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New features and options for brands

New features and options for brands

The pandemic accelerated the growth of e-commerce to Mach-10 speeds. When we finally come from a year like no other, we find ourselves in a new world where e-commerce reigns supreme.

Congratulations to you out there with stock in Amazon!

But what does it all mean for us digital marketers? Can we loosen our seat belts a little now that we’re returning to a new normal?

The short answer is, no. The pace at which e-commerce came faster has had a groundbreaking effect across the industry, especially Amazon, which has expanded its advertising offerings sharply to keep pace with growth.

Brands now need to move even faster to keep up with all the dynamic changes and at the same time equip themselves with an increasingly sophisticated Amazon strategy.

My performance marketing company, Tinuiti, dived deep into the most powerful trends affecting Amazon advertising in 2021 with four non-negotiable ones we found out to build your brand on Amazon in 2021 and beyond.

TL; DR Fire Amazon brand-building non-negotiable

Voice: Building your brand on Amazon has opportunities like never before – take advantage of creative opportunities here as a strategic differentiator, both organic and paid. Advertising is table efforts: Growing your brand through advertising is the key to speeding up sales and organic placement (Sponsored products, sponsored brands), Sponsored display, Amazon DSP – all contribute to brand growth). Connect consumer behavior from Amazon to Amazon: Use the new tools to measure off-site traffic efficiency like Amazon Attribution. Operational expertise: Here to stay; Do not neglect the daily and long-term business strategies that can lead to both cost savings and margin increases.

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Welcome to the new normal

It has been reported that the pandemic accelerated the shift to e-commerce by five years. While growth in e-commerce is expected to slow in 2021, it is still moving fast and now sits on top of a much larger base.

And as a whole, e-commerce accounts for a much larger share of the market as retail of bricks and mortar contracts.

In short, the world has taken shopping online like never before and will continue to do so going forward. Of course, there has been no bigger winner in all of this than Amazon, whose profits rose 220% last quarter compared to the same period last year.

Optimization on Amazon

Advertisers who still think of Amazon as a purely direct response channel are living in the past. Branding on Amazon is crucial to building brand equity and building trust with Amazon customers.

Even before the pandemic, Amazon built an environment where brands can create more sticky connections with consumers.

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The good news is that there are more tools than ever before to tell your brand story and build a unique brand identity on Amazon.

It continues to create and upgrade opportunities across the platform with content such as Sponsored Brands video, Sponsored Brands Custom Image, Brand Stories (A + Content), Amazon Stores, Amazon Posts and Amazon OTT.

Amazon has moved so fast to promote these offerings that many retailers find themselves struggling to keep up. Many brands do not have the internal capabilities to stay on top of these new tools for testing, learning and walking.

If you’re in that boat, go out and look for a partner who knows what they’re doing (fast!).

Optimization Off Amazon

Until now, it has been a challenge for brands to find out the efficiency of external traffic sources on Amazon and how their shopping trips lead them to Amazon. There are (finally) new tools for measuring traffic efficiency outside of Amazon for the first time.

With Amazon Attribution, brands can now quantify the impact of display, search, social, video channels, and email based on how consumers discover, research, and purchase their products on Amazon.

In plain English, how many times does someone google it and then buy it on Amazon?

This knowledge informs e-commerce investments and can help brands drive traffic to the site using a mixed revenue equation that raises revenue volume on both direct purchases and e-commerce-assisted conversions completed on Amazon.

Video, video and more video

Video streaming and OTT ads will continue their meteoric rise in 2021. Video viewing streaming now accounts for 80% of all internet traffic.

And Amazon has come into the game and launched Amazon OTT video advertising in 2019.

Amazon OTT has quickly gained attention for its unique ability to use Amazon’s first-party data to support both brand performance initiatives and wider reach. More than just a brand play or a performance play, Amazon OTT is a complete performance channel that offers scale, measurability and data-driven targeting.

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Again, brands need to be armed with a go-to-market strategy or OTT both on and off Amazon.

Amazon operations

Some brands are often more eager to throw money at the buffet with advertising opportunities on Amazon than actually digging into the overall efficiency and effectiveness of their daily business practices and operations on the platform.

This includes everything from contract terms, inventory allocation, case management, demand forecast, competitive intel, chargebacks, purchase order management, catalog administration, white space analysis and profitability maximization.

Brands that have the plateau on Amazon are likely to find huge gains that can be achieved in these areas.

This type of end-to-end channel management is not a place where many marketers feel good, but it should be.

Again, if this is not in your wheelhouse, find a company to work with that can help you.

Beyond Amazon: Biggest Advertising Trends in 2021

While Amazon was one of the biggest winners of the growing e-commerce from the pandemic, it became painfully clear to many brands that future success requires a neat approach not only on Amazon but also on other channels.

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Under all circumstances, putting all your eggs in one basket is not a good idea, and the same is true when operating on Amazon.

Having backup, product sourcing and additional sales channels will be the key to withstanding future unforeseen changes in the market.

In other words, a bold Amazon strategy means optimizing your presence both on and off Amazon.

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