Merchant AI的封面图片
Merchant AI

Merchant AI

软件开发

Seattle,Washington 52 位关注者

关于我们

Merchant AI created a forecasting and channel management tool that is available across all online eCommerce platforms. As a small business, we thrive on customer feedback and engagement by creating a tool that helps third party sellers and vendors reach their business goals.

网站
https://www.merchant-ai.com
所属行业
软件开发
规模
2-10 人
总部
Seattle,Washington
类型
私人持股
创立
2018
领域
Vendor Central、Forecasting、Seller Central、Data Science、Business Analytics、Customer Service、Professional Services、Amazon.com、Digital Merchandising、Supply Chain、Operations、Machine Learning和Demand Sensing

地点

Merchant AI员工

动态

  • 查看Merchant AI的组织主页

    52 位关注者

    Ad ROAS is a bullshit measure that compares revenue with cost. It fails because we all understand that advertising has diminishing returns otherwise our ad budgets would be infinite. We need a measure that reflects the value of the next dollar spent and hence know when to stop spending more when incremental/marginal returns go negative. The first step in the journey to measuring ad Incrementality is to turn off ads and see what sells anyway. You need to monitor sales rates and ranks to see absolute and relative effects vs competitors. When/if you get jumpy turn Ads back on and you'll understand their effect (or otherwise) and get another data point. A second step is to understand branded vs generic search terms' effects. With branded search your customer is evidently predisposed to your brand already and you will likely get the sale anyway so I'd suggest that the incrementality is less on branded search. Turn off branded terms and see what happens. If you compare CVR on branded vs unbranded search, you'll find it is 2-3x more. Hence adjust down the reported ad Revenue on branded search by a factor of 2-3 to reflect incrementality. A third step is to see whether paid ads change your overall share of shelf. If you are already #1 in organic SERP results on important terms and have other highly visible products following right behind, then advertising is not going to be doing much to increase your SERP/shelf presence. Unfortunately Amazon is muddying the water here by reserving whole rows/particular positions for sponsored brand or product ads so others may creep in unless you defend.

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