Analyzing Amazon Advertising Conversion Data for Increased Sales

Thursday, 29 August 2019

Analyzing Amazon Advertising Conversion Data for Increased Sales

Posted by Madhu Gupta
Amazon's advertising platform is continuing to grow in dominance. As more and more sellers discover how it can help them maximize their sales and online presence. Whether you're a novice digital marketer or only a business owner eager to learn a little more about Amazon ads. That, more about creating Amazon ads can help you shift more product – here's a quick look at the importance of Amazon's data for future selling success...

Why does data matter?

No marketing campaign can be devised without some insight into your audience and their behavior. One of the significant perks of digital advertising is the sheer wealth of information which is offered to those using this method. Versus more traditional advertising tools which are often quite tricky to assess from an effectiveness standpoint. 

The data offered by Amazon is rich enough to allow you to both see how your current efforts are yielding results (or not) – and clear enough to provide a pathway to changing the way you do things if this is the way to assure a more successful campaign. 

However, learning how to wade through all of this information is a skill which sometimes even the most seasoned of marketing professionals struggle with. Amazon's advertising platform is still growing, and so is online advertising in general. 

For this reason, the tools which are offered continue to evolve right along with them. Staying on top of the latest changes is arguably the most significant challenge faced by modern advertisers, but it also opens up greater possibilities than ever before to craft campaigns and place ads which provide real results. Data plays a pivotal role in all of this. 

What is the conversion data?

Put; a conversion is the process of a visitor to your page completing a goal you have decided is desirable. More often than not, this refers to the process of that visitor becoming a customer and making an online purchase, though it can also refer to everything from gathering leads to filling in a form, subscribing to a mailing list or booking an appointment, depending on your company's desired outcomes. 
Tracking your conversion data is one of the most essential facets of any online marketing activity, as it is only through a keen understanding of this information that you can progress and make any necessary changes – enabling continuously improved campaigns. Within the context of Amazon, the conversion data you are provided with contains a wealth of information relating to the percentage of clicks which your ads successfully convert to sales. 

What is a good conversion rate?

There are millions of sellers on Amazon, so when comparing yourself to the averages, it is worth noting that you are judged on a curve alongside both part-time sellers and those with a turnover which reaches into thousands (and hundreds of thousands) of pounds each year. 

In e-commerce in general, the average conversion rate is 1.33%. When using Amazon, this rate is notably much, much higher, at 9.78% as of 2019. If you are only just getting started using Amazon advertising, this is a fantastic benchmark to aim for – though you should certainly be aware that reaching this goal may take considerable time and effort, even with the most extensive online advertising.

Optimizing your conversion rate

If you have noticed that your conversion rate is much lower than the stated average, then it’s essential to listen to the statistic and look at how you can improve your activities on Amazon. The process of developing your conversion rate is referred to as conversion rate optimization (or CRO for short). 

When using many of the advertising tools available on Amazon, this metric is critical, as it provides the ultimate way for you to increase your profit margins without completing costly tasks such as adding to your advertising spend. For most sellers on Amazon, this data is essential as without it their efforts are performed as blindly as with the traditional advertising methods mentioned earlier in this blog. 

The key to successful online advertising is to know which data you need to be tracking and how to do so effectively – and conversion rate data should be your highest priority. A poor conversion rate could be a consequence of: 

  • Problems with your Amazon listing. 
  • Issues with your current campaign strategy. 
  • Poor choice of keywords and search terms.

It can also be attributed to additional factors or a combination of all of these aspects. The key thing to remember is that you can always begin down the path of improving your rates, with a little added care and attention. 

New-To-Brand Metrics 

Amazon is forever adding new updates and methods of monitoring, tracking and boosting your conversion rates – ensuring that the platform becomes more and more effective at helping you make sales and provide your ongoing e-commerce success. One of the newest features on Amazon is the ability to analyze who exactly is buying from your store – and whether they're a repeat customer or a new buyer. 

This new metric is called 'New to Brand,' and it is one of this fleet of features added for 2019, which have been designed to ensure sustained progress and a more precious data set for users of Amazon advertising. 

Who can use New-to-Brand? 

At present, this new metric is available in Sponsored Ads, alongside video campaigns and display adverts on Amazon. This makes it accessible enough for a wide range of Amazon users eager to raise their profile and see whether they're drawing in new custom or maintaining their current audience. 

What makes New-to-Brand different? 

Amazon's ecosystem already allowed users to see the number of orders placed within a given time-frame, as well as the overall sales value which has been accrued as a result of their various marketing efforts on the platform. 

The key difference inherent in this latest update is that it helps bolster the data which is already present in a significant way which can help build stronger and more coherent campaigns. 

If we accept that understanding the data presented is essential to further success as a seller on Amazon, then anything which helps to unveil more detail is a welcome shift in the right direction for the selling community. 

How does it work? 

Every time an Amazon purchase occurs, the New-to-Brand metric will trace whether this is someone buying from your brand for the first time, or an existing customer who has already used your online store. 

New-to-Brand defines new customers as those who have obtained from you for the first time over the last twelve months, ensuring plenty of data to analyze and work with as you seek to boost your future marketing activity.

What are the benefits?

There are lots of benefits to discovering as much as you can about your customers, but most prominently, understanding who is new to your brand and who your loyal repeat customers are, allows you to create a media plan to target them both and achieve your future goals. This could involve: 

  • Considering how to gain customer loyalty – what makes your brand different, and draws in repeat custom purchase after purchase? 
  • Converting new customers into repeat customers – how did they find your store, and why did they choose you to buy from?

Whether pondering customer loyalty or acquisition, the New-to-Brand metric is a real treasure trove for those who have ambitions for their Amazon store. In essence, using this new data, you will be able to understand with greater clarity than ever before the true results which your current campaigns and marketing activities are creating. 

Also, you can ensure they are creating the results you want and growing your business in a meaningful way. As a general rule, the ability to attract new interest and purchases demonstrates your Amazon store is in a period of growth. 

Finding New-to-Brand Metrics 

Getting started with analyzing the data and making changes to your strategy requires you first to find what you're looking for. Sponsored Brand campaigns include these new metrics as items on your Amazon interface. They can be found under the columns marked: 

  • New-to-Brand orders
  • New-to-Brand sales
  • % of sales New-to-Brand
  • % of orders New-to-Brand

You can use this data to your account or apply it in a more targeted manner by adding the information gleaned to a specific campaign within your Amazon interface. From here you'll be able to see which campaigns are helping you to attract new custom or driving continuous sales from a loyal customer base. 

Whether your goal is more sales, more repeat customers or merely the chance to get closer to the data which has brought you to this point in your Amazon marketing activities, the New-to-Brand metric is an excellent way of discovering all you need to know to move forward.

0 comments:

Post a comment