Articles, Blog

Amazon Marketplaces and Affiliate Insights and Trends – Blue Moon Digital

September 17, 2019


Hi. So, I’m Billy McCall
I’m a Senior Paid Media Strategist here at Blue Moon Digital. My focus is on
Amazon Marketplace management paid search and shopping. And we’re here today to talk specifically about marketplaces, Amazon advertising in particular, and
some of those holiday trends and things that you need to be watching out for. [What] we’re going over for the holiday kind of tie into just why you should be on
Amazon in general. For a lot of you that may have been asking the question like
“Why should I be investing on Amazon?” “What’s the value there?”
“I’m already supporting my my business across all of these other channels…” But, I
mean, it really comes down to the amount of traffic that’s on Amazon and how
their market share continues to grow. For example 55% of shoppers begin at Amazon, compared to 28% start on a standard search engine such as Google or Bing. One of the other things I would note is the conversion rate. You’re
probably seeing roughly around one to two percent conversion rate on other
channels. Sometimes that’s even when you’re probably thinking to yourself “Wow
that’s an amazing conversion rate!” Well, 63% of Amazon Prime members purchase in a single visit. so that what that’s telling you is that as soon as
they get to Amazon they are they’re provided an experience where they’re
going right to the site, they know what they’re going to get, they see all of
these beautiful product landing pages and they’re converting. One of the
keys here would be the fact that from an advertising perspective that we can
support that; through your sponsored products, sponsored brands, and product
attribute targeting. That I’ll get into here in a little bit. But a few of
the other things I would say is just going into the actual revenue that
Amazon is generating. They’re generating 200 billion dollars in revenue each year
and that is continuing to grow. So when, you’re getting into Amazon as a new seller, there are two big things to think about, “Am I going to be selling these on
my own?” “Am I going to be handing all of the shipping on my own?” “Am I going to be
handling all of the inventory?” “Do I want ultimate control over all of my products?”
Or, is it one of those that “I want to sell on Amazon. But, I want to do it with
the least effort possible.” Those two questions fall into the two ways that
you can be a seller on Amazon. One of those would be Amazon seller central, which in short, is abbreviated as 3P. And then there’s also vendor central
that is abbreviated as 1p. The big difference is that 3p you have ultimate
control. You have control over your inventory, you have control over the
products and those titles and those descriptions. And it is
really valuable if, as a seller, that you make sure that the way that
you have described those titles and those descriptions that no one else
is going to have claim over them. Versus on the other side for customers
that have resellers or they’re concerned about the fact that you know “I
don’t have the time to manage that inventory,” you can have Amazon
essentially do that for you in a Vendor Central format. That’s where you’ll be
sending them the inventory they will handle the fulfillment, they’ll handle
the the pick pack and pull, they handle it all. And from an advertising perspective both can be leveraged. How be BMDi
supports their clients is through advertising on both the 1P side
as well as the 3P side. Both on sponsored products and sponsored brands
that we’ll get into here in a little bit But, that’s your choice and I would just
recommend that you you work with your team and internally decide on what’s
going to be the the best position for your business. There are really three
big ways that you’re going to be able to tap into that. The first being
sponsored products. When you’re on the Amazon SERP, what you’re going to see, when you’re looking for your favorite kind of dress shoe, when
you’re looking on those listings you’ll see at the top some listings that are labeled as sponsored. And when you see those
products, those are advertised efforts and that’s what we would be able
to help support. If you have a have a product that is relevant
to dress shoes that is a best-seller that is something that you
really want to leverage during the holiday. It’s really important
that you set up a strategy that is supported by sponsored products and tailored
to those specific keywords and make sure that you’re providing products that are
also suited for that search. And if from a bidding perspective and optimizing
those bids to make sure that we are relevant on the specific queries that
you want to rank for, we’ll be able to show at the prime times for you and
drive that revenue. On the other side of that are sponsored brands. This is more
of an awareness driving tactic. This is a spot where if someone is looking for
shoes in general, or even a more refined query of a pink dress shoes, that you
could even highlight at the top of the search results, a large banner that
highlights your your brand and covers that space. This is a spot where it’s not
necessarily going to drive revenue from a last click perspective but it is going
to drive that awareness it’s going to be high impression volume and it’s going to
get your brand out there when there is a the highest interest in the highest
shopping times across the Amazon. Lastly, I would say product attribute targeting
this is a this is a tactic that for those clients are that have either
competitors or even resellers of their products that they want to also rank on those same product listing pages. If a competitor has
a product that is close and is relevant to yours you can actually rank on their
product page. That means that as soon as that customer goes to that page and
they start scrolling down to find more information on that product, they’re
actually going to see your products as a related opportunity. And that’s a
another way to generate additional impressions. That’s also a potential
opportunity to steal some conversions away from your competitors.
Finally, with all of these these efforts one of the best ways to get your
product some more relevancy and to drive a stronger click-through rate as they see
those products is going to be either a coupon a prime exclusive discount or a
lightning deal. So, these are all promotional tactics that you can
highlight your products with a great banner that says “Save 10 to 25%
off.” You can highlight your products for with a lightning deal that
says “In the next six hours this product is going to be discounted by 20%, act
fast,” and we can set up a limited supply. And then also for your prime exclusive
members the ones that drive roughly 80 to 95 percent of your total revenue, for
most clients, those are ones that you can set up a prime exclusive discount just
for those and they see a different markdown. These are
all just different tactics that, complimented by your advertising, are
going to drive a stronger click-through rate and then a stronger conversion rate
and drive more revenue. Hi, I’m Matt Horsey, the Manager of Affiliate Services for Blue Moon. So, generally we group all of your publishers into categories. That way it’s
easier to identify who is who and we can know what is the mixer program. We find
that good healthy mix to be 50 percent of your revenue coming from loyalty
sites, maybe forty to forty-five percent of that from coupon sites, and five to
ten percent, depending on your brand, from content sites. It’s a little different
than how most agencies run it but we find that we’re actually growing your
overall stream of revenue, we want to grow your client base, we want to grow
your average order value, we don’t want to just have coupons. Affiliate has
generally been a coupon specific site and tool, we don’t see it that way at
Blue Moon. We see it as a way to extend your brand and grow your audience with some new sites that trust other sites. So, we use a lot of content sites and we use a lot of loyalty sites. While still managing the coupon site relationship so
it doesn’t come out of fray where all of a sudden you see 25 coupons that never
existed and it’s on another site and it’s a bad user experience for
your customer. We’ve seen in affiliate it’s a really efficient way to get to a
lot of content sites, bloggers and that sort of thing, even the Buzzfeeds of the
world they’re now using affiliate links they’re now using affiliate coupons so
they can actually maximize their revenue stream while still of speaking to their
user base. So, we’ve been able, at Blue Moon, to actually work with some of the bigger
brands like Conde Nast like BuzzFeed and strategically grow, not only just your
revenue, but also grow your potential user base. We’re seeing 40 to 50 percent
new customers come from the content side of things. And that’s what everybody
wants, you have to always be getting new customers and this is the most cost
effective way to do it. Where we’ve seen buys in like display that cost upwards
of a hundred thousand dollars we can do the same thing an affiliate for ten
thousand dollars maybe even less than that. we’ve worked strategically with sites like BuzzFeed to actually promote
another brands Amazon channel and through that we were actually able to
sell out an entire line of product that they have that they had never sold
before. So, there’s a strategic way you can work with these content sites to
maximize your visibility and your brand awareness. But also, maximize your revenue. You’re not gonna see a fifty – sixty percent of revenue come from content sites. But,
you’re gonna see five or ten percent of revenue. It’s gonna be a higher order
value and you’re gonna have a much larger lifetime value on that customer.
At Blue Moon, we actually focus a lot on loyalty sites. We’ve had success in the
past of just focusing on loyalty sites and from that we’ve kept traffic the same, you keep conversion rate the same, and revenue is doubled. The reason that
happens is your average order value goes up when you work closer with loyalty
sites. A couple ways you can do that, commission increases are a great
opportunity. You’re giving more cash back to people so they view it as a discount.
You don’t have to have a single coupon available to your site, but just
increasing your cashback now people view it as “Well now I can get an extra 5% back so I’ll spend a few extra dollars.” So, we’ve increased brands AOV from $80
upwards to $120 – $125 just by increasing a cash back value on these loyalty sites. We
also like to take out paid placements on that. Think of it as more of a display
buy, you need to tell people that you exist. You’ll get returning customers but you won’t get any new customers without
telling them you have something available on that site. Even if you’re a
well-known brand, you need to take out some paid placements to make sure people have seen that you’re available on that site. One maybe two a month would work. But, we’ve seen it grow revenues fifty – sixty percent month-over-month just by having one or
two ads that tell people that you exist as a brand. One thing that’s growing in
the affiliate space, slowly but surely, is in store coupon redemption. Promoting your store through the affiliate channel is a newer tactic that we’ve been using
at Blue Moon, but it is growing in relevance and in terms of revenue as
well. We’ve seen it double and triple revenues in the last couple of months
for our clients. So, if you have fifty to a hundred stores in your portfolio it’s
something that would be important overall to promote through the affiliate
channel.

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