“OMG, Anders, PPC Performance was awful over the weekend ” 😲😱

“How can we get our paid search and shopping campaigns back on track?” 🙄

The PPC Panic List

Before the weekend, I had been in discussions with Norman (not his real name) and his team about a PPC benchmark of their US, UK and FR operations against the cluster of leading PPC agencies we analyzed for the Search Marketing Trends Report. The benchmark analyzes the 5 dimensions of digital marketing maturity established by Boston Consulting Group in the 5A’s framework: Audiences, Assets, Automation, Attribution and Access.

But the message from Norman this morning called for something else. He was clearly struck by extreme PPC Panic, and the question was no longer whether the agencies and the internal operation were set up for success, it was about correcting campaign flaws that had put the entire operation at risk.

I drafted the following PPC Panic list off the top of my head.  I considered what I would have done if it were me waking up that day and missing performance targets massively on a budget of hundreds of thousands.

PPC Panic checklist (original but numbered)

1. Is your offering competitive?
2. Is your data feed working and updated?
3. Is the user experience consistent?
4. Is the attribution insight useful for understanding the user experience?
5. Is automatic bidding based on sufficient relevant data being used?
6. Is retargeting not being overused?
7. Are audiences being built and applied?
8. Is shopping vs text ads being prioritized?
9. Is impression share sufficient?
10. Is auction insight showing a reasonable competitive positioning?

I realized afterwards, that a few of these may need a bit more explanation to be useful. It is not a yes/no check list, it is a list of items to go through within a context. Additionally, there is no prioritized order in the list.

Is the user experience consistent?

My favourite starting point is point number 3: Is the user experience consistent? I think this is the most important task of any marketer: create consistency in the user journey. Make it clear where you are taking users in every step of the journey. This is about putting yourself in the user’s shoes and going through the marketing steps one by one, imagining use cases, touch points and interactions. It is not an easy exercise because communication channels and advertising have become so fragmented. When advertising was in its infancy, in the days of “Mad Men”, it would be aimed at creating one strong message and repeating it. In today’s digital era, it is about creating a strong and clear direction and weave partial messages into the path in a consistent manner to build a complete understanding and a frictionless interaction towards the end goal.

The Top25 PPC’ers additions

After sharing with Norman, I went on to activate that magical value catalyzer for digital marketing knowledge: the PPC community around the Paid Search Association and #PPCChat on Twitter, many of its participants are on the list of Top 25 most influential PPC Experts in 2021. During the day, the Twitter thread was quite animated and the initial checklist was augmented by a number of PPC specialists that I greatly respect and enjoy exchanging with. The Marketing O’Clock team seems to have picked up the conversation too.

In the PPC community, Navah Hopkins was fastest on the keyword. It may be a time-zone thing or it may just be a personal trait. Thanks Navah for being fast and incisive. She added a few interrogations: is the problem real? Is everything working as it should?

One of her first additons was to check date settings to make sure of the reality of the reason for panic. Are you looking at the right time frame? Could it be that conversions are simply delayed due to a long decision or reporting cycle? Are their multiple and conflicting objectives that draw results in the wrong direction?

From a more technical point of view, she also indicates a couple of check points: location targeting, auto-apply, the landing page. An eye-opener for me was “auto-apply“, a functionality were the ad engine will kindly apply changes to your campaign automatically as it sees fit. Go put your brains in the cupboard, they are no longer needed!

After Navah’s tweet, more recommendations rolled in. Kirk Williams sounds like he has been confronted with this type of situation many times before. The most common reason he encounters is that tracking is down: “Did you check the conversion pixel and check that conversion tracking is still working as it should be?”

Never make changes on a Friday

Kirk and his team have had their share of PPC Panic messages from clients, and after the first check on the reality of the problem, their next checkpoint is the following: “Did your dev/design team make any changes to PDPs or the checkout experience, or anything else that could impact UX?”.

This reminded me of one of the golden rules of digital marketing which I have always tried to live by: “Never make changes to your website on a Friday”. This includes minor tracking, UX or plugin updates that are seemingly harmless. Want to quickly get those changes implemented before you leave on weekend? Don’t do it!

I am thinking this rule actually might apply to other situations in life. Making hurried or not thoroughly tested changes to a system that will keep running while you are away is not something I would recommend. Probably not something they do in nuclear power plants or in payment verification systems, and I am thinking water supply infrastructure and gas pipes maintenance probably have similar golden rules they apply.

Is campaign data flowing as it should?

Mike Ryan provided a quick three-step verification in “feed, budget and changelog“, but also mistakenly called it a “cute over-the-weekend scenario” which it clearly wasn’t 😲. I make tweet typos all the time too. Hate that you can’t correct a tweet once it flies, but I know it is part of the Twitter deal: Fast and as-is. The “feed” that Mike mentions corresponds to the point 2 in the original list: 2. Is your data feed working and updated?

A data feed is typically an ongoing process in which data from a product catalog is being fed into an advertising system. The process can be a manually built system or it can be based on a tool. Once it is up and running, it is part of the magic of real-time advertising, as a products most recent information including, price, stock level and product images is provided into the advertising system. The downside is of course that it is magical when it works but it is a horror story if it stopped working and you’ve ended up offering a Halloween promotion for Easter. By going through some of the user experience testing mentioned earlier, you may be able to pinpoint this type of problem, but another approach is of course to check the data flow to make sure the latest and correct data is in the data feed and received correctly in the advertising systems.

A great additional check from Julie Bacchini is to verify for any outages on the platforms over the weekend. Platforms failing to stay up or provide complete data has become a more frequent problem these past years.

The Ultimate PPC Performance Panic List

Starting with a top of mind list and adding some great input from the PPC community, let us now review and reorder the list so that those in panic can get a structured and well through-through action list to work by. Through the various inputs, it becomes quite clear that the check points can be grouped in specific areas and prioritized to form a step by step list. I therefore dare to call this the Ultimate PPC Performance Panic list and will accept to update with any missing advice that is shared with me over time so this can remain applicable and to the point. I want to assist victims who have been struck by PPC misfortune over the weekend, during the night or perhaps when the manager was off on vacation.

The prioritized 5 steps to go through in case of PPC Panic.

1. Reality check. Is the panic justified? (pixels, dates, reporting updates, data delays)
2. Waterproof check. Is your operation intact or is there a leak (feed, site, certificate, payment process)
3. Environment check. Is there a force majeure (pandemic, climate catastrophe, monetary crash, shitstorm, …)
4. Consistency check. Is what you are advertising consistent
5. Pulse check. Are your campaigns live and in shape?

Let’s go through each of them to see what they are all about.

First step: Reality check

With a little luck you can calm the panic before going much further in the list. You panic because the results you are seeing are way worse than what you expected to see. But are you looking at the right data set?

• Check that you are looking at the right dates and that they are comparable with your baseline.
• Check that your pixels are in place to track the data you are measuring. Check any website updates that were done recently and shouldn’t have been implemented on a Friday.
• Check that the reporting interface you are looking at has been updated. Maybe go back to the source data and check for consistency.
• Check for data delays. Could it be that the results you are expecting to see have not yet produced the desired and measurable outcome.

I am so much hoping that you found the glitch in the above points and that reality is not as bad as you first thought. If that is not the case, move one to a more in-depth check up on your system in the next step.

Second step: Waterproof check

We have concluded that the data we are seeing is not showing the results we hoped to see. In this second step we therefore dive deeper to check whether or not the entire advertising system is watertight, or whether some element of it has stopped functioning. If the results we are seeing are real, we are hoping to find a simple flaw to fix in this step.

• Check that data feeds are updated and arrive in the right location.
• Check that the secure server certificate has not expired and that the site is up and running. Why not check domain name expiry dates at this point.
• Check for any signs that your site has been hacked.
• Check that the payment system is up and running.
• Check that the campaign landing pages are functional.

Although at this point you know you have lost performance, we are hoping that one of the above reasons can explain the drop and that fixing it will get you back on track quickly. If you didn’t find any explanation in the above points, then let’s move on to the third step to check for environmental explanations.

Third step: Environment check

We are now pretty certain that the lost performance is real and that the advertising is technically up and mechanically running the way it is supposed to. No quick fixes seem to present themselves to us and we must look outside the box for reasons for the drop. Here are some of the things to check for.

• Did any pandemic just hit your target audience?
• Any climate situation that could explain a sudden change in user behaviour?
• Is the economic situation stable or are households suddenly scared of a stock exchange crash, is inflation ramping, have there just been austerity announcements from the Prime Minister?
• Closer to your brand, was there a shitstorm on social media or did one of your competitors just get an award for strongest brand or best place to work?

Some changes in the environment can strongly affect a campaign. They may have arrived suddenly but have the potential to change user behaviour in depth either for the short or the long run. They affect strategy and if they are at play, you may be best off reducing spend and reviewing what impact they may have on the way users find, consider, select and buy your products. If you haven’t been able to identify external factors to explain your performance drop, it will be time to look for the worm inside the apple. Let’s get digging.

Fourth step: Consistency check

In many cases, I am the alert and well-organized marketer, so I might jump straight to the consistency check. I would have felt or even avoided that any of the first three steps would affect my campaigns. Consistency is quite subjective and hard to see. Inconsistency, however, stands out quite clearly when you meet it. This consistency check is about putting yourself in the users’ place and experiencing your marketing as the target audience receives it. Here are some of the things you might undertake in that process:

• Go to sites you have targeted for advertising and try to get a glimpse of your own ads. This is not always possible because digital advertising targets users rather than sites today.
• Try to mimick user behaviour and characteristics of your target audience. Search as they do, browse as they do, simulate using the language and location they are in. Are your ads triggered and do they make sense?
• Take screenshots of your own ad occurences, click on them, screenshot your landing page for documentation. Does it all make sense?
• After clicking through on the advertising, go through the user journey towards the purchase. Take screenshots again and anything creating friction or confusion, and obviously anything blocking your path.
• You ran into some competitors along the path. Were they doing promotions like it is the end of the world? Is your offering competitive?
• For each of your advertising channels, go through the above exercise to check and confirm consistency in the user journey.

You may not find one single point blocking your way to fulfill the user journey and purchase your own products, but in many cases you will find a number of points where you can improve the user journey with your messaging or imagery. You may also be able to build a number of hypothesis for what might be wrong with your campaigns. Some of them could lead to resolution and others simply to better performance or new audiences ot reach. Regardless of the level of troubleshooting you have done in this point, you should probably complete your checklist by going through the last step.

Fifth step: Pulse check

I have called the last step in this process the pulse check. In many cases, what we are looking for is whether there are any signs of performance in the campaign. Is there a pulse? The pulse check is in reality a small PPC audit and it has the potential to take your campaign to the next level. I really like the detailed walk-through of an account audit shared in this thread by Amalia Fowler. She divides the audit into seven sections: Objectives, Account structure,  Campaign targeting and Keywords and match types, Ads, Changelog, Display and audiences. Find a run through by Amalia in this thread.

In the following list I have incuded a number of the points uncovered by Amalia and the PPC community on Twitter. If you feel it is incomplete, don’t hesitate to suggest additions:

• Correspondence of tracked goals with objectives
• Account settings: conversion, attribution, account integrations
• Usage of extensions: using what make sense and not what doesn’t?
• Account structure: campaigns, adgroups, keywords.
• Smart bidding and consistency with data volumes and outcome
• Audiences: do they make sense? Do they add value?
• Retargeting (audiences): are you doing it and not overdoing it?
• Geolocation settings
• Auto-apply settings
• Impression shares and auction insights: what is the competitive setting?

At this stage you have hopefully identified what was not working with your campaign in this instance. You have also started undertaking a number of auditing measures which can help you avoid PPC Panic in the future and contribute to your campaign performance overall.

Strategy, governance and a clear process will help you reduce the likeliness of panic coming your way.

PPC performance has been something quite predictable for many years but it is becoming more volatile. This is caused both by more rapid user behaviour changes and by the increased share of machine-learning and AI in media optimization. The more you rely on automation and tools, the less visibility and end-user insight you get. This makes it more difficult to take corrective action once something goes wrong. The more automation, the more opacity. This is where PPC strategy implemented by human pilots and enhanced by automated processes and AI will be the ideal way to manage digital advertising in the future.

Please contact me via Twitter for any additions to this list. I am happy to update it to include all the best tips and tricks for getting through PPC panic and restoring campaign performance.

Stay tuned on the Innovell blog and subscribe to the Innovell newsletter if you want to learn how the landscape evolves and how marketers adapt to this ongoing change 🙂

Holisitic Optimization of Digital Marketing for Ecommerce

If you are spending less than 8% of your sales on advertising, you may be underspending! Digital Advertising is driven by Ecommerce. And perhaps a little by branding, which is financed by commerce  too. Global Ecommerce was over 4 trillion dollars in 2020 (statista). Comparatively speaking, digital advertising is a midget, at 330 billion. So, global digital advertising as a proportion of global ecommerce is 8%. There is your benchmark, but how should you spend your advertising budget?

Spending where it works

Wanamaker famously said that one half of advertising spend is wasted, the trouble being that you don’t know which half. Fortunately, we are now in the world of digital advertising where everything is measurable, right? If only it were that easy. As we have undercovered in the Digital Marketing Report, all marketing decisions are taken on the basis of partial data: incomplete, unreliable, unshared, adblocked, webproxied, wrongly attributed. All digital marketers know this, most advertisers too, the majority of end-users don’t. “When I enter information into a website, why should it be shared with all those other sites?” – well it isn’t. Apple’s current advertising is about removing all the other platforms’ partial data collection so that only Apple can monetize that data. Logical movement of troops in the what we call the Data Wars, but not motivated by Apple wanting to protect it’s users, in my opinion.

When marketers look at data from the big marketing platforms, there can be biais in the interfaces too. Did you know that Google analytics shows “sampled results” over a certain threshold of data volume: you see a simulation of what data trend is in your activity, not real data. Explain that to your CFO, will you? Newer concepts such as “data-driven attribution” and “modeled conversions” are pushing in the same direction of predicted data rather than real data.

And most platforms are excellent at pushing their collection of packaged data to marketers. The big platforms are marketing data to their clients, the marketers, using great packaging, promotional outreach, gamification.  Dear marketer, did you not know realize that it is you the target audience?

Digital media spend is biaised to promotion

The most reliable data, is found when a marketing operation is carried out exclusively on one platform, and when the path between product discovery and the final purchase is short and uncomplicated. The longer the path gets and the more complex the decision-taking, the less reliable the data tends to be.

Unsurprisingly therefore, Amazon is booming. It is concentrated on the final path to purchase. Also unsurprising, retargeting works really well. Both are close to the measurement point for your sales KPI. And a well-known observation from search marketers, “brand keywords convert”: first users search for category words and when they have found the brand they want to buy from, they search for the brand name. For this reasons, brand keywords are more often attributed the sale.

This challenge of “attribution” has a huge impact on the way budgets are engaged. The data is biased, and subsequently, so are budgets.

In many cases, the data doesn’t tell the story of what happened before the final conclusive action that made a user purchase. Whether this was other keywords that were searched for, or how the person you retarget was identified in the first place. If you really want to optimize your marketing investment, you must look at your entire marketing and communications operation holistically from end-to-end.

Understanding the user journey

Heard of the “funnel” for digital advertising? It was invented in 1898 so predates most digital marketing by a century. Kind of old and outdated, right? Or maybe it isn’t.

The reference concept behind the funnel is the AIDA model. It is a “hierarchy of effects” model in which users are described as moving through stages before buying a product. Awareness, Interest, Desire, Action. The funnel model is for digital marketers, what the “economic man” model is for economists.  The economic man model explains that people make rational purchase decisions and will be more likely to buy a cheaper product than a higher priced similar product.

The funnel model, explains how a user goes through various stages before coming to a decision to buy a product, including becoming aware of the products’ existence, understanding it’s characteristics and finally acting on an impulse to buy it.

Marketers instrumentalize the funnel model to create “awareness” around a product to target audiences, then provide them all the product information they need in order to appreciate and consider buying it. This drive through the funnel is designed to persuade and eventually incite users to buy the product. Here is a more detailed walk-through of digital marketing mechanisms and the stages of the user journey.

Opportunistic marketing

In the TV age, there were few but powerful marketing channels and few but powerful distribution systems. Optimization cycles were long. Study the market, build a creative concept, produce assets, run the campaign flight, stock up in distribution channels, analyse communication and sales results post-campaign. Marketing was a high budget, high risk and high returns business.

In the digital age, marketing channels are fragmented and fast. So are distribution channels. And user behaviour can be erratic too. It has become less risky but more confusing to be a marketer. You can trial and error, you can seize opportunities as they arise. If you are doing no marketing whatsoever, your first action can drive amazing results, and subsequent additional actions can have seemingly no effect. Worse, you can run a number of parallel marketing activities and find conflicting conclusions in the data sets.

What happens when you optimize holistically?

Because of this opportunistic marketing behaviour, the bigger picture is often lost of sight. Applying a funnel view of marketing activities can help identify bottle necks or explain why performance diminishes over time. The key to holistic optimization is to keep an eye on your total investment and your total outcome. It doesn’t have to be 8%, it really depends on what is profitable for your business. It also depends on your goals: if you want to win more marketshare, you should probably spend more than your competitors. If you have a strong brand, perhaps you can get away with spending less to maintain your market share.

With your eyes fixed on that overall performance, you can now look into individual channels and opportunities. It is quite common to see advertisers spend a lot of their budget at the bottom of the funnel, because it is measurable and gives the illusion of high performance. But in some cases, bottom of funnel budgets are cannibalising what we call “organic” performance. You put an ad up and it drove the sales, but the user was going to buy the product anyway. And sometimes you can end up bidding up your own marketing in other channels or perhaps your distributors’ marketing costs for selling your products.

If you think this may be the case in your marketing set-up, try moving some of your budget up the funnel. Reach your target audiences on facebook, target category keywords in search and promote your brand on Amazon. This can stimulate overall performance and allow you to generate better results holistically.

Don’t trust channel-specific performance

One of my favourite films is Minority Report. It depicits a society where truth is established in a closed room where three extraordinary beings can see what will happen in the future. Except, sometimes they don’t agree, and one of them will disagree to generate a minority report.

This can be compared to marketing reports emanating from one marketing channel. All the data isn’t there, but the truth that emerges seems compelling, whereas in reality it is incomplete and sometimes even false.

Everything is measurable in digital marketing, except for all the incomplete data, the biaised data, and the fact that advertising platforms are marketing their product to the advertiser without disclosing their minority reports.

Only a holistic view of all marketing activities can help you learn what balance of media spend and channels works for your brand, so check with your CFO before signing off on the next advertising opportunity you are presented with, and take a chance on channels that make sens from a funnel perspective. They may be more inclined to drives results in the long run.

Driving external traffic into Amazon can be a great paid search strategy in 2021 because the conversion rate is so high, but getting there can feel a bit like sailing through the Bermuda triangle. The compass goes berserk.

Apple’s is also messing with our digital compasses with the IOS 14.6 update, killing off cookies. Have you seen the latest Apple advertising campaign about privacy? It is a fun illustration of the privacy challenge. It is clear to everyone that Apple rids us of all that annoying tracking. “Why don’t you mind your own business?”. The AppleID used everywhere to personalize services in the Apple cloud, clearly isn’t tracking anything, is it?

In reality, the battle over cookies is just another battle in the “data wars” between the large American data-driven platforms who represent such a large part of our connected lives. I always have a laugh when I hear conspiracy theories like “they know everything about us“. Sure they do, Apple knows where you are, Facebook knows what you like, Google knows what you are looking for and Amazon knows what you buy. But they just don’t sit and have tea together and discuss how they can control you. They don’t communicate or share any data. At all. That’s why the compass is off.

Walled Gardens

One of the best metaphors for describing this data impermeability is the “Walled Gardens” metaphor. Each of the platforms is raising walls around its users to prevent them from leaving and to avoid any of their data to escape. Apple is just raising a cookie wall in the current battle.

When you have a website, you can install Google Analytics for free. This gives Google all the data from your website. When you set up a Facebook page, it belongs to Facebook who will give you some nice inroads into the data. It is pretty hard though to actually figure out who is in your Facebook audience. That is not where any privacy issue lies. If you want to actually communicate with your community, you pay Facebook through advertising. And you certainly can’t track any user behaviour when someone came from outside of Facebook.

“People! Can you just stay in one garden at a time, so we can count, please!?”

Why drive to Amazon?

Unfortunately, these end-users that marketers are trying to understand are unruly. They like to surf, to browse and to zap, much to the dismay of the platforms they were just on. One click, one touch, one slider and they are gone. Away to another channel. Did you notice that when you publish a post with a link to your website on Facebook or LinkedIn, it rarely performs as well as if you publish a similar post without the link?

“Please have your audience stay on our platform so we can monetize.”

Pay for the click via advertising and the barriers is gone.

Let’s imagine for a moment that you are an online merchant, and that you can choose only one channel to send your users to. Which one will it be? Your app, your site, your profile page on a social network?

No, you want them to be on your product detail page on Amazon, with your seller account in the “buy box” ready for a one-click sale. Simply because that is the best selling page on the internet for your product.

Amazon is a strong component of any ecommerce strategy. It is one of the main forces of ecommerce worldwide, and the marketplace is growing at a pace of 40% per year. Amazon Advertising is growing at an even higher pace suggesting the advertising spend is actually driving value to advertisers.

For an equal amount of visitors, an Amazon page typically converts much higher than a website. Perhaps twice as high. The service is fast and reliable, it is providing you with all the information you could possibly ask for, and it is backed by the promise of the lowest price and the fastest delivery. Ever. Amazon is obsessed with customer experience, so things will most likely work out quite well when a user purchases there. Hence a higher propensity to buy. A higher conversion rate.

Are you trying to kill my Shopify ecommerce?

“Do you wanna just kill the ecommerce business I am running on Shopify, or what? Amazon converts really well but I have a much higher margin on my direct ecommerce.”

Let’s do some calculations. Let’s say your ecommerce generates 10k in sales per month, your Amazon account generates 25k. You are spending 3k on paid search for 6k sales. Why would anybody send that profitable traffic into Amazon where margin is lower due to fees? If the Amazon channel converts at a rate which is double that of one’s website, those 3k could generate 12k of sales. Even at a 20% increase in costs – 15% referral fee and then some – your money is better invested in a higher converting channel. And a 100% higher conversion rate is not at all uncommon.

In this scenario, your sales increase by at least 6k and your costs by maximum 2,4k. A net benefit of 3.6k which is likely to increase further due to the organic boost which is likely to happen on Amazon. The higher the sales velocity, the higher you rank in Amazon search results and the more additional sales you generate. The net win could be 5-6k due to the shift to an Drive-to-Amazon strategy.

Downside of driving traffic to Amazon

Many years ago I remember having a client who only sold on Amazon. Running search and social media campaigns for the client was really frustrating because there was no data feedback. We could only control and optimize the click-through-rate for our campaigns and were dependent on the client to feedback on the effectiveness of a full campaign. As a real-time marketer, having a client sign off budget without proof of conversion was a new experience. We had no control on where we were sending the traffic, but as the client asked for more, the bottom line must have worked out for them.

It is common practice for advertising platforms to rely on conversion pixels. These are composed of a few lines of code which are placed on the pages where your advertising traffic is sent. If you send traffic from Facebook to a Shopify site, you will insert pixels which track key events such as a purchase. This communication feedback, allows the advertising platform to collect data on which ad created an event and at what time. And in turn, it allows the marketer or an algorithm to optimize the advertising campaign towards the desired actions. Amazon, of course, does not allow an advertiser to insert a pixel into it’s site. Neither does Facebook, Instagram or any other online platform for that matter.

On Amazon, a part of the solution to this problem is to use a tool called Amazon Attribution which allows you to tag external traffic when it arrives in the platform. The tool is still in beta and clearly in it’s infancy, difficult to set up and is fairly true to the “last-click” attribution model Amazon mostly uses. If a visitor comes from Google or Facebook into Amazon and click on an ad inside the platform before buying a product, the original source of the traffic will not be counted. If it does attribute it to the external traffic, however, you will be able to know from which ad group or keyword the conversion originated and thereby refine your campaigns.

There are obviously some more reasons for not driving traffic to Amazon: you pay referral fees (although it was actually you just referring that sale), you won’t get your clients email address and thus cannot address them directly for recurring sales. Additionally, you actually risk referring your prospects to competitors inside Amazon if they change their mind after the click. So, perhaps this is not a long-term strategy as you are simply increasing your platform dependency.

How to set up a drive-to-Amazon campaign

If you are used to running Google Ads campaigns, there is nothing new in the setup required for an Amazon campaign, but there is some preparation to do in your Amazon Seller account in order to detect the impact of your campaign. Going through the steps below should put you in a good place.

1. Prepare the set-up on the Amazon side

On the Amazon side, you should open a free Amazon Attribution account for tracking purposes. In order to qualify you must have brand registry. You should also make sure that you have access to the brand analytics report which can provide valuable overall insights for your Amazon account. If you are using a tools such as Helium10 you can track keyword rankings. Any keyword tracker will do, but make sure you have one activated. Also find a sales rank tracker such as Keepa which will allow you to estimate indirect effects of your campaign.

2. Keyword definitions

Now extract keywords from your Amazon Sponsored Product Ads and compare with your existing Google search keywords if you have any. We are assuming you are already using Amazon Sponsored Ads for your account. If not, start there rather than driving external traffic to your products! On the Google Ads side, spend some time charting Amazon’s own activity in your keyword territory by using the Auction Insights reports in Google Ads. Steer clear of keywords Amazon is already bidding on. No reason to bid them up.

3. Specific Google Ads set up

Now set up specific ad groups and keywords for your Drive-to-Amazon campaign. Once they are ready to deliver you will be able to pause the old campaign without ruining its history in case you need to reactivate at some point. The Drive-to-Amazon will be void of any conversion data and can’t be managed with automated bid strategies targeting conversion.

4. Campaign destination within Amazon

Within Amazon, you have various options for sending traffic. For product names and any brand-related terms you should send the traffic directly to product detail pages. For category terms, the brand store can be a better destination. There is also an option to create specific landing pages for your campaign. This could improve your measurability.

5. Measuring and evaluating

Welcome to the Bermuda triangle. Every time you change campaign parameters you need to wait for a while before you can see a consistent pattern of anything. Steer you campaign on the basis of click-through rate at least for a week and check your auction insights for overlap with Amazon every day. After a week (or longer if you have a long sales process), the main metrics to look at are total advertising cost of sales and sales growth. Amazon Attribution won’t show you the full scale of impact you generate. You may see lower attributed sales than expected but higher overall sales. Take the evolution of search rank positions into account to see if you are generating more organic sales.

How about we do that Kessel run in 12 parsecs?

The Millenium Falcon in Star Wars is the fastest ship in the Galaxy, right? But when Han Solo does the run to Kessel in 12 parsecs, it isn’t about speed, it was about taking a short-cut through the deadly fog surrounding the planet. Yeah, love Star Wars.

Driving traffic to Amazon is a short-cut to conversion, and thinking about the strategy holistically, there are many cases in which this is better for the end-user although you generate less margin. If it is right for the user, it must be good strategy.

For merchants building their e-commerce site, it must be terribly frustrating to adopt, and for marketers it can be a challenging path. You will need to prepare your campaign in detail, use manual optimization and find the right direction by monitoring a variety of indicators all the while not trusting everything the data tells you.

And finally, the Drive-to-Amazon is contrary to the overall objective of many marketers in 2021, namely that of building more and higher quality first party data. Nevertheless, the Drive-to-Amazon strategy can be a real kickstarter giving momentum to both you e-commerce and your Amazon activity. It is deeply rooted in an approach of enhancing your best performing channel and your best performing assets, it has the capability of multiplying your sales and at the same time giving users a better experience and provide learnings in the process. We are down to the essence of what Amazon provides: a shaky ride for marketers capable of generating outstanding short term results! You should try it!

The biggest and most important Amazon market is without a doubt the US market. It weighs 67% of revenues and grew by 19% in 2021. It will be a long time before any other market catches up. If ever! The three following markets: Germany, United Kingdom and Japan add up to only 20% of revenues. And the remaining 15 active markets 14%. Amazon is top-heavy despite a massive international expansion.

[the original article from 2021 has now been updated with 2021 numbers and developments]

The top four markets are directly accounted for in quarterly earnings report. The following five markets, India, France, Italy, Canada and Spain all had more than 150.000 sellers in their local Amazon marketplace according to this overview of third party sellers by country from Statista, and we checked their traffic and GDP per capita to build an initial list. When we initially shared this, we were made aware of actual measured figures which Edge by Ascential provides us with. To our surprise, India is actually the fifth biggest market ahead of France and Italy. For the tenth position, we initially bet on Brazil, but it seems it is Australia that holds that position followed relatively closely by UAE and Mexico.

Managing multiple marketplaces on Amazon

Navigating the various marketplaces can be complex on Amazon. And even more complex for ecommerce outside of Amazon. As the formats and functionalities of market places are essentially the same from one Amazon country to the next, there are a couple of practical solutions in place. In North America, sellers can set up a unified account to cover US, Canada and Mexico. And in Europe, a unified account spans Germany, the United Kingdom, France, Italy, Spain, Netherlands, Poland and Turkey. If you are looking to expand internationally, the Amazon’s Global Selling guide is your go-to destination.

Amazon’s international growth strategy

Amazon appears to have a distinct synergy-driven approach to internationalisation where new markets piggy back on existing ones, and where additional features are rolled out progressively. It is also using existing regional strongholds to build neighbouring markets, as proximity is so important to ensure high quality fulfillment. Brazil may enable an expansion into Argentina in South America in the future, and Germany was a key piece in the puzzle for opening Poland. In recent plans for opening in South Africa and Nigeria, those two are part of the same project, just as Colombia and Chile are grouped together.

There seems to be a fair amount of merchant copy and paste going on to get a marketplace up and running. Product listings are autotranslated and made available in a new marketplace to get it going. There must be both ample supply and demand for a market to function.

Once merchants start flocking to the marketplace, the advertising platform is then rolled out. And with the recent opening of the physical stores, Amazon Go in the UK, perhaps the physical stores branch will start trickling down the top market list in the future. Perhaps Germany, Japan, and regional strongholds such as India and Brazil will be next?

Let’s look at some of the ways Amazon markets are growing and how the international expansion strategy seems to be organized below.

Amazon Advertising

Advertising is one of the first powerpack added after a marketplace opens. There are four types of Amazon Advertising, three of which are intimately tied together with the marketplace:

• Amazon Sponsored Products (which we like to refer to as Amazon paid search due to its similarity with Google Ads)
• Amazon Sponsored Brands
• Amazon Sponsored Display

These three are used by merchants to fight competition on the marketplace and boost their sales. As described in our Amazon Marketing Report, these solutions form an integral part of an Amazon marketing system and have been opened to all the recent marketplaces.

Netherlands, Poland and Sweden are recently opened market places and the advertising branch has not yet been launched. Turkey has been around longer but it is characterized by a small Amazon market share.

The fourth advertising type is the Amazon DSP, the demand side platform allowing advertisers to advertise inside and outside the Amazon platform and a CPM (cost per thousand impressions) model. Amazon DSP could in principle be launched independently from the other ad types, but in practice it seems to tag along with the other types or shortly after.

Amazon Prime

We have a hunch that the roll-out of Amazon’s loyalty program, Prime, follows approximately the same pattern. In Europe, Prime was launched first in the UK in 2007, in France in 2008, Italy in 2010 and Spain in 2011. The trickle down pattern is probably similar across other markets.

What will be the next Amazon market to open?

In recent years, new market places have opened or absorbed in a number of countries: Turkey, Singapore, Saudi Arabia, Egypt, Netherlands, Poland and Sweden. And in a recent article for Business Insider, plans for further expansion were leaked with Belgium up next in 2022 and for next year the plan includes South Africa and Colombia and then Nigeria and Chile.

The launch plan for 2022 – 2023 goes like this according to Business Insider:

• Belgium – Sep, 2022
• South Africa – Feb, 2023
• Colombia – Feb, 2023
• Nigeria- Apr, 2023
• Chile – Apr, 2023

(source: https://www.businessinsider.com/amazon-to-expand-into-5-countries-by-early-next-year-2022-6)

Worldwide domination is still far away

Amazon is experiencing amazing growth, its ad offering is penetrating the triopoly of digital advertising consisting of Google, Meta and Amazon Ads. Physical stores are breaking down the barriers between online and offline retail. But when we look into the details of the domination, Amazon is very top heavy and has a long way to go before it reaches the same level of market power in worldwide markets. As we exposed in our recent report “State of Retail Media 2022”, local Amazons often face competition in the form of local pure players such as Allegro in Poland and Cdiscount in France. They also face vertical marketplaces such as Zalando in beauty and fashion or ManoMano in DIY.

It is interesting to note, though, how the constant progression of Amazon in international markets reinforces existing strongholds and markets as it goes. It may take a while, but the machine seems unstoppable.

If you are aiming to build a more full understanding of Amazon marketing, you find a complete coverage in Innovell’s “Amazon Marketing Report”.

Paid search was the advertising solution which made possible the Google we know today. And Amazon has one just like it. An advertising product which is not intrusive, and which consumers, search platforms and marketers all love.

In Amazon, the paid search product is called Sponsored Product Ads, and it is one of the four ad products Amazon advertisers can use. On the Google front, it used to be called AdWords but changed to just Google Ads in a shift to a broader advertising offering focusing less on the keywords and less on search.

What is Amazon search?

We have come to “Google” information, as the brand has become a verb. We haven’t quite come to “Amazon” a product yet, but search behaviour is increasingly seeing a shift in searches for products away from general search engines and into marketplaces, shopping search, and to a very high degree Amazon. People are starting to have a “Prime” reflex, as their membership of the Amazon loyalty program of that name enables them to buy a product fast, seamlessly and at the lowest available price.

Amazon Search is powered by an engine referred to as A9. Some say it has shifted to A10 now, as an update to the algorithm that powers it. It is a search engine which interprets users’ search queries on one hand and indexes product-related information on the other. There is a focus on keywords and product descriptions provided by the merchant, but additional variables affect the search results, including things like reviews and ratings, customer experience and sales velocity. Sales velocity? Yes, the speed at which a product sells – the higher the better.

Similarly to the world of search marketing for Google, Bing and other web search engines, in the case of Amazon, there is also a separation between Amazon SEO and Amazon paid search. Let’s look closer at the latter below.

What advertising solutions exist in Amazon?

Amazon Advertising has two branches: Amazon Sponsored Ads which includes three cost per click (CPC) based solutions, and Amazon DSP, the demand side platform offering programmatic media buying inside and outside of the Amazon marketplace, based on a cost per thousand impressions (CPM) payment model.

It is within Amazon Sponsored Ads, that we find Sponsored Product Ads, Amazon’s paid search solution. Its main targeting mechanism is the keyword just like in other search engine advertising. It also allows for product and brand targeting via Amazon’s product codes, the ASINs. In our survey for the Amazon marketing report, 85% of the participating Amazon marketers’ preferred ad solution was Sponsored products.

The other two CPC advertising products in the Amazon market place  are called Sponsored Brand and Sponsored Display. They are CPC-based like Sponsored Products but have different placements and different targeting mechanisms. Dive deeper look into the topic here: Amazon advertising characteristics.

7 similarities between Amazon Sponsored Products and AdWords

Amazon Sponsored Product ads have been built into the user experience, just like Google’s AdWords, now renamed to just Google Ads,. When a user searches for information or for a product, the ad appears prominently and close to organic search results. It even looks like an organic result. This is the case for both Amazon’s and Google’s search advertising.  Let’s look at the seven dimensions in which the two ad products are similar.

• Pay per click: The orginal search advertising product from GoTo was the first search advertising solution to use the click as its’ main metric. Most search advertising is “pay per click”, or rather “cost per click”, abbreviated as CPC, meaning simply that the advertiser does not pay for exposure or ad impressions, but only pays when a user clicks on the ad.
• Real-time auction: In most digital advertising, the impression of the ad is decided in real-time and on the basis of an auction between advertisers targeting one specific ad placement. The highest ranking bid wins the auction. In Google and Amazon, the rank of the bid is not exclusively based on the price the advertiser is willing to pay. It also carries an element of user experience optimization, such as the Quality Score in Google Ads and available product inventory in Amazon.
• Keyword: The keyword is the basic targeting mechanism for all search advertising. One of the functions of the advertising engine is to match the targeted keyword with the real search terms used by users.
• Match type: In order to match keywords with advertiser targeting, advertising engines use four basic matching mechanisms: Exact match, Phrase match, Broad match and Negative match. These match types are available in Amazon Sponsored Products but have evolved towards less transparent versions in Google Ads and Bing Ads.
• Native ad format: Whereas ads in Amazon search are nowhere similar to ads in other search engine, they carry a ressemblance with organic results. When ads closely integrate with organic results or content, the word “native” is used to characterize them. Search ads were some of the first native ads to be found in digital advertising. Both Amazon sponsored product ads and Google text ads are very similar to the organic search results above and beneath them.
• Ad placement: Just like the native ad formats, the ad placement of search ads is closely integrated with natural results. The key ad placement for search ads is just above the organic search results. To increase visibility, they are often continued at the bottom of the search restults page.
• Automatic targeting: Amazon search ads may ressemble Google AdWords from the way they worked years ago, but in its automatic targeting features it is much close to the Google Ads of today. Google has an automatic targeting function known as Dynamic Search Ads, where the advertiser submits a URL rather than a list of keywords. Amazon Sponsored Products has an automatic targeting function used by marketers to find relevant keywords for their campaigns.

After this list of similarities between Amazon search ads and paid search in Google and Bing, it is fair to mention that there are of course differences too. One of those differences appears in the way marketers work with the ads.

Search marketers fall into two groups, SEO’s aiming to improve organic rankings, and paid search marketers deploying winning strategies to maximize the outcome of search ads. But in Amazon marketing, those two functions are often merged into one, as paid advertising directly impacts organic outcome. In Amazon, effective paid search can have a positive impact on a products organic visibility as “sales velocity” is a ranking signal for the A9 search engine, and marketers naturally work in both dimensions for optimal outcome.

Amazon Sponsored Products is on an AdWords trajectory

AdWords is what made Google rich. Amazon Sponsored Products is only one of the main growth drivers of Amazon, but it is on a trajectory of success. It is likely the most important advertising product for Amazon, although that information is not disclosed. We do know that marketers love it, that it typically generates higher click through rates than the other ad products, and that it is really easy to use. It has practically become a must if you want to sell on Amazon in 2021.

The key for the continued success of this ad product, and possibly for the successful incursion of Amazon Ads into the digital advertising landscape will be to maintain a great user experience in the search interface when the ads are on, maintaining the triple win for the platform, the advertiser and the end user.

If you are interested in search trends and outlooks for digital marketing, you will find more in-depth analysis in our recent reports: “Major Trends in Paid Search“, “Paid Search Strategies“, “Marketing on Amazon” and “Digital Marketing in Uncertain Times“.

Advertising is on a roller-coaster ride in the 2020’es. As one of the first budgets to be affected in times of uncertainty, advertising took a dip at the start of the pandemic. It also picked up for new types of advertisers. Then the entire underlying data set for targeting based on user behaviour changed, as people’s financial situations changed, as their relation to touching products and going to shops degraded, and as ecommerce picked up. And then ecommerce boomed and digital advertising rose to new heights again.

And under the hood, things are changing too. Artificial intelligence is making inroads into advertising management, new privacy legislation changes the use of data. And the disappearance of third-party cookies is promising to send shockwaves through the adtech industry.

All the while, the major platforms, also known as the triopoly of digital advertising, Google, Facebook and Amazon continue to experience double-digit growth at 20-40-60%. Search engine advertising, at the core of the Google offering is still on a positive and growing trend. This is despite saturation of click prices in mature markets. And despite a halted growth in the basic market of search, as the majority of the worldwide population now has access to the internet.

But if the the number of searches performed by users – the search market – is not growing, and if click prices, the basic monetization of searches, can’t rise any higher, where is the search advertising journey going? For Amazon, search is still growing, for Bing, the CPCs may not yet have hit the ceiling, but Google might be close to maxing out on those two growth dimensions.  And so it is time to look inwards.

What Search Engine Advertising is today

Most search marketers who have been brought up with Google and Bing ads today agree that Amazon Sponsored Products should be considered as “paid search” too. But they can also get caught throwing display ads from the Google Display Network into the mix. Perhaps because those are still “pay per click”, or PPC, one of the other names search marketers often give to search engine advertising. Furthermore, the overlay of audience targeting which has arrived in search advertising engines in recent years is taking the focus away from the keyword.

Digital advertising is similar to financial investments today. You choose among a wide range of ad streams for which you try to predict future returns on the basis of past performance. Some are short term bets, others are long term. No outcome is ever guaranteed.

In the range of possible options, Search Engine Advertising represents a wide number of streams. Brand keywords, category keywords, automatic targeting, automated optimization and bidding, maximization of clicks or revenue or return on investment. Reliable and unfied tracking is key to succeeding.

But there are also some huge differences between financial investment and advertising. In finance, there is no hidden outcome, no organic growth, no retargeting pools, no brand effect and no synergy effects either. This is where advertising stops being scientific, it has a vast number of moving pieces which interact with each other.

What are the drivers of change in paid search?

For many years, search advertising was always the same: find the right keywords, write compelling ad copy, adjust bids for optimum visibility, send users to highly converting landing pages. It was spreadsheetable because the number of variables remained low.

Over time, however, more variables entered the equation: users morphed from desktop to smartphones, tablets and became multi-device users. The ads evolved with extensions and contextual elements to become multivariate entities with no fixed form or shape. And the audience targeting overlay made the number of variables explode. We explored all of these variables in our 2018 Search Trends report to conclude that something fundamental had changed.

Advertising engines started building optimization tools for managing this complexity. In Google, these tools are known as Smart Bidding. They take a wide range of variables into account, apply machine learning, and target one specific and measurable outcome. In the 2020ies, Smart bidding has become the norm rather than the exception. Search marketers are no longer testing between keywords, they are testing between algorithms.

Smart bidding is the arrival of artificial intelligence (AI) in ad optimization. But it is not the only thing happening. In our 2020 Digital Marketing Report, set in the context of COVID19, we identified radical changes in user behaviour, and disruption in the data as immediate effects of the sanitary crisis. But overlaying these trends, the penetration of AI, and the data challenges became apparent. Privacy legislation is changeing both user behaviour and tracking methods, and the large platforms are increasingly accumulating data and restricting marketers’ access to it. On top of AI, user behaviour and privacy legislation, we are also entering a user tracking paradigm shift as third-party cookies are being phased out and the concept of “cohorts” taking over.

6 inflexion points for PPC automation

Automation is what drove the industrial revolution, and it is also a major driver of the digital revolution we found ourselves amidst. So whenever a search engine suggests automation tools, does that mean you should use them? Let’s look at some good reasons for automating or not.

• SKAGS: “Single Keyword Ad Groups” were a thing. Some agencies even automated processes to build SKAGs in their client accounts. Where search advertising is going today, there are many cases in which SKAGs risk performing worse. Optimization algorithms pull in the opposite direction of the SKAG, as they take more variables into consideration.
• Smart campaigns: Google Ads has a highly automated campaign type known as the Smart campaign. It simplifies campaign creation down to the basics and requires no keyword research. For small operations with a clear goal and reliable tracking, this type of automation can create great results. Just don’t ask how it did it, as you will get very limited insights.
• Dynamic Search Ads (DSA): Enter a URL and let Google Ads find the keywords to target. Then hope to find some of them in search terms reports.
• Responsive Search Ads (RSA): Enter variations for titles and descptions and let Google Ads find the winning combination.
• Smart bidding: Various types of smart bidding exist with the common feature of using a wide range of variables to optimize a search campaign towards once precise goal. This includes bidding on branded keywords to generate more conversions.
• Google Data Studio, PowerBi: Automate reporting of your digital advertising campaigns into dashboards updated in real time.

For most of the items above, there can be a bit of a trade-off. Only the very last point on the list is a no-brainer: absolutely automate your reporting as much as humanly possible.

The challenge with automation is that it applies fast algorithms to sets of data. You need to be careful to provide the right data via reliable tracking and well-considered limits. If your tracking is not 100% reliable, automating campaigns will not work efficiently. If you leave the advertising engine define what data is included, you may see cannibalisation of other campaigns, of other channels.

Keep your eyes on the data and your foot on the accelerator

Search advertising is looking inward for growth. Its engines are aiming to monetize more of the search by using the data to its advantage.

Search advertising for small campaigns are easier to create than ever before. Search advertising for large campaigns is potentially more complex than before, as data access is becoming increasingly blurred, more algorithms are applied and targeting mechanism change. A good approach is to mix and match the various algorithms, and work actively on delimiting and providing the best data for your campaigns to work with.

Keep your eyes on the data and try to interpret it holistically across all your communication channels. Set your strategic goals and pin them down with the right KPIs, then use as much automation as you can to accelerate outcomes. Not quite the autopilot yet.

If you are interested in search trends and outlooks for digital marketing, you will find more in-depth analysis in our recent reports: “Major Trends in Paid Search”, “Paid Search Strategies”, “Marketing on Amazon” and “Digital Marketing in Uncertain Times”.

With Amazon Advertisings’ staggering 66% growth in Q4 of 2020, the giants ad offering is now firmly established in the digital media landscape. Amazon Ads has become part of the Triopoly of Digital Advertising together with Google Ads and Facebook Ads. On top of that, the Amazon advertising platform is pacing well above the baseline Amazon e-commerce growth rate, already impressive at over 30%.

But what is Amazon Advertising and who is it for? Can any advertiser make use of the platform? How does it work? Should your business be advertising on Amazon in 2021?

In our research for the Search Trends Report in 2018, we discovered that search marketers specialized in Google Ads and Bing Ads hadn’t adopted Amazon Ads, and that it was below the radar for many advertisers despite having gained critical mass and experiencing much higher growth than the other ad platforms.

What is Amazon Advertising?

Amazon Advertising is a division within Amazon composed of two different offerings, Amazon Sponsored Ads on one hand, and the Demand-Side Platform, Amazon DSP on the other. The names have changed quite a bit in the past, but names like Amazon Media Group (AMG), Amazon Marketing Services (AMS) and Amazon Advertising Platform (AAP) are no longer used.

Amazon still reports on its advertising revenues in a category called “Other” in its quarterly reporting, despite its having passed the 5% mark of Amazon’s earnings.

Amazon Advertising proposes a range of advertising solutions made available to agencies and advertisers inside and outside the marketplace. The primary media placements for Amazon advertisements are inside the marketplace: on product detail pages and in search results pages. Amazon additionally places advertising outside the marketplace on properties it calls O&O: Owned and Operated media. And finally, it has the capability to use ad exchanges such as Rubicon and AppNexus to reach sites completely external to Amazon.

When it comes down to the ads themselves, an Amazon ad can have a wide range of formats. Each depend on the placement and the advertising solution in which it is found. The simplest ads are based on product listings, more advanced ads can be display banners and carrousels, and video is also available in some of the solutions.

Amazon Sponsored Ads or Amazon DSP

Amazon Sponsored Ads and Amazon DSP are two different organisations within Amazon Advertising. The more accessible solution is Amazon Sponsored Ads, which Sellers on the platform can access freely and which is conveniently part of the same accounting as their ecommerce. It is composed of three products, all using the cost per click model (CPC):

• Amazon Sponsored Products: simple and straight forward keyword-based advertising for product listings.
• Amazon Sponsored Brands: keyword, product and category targeting for promoting a brand, logo, text message in more prominent position in the marketplace
• Amazon Sponsored Display: audience targeting, retargeting, display banners using placements inside and outside the marketplace using a CPC model.

The Amazon DSP is a programmatic advertising platform with restricted access. It allows for a much more advanced targeting than Sponsored Display and works on a cost per thousand impressions (CPM) model. It is the Rolls Royce of advertising with Amazon.

6 essential things to know about Amazon Advertising

Amazon Advertising is evolving quickly. Not only is it experiencing phenomenal growth, but the platform and the offering also progress. The recent opening of Sponsored Display to inventory outside of the marketplace is a prominent example. But let’s look at some of the things that don’t change. The keys to advertising on Amazon in 2021.

Advertising is an essential part of being an Amazon merchant

Marketing on Amazon involves showcasing, pricing and describing one’s products and making inventory and shipping available to buyers. It is essential but not necessarily enough to have great reviews and ratings to become a best seller. An increasingly important part of the marketing equation is making sure one’s product is visible to buyers by using advertising.

Amazon advertisements are best for endemic advertisers

Amazon distinguishes advertisers whose products can be found on the platform, endemic advertisers, from advertisers whose products are not marketed there. Non-endemic advertisers fall into categories such as automotive, energy, finance, travel and hospitality, telecommunications and gambling.

Endemic advertisers make up the bulk of ads on the platform as the user journey is short and sweet ending in a measurable conversion directly on the platform. Nationwide non-endemic advertisers may however be interested in building an Amazon advertising strategy because of its large exclusive audiences which can’t be reached via any other advertising platform. The other attrative Amazon DSP asset is the rich audience data the platform can make available for targeting purposes.

Link In and Link Out

Whereas the Amazon platform is pretty much a closed garden where you are either inside or outside, there are a few approaches through which traffic is exchanges with the outside world, such as:

• Amazon DSP campaigns for non-endemic advertisers can link a banner inside the marketplace to a destination outside of Amazon.
• External advertising can link directly into the marketplace to promote a product outside of the platform. This approach is emerging as a paid search strategy for Amazon-first
• Amazon DSP and Sponsored Display campaigns can retarget users outside of the Amazon platform to bring them back into the fold.
• Amazon Influencer partners is an affiliate program where influencers can enter into revenue share deals with merchants on the Amazon platform by promoting the products on their social media or websites and sending users into Amazon to purchase.

Linking in to the platform is still a nascent discipline made difficult by the somewhat rudimentary tracking made available via the affiliate platform or the Amazon Attribution platform.

Amazon Sponsored Product Ads are like AdWords

In our research for the Amazon Marketing Report, we found that Sponsored Products was the most popular product among marketers. It ressembles the Google Ads search product so much that it could have been named Amazon paid search, or even Amazon AdWords, now that Google has abandonned that name.

Amazon Sponsored Products is easy to use because it directly uses the product listing as the ad, targets keywords and even allows marketers to use automatic targeting for refining the keywords that drive conversion.

Amazon Sponsored Products is the first step a Seller will take into advertising, and in many cases it is a necessary step to increase visibility, once the product listings have been optimized and a brand store created.

Amazon DSP is gaining ground

In the world of programmatic advertising, Google DV360 is the incontested leader trailed by TheTradeDesk. The Amazon DSP is quite a bit lower on the list. It has a triple advantage, though: it provides the only access to inventory on the Amazon marketplace, its inventory is experiencing hefty growth, and it has some of the best audience data on purchasing behaviour. Expect to see the Amazon DSP gain more ground in the near future.

The learning center is great

With such a strong growth, a rapidly evolving platform, and a culture of confidentiality, it can be difficult to find reliable information about Amazon Advertising. Luckily, there is the Amazon Learning Console, a training and examination platform freely available and really well structured. In the learning center, anyone with a an account, some time and curiosity can obtain an Amazon Advertising Certification.

Don’t ignore things that grow at 30-70% growth rates.

No serious business person can ignore trends that represent 30-70% growth per annum, except if they are Bitcoin and suddenly drop at the same rates again. The Amazon platform and ecommerce grows continuously and Amazon Ads grows consistently above that rate catching up on other advertising platforms and gaining ground in the digital advertising triopoly.

It is time to figure out how marketplaces in general, Amazon and its advertising dimension in particular can affect your business area and pick up the challenge of competing there.

If you are aiming to build a more full understanding of Amazon marketing, you find a complete coverage in Innovell’s “Amazon Marketing Report”.

“No, a bid strategy is not a paid search strategy.” Setting bids for paid search is simply optimization. There are so many instances we should be calling tactics or tools, but they are named “strategy”. Maybe to make them seem more important than they are.

On the flip side paid search strategy is often a neglected topic. Sometimes in business and oftentimes on conferences, blogs and in industry publications. Let’s start making up for it below.

In the 2020ies, search engines are boosting their advertising engines with artificial intelligence (AI). We found an increase from 44% to 76% in the adoption of AI-driven “smart bidding” between 2018 and 2020 among leading paid search agencies. This shift to AI is happening across the entire digital advertising space and is making marketers wonder if they will be obsolete in the future. They will not. But their role will continue to change toward less execution and more strategic decision-making and planning.

The 6 main paid search strategies in 2021

What is a paid search strategy and why is it important?

With AI and automation speeding up the engines, it becomes more dangerous to manouver your search campaign. Taking the wrong exit on a Motorway you loose up to 20 minutes, whereas the same mistake on a small road is a matter of a minute or two as you turn your vehicle.

A paid search strategy sets your direction and defines your metrics. Where do you want to go? How do you know if you are getting there? Without a clearly defined paid search strategy, you can easily get lost in conflicting metrics, duplicate conversions and hollow performance. Every vendor, every platform, every analytics tool is making its data scream “SUCCESS”, but those dashboards don’t add up or they don’t combine. Your paid search strategy solves this as it defines your goal, your horizon and your metric.

The 6 winning paid search strategies in 2021

A few years ago, we detailed the four predominant paid search strategies in 2019. Those four strategies were dominating the space in 2020 and we were able to recognize them in about 60% of entries in paid search awards such as the European Search Awards. They belong to a family of performance-driven digital strategies aimed at ultimately driving some kind of conversion.

Each company may of course have its own unique strategy, but we have found that convering technology, tools, metrics and campaign goals make certain generic strategies crystallize out. Let’s look at the ones we often come across.

• Audience-driven paid search strategy
• Data-driven paid search strategy
• Drive-to-store paid search strategy
• Drive-to-Amazon paid search strategy
• Search and shopping strategy
• Holistic Search strategy with PPC and SEO

1) The audience-driven paid search strategy

An audience-led paid search strategy aims to reach target audiences which are not aware of the product or service you are promoting. Taking the duration of a decision-making process into account, it uses two stages for its campaign set ups. A first stage to reach and influence the right audiences and a second stage aimed at conversion.

An audience-led strategy is for sophisticated marketers with advanced set up as it often involves tracking users in different channels and from one media owner to the other. It can be achieved in the Google ecosystem by targeting audiences with video on YouTube and then addressing these audiences via Google Search for conversion.

To succeed in an audience led paid search strategy, the key factors to control are the effectiveness of the initial targeting on one hand, and the effective tracking of influenced audiences for conversion on the other.

2) The data-driven paid search strategy

All digital marketing is of course data-driven, but in the case of the data-driven paid search strategy, campaign optimization is based on external data fetched in real time. This data intake is programmed to create better campaign outcome.

Data-driven campaigns come in many shapes and forms. They automatically act on external data acquired in real time. Some will take weather data to adjust bids, others will analyze fluctuations in stock markets. They can be used by any size of company but require both developer capabilities and a data scientists to work out.

The keys to success are the quality of the data sources, the integration with the ad platforms and the strength of the underlying optimization hypotheses. A data-driven strategy is practically impossible for competitors to detect and can drive real and lasting competitive advantage.

3) The drive-to-store paid search strategy

In a drive-to-store paid search strategy, the end goal is an offline conversion event. As the tracking chain is broken, the event most often used to optimize against is the “store visit” tracked by Google Analytics or Facebook on the basis of GPS data. When you walk into a shop after having been exposed to advertising for it, this will be interpreted as a conversion.

Drive-to-store strategies can work phenomenally well for small businesses with a single point of sale. But it is also viable at the level of large FMCG brands with a large range of sales points when their ecommerce is not the predominant sales channel.

To succeed with a drive-to-store, advertisers need to take a bit of a leap of faith. Store-visit metrics are not reliable and cannot integrate purchase amounts. This requires them to crunch more data and rely on hypotheses which can only be confirmed post-campaign. The success also relies on the quality of the store-visit metric which can vary from one region to another.

4) The drive-to-Amazon paid search strategy

Marketing on Amazon has become a digital marketing discipline of its own. The drive-to-Amazon strategy aims to send traffic into a retail brand’s best converting channel to maximize traffic and conversion there. A higher sales velocity on Amazon gives the brand an organic boost via better visibility of the platform providing a double benefit from the incoming traffic.

A drive-to-Amazon strategy works well for retail brands whose primary online sales channel is Amazon and other marketplaces, or who have a higher potential via Amazon than via their ecommerce website.

The first thing to be careful about is to avoid cannibalisation or bidding against your own interest as Amazon itself is likely to be present in the paid search auction. Avoiding to compete against your own offer promoted by someone else, is becoming more important. In the drive-to-Amazon strategy, it is also crucial to defend one’s brand on the marketplace via Amazon Sponsored Ads. This is why this strategy is only viable for merchants with an establish Amazon presence and profitable ecommerce sales there.

5) The search and shopping strategy

For many years, ecommerce advertisers have progressively shifted their budgets from text search ads to image shopping ads. Shopping ads perform better partly because of the product image in the ad, and also because they are optimized for the ecommerce experience.

A search & shopping stratgy aims to optimize the balance between search ads and shopping ads to generate the highest ROI of the mix. It does this by focusing first on optimizing the shopping feed and then add search ads on top of those to reach further without cannibalizing the same keywords.

Innovative merchants are using Google’s dynamic search ads on a product feed to generate additional visibility without targeting a set range of keywords.

6) The holistic search strategy with PPC and SEO

The holistic search strategy aims to maximize outcome from search marketing overall. This means integrating the process of search engine optimization with paid search. SEO+PPC=3

A holistic approach can be used by any advertiser but is mainly adopted by those optimizing visibility rather than sales. It is a long term approach focusing on maximizing outcome of SEO before investing in paid advertising.

The keys to succeeding a holistic search strategy lie in the real integration of the two approaches at the process level and in reporting and dashboards. It works best when SEO is setting the pace and PPC is maximizing on top of the organic foundation.

Maximize on a narrower scope

The best performing paid sarch strategies are not trying to do everything there is. Digital marketing provides you with almost endless possibilities. Winning strategies reduce their scope and identify the metrics they aim to maximize for. And then they go all the way to perform in those key areas, rather than trying to do everything in parallel.

Truth-seeking on Twitter

We tried to find the answer on Twitter by looking at related hashtags and as we see in the wordcloud the dominating term seems to be PPC.

Actually this whole activity started out as “Sponsored Links” and was invented by a company called GoTo who made an auction-based listing when you entered a query and then became Overture and then was acquired by Yahoo and then were possibly melted into what is now Bing. Nobody says sponsored links anymore – it doesn’t even show up in the word cloud – but pretty much all the other variations are still used. In my experience there are some geographic trends that I will try to lay out for you below.

US and UK: People (mostly) say PPC and then Paid Search to be more specific. PPC is the abbreviation for Pay Per Click and in theory is much broader than just Paid Search (would include Paid Social and Native advertising on Outbrain, Taboola etc which is also using that payment model). The term is actually misleading when you do PPC on a CPM (cost per mille) basis or on a CPA (cost per acquisition) basis which can easily happen in a “PPC” campaigns. And now there is of course the People’s Party of Canada and the PPC19 messing up the twitter-sphere…

In Spanish, PPC would also sound like a political party – one of them is PP another PSOE. So they haven’t been so picky about wanting to turn it into Spanish. They use the term SEM (for Search Engine Marketing) and it is pronounced as a word.

“Que vamos a hacer en SEM este año?”.

This wouldn’t work in France as people could mistake

“qu’est-ce qu’on fait en SEM cette année”

for

“qu’est-ce qu’on fait – on s’aime cette année ?”

Yes, truly, the language of love – “on s’aime” = “we love each other”. No, serious, they would never get any work done.

And there is also a strong history of defending the French language and laws enforcing a certain percentage of French words in advertising and media. However, despite honorable initiatives like calling this literally “Publicité dans les moteurs de recherche”. Well, try putting that in a tweet. It is almost over before you can say anything else. Or how about an abbreviation for it PDLMDR. That certainly did not show up in the wordcloud.

There was a bit of a trend for hybrid terms like “Search Payant” at one point but really, this has ended up being called SEA – abbreviation for Search Engine Advertising – and it is pronounced S-E-A (pronounced in French, so there you have it!). Fun fact here, do you know what a Walkie-Talkie is called in French? No? Well, it is a Talkie-Walkie. Seriously!

In the rest of Europe my experience is that they pretty much go with the Spanish option as well. SEM, Search Engine Marketing. But isn’t that really misleading? SEO may be technically oriented but essentially it is marketing as well. Search Engine Marketing.

If you have made it so far into this article, you will have understood that semantics in search are seriously messed up and we have therefore taken the initiative to decide what we should be calling this once and for all. Every vote will count and we would urge you to respond to this survey and share it wide and far beyond. We need this. Once we have all agreed, we will publish an article to provide the ultimate answer.

Click right here please!

Participate, share, promote this and be patient, enlightenment will come!

It used to be quite simple. When taking over a Paid Search campaign you would automatically consider that whoever had managed it before was a jerk so you would rebuild the campaign from scratch: new keywords – or rather more keywords, new account structure, fresh ads and then optimize, optimize, optimize. You would add in a “Bid Strategy” which was never really something well-defined but it let you use the magical word “strategy”.

So many things have changed in the way paid search is structured, in what is possible to do and in the integration with other channels. And with the arrival of retargeting, of audience targeting and of a host of dynamic variables that can be used to model a campaign, we can really talk about search strategy in 2019.

In our research for the Search Trends report, we identified a number of these strategies and in the following we will look at 2 families of strategies that have arisen. Today’s more ambitious strategies are either measurement-driven or insights-driven and require a deep understanding of the user journey, which leading teams consider essential and for which 52% of them now use “personas”, a segmentation technique whereby you can provide actionable input for the more complex types of campaigns.

Measurement-driven strategies

Measurement-driven strategies are based on what represented the original reason for paid-search success: reliable tracking of sales originating from digital advertising. Amazon are now entering the digital ads scene and already represent 10% of Google Ads, expected to double to 20%. Within Google, meanwhile, there has been a gradual budget shift from search ad

s to shopping ads. This gives birth to a winning search and shopping strategy. The other metrics-driven strategy we observe is the drive-to-store strategy, which addresses the complex issue of using digital advertising to drive users to a physical point of sales. The main enabler for this strategy is the store-visits metric, allowing for increasingly reliable measurement of visitor flows in a physical location. Leading paid-search teams selectively embrace offline activity: 32% of our sample systematically use offline tracking, and for 14% offline is part of their offering. We predict that this will rise in the future.

Insights-driven strategies

The other group of successful strategies is insights-driven. They require in-depth user research to understand the user journey, and make use of personas, which they map against it. They then use several campaign steps, often involving different channels. They are heavily reliant on measurement as they target a large span of the user journey and collect more measurement points; they need a model to attribute value correctly to the various channels and providers involved – in other words, a reliable attribution model. The leading teams use advanced attribution models in their projects and have moved away from the much-maligned last-click attribution model.

The audience-led strategy has several phases and uses audience building for later conversion to fit with end-user decision cycles. Retargeting, audience sharing and negative audiences are the mechanisms used to keep the target on the user, improve budget and maintain brand-image consistency. We observed full adoption of simpler audience-targeting mechanisms, and we noted that adoption of the more recent machine-learning-based “in-market audiences” by leading paid search teams, at 77%, is as high as traditional geographic targeting as shown in the illustration.

The data-driven strategy differs from the audience-led in that it focuses more on user context and external factors than on the user state. As such, it injects external data into campaigns in order to improve campaign effectiveness. Data-driven campaigns are technically complex and use a variety of data sources: finance, weather, news, events, etc. The only limit to what data can be actioned is the insight and creativity of those actioning it, and these strategies are almost impossible for competitors to detect and counter.

The common characteristic of the four paid search strategies mentioned above is their potential to drive double-digit performance improvement over existing strategies. They are also emerging strategies that will allow for continued success in 2019 and beyond.

This post is based on an extract from the #searchstrategyreport found on https://www.innovell.com/search-strategies-report/