ClickZ Amazon Insights Newsletter - 10.10.2024

PLUS: Prime Video Ads Expansion

Author

Sophie Bruxner-Randall
October 10, 2024 • Estimated Reading Time: 8 minutes

Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from AdWeek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

Amazon's Project Amelia is an AI assistant designed to aid sellers with personalized insights and operational advice. Currently in Beta for select U.S. sellers, it aims to simplify tasks for newcomers by repackaging Seller Central info into a chatbot format. While promising, its current capabilities may not impress experienced sellers.

The potential for Amelia's growth is significant. Imagine using it for advanced competitive analysis, like performing sentiment analysis on competitor reviews. It could also offer predictive media and pricing adjustments, allowing sellers to test strategies automatically. Content optimization could streamline A/B testing and performance tracking, saving time and boosting visibility.

In its current state, Amelia offers basic AI-driven responses, but its real potential lies in evolving beyond surface-level functionality. We'll be watching closely to see if it becomes a must-have tool for Amazon sellers.

Amazon Prime Video plans to increase ad slots by 2025, following Netflix and Disney's tiered services. This move aims to fund content investment. Despite initial backlash, Amazon's ad-supported reach in the UK is 19 million viewers. The strategy reflects a growing trend in streaming services.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More to Discover 🛍️

Amazon Accelerate 2024 explores the evolving landscape of e-commerce, emphasizing the importance of adapting to changes in search engine optimization, advertising strategies, and customer reviews. It highlights the role of tools like Google Tag Manager and the impact of digital marketing shifts, encouraging businesses to stay informed and agile.

Amazon's Prime Video in the U.K. now reaches over 19 million viewers, surpassing Netflix and Disney. By defaulting users to an ad-supported tier, Amazon maximizes revenue. New ad formats and exclusive content, like sports and original series, enhance its appeal, driving significant advertising success and audience engagement.

Performance Platters 🍽️

Amazon's Prime Big Deal Days, which started on October 8, signals the unofficial start of holiday shopping, influencing other retailers like Walmart and Target to offer deals. This event helps consumers manage budgets by spreading spending over time. Amazon also warns about online fraud, urging vigilance against scams. The evolution of Amazon Prime, with benefits like streaming and exclusive discounts, highlights its role in customer loyalty.

With 200 million global members, Amazon Prime reshapes loyalty, turning customers into brand advocates. Despite rising membership fees, the focus remains on personalized shopping experiences. Data shows 44% of consumers, especially Gen Z and millennials, are interested in AI-enhanced shopping. This trend reflects a shift towards more engaging and tailored consumer experiences.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division