Scaling Peak, 30 N Gould Street Ste #4000, Sheridan, WY (2026)

03/26/2023

Winning Amazon Ads in the supplement niche can be achieved by utilizing Lifetime Value (LTV) 📈.

LTV is a calculation that estimates the net sales from a customer's future purchases. To calculate LTV and use it in your Amazon PPC strategy, you need to estimate the average amount a customer will spend on your product over their lifetime and subtract the costs of acquiring and retaining that customer.

For example, consider a supplement product with a price of $24.99 and estimated ad spend and revenue over four months. Assuming an initial customer acquisition with an ACOS of 100%, the TACOS is also 100% for that specific customer journey.

Starting from the second order, which should be around 30 days after the first order since the product has 30 capsules/tablets, the advertising cost decreases significantly as previous customers are retained with defensive targets or remarketing. Assuming a CPA of $3, the hypothetical TACOS for this customer starts to decrease, and you start making money.

The 4th repetitive order is when everything starts to make sense, as you have spent $33 and made $99 in total since the first order. This ends up with a TACOS of 33%, indicating that the product is now profiting, and the TACOS will only decrease moving forward.

🔴 This funnel only grows if you have a product that people want to buy repeatedly and you keep growing your new-to-brand customers with ads.

Incorporating LTV calculations into your PPC strategies on repetitively purchased products can make a significant difference. Give it a try!

03/24/2023

To achieve success in online marketplaces like Amazon and Walmart, it is crucial to prioritize sales over simply driving sessions. While attracting sessions through pay-per-click (PPC) advertising can be relatively simple, converting those sessions into sales can be more challenging.

To increase your chances of success, it's important to understand your organic conversion rate and how it relates to your product category, as well as your advertising conversion rate. Ultimately, you want customers to not only land on your product detail page but also make a purchase.

To optimize your ad spend, tools such as Brand Metrics and the Targeting tab can be useful in identifying the highest converting terms and products that can influence your organic rank and overall sales growth.

03/23/2023

Are you interested in comparing the performance of different types of Amazon ads?

A recent data set from Q4 of 2022 included nearly 3 billion impressions and over 10 million clicks, providing some helpful benchmarks for Amazon advertisers. However, keep in mind that results can vary significantly depending on product categories and other factors.

Regarding click-through rate, Top of Search (TOS) ads had the highest rates, particularly for Sponsored Products, followed by Sponsored Brands TOS. In terms of conversion rate, SD Audience targeting had the highest reported rate, but this ad type only accounted for a small portion of overall spending. The next two highest performing placements were Sponsored Products TOS and Sponsored Display Product Page ads.

As for average order value, Sponsored Brands campaigns had the highest average sales per order, followed by Sponsored Display. This makes sense, as Sponsored Brands campaigns are often used for higher-priced products with a longer consideration period.

Cost per click was highest for Sponsored Display Product Page placements in Q4, followed by SD Audience Targeting and then Sponsored Brands Video ads. Finally, for click-based attribution placements, Sponsored Brands TOS had the best ACoS and ROAS, followed by Sponsored Display Product Page placements and then Sponsored Products TOS.

Overall, these findings provide valuable insights into the performance of different Amazon ad types and placements. However, keep in mind that your own performance may vary based on your product categories and other factors. The original poster plans to follow up with additional insights and action items based on this data.

03/22/2023

ACOS (Advertising Cost of Sales) used to be the primary metric that marketers relied on to measure the success of their Amazon advertising campaigns. However, as the competition on Amazon has intensified, and more sophisticated reporting tools and metrics have become available, relying solely on ACOS can be misleading.

Other metrics such as ROAS (Return on Advertising Spend), TACoS (Total Advertising Cost of Sales), and conversion rates are now crucial to consider when evaluating the effectiveness of your Amazon advertising campaigns.

By monitoring and analyzing these metrics, you can gain a more comprehensive understanding of your ad campaign's performance and make data-driven decisions to optimize your ad spend and improve overall results.

If you're looking to track and measure these important metrics, consider using myHorizons' free trial. They offer sophisticated reporting tools and insights to help you make informed decisions and drive growth on Amazon.

03/21/2023

Seasonal product

If you have a seasonal product, it's essential to start planning your advertising strategy well in advance of your peak selling period. This can involve pulling back ad spend in the months leading up to your busy season, so you have more budget to invest when it matters most.

For example, one of our clients in the Food Containers Category wanted to focus on sales growth in January, so we started laying the groundwork for scaling in Q4. We conserved inventory and budget during this time, while also focusing on ranking strategies such as competitor conquesting and aggressive keyword targeting.

As a result of these efforts, our client experienced a stellar January with ad sales more than doubling year-over-year and their TACoS decreasing to a slim 9%. By understanding when shoppers begin their search for seasonal products, you can better map out your advertising strategy and assist in inventory planning as well.

One valuable tool to assist in this process is the Search Query Performance report, which can help you identify seasonal trends and adjust your strategy accordingly. By preparing ahead of time and staying agile with your advertising tactics, you can maximize your sales potential during your peak season.

03/20/2023

Are you tired of seeing your competitors' ads on your product detail pages? It's time to take action and kick them off!

ASIN Defense is a clever cross-promotion strategy that can help you push your competitors off your product pages by replacing their ads with your own products. Think of it as preventing competitors from putting up billboards on the front lawn of your store.

But what about the flyers inside the building? ASIN Defense is here to take care of that. When a shopper shows interest in your products but isn't ready to convert, you want to do everything in your power to show them an alternative product and keep them in your brand's ecosystem. You certainly don't want to make it easy for shoppers to switch to a competitor's product.

To execute this strategy, you can create product targeting ads and then target your own ASINs with your other products. Sellers with solid brands or comparable products typically see the most success with ASIN Defense since the ads will convert better and be much more relevant.

ASIN Defense is a great defensive strategy that can help improve your conversion rates, drive cross-sales, and protect your brand image on Amazon. Don't let your competitors take over your product pages – kick them off with ASIN Defense!

03/19/2023

Creating a brand avatar can be a valuable tool for brands looking to improve their display advertising campaigns. By developing a deep understanding of the brand's ideal customer, the avatar can be used to inform ad creation and increase the ad's relevance to the target audience. There are several benefits to using a brand avatar for display advertising:

Better targeting: With a clear picture of the avatar's interests, needs, and behaviors, advertisers can create ads that are more relevant to their audience. This increased relevance can lead to better engagement and conversion rates.

Improved messaging: Understanding the avatar's pain points and motivations can help advertisers create messaging that speaks directly to their target audience. By addressing the avatar's specific needs and concerns, ads can be made more compelling and persuasive.

Increased engagement: Ads that are tailored to the avatar's preferences and interests can be more engaging, leading to higher click-through rates and longer engagement times. This increased engagement can improve the overall effectiveness of the ad.

Budget efficiency: By focusing on the brand avatar, advertisers can avoid wasting ad spend on audiences that are unlikely to convert. By using targeting parameters that match the avatar's demographics, behaviors, and interests, advertisers can improve overall results and use their budget more efficiently.

03/18/2023

The marketing specialist who shows you ROAS 3 probably works better than the one who shows ROAS 10. That's a fact!

Here's how it's determined:

High ROAS scores are, more often than not, inaccurate for one or more of the following reasons:

- (Reviewed) attribution window reports give inflated results.
- The focus is on customers who already know your brand
- Purchase values are coming from existing/returning customers
- Values are collected incorrectly (e.g., improper tracking)
- Report sample size is too tiny
- ...

You need a marketer who knows how to identify your target audience to scale, allocate your budget and present you with the right numbers

The performance report may not be as shiny and gorgeous, but it will definitely show you a more realistic picture and keep you from making bad decisions based on false expectations.

03/17/2023

"The Halo effect is a real phenomenon!

It can have a significant impact on your sales and revenue, even if it's difficult to measure accurately.

It's important to keep in mind that your Amazon ads can have a long-term impact on your business, beyond just the immediate results you see in your ACoS, CTR, and other metrics.

Halo sales come from several places. But there are a three examples to get your wheels turning.

1️⃣ Improved organic ranking. An advertised product often sees an improvement in its organic ranking.

Here, the question is how many additional sales are attributed to your improved organic ranking?

2️⃣ Lifetime Value (LTV) of a new customer. Customers often make repeat purchases of high-quality items.

Here, the question is how many purchases 6, 12, or 18 months from now are attributed to Amazon ads you're running today?

3️⃣ Brand Defense. If you don't defend your branded terms on Amazon, competitors will bid on your branded search terms.

So, how many sales would have gone to a competitor had you not been advertising?

As you can see from these 3 scenarios, the Halo effect is nearly impossible to measure precisely.

But as you can also see, the Halo effect is very real.

03/04/2023

Ranking #1 organically for a SERP on Amazon may not be as impactful as some sellers may think, especially when considering the real estate that Amazon devotes to sponsored ads. Your analysis shows that sponsored ads take up a significant portion of the top positions on the SERP, and they receive a higher click share than organic listings.

This means that even if you rank #1 organically, your listing may not receive as much traffic as a sponsored ad in one of the top positions. As a seller, it's important to consider both organic and sponsored strategies when trying to increase visibility and sales on Amazon.

However, it's worth noting that organic rankings can still be valuable, particularly for long-tail keywords or niche products where there may be less competition. Additionally, organic rankings can contribute to building a brand's credibility and trustworthiness, which can lead to repeat customers and positive reviews.

03/02/2023

It's interesting to see the findings from analyzing one million search terms using Amazon Brand Analytics - Search Terms.

The data shows that total click share and total conversion share for the top 3 products are relatively low for a significant portion of the search terms, with less than 5% or between 5%-10% in many cases.

This suggests that estimating market share based solely on the top 4 organically ranked (or sponsored) products may not be accurate, and platforms could benefit from using Brand Analytics per query to estimate market share instead.

Furthermore, the fact that over half of the search terms have less than 10% total click share indicates that customers are browsing more products on the search result pages, especially in categories such as toys and fashion.

This finding suggests that being aggressive with Amazon advertising to push for the top of the search may not always be necessary or effective for products in these categories.

Overall, these insights highlight the importance of understanding the behavior and preferences of customers searching for products on Amazon and tailoring advertising and marketing strategies accordingly.

03/01/2023

It's true that Amazon has introduced a ""Previously Viewed"" tag for customers, which makes it easier for them to keep track of listings they have viewed in the past. This can be beneficial for both customers and sellers, as customers may want to revisit a listing they viewed previously, and sellers can potentially use this information to target those customers with relevant advertising or promotions.

However, it's important to note that just because a customer has viewed a listing in the past doesn't necessarily mean they won't view it again. Customers may need more time to make a purchasing decision or may come back to a listing later after viewing other options. Therefore, it's still important for sellers to make sure their listings are up-to-date and appealing to potential customers, even if they have viewed the listing before.

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