Trust Issues with Amazon Ads?

Hot off the Amazon Grill???

Amazon’s NEW Sponsored TV: What You Need to Know

Get ready to embark on an advertising journey like never before! Amazon's latest innovation, Sponsored TV, is transforming the world of streaming TV advertising, and we've got all the insights you need to master this exciting new platform.

Our upcoming video will explore how Amazon's platforms can propel your ads into the world of streaming TV. With the shift from traditional TV to streaming services, it's crucial to adapt your advertising strategies to where your audience is.

What's in Store?

• Access to Prime Video & Thursday Night Football: Imagine your ads running alongside these high-traffic platforms!
• High-Quality, Non-Skippable Ads: Create 30-second, compelling ads with strong CTAs like QR codes leading directly to your Amazon product page.
• Advanced Targeting: Go beyond traditional TV advertising with customized targeting and detailed reporting.
• Sponsored TV's Debut: This innovative approach means no high minimum spends as required by ADSP. Whether you're a big brand or just starting out, Sponsored TV democratizes access to top-tier advertising spots on platforms like Freevee, Twitch, and Amazon Fire TV apps.

Why It Matters?

• Cost-Effective: Operates on a CPM model, ideal for various budgets.
• Engagement Boost: Direct QR code CTAs can significantly increase product page visits.
• New Horizons: A perfect opportunity to tap into a broader audience and enhance brand visibility.

While Sponsored TV's targeting might not be as fine-tuned as ADSP, it's a significant step towards making top-of-the-funnel marketing efforts accessible to all sellers. It's time to experiment with this new tool and discover its potential for your brand!

Don't miss out on our full video for a deeper dive into maximizing Sponsored TV for your business. Stay ahead in the advertising game with Amazon! Click the link to watch now and elevate your advertising strategy to the next level!

WATCH NOW >>

Key Takeaways from Walmart’s 3Q Results

Walmart's Q3 FY24 Earnings Report is out and it's buzzing with noteworthy updates! This quarter, the retail giant has shown some impressive figures and strategic moves. Here's a quick snapshot of what they've achieved:

1. Sales and Profit Outperformance: Walmart exceeded expectations in sales and profit, raising its full-year revenue outlook by 50-100 basis points.
2. Omnichannel and E-Commerce Strength: Walmart's U.S. e-commerce sales increased by 24%, driven by efficient pickup and delivery services, and Walmart Connect growth. However, international e-commerce sales decreased by 3%, affected by the timing of Flipkart’s 'The Big Billion Days' event. Sam’s Club U.S. saw a 16% rise in e-commerce sales, also fueled by pickup, delivery, and Walmart Connect.
3. Consumer Trends and Responses: Facing inflationary pressures, consumers are shifting towards private brands and value-conscious shopping. Walmart's strategy includes more rollbacks and a focus on affordable groceries to boost general merchandise spending during holidays.
4. Category Insights:a. Grocery: Mid single-digit growth, driven by private brand growth and inflation in personal care and pet products.b. Health & Wellness: High teens growth, supported by branded drug inflation and higher script counts. c. General Merchandise: Negative low single-digit, with softness in discretionary items like apparel and toys, partly offset by automotive.
5. Walmart Connect and Marketplace: Despite a slight deceleration versus 2Q (+36%), Walmart Connect (advertising) grew by 26%. The marketplace segment saw significant growth, with the number of items and sellers more than doubling since the beginning of 2022.

Future Outlook

With initial 2024 forecasts projecting a 3% growth for Walmart U.S., the company seems well-positioned to handle the evolving market dynamics.

Key Takeaway

Walmart's Q3 results illustrate a strong, adaptable approach in managing consumer pressures, supply chain efficiencies, and e-commerce growth. These insights suggest that Walmart is not only navigating current market challenges effectively but is also poised for sustainable growth in the future.

Curious to know more about Walmart's strategic moves and future plans? Click here to read the full Q3 FY24 Earnings Report and discover how Walmart is shaping the future of retail.

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Nerd Lounge???

When is a bid not a NOT a bid?

No, it's not a riddle; the answer is “when it’s in a Sponsored Brand campaign with Drive page visits as your campaign goal.” ??

Amazon quietly released a new campaign settings feature in October, and it had some unintended (at least from a seller or agency perspective) consequences. The Drive page visits setting allows Amazon to boost your CPC bid by 300% without any intentional bid modifiers set for Top of Search placements. It seems there is no way to turn this off, and even legacy campaigns are impacted. In Amazon's documentation, it says, “These bid adjustments are available only on campaigns where you select drive page visits as your campaign goal,” but the reality is that includes most Sponsored Brand campaigns. The only other campaign goal is Grow brand impression share, which is a VCPM cost type that we rarely pair with this ad format.?

This leaves us in an awkward position as an agency in the middle of peak season. What we desire is control. The more finely-tuned control over budgets that we have been tasked with intelligently allocating for our clients, the better. This is mission-critical stuff and can mean the difference between a profitable or non-profitable Q4. This is unexpected behaviour, and when it comes to bidding and budgeting, we don’t like surprises or black boxes with decisions being made at the platform level where we have no input.?

Some people I’ve spoken with are seeing ACPCs that are a good deal higher than their actual CPC bids. Looking at our clients' accounts, we’ve seen a few instances of this as well, but we are planning a deeper dive post-BFCM week to assess the full impact.

To make matters worse, a similar thing is seen within Sponsored Display campaigns. I’m leaving links to the official Amazon support pages, so you can read the details yourself.

https://advertising.amazon.com/help/GPDRGYSKVB7H4BUR (Sponsored Brands)

https://advertising.amazon.com/help/GDRFG6U7TRD72EFW (Sponsored Display)

Save The Date???

Amazon Biznes KNOW-HOW Conference (January 12-13, 2024) in Warsaw, Poland, UK

Get ready for the Amazon Biznes KNOW-HOW Conference in Warsaw, Poland, on January 12-13, 2024! Whether you're starting out or scaling up on Amazon, this event is a must-attend.

What can newcomers expect?

• Explore Amazon's endless opportunities.
• Network with top industry leaders.
• Gain valuable insights and tips from Amazon experts.
• Learn to navigate and succeed in e-commerce.

What do Seasoned Sellers Stand to Gain?

• Connect with fellow Amazon enthusiasts.
• Discover cutting-edge tools and strategies.
• Refine your sales tactics.
• Learn to scale efficiently, manage teams, and cut costs.
• Meet Amazon's trailblazers.

Special Highlight

Don't miss our masterclass on Display Advertising and Amazon Marketing Cloud (AMC) – a key to boosting your brand's visibility and ad spend efficiency.

Join us for two days of valuable insights, strategies, and networking in Warsaw. Elevate your e-commerce game. This is your gateway to the big leagues of online business!

MORE INFO >>

Amazon Trending Tidbits???

Why this advertiser doesn’t trust Amazon Ads

Bryan Porter, a seasoned digital marketing expert and the Chief eCommerce Officer at Simple Modern, has recently shared eye-opening insights about Amazon advertising. After investing a staggering $14 million in Amazon ads, he describes the experience as a "waste." Here's why:

1. The Illusion of Performance Porter highlights a crucial flaw in Amazon's ad system: it often takes credit for sales that would have happened organically, by as much as 40%. This dramatically inflates ad performance, creating a misleading picture of their effectiveness.

2. Organic vs. Paid Traffic The overlap between ads and organic ranking is significant. Ads that convert on relevant keywords are essentially capturing sales that good products would organically achieve. This raises a big question: are you paying for what you could get for free?

3. Internal Competition?

Here's a kicker: Amazon shows your ads on your own product listings! You end up paying for customers simply navigating between your products, with Amazon ads taking credit for these "conversions."

The Experiment That Changed Everything Porter's team decided to turn off their Amazon ad campaigns for three months. The results? A drop in revenue, yes, but not nearly as much as Amazon's ad sales reports would suggest. This led to a significant shift in their ad strategy.

• Group Keywords Wisely: Classify them into competitors, generic, and branded for better insights.
• Target Realistic ROAS: Aim for a balanced Return on Ad Spend, keeping in mind the organic sales overlap.
• Ads as Strategic Investments: Prioritize your spend where it counts - could be inventory over ads.
• Compete Beyond Ads: Strengthen your organic presence. A robust product and listing can outweigh ad spend.

Your Voice Matters!

How does this align with your Amazon ad experiences? Are you tweaking your ad strategies or seeing similar patterns? Share your insights and strategies in the comments. Let's navigate these changes together!

READ MORE?>>

How to Reduce Amazon FBA Fees: 10 Effective Strategies

Are you struggling with the complex fee structure of Amazon’s FBA program? You're not alone. While FBA simplifies logistics, its fees can nibble away at your profits. But don't worry, there's a silver lining. With smart strategies, you can significantly reduce these fees and boost your bottom line.

Here's a quick guide on how to navigate FBA fees smartly:

• Accuracy is Key: Ensure your product dimensions and weight are spot-on to avoid overcharges.
• Tweak Borderline Products: Adjusting sizes and weights can shift products into lower fee tiers.
• Invoice Audits: Regularly check your FBA invoices for errors and file claims if necessary.
• Prep in Advance: Avoid unplanned service fees by meeting Amazon’s packaging requirements.
• Manage Unfulfillable Inventory: Regularly assess and act on unsellable items to cut storage costs.
• Sidestep Long-Term Storage Fees: Use tools like Amazon Warehousing and Distribution (AWD) and stay vigilant about inventory age.
• Catch Fee Discounts: Keep an eye on Amazon’s referral fee promotions to save more.
• FBA Small and Light Program: Enroll eligible items to cut down fulfillment costs.
• Reduce Returns and Damages: Invest in quality packaging and learn from customer feedback.
• Leverage Amazon’s Reports: Use Amazon's detailed reports to refine your sales and inventory strategies.

Remember, the goal isn't just to cut costs, but to optimize your operations in a way that propels your business forward. Implement these tactics, and you'll not only manage your FBA fees better but also reinvest in your business growth.

We're excited to hear your thoughts and experiences with FBA. Have you tried any of these strategies? What worked for you? Share your insights below and let's learn from each other!

READ MORE?>>

Thanks for reading!

- Brent

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