How retail brands and suppliers should approach the holiday shopping season on Amazon and with other big box retailers like Costco, Best Buy, and Walmart.

1. Product Advertising Strategy for
Retail Brands This Q4
Where Brand Manufacturers & Vendors will Find the Biggest Opportunities
this Holiday Shopping Season
R E T A I L A D V E R T I S E R C O U R S E

2. Jeff Coleman
Director of Account Management
 Amazon Specialist
 Google AdWords Qualified Professional
 Over 7+ Years Experience With Retail Search

3. Before We Get Started
Session Recordings Will Be Sent Next Week
Q&A Following the Presentation
Submit Questions In the Chat Box to the Right
Logistics Speakers
Jeff Coleman
Director of Account Management
CPC Strategy
Elizabeth Jackson
CMO & EVP Corporate Strategy
HookLogic, Inc.

4. • Founded in 2007
• Over 300 active retail clients
• Top 50 fastest growing company in San Diego 3 years running
• Recognized as an Official Google Shopping Partner
• Custom-built retail search technology platform, CAPx
Solutions
 Retail-focused Paid Search (PPC)
 Google Shopping Management
 Shopping Channel Management
 Amazon Sales Acceleration
CPC STRATEGY HAS BEEN FEATURED ON
DELIVERING LASTING RESULTS FOR OUR CLIENTS
VISIT CPCSTRATEGY.COM

6. Poll Question
Are You Currently Using Amazon Marketing
Services?
o Yes
o No

7. Amazon Marketing Services (AMS)
Headline Search Ads
• Placement: Appear at the top of the search results on an Amazon SERP
• Keyword Targeting:
•Long-tail (specific) searches: Consider using a specific product detail page as your landing page
• Short-tail (broad) searches: Create a custom landing page by doing your own search on Amazon for 3 – 5 of your
ASINs, and copy the URL from that search. Use that URL as your landing page.
• Bid Strategy
• Bid conservatively to start out & increase over time
• Don’t get emotionally tied to a product – follow the data & promote what sells. Not every product is a winner with
PPC advertising
www. C P C S t r a t e g y. c o m | 6 1 9 . 5 0 1 . 6 1 3 8 | c o n t a c t @ c p c s t r a t e g y. c o m

8. Amazon Marketing Services (AMS)
www. C P C S t r a t e g y. c o m | 6 1 9 . 5 0 1 . 6 1 3 8 | c o n t a c t @ c p c s t r a t e g y. c o m
Product Display Ads
Placement: On product detail pages below Buy Box
Defensive Placement:
• Target your own product detail pages to prevent competitors from
advertising against your products
• Complementary items typically do well here
• ROI will typically be poor, but these ads are here to prevent competitors
from poaching your customers, not to drive ROI
Offensive Placement
• Target related products of competitors to ensure placement on their
detail pages
• Turn their customers into your customers

9. Demand Forecasting
Finding The Report
• Amazon Retail Analytics Basic
• Locate Demand Forecast Report
Production Planning
• Scroll right to see the Demand Forecast for future weeks
• At the time of this recording, Black Friday is +13 weeks
• You should see spikes in demand from +13 weeks through +17 or +18
weeks; some products may spike sooner
• Use their forecast to plan production ramp ups or increased POs to
your suppliers in time
www. C P C S t r a t e g y. c o m | 6 1 9 . 5 0 1 . 6 1 3 8 | c o n t a c t @ c p c s t r a t e g y. c o m
Amazon Retail Analytics Basic

10. Maximize Profits through Direct-to-Consumer Sales
Benefits
Increase Per-Unit Profit:
• Wholesale discounts to Amazon can be as much as 40% off your regular MSRP
• Selling as a 3rd Party through Seller Central, Amazon’s commission will be 15% or less, with FBA’s
fixed fees usually falling in the range of 7% - 10% of product price (though that can vary).
• Price Control: Reprice at your own discretion to maximize profit
• Selection: Sell products Amazon doesn’t want to buy
Risks
• Buy Box: If you’re not winning the buy box as a 3rd party seller, sales velocity can drop
• Selection: Carefully analyze projected FBA fees so you’re not losing money by selling the product as a
3rd party
www. C P C S t r a t e g y. c o m | 6 1 9 . 5 0 1 . 6 1 3 8 | c o n t a c t @ c p c s t r a t e g y. c o m

11. Performance Marketing for Brands.

12. Reach Shoppers In the Moment of
Need.
12

13. Reach Shoppers In the Moment of
Need.
13

14. Reach Shoppers In the Moment of
Need.
14

15. Drive Traffic To Your Product Pages.
15

16. Direct
Measurement
16
Attribute Sales And Optimize ROI.
RSX provides transactional direct data from network retailers.
Units Sold
Revenue
Share Shift
Basket Analyses

17. 17
Performance Marketing For Brands.
Drive Traffic
Billions of
ecommerce product
searches
Attribute Sales
Unprecedented
control and data in
ecommerce
Reach Shoppers
More high intent
category shoppers than
amazon & google
+ +

18. Across World’s Largest Retailer
Network.
18

19. 19
Mobile
Everywhere
Product Detail Pages
Cross-Sell & Conquesting
Browse & Search Results
Active Consideration
And
More!
Homepage
Branding & Discovery
Registries
Point of Entry
Ads Support All Business Strategies.
Retargeting
Drive To Retail

20. Brands Winning With HookLogic.
20
+ thousands more!

21. Key Takeaways: Q4 2014.

22. 2014: A Very Merry Holiday
Season.
22
Overall Holiday
Sales Up 4.1%
Online Sales
Up 13.9%
Mobile Sales Were
22.6% Of Online Sales
Conversion Peaks
After Cyber Week

23. Cyber Mon Reigns, Black Friday
Was BIG.
• Thanksgiving: A New Contender
– Conversion Index: 2.1x
• Black Friday Was BIG
– Traffic 5x
– Conversions 2.3x
• Cyber Monday Reigns
– Traffic 5.5x
– Conversions 2.2x
• Christmas Still Sees A Climb
– Week before Christmas,
Traffic 2.2x & Conversions 1.5x
23
Traffic
w/o
10/27
w/o
11/3
w/o
11/10
w/o
11/17
w/o
11/24
w/o
12/1
w/o
12/8
w/o
12/15
106
125
161
185
327
280
240
219
Conversion
w/o
10/27
w/o
11/3
w/o
11/10
w/o
11/17
w/o
11/24
w/o
12/1
w/o
12/8
w/o
12/15
112
114
119
125
167
175 176
152
Traffic = total page views, Conversion rate = % of product page views that result in sales
Baseline = 9/29-10/26. 2014 Retail Search Exchange Holiday Network Data

24. CE Sales Spike After Cyber Monday.
24
Holiday Traffic And Conversion: Clothing
1800
1600
1400
1200
1000
800
600
400
200
0
2500
2000
1500
1000
500
0
Oct 27 Dec 30Nov 30
Traffic Conversion
Clothing
•Significant Black
Friday/Cyber Monday
traffic spikes, with more
‘shopping around’ before
buying
Electronics Conversion
differs vs other categories
•Conversion peaks on
the Friday after Cyber
Monday at 25x the
baseline
•Two more rallies (the
following Tues and Sat) as
deals continue.
1800
1600
1400
1200
1000
800
600
400
200
0
2500
2000
1500
1000
500
0
Holiday Traffic And Conversion: Electronics
Oct 27 Dec 30Nov 30
Traffic Conversion

25. 31.2% 13.4% 55.4%
Mobile Has More Room To Grow.
• Mobile was 46.6% of online traffic, 22.6%
online sales ⃰
• Tablets were better for conversions
– Sales: smartphones 9.1% vs tablets 13.4%
• Highest time for purchases via tablet is 3 - 5
p.m., smartphone is 8 a.m. – 10 a.m., desktop
is 9 a.m. – 5 p.m.
25
Traffic
Sales
Overall
44.6%
(Incr. 25.5%)
Mobile Holiday Traffic And Sales
Overall
22.6%
(Incr. 27.2%)
Smartphone Tablet Desktop
* Criteo Holiday Report, 2014
9.1% 13.4% 77.4%

26. Top 5 Opportunities In 2015.

27. Top Opportunities for Q4 2015.
27
Retail Rules over search
engines
1
Focus on Cross-Selling to
drive new users
Mobile is the future
Product Detail Pages
will make or break the sale
Always-On is key for the
expanded decision days
2 3
4 5

28. | Confidential. © 2015 HookLogic 28
Source: Market Tree LLC, 2015, online survey of 600 shoppers
2/3 of shoppers’
starting point
Retail Sites
1/3 of shoppers’
starting point
Search Engines
Retail Rules: Use It Wisely.
2/3 of shoppers begin their product searches on retail sites, NOT Google
1

29. Don’t Waste $ Competing With
Retailers.
29

30. 30
Your Ad Here
• Shoppers visit 3 sites on average – an Amazon-only strategy isn’t enough
The Browser Is The Store.

31. 31
Your Ad Here
Do You Know The Latest Updates?
Amazon
• Deprecation of Product Ads in favor
of higher placement for Sponsored
Products
• Sponsored Products is now available
in AMS (previously only available to
3P sellers)
• Investment in A+ content,
specifically video (which seems like it
aligns with some content topics
they're going to cover)
HookLogic
• Campaign manager
• Bid multipliers
• Retargeting
• Macy’s & Peapod live,
other big apparel
retailers on deck

32. Cross-Selling Is Critical.
• Shoppers are open to consider your brand
– More than half of consumers give holiday gifts from brands they are not loyal to
• There’s more room in the cart
– Retailers see increases in average cart size
– On average, Apparel shoppers buy 4 items per shopping trip, vs 2-3 in
other categories.
• 40% of shoppers tend to buy products they planned to buy, plus others that
caught their attention
– CE shoppers can still be influenced to “add to cart” during their buying
process.
• 50% only buy the type of product(s) they were originally looking for,
• 37% add on additional items, suggesting opportunities for cross-selling
32
2

33. Cross-Selling Insights.
33
Clothing
Most often purchased with Shoes,
followed by Accessories and
Wallet & Handbags
Art & Drawing Toys
Most often purchased with Shoes,
followed by Accessories and
Wallets & Handbags
Cosmetics
Most often purchased
with Fragrances
Food
Often purchased with Beverages,
followed by
Beauty & Baby products

34. Cross-Selling Insights.
34
Category
Art &
Drawing
Toys
Board
Games Flying Toys Musical Toys
Portable
Electronic
Games Card Games Play Vehicles
Incidence Of
Cross-Sales
50% 47% 39% 36% 33% 33% 30%
Most
Frequently
Purchased
With
Dolls, Playsets & Figures Board Games
Dolls,
Playsets &
Figures
Building Toys Play Vehicles Pretend Play
Educational
Toys
Dolls,
Playsets &
Figures
Building Toys
Pretend Play Play Vehicles
Educational
Toys
Play Vehicles
Electronic
Toys
Building Toys Pretend Play
Play Vehicles Pretend Play Board Games Building Toys Board Games Educational Toys
Educational Toys Pretend Play
Educational
Toys
Video Game
Software
Play Vehicles Board Games
Sub-Categories With the Highest Incidence of Toy or Game
Cross-Sales & Most Frequently Purchased

35. How To Achieve Cross-Sell Success.
Strategy-Based Bid Multipliers: Set bid multipliers by Shopper Target and
Placement Type to align with different business strategies.
– Shopper Targets
• In Market: Consumers actively shopping the product category.
• Cross Sell: Consumers actively shopping a related or complementary category.
• Max Reach: Consumers actively shopping any category.
– Placement Types
• Homepage & Discovery: Top-of-funnel and entry point pages.
• Browse And Search: Search result pages based on shoppers’ site navigation or
keyword entry.
• Product Detail And Cart: Product detail and shopping cart pages
35

36. Make Mobile A Main Priority.
36
• Mobile is overtaking desktop browsing and buying, so digital media
strategies should be mobile centric.
• Native is the future of mobile. Native advertising important in desktop, but
critical in mobile with smaller screen size and varying consumer focus.
• Mobile impacts the entire purchase path. From discovery to research and
consideration to purchase.
• Cross-device usage is now enormous: Consumer use of multiple devices to
make a single purchase makes up 40% of ecommerce transactions.⃰⃰
⃰ Criteo’s Q2 State of Mobile Commerce Report
3

37. No Room For Display.
• No one wants intrusive ads. Retailers have already removed
display from their mobile sites.
37

38. Native Or Nothing.
• Be mindful of ad formats, in-grid (in-feed) native or nothing
38

39. Mobile Native Is The Future.
39
• HookLogic is native mobile.

40. Create Powerful Product Detail
Pages.
40
82%
61%
59%
42% 38%
21%
15%
“Please rank the 3 factors that most influence the type of product
you typically buy online when you get to an actual website.”
Price Product
Description
Product Ratings
Or Reviews
Product
Images
Product
Materials/
Ingredients
Product
Name
Product
Video
% Of Consumers Selecting As A Top 3 Influencer On Purchase
• Price rules. Top influencer across all categories.
• Product Descriptions matter. Be detailed & transparent, especially with materials &
ingredients
• Ratings & Reviews are key. Both user & expert reviews are important
• Product Images need updating. Primary visuals are important, but show all the benefits
of the product.
4

41. Creating A Stellar Product
Description.
• 63% of consumer
chose it
as a top
influencer
• Ensure cross-site
consistency
• Be competitive
with your claims
41

42. Video Increasing In Importance.
• Consumers are engaging in video, even if not
top influencer
• Great opportunity for you to share the brand
and product experience
• Invest in video - For every single product or at
least each product line.
42
Video Viewing By Category
Baby
Electronics
Health & Beauty
Clothing
0% 20% 40% 60% 80% 100%
Figure 3. In the past 12 months, have you clicked on a video or video demonstration within
the product page of a retailer website when considering whether or not to purchase online?
Yes
No

43. Stay On & Strong.
• There is no longer just Black Friday & Cyber Monday.
– Pre-Thanksgiving Sales
– Cyber Week
– Green Monday
• The entire season is a ‘spike’
• Conversion actually rises to a holiday peak the week after
Cyber Week, and doesn’t return to normal baseline levels until
Christmas week.
• Week after Christmas also rises in both traffic and conversion
as shoppers take advantage of closeout deals and start
spending their gift cards.
• Traffic for the 5 days between Christmas and New Year’s Day is
nearly equal to two Cyber Mondays.
43
?
More Decision Days
Than Ever
5

44. Top Opportunities for Q4 2015.
44
Retail Rules over search
engines
1
Focus on Cross-Selling to
drive new users
Mobile is the future
Product Detail Pages
will make or break the sale
Always-On is key for the
expanded decision days
2 3
4 5

45. How HookLogic Works.
45
Step 1
Determine investment level
Step 2
Select product categories &
campaigns
Step 3
Go live in 24 hours
Ad Delivery Engine
• Optimized ad placement
Detailed Reporting
• Actual transaction-based
online attribution
Advertiser UI
• CPC model
• Self-service Bid-by-SKU

46. Learn More & Get Started.
Contact Us: HookLogic.com/Contact
New & FREE Research:
HookLogic.com/Retail/Resources
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