic gifts 2018,” “fitness trackers,” and “top rated fitness trackers” appear to be poor performers, as all of the conversion credit would have gone to “Apple Watch.” Conversely, if I were to use the position-based model, I would see that all of those keywords together played a role in the conversion path — and I would have a better understanding of the value of my non-brand keywords. This insight would allow me to make smarter decisions when optimizing.

Without question, we are able to make smarter decisions when we have a better understanding of the full conversion path. I suggest taking some time to experiment with the various attribution models using the attribution modeling tool in Google Ads. Based on your findings, select the attribution model that best suits your goals. I have found the additional conversion path insight to be valuable.

For more insight into how to improve the performance of your online advertising, contact True Interactive. We’re here to help.

Photo by rawpixel on Unsplash

Why Google Smart Shopping Is a Boon for Retailers

Why Google Smart Shopping Is a Boon for Retailers

Google

School is always in session at True Interactive. We regularly learn about Google products through Google’s Partner Academy, which keeps its advertising partners in the know about key product updates.  At a recent Partner Academy event in Chicago, we got immersed in Google’s recently launched smart shopping campaigns. Smart shopping combines multiple campaigns running on Google ad networks and uses machine learning to maximize their performance. My take: retailers should jump on smart shopping now to maximize your holiday campaigns.

Smart shopping combines shopping and dynamic remarketing campaigns into one product available on all networks where people are conceivably shopping:

  • Search.
  • Display.
  • Remarketing.
  • YouTube.

Smart shopping provides an efficient way for advertisers to roll up multiple campaigns into one. In addition, Google optimizes performance of your campaign across each network. According to Google’s blog,

With Smart Shopping campaigns, your existing product feed and assets are combined with Google’s machine learning to show a variety of ads across networks. Link to a Merchant Center account, set a budget, upload assets, and let us know the country of sale. Our systems will pull from your product feed and test different combinations of the image and text you provide, then show the most relevant ads across Google networks, including the Google Search Network, the Google Display Network, YouTube, and Gmail.

With Smart Shopping campaigns, your existing product feed and assets are combined with Google’s machine learning to show a variety of ads across networks. Link to a Merchant Center account, set a budget, upload assets, and let us know the country of sale. Our systems will pull from your product feed and test different combinations of the image and text you provide, then show the most relevant ads across Google networks, including the Google Search Network, the Google Display Network, YouTube, and Gmail.

To help you get the best value from each ad, Google also automates ad placement and bidding for maximum conversion value at your given budget.

The main advantage of the product is that Google serves your ads among the four networks where they perform best. In addition, smart shopping offers a more efficient spend, more sensible budgeting (you fund only one campaign and let Google optimize your budget), and a simplified approach to campaign management. The product is a boon for large retailers running complex campaigns, including, of course, holiday campaigns.

There is a downside, though: you cannot break out results by the four types of shopping experiences. Therefore you cannot really optimize toward the best performing format. When I asked Google about this limitation, I was told that providing this breakout is one of Google’s highest priorities for smart shopping campaigns in 2019. So, stay tuned.

In addition, you cannot apply negatives, such as negative keywords and topics, to your campaign. So if you want to, say, exclude news topics to avoid having your ad appear alongside an undesirable topic, you cannot do so.

The format also has limits. Smart shopping supports only two bid types: maximum conversion value and target return on ad spend. You also have to install the dynamic remarketing tag on to your site, which drops a cookie on users’ browsers and draws on the product ID as well as the revenue and other attributes to create audiences. (By contrast, with standard remarketing, you don’t need to fuss with this tag. You can use a generic tag that applies everywhere.)

Since smart shopping campaigns take about 15 days to really take effect, make sure you plan ahead so that you hit peak performance on days that matter most to you, such as Cyber Monday. If you have questions about how to deploy smart shopping campaigns, contact True Interactive. We’re here to help.

Note: this post is the first in a four-part series on recently launched ad products from Google. Watch our blog for more posts.

Image source: https://www.pexels.com/photo/working-macbook-computer-keyboard-34577/