In this webinar, we partnered with Amazon sales analytics platform, Jungle Scout, to unpack how to rethink your KPIs on Amazon, the impact of operations on advertising, and how to win with an integrated approach.
2. Today’s Logistics
Kerry Mallett
Senior Content Specialist,
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3. WE’VE MASTERED THE
MEDIA THAT
MATTERS MOST
Tinuiti is the largest independent performance
marketing firm across Streaming TV and the
Triopoly of Google, Facebook, Amazon.
Employees
Media managed
Award-winning
culture*
$3B
#1
1000+
5. Our Speakers
JEFF BANKS
Senior Strategist,
Marketplaces
CARRIE CERULLI
Senior Account Manager,
Retail Operations
CONNOR FOLLEY
General Manager and
co-founder of Downstream by
Jungle Scout
6. Agenda
● Retail Ready, or Not?
● The Harmony and Balance Between Operations and
Marketing
● Practical Strategies for Success on Amazon
● Key Takeaways
● Q&A
6
7. How do you currently measure
advertising success on Amazon?
ROAS
TACOS (Total ACoS)
New-to-Brand Orders
Ad Revenue
Something else - let us know in the chat!
POLL
14. 14
Return on Ad Spend (RoAS) Insights
Some sellers are experiencing
reduced returns on their advertising
spend, with the most significant
differences seen in Sponsored Brands
campaigns.
18. 18
4
2
3
1
DSP / OTT / STV
● Awareness
● Consideration
● Retargeting / Loyalty
Creative
The Amazon Flywheel is powered
by your conversion rate so brands
need to always invest in their
content.
Amazon Advertising
● Sponsored Products
● Sponsored Brands
● Sponsored Display
● Sponsored Brands - Video
Operations
If you don’t have the
systems in place to meet
demand on Amazon, you
won’t be able to scale.
Building a Solid Foundation
Operational efficacy provides a strong base with
which to build on and use Amazon Advertising to
meet and exceed Brand growth goals.
19. Factors That Influence
AMAZON’S ORGANIC
RANK ALGORITHM
Operations and Advertising together drive
improvements in factors that influence
Ranking on Amazon.
20. Amazon Advertising Funnel
20
Awareness
Consideratio
n
Purchase intent
Purchase
experience
Purchase
Grow Brand
Awareness
Increase
Consideration
Drive Purchases
Retain
Loyalty
Purchase
• Upper-Funnel Tactics
• Goal is to increase visibility & Educate the consumer
• Attract attention to your brand
• Mid-Funnel Tactics
• Engagement focused
• Lower-Funnel Tactics
• Highest purchase intent from customers
• Goal is to drive the final purchase to your products
• Re-engage customers to win back the final sale
• Loyalty-driven campaigns aim to encourage repeat purchases & brand loyalty
• Goal is to draw in consumers from the category
• Consider your product over a competitor
Impressions
(eCPM)
Engagement
(DPVR, CTR)
ROAS
(eCPP)
Growth-focused Marketing Plans focus on reaching customers at all stages of the funnel.
22. ROAS vs. Total Business Growth Approach
ROAS Approach Total Business
Approach
KPI(s) ROAS Total Sales,
ROI,
Glance Views
Objective Drive efficient Ad
Sales
Drive top-line
Revenue growth
Best For Brands with strict
profitability targets
Brands aiming to
achieve high growth
targets
22
A ROAS Approach to Advertising
does not account for important
operational factors that may
impact Total Sales growth for the
brand.
Product inventory, segment growth targets,
and profitability should be considered to
arrive at a marketing mix that is more
impactful to Total Sales growth.
26. Marketing Actions For Planned Strategies
Strategy Marketing Action(s)
Improve Customer
Experience
Search term reporting holds customer search trend data that informs detail page copy updates
Assortment Planning
New products or product lines need to be researched to understand competitive landscape and inform budget
and targeting
Pricing & Promotions Include pricing and promotional strategy in media plan.
Inventory Planning
Review list of Advertised Products against current and planned inventory levels.
Create plan that leverages inventory levels as a factor when determining mix and budget allocation.
Short-term and
Long-Term Planning
Create a yearly plan with budget allocated by activation (Search/Display/OTT), funnel (Upper/Middle/Lower), and
product (Brand/Subcategory/SKU).
26
27. Source/Examples
● Internal
Current product performance
Logistical challenges
● Competition
Pricing/Promotional Pressure
Product/Channel Mix
● Macro Trends
Business Cycle
Current Events Competition
Macro
Trends
Internal
27
Reactive Strategies to Implement
28. Internal
● Analyze changes in KPIs (Reach, Click-Through,
Conversion)
● Campaign Structure allows for reallocation to/from
products
Internal
28
Marketing Actions For Reactive Strategies
Competition
● Review trends in Share of Voice (SOV)
● Identify lower cost/competition advertising
opportunities
Macro Trends
● Amazon Media Plan accounts for macro trends
(Prime Day, Q4, Category Events)
● Monitor performance trends related to current events
Competition
Macro
Trends
Internal
29. Emergent Strategies to Implement
Unplanned, Test, Read & React
Plan a small % of budget to incorporate unknown
technologies, placements, or initiatives
● Plan for unknown
● Evaluate new initiative’s impact on funnel
● Utilize budget to test and react
● If applicable, adjust and incorporate into planned
mix
29
30. Marketing Actions For Emergent Strategies
Unplanned, Test, Read & React
Plan a small % of budget to incorporate unknown
technologies, placements, or initiatives
● Set aside 5-10% of the budget for monthly testing.
Repurpose into the planned mix when there are no
active tests
● Research benchmarks and suggested KPIs for the
test. KPIs and performance will likely differ from
established initiative
● Measure performance against like-minded
strategies to determine if the test should become
a permanent feature
30
31. Key Takeaways
● ROAS should not be considered the
sole KPI for ad spend
● Building a solid operational
foundation is instrumental in being
successful on Amazon
● Marketing supports the
fundamental initiatives laid out by
Operations to drive business to the
next level