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- ClickZ Amazon Insights Newsletter - 12.05.2024
ClickZ Amazon Insights Newsletter - 12.05.2024
Global Ad Spend Edges Toward $1 Trillion Milestone
Welcome to Amazon Insights, an essential newsletter crafted for e-commerce professionals navigating platforms like Amazon and similar marketplaces. As the holiday season approaches, we're here to help your campaigns hit the mark.
Top Shelf 🛒
With BFCM wrapped up, marketers are shifting gears to plan for 2025. To help you start strong, here are three essential tips to set your brand up for growth:
1️⃣ Get the Right Measurement in Place: You can’t plan for next year without accurate measurement. Yet, many brands stick with the devil they know—Last Click— despite its fundamental flaws.
With BFCM in the bag, now’s the perfect time to adopt effective full-funnel measurement. Plus, Fospha delivers YoY metrics from the start, so you can dive into budget planning ASAP.
2️⃣ Consider Adjusting Your Channel Mix: What worked last year might not work now. Successful brands adapt by altering their channel mix and ad spend as they scale. We find that as brands mature, they have to focus on expanding their upper funnel spend to create more demand to capture.
3️⃣ Reflect on Peak Performance: Before diving into next year, take time to assess your BFCM performance. Benchmarking data is your compass and gives you data-backed edge for 2025 planning.
For free BFCM 2024 benchmarking data, sign up for priority access to our BFCM 2024 Report here.
The Insight Track
E-COMMERCE INSIGHTS
Confessions of a Media Buyer on the Challenges of an Extended Black Friday Cyber Monday
Black Friday and Cyber Monday promotions are starting earlier, with major players like Amazon now requiring 12-day participation windows for coveted promotional badges. This extended discount period is forcing brands to rethink their holiday strategies, with Meta ad spending up 20-30% year-over-year to support longer promotional windows.
The shift presents particular challenges for smaller brands, especially in categories like beauty where discounts beyond 30% can eliminate profitability. To stand out without solely relying on deep discounts, brands are getting creative with gifts-with-purchase, category-specific promotions, and holiday-exclusive products.
Key takeaway? Rather than racing to the bottom with extended discounts, brands should plan earlier and develop more sophisticated promotional strategies that protect margins while maintaining competitiveness during the extended holiday shopping season.
E-COMMERCE INNOVATION
How Amazon Ads and PMG are Unlocking Performance with AI-Driven Programmatic
By harnessing customer data, AI refines strategic planning and execution, transforming your marketing playbook. These technological shifts enhance campaign optimization, drawing parallels to the historical leap from ice cutting to refrigeration—offering strategic avenues for greater impact.
E-COMMERCE INSIGHTS
Marketers Are Keeping A Close Eye on Amazon's Shoppable Prime Ads
As an e-commerce marketer, delve into Amazon's shoppable Prime ads this holiday season. These formats offer intriguing opportunities to directly engage consumers, promising strategic insights for future campaigns. Brands like VTech and Fisher-Price assess their efficacy with experimental budgets, offering potential paradigms for adapting to e-commerce dynamics.
AD SPEND FORECASTS
Global Ad Spend Edges Toward $1 Trillion Milestone
Global ad spending is on track to exceed $1 trillion in 2024, propelled by digital platforms, despite regulatory hurdles for key players. This growth, alongside the influences of TV ad campaigns and holiday spending, presents a dynamic landscape ripe for strategic adaptation, offering unique insights for evolving marketing approaches. |
E-COMMERCE STRATEGIES ANALYSIS
Walmart and Amazon Turn to NFL to Score Holiday Shoppers
For e-commerce marketers, Walmart and Amazon’s strategy of embedding shopping within NFL broadcasts is a game-changer. Walmart’s QR code integration and Amazon’s “Haul” platform offer budget-conscious solutions, competing with Shein and Temu. Leverage these insights to enhance eCommerce strategies through innovation, sustainable logistics, and strategic partnerships in retail.
Performance Pulse 📈
E-COMMERCE INSIGHTS
Challenges of An Extended BFCM
Extended Black Friday and Cyber Monday sales challenge e-commerce marketers, requiring strategic creativity in promotions to maintain profitability, especially for smaller brands. Early sales from major retailers like Amazon emphasize the importance of proactive planning to stay competitive.
MARKETING INSIGHTS
E-commerce Marketing Budgets Essentials for Strategic Advancement
Strategically allocate 7-12% of revenue for e-commerce marketing; startups might invest 15-20% for initial growth. Focus on customer acquisition while prioritizing high-return channels and tracking ROI. Assess customer lifetime value for sustainable tactics. Challenge your e-commerce methods by embracing adaptability and regular evaluations to maximize long-term market gains.
BNPL is reshaping holiday marketing strategies by integrating 0% financing with promotions, appealing to budget-savvy shoppers. This strategic approach differentiates brands and offers a creative edge in managing consumer spending. Embrace these insights to enhance your strategic planning in the competitive e-commerce landscape, aligning with evolving consumer expectations.
Customer Relations | 📍 London, UK |
Marketing & Comms | 📍 Austin, TX, USA |
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