Many brands are entering the year with flat—or declining—budgets. You can’t assume what you did last year will work this year, and your average order value and conversion rates could decline from 2022 as consumers continue to be more money-conscious, said Ken Magner, strategist, marketplace search at Tinuiti, in a recent webinar. With these challenges in mind, now’s the time to take stock of your Amazon search and display ad strategies.
Branded keywords such as “North Face” and “Nike” have high search volume on Amazon, but “North Face” has lower competition so marketers are less likely to get into a CPC battle. For “Nike,” the better approach would be product targeting: finding what products are showing for that term and piggybacking off it.
“Do you want a consumer to be brand loyal or product loyal?” Magner asked. “If I’m in the market for apparel, Under Armour is going to be my initial go-to. It doesn't matter which piece of apparel. For that reason, having a sponsored brand video on the top that is more focused on your brand versus a very specific product [is going to be a better tactic].”
Why we care: We predict US digital ad spending will reach $278.59 billion this year, $5 billion lower than our original projections. “This is going to be a year of switching for consumers,” said Joe Elmquist, strategist, marketplace programmatic at Tinuiti. “How are you going to build your brand with consumers who are already product loyal?”
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