At PI Live this year, Peter won the public vote to speak at the conference – and with Amazon such a hot topic this year it’s no wonder why. As we move into a key retailing period, his presentation provides the perfect overview of this newly evolving channel.
The Rise of Amazon
A Feedvisor study from March this year highlights that two-thirds of US shoppers typically start their search for new products on Amazon; showing just how far the ecommerce giant has permeated into consumer habits. For contrast, only one-fifth of respondents used a search engine like Google, and only 3% looked on another marketplace. It comes top for vendors too, with nearly half of Amazon’s US vendors and sellers selling exclusively on Amazon; accounting for between 80-100% of their total business ecommerce revenue.
Unsurprisingly, we’re also seeing digital spend on Amazon Ads climbing. In 2018, Amazon saw YoY growth of 123% while this year’s forecasts suggest YoY growth of 53%. Driving this growth is the size of the audience available on the channel, all primed and ready to purchase. With over 200 million users a month in the US alone, retailers are able to chase some strong performance and ROI.
Understanding User Behaviour
Amazon offers an easy, efficient and familiar user experience, with a built-in feedback loop that keeps users coming back for more. This has ingrained the channel into the mindset of consumers, making it the primary destination for product searches. However, it’s important to understand its place within the user journey, especially with relation to the other ecommerce giant – Google.
When it comes to Brand – related searches and Generic searches, Google comes out on top; with most users preferring to do their research here. Amazon instead dominates on specific product terms – as this is when they are at a much higher propensity to buy. Conversion rate is also much higher on Amazon, again reflecting the purchasing mindset, even if CTR tends to be much higher on Google.
Creating a Less Siloed Channel
Amazon itself is notoriously siloed as a channel, but there are a number of things you can do to effectively enhance your performance.
Amazon is very similar to other paid search channels, which means that you can share data across channels to optimise your performance. For example, you can analyse search queries and patterns across platforms to discover new keywords for your campaigns.
With access to heaps of data from Google, you can use this to better inform bidding decisions on Amazon. This would allow you to utilise cost and conversion data from different channels to improve ROI on a multi-channel level.
Finally, and perhaps most crucially, you’ll need to find an effective way of measuring your performance in a holistic way. One option here is to use Amazon Attribution to measure how user behaviour differs from your website compared to Amazon. This allows you to see patterns such as where users prefer to convert and how they behave between the two purchasing options.
Amazon provides a huge opportunity for retailers, especially as we move into Q4. This is the perfect time to get to grips with this highly lucrative channel. To find out more about making the most out of Amazon, join Pete on 13th November for his upcoming webinar, covering more practical tips for your campaigns.