Is Your Amazon Advertising Built on a House of Cards? How to Get It Right in 2020 - CommPRO

Is Your Amazon Advertising
Built on a House of Cards?
How to Get It Right in 2020
Timothy P. Seward

Much like anything in life, if you don’t have a strong
foundation, it is incredibly difficult to build anything of
value. The same goes for your brand’s advertising strategy.
Your revenue growth will include a bevvy of different
marketing and sales components, but the foundation of your
success will lie in the strength of your advertising strategy.

With more product searches starting on Amazon than Google
(https://www.emarketer.com/content/more-product-searches-start
-on-amazon), Amazon can be a great addition to your
advertising arsenal. Amazon offers an additional channel to
fortify your brand’s advertising, delivering wins throughout
the entire marketing funnel. A strong Amazon advertising
strategy will improve both brand awareness and conversions,
ultimately leading to increased profitability and revenue.

Amazon has more than 310 million active customers
(https://www.statista.com/statistics/476196/number-of-active-a
mazon-customer-accounts-quarter/) who are ready and willing to
make a purchase if your presence on the platform is compelling
enough. Is your brand properly prepared to reach them?

The average consumer may not realize that Amazon only makes
about half of its sales as a first-party retailer (in other
words, through brands that sell to Amazon). The other half is
split among roughly two million third-party sellers (meaning
brands that sell on Amazon). If you are currently reselling
another brand’s products, you’re building their brand and
their relationship with consumers – not your own. You’re also
likely paying a premium when you consider the costs of Amazon

sellers’ fees and ad clicks.

From my perspective,
the key to your revenue
growth stack on Amazon
and getting a piece of
each deck is accepting
that consumers aren’t
loyal to resellers.
They’re     loyal    to
brands.

Situations where you shouldn’t be manufacturing products under
your own brand name are few and far between. If you think you
realistically have a shot at becoming the next big
distribution player (like Target or Staples) or if the
products you sell are large, heavy, or highly customizable,
this tip doesn’t apply to you. But if that’s not you, you
should immediately consider branding your packaging with your
own logos, brand colors, and web addresses.

This is just one drop in the pond of building your brand on
Amazon. What steps can you take to invigorate your Amazon
advertising and entice more customers to purchase from your
brand in 2020? How can your brand leverage the platform for
year-over-year   increases     in   conversions   and   profitable
revenue?

Firstly, you should only be doing things for which you have
intense enthusiasm. Imagine that you’re a headlining band
going on a massive U.S. tour. Whether it’s stop one or stop
47, you need to make each audience member feel like you came
to play just for them and their friends, even though you’re
essentially doing the same thing over and over.

That’s great, but how does it relate to Amazon? Let me ask you
a few questions:

Are you doing or selling something for which you have
      (or can develop) intense enthusiasm?
      Do you truly believe in and feel excited about the
      products you sell?
      Put simply, is what you sell more than a “passion
      project”?

If you’re responsible in any way, shape, or form for your
brand’s product, then this is an absolute must. Even if you’ve
already created success, if you lose enthusiasm for your work,
the success will soon leave you.

Aside from passion, if you want to succeed at advertising on
Amazon in 2020 and beyond, you need to understand the minds of
your customers. Jeff Bezos once said that the secret sauce of
Amazon            is           customer             obsession
(https://www.businessinsider.com/amazon-jeff-bezos-success-cus
tomer-obsession-2018-9). Amazon’s vision is to be the world’s
most                customer-centric                  company
(https://www.amazon.jobs/en/working/working-amazon)         and
they’ve clearly found tremendous success through this mindset.

Any brand can be inspired by Amazon’s vision to boost success
for themselves. It’s as simple as putting yourself in your
customer’s shoes and identifying their wants, needs, and
desires. Instead of depending on your gut feeling, I recommend
conducting audience research. This way, you can make smart,
data-driven decisions based on what your audience has
specifically told you they want.

Lastly, you need to build and promote your own brand on
Amazon. Even if you start off as a reseller, your ultimate
goal should be to get to the point where you’re selling
products under your own brand or label. Since every sale you
make on Amazon improves the organic rate of your product
listing, and given Amazon’s massive domination of ecommerce,
there’s no denying that a strong advertising campaign on
Amazon can catapult your brand’s growth.

Whether you’re just getting started or you already have a
strong foundation with Amazon, advertising on Amazon can feel
overwhelming. Trust me, we’ve all been there.

                         About the Author:Timothy P.Seward is
                         the author of Ultimate Guide to
                         Amazon Advertising (Entrepreneur
                         Press® 2019) and the founder of ROI
                         Revolution, which drives growth for
                         brands, retailers, and ecommerce
                         merchants such as PUMA, Lenovo, SONY,
                         and 7-Eleven with its results-driven
                         digital marketing technology and
services. With his extensive marketing and retail background,
he is a thought leader who has spoken at 70+ industry
ecommerce and Amazon events including IRCE, eTail, & The
Prosper Show, is a frequent guest lecturer at North Carolina
State University’s College of Management, and has contributed
to key industry publications including Internet Retailer.