Similar to many exciting trends on Amazon, the world of Amazon PPC is ever-changing and will present several new opportunities for advertising sales and enhanced exposure in 2022.
If you’re using an Amazon PPC agency or doing all the advertising for your Amazon brands yourself, you have to keep up with the growing demands of your customers.
While determining the strategies in Amazon PPC success can be tricky most times, there are ways to find out what can work based on what your data is showing you.
And what better way to determine trends than hearing from Amazon PPC experts themselves who are “in the trenches” all day every day?
Here are some of the top Amazon PPC trends that you need to look out for next year based on the predictions of AMZ Pathfinders’ team of Ad experts!
Buying Decisions / Activity
(Sponsored Products) A big shift from impulse buying to buying things with more value
Customers want to spend their money on things with value.
In fact, a joint study conducted by Amazon Ads and Environics Research found that 75% of consumers in the US and Europe are leaning towards value-driven purchases ever since the beginning of the pandemic. In addition to value, an increasing number of customers are more willing to do business with brands that are taking a stand on social issues such as inclusion, sustainability, equity, and diversity.
The study suggests that brands not only need to focus on how they’re perfecting their products and their customer service, but they need to take note of their brand messaging and the causes they support as well. When brands start to care about the causes that their customers are supporting, they are able to win their hearts and support as well.
Supporting your customers’ causes will allow your customers to see your brand in a positive light, one that’s purposeful in shaping the world to become a better place for future generations to come.
(Sponsored Products) Sustainability will factor into buyer decision
Given that the world is facing more than enough environmental crises that everyone is struggling to handle, consumers are now looking into brands that show responsibility for keeping nature protected.
When brands face up to their environmental duties, consumers begin to think positively of them, earning those brands a sense of trust and reliability in helping keep the earth clean.
The effects of climate change are becoming more apparent sooner rather than later, making it a good place to start when it comes to sustainability branding. When brands are able to tell a clear and compelling story that’s filled with the purpose of helping nature heal, any product, service, or experience they release will be appealing to customers whose values they align with.
(Sponsored Products) Consumers will be in-charge of brand interaction
These days, brands have no shortage of competitors. In every industry out there, it’s highly likely that they’ll be competing with several brands just to capture even a few seconds of their target market’s attention.
With the option of installing ad blockers, having a limited budget to reach the majority of Amazon customers via ads, and having other channels for marketing brands, customers have the ultimate power to decide whether to engage or not with a brand.
Brands need to be strategic and extra careful when it comes to advertising as doing too much of it may simply put off customers. Interacting too little is also a problem as this means you’re limiting your brand’s potential.
With the right amount of campaigns and strategic messaging, you’ll be able to engage new customers, gain interaction with them, and begin the conversion process.
(Sponsored Ads) Buyers will want more authenticity from brands
Let’s face it: No one likes copycats.
If your brand looks, feels, and communicates to customers the same way or a cheaper way than the other brands have, it’s more likely that they’ll choose the more authentic brand that they know they can trust.
Customers will have different budgets, but since people are more reliant on products for their quality and effectiveness rather than the price tag, they would rather choose to pay more for an authentic and trustworthy brand rather than its cheaper, yet similarly branded counterparts.
An example of the authenticity issues that leads to brand distrust on Amazon is the persistent rise of Chinese sellers who export China-made goods to the U.S. and are rising to the top by using malicious techniques to lure customers into making a purchase.
These tactics include selling counterfeit products, abusing variations (adding variations to existing products to take advantage of its existing reviews), creating and displaying fake Amazon product reviews, sabotaging their competitors’ product listings through listing alterations, and stealing Amazon’s internal data.
As a brand, you want your customers to not only hear the words you say. You also want them to believe it consistently and become its long-term patrons. Customers not only want a brand they can trust, but they also want those that can solve their problems.
When a brand keeps its promises, has an authentic message, has a long history of providing unmatched quality, and creates great value at a good cost, customers will find it difficult to consider other up and coming brands and will continuously repurchase as long as the brand sticks to the formula.
This type of long-term relationship will easily cement customer loyalty as time often builds a stronger emotional relationship with customers rather than just sticking to what customers can afford.
New Amazon Features and Tools
(Sponsored Ads) Amazon will provide more tools to help advertisers research and forecast demand
Among Amazon’s goals is to help advertisers get to know their target market better through simplified demand research and forecasting. To accomplish this, Amazon will launch more tools that will help in visualizing this.
Currently, AWS (Amazon Web Services) offers Amazon Forecast, a time-series forecasting service built for business metrics analysis that relies on machine learning (ML). This service helps generate accurate forecasts, optimize inventory, and improve capital utilization. Its use cases include managing resources, adding ML forecasting to SaaS solutions. improve capital utilization.
Currently, sellers can access several advantageous tools in Seller Central. Located under “Growth” in the Seller Central top navigation menu, the Growth Opportunities and Product Opportunity pages can provide a more holistic view of the opportunities that are available to you.
The Growth Opportunities page allows you to get a centralized view of the opportunities that are most beneficial to your business.
Recommended actions are also available to guide you through the decision-making process and are updated daily. Meanwhile, the Opportunity Explorer helps you discover a wide variety of customer demands for new product ideas.
This tool allows you to understand your Amazon customers through their search and purchase behaviors. By having access to this data, you’ll be able to determine the economic potentials and opportunities for meeting specific demands for new products in varied niches.
Each niche displayed on the page will have a detail page where you can access data tabs separating statistics, current products, top search terms, and launch potential for new products.
Advertisers can take advantage of a helpful tool called, Brand Metrics in the Advertising Console. This tool helps by providing a new measurement solution that presents brand opportunities at each stage of your Amazon Store’s customer journey.
Brands can understand the difference between their performance and their competitors’ using predictive models that help with the comparison. Another important feature of Brand Metrics is its ability to measure historical sales following considerations events or purchases which then break out specific shopping engagements from every stage of the shopping journey.
(Sponsored Display) More creative types will be made available
With Amazon Ads releasing a variety of display creatives, we predict that the selection of creative types will grow even more.
By optimizing different creative elements and testing several variations with elements like the design, copy, and layout of your listing, Amazon Ads can help create the best performance for your creative and an even better buying experience for your customers.
(Sponsored Display) Placement information will be made available
Amazon bases your Sponsored Display ads’ placement on your selected targeting options. By helping with the placement of your ad, they can be delivered next to relevant content that can boost conversions. You can also select the placement for your ads if you like more control.
This allows you to specify your targets based on your customers’ interests. You can conveniently place your products close to your competitors’ listings, therefore increasing brand awareness and reach.
You’ll have access to your placement information this 2022, making it easier to re-engage and retarget customers both on and off Amazon.
(Sponsored Display) Video will come to Sponsored Display
This year, the video feature will be added to Sponsored Display allowing you to grab shopper attention even more and increase clickthrough rates as they scroll through various Amazon listings.
We expect conversion rates to improve with this new feature (Sponsored Display video ads) because customers with high purchase intent will have more assurance of a product/brand with explainer videos than those that don’t.
(Sponsored Display) Real A/B testing will come to Sponsored Display
To learn about the best version of your Sponsored Display campaigns, Amazon is setting out an A/B Testing option. A/B testing can help you identify improvements in your campaigns, allowing you to create more revenue-generating ads.
Other benefits of A/B testing include optimizing funnel strategies, RoAS (Return on Ad Spend), and decreasing the rate of cart abandonment.
Experimenting with your campaign elements such as design, images, and placement can help you understand the type of ad that captures your shoppers’ attention.
(Sponsored Display) Off-Platform Advertising will be utilized for retargeting ads
With Sponsored Display ads, advertisers and vendors are able to make good use of retargeting methods. Retargeting via Sponsored Display makes more sense when advertising with Amazon as it’s common for most brands to have less than 1% in click-through rates in Amazon Display advertising.
Sticking to the traditional display ads will usually guarantee simple and fewer ROI results.
However, by retargeting via Sponsored Display, not only will customers see your product ads on Amazon’s platform, but it will also follow them around different websites that are affiliated with Amazon. This will help keep your product top of mind until the purchase.
While Sponsored Display ads can be easily created, the feature for customizing for different audiences is not available. This limits your ability to market to a specified audience but provides more visibility to a wider audience, which is never a bad thing in our books.
(Sponsored Brands) Sponsored Brands will include Posts as a type of creative
To add to the creatives that Amazon is setting out, Sponsored Brands will soon have posts that can showcase specific products. So, if you’re thinking of adding a new line of products to your brand, you can effectively use posts as a way of displaying marketing images that inform, excite, and help customers relate to your brand.
With informative posts, potential customers can be given the chance to see your product’s features, the value that it can add to their life, and the problems it can solve.
(Amazon DSP) Whole Foods Market Advertisers will measure overall campaign performance using Amazon DSP
Amazon DSP’s new ad attribution campaign for Whole Foods Market now allows advertisers to view the overall campaign performance and effectiveness. This overview applies to both in-store and online impact, helping you see the reports you need to create custom reports.
(Amazon DSP) Advertisers will get in touch with Amazon shoppers through Brand Lift
Since Amazon is placing a lot of emphasis on enhancing customer engagement, they recently introduced the Amazon Brand Lift feature.
This first-party brand lift study solution can be accessed through the Amazon Shopper Panel which is an opt-in, invitation-only program that rewards participants monthly when they answer surveys and share receipts from purchases made outside of Amazon.
The Brand Lift feature helps brands understand their target market better by conducting surveys to ad-exposed audiences and unexposed control groups.
The results of these surveys are then analyzed to create a sound methodology that’s useful for creating better ad campaigns that put into perspective the target audience’s preferences and purchase intentions.
(Amazon DSP) Advertisers will target frequently purchased items with the main product
As the demand for great products will most likely increase even more over time, so does the demand for the products frequently purchased with the main products.
Because of this trend, more Amazon Stores and advertisers will mostly retarget more related products. Doing this can help boost performance and increase ROAS (Return on Ad Spend).
(Amazon Storefronts) 3rd party tools will get access to storefront analytics data
To help companies create better third-party tools, Amazon will give them access to Amazon storefront analytics data. With the third-party integration, many Amazon store owners will be allowed to manage their stores more efficiently and enjoy the benefits of using specific tools that Amazon’s user dashboard may not have.
Using tools outside of Amazon will eventually help store owners make better-informed decisions of the PPC campaigns they’ll launch. So compared to their competitors who only rely on what’s available on Amazon, store owners with better tools will be able to close the loop on attribution as it relates to different ad types.
(Sponsored Display) More use of videos in search ads
The competition for ranking higher, appearing in more search results, and generating more clicks on Amazon PPC is rising each year. To add to that, Amazon will launch videos for Sponsored Display ads, making the competition about eye-catching videos, too.
Advertisers will need to step up on their visual game, create videos that can stand out from the rest of the listings in the search results, and attract buyers, stopping them mid-scroll.
(Sponsored Brands) Brands will become even more creative with their ads
When advertising costs get even higher and the ad competition stricter, it’s very common for Amazon Vendors and Sellers to create different ways to market their brand and products especially if their ad budget isn’t as high as they want it to be.
To help remedy this situation, you can do your research and see where your industry is currently marketing, and find out more opportunities for advertising outside of Amazon’s platform.
Most Amazon Store owners and advertisers would repurpose content and upload them on other platforms and channels such as social media, forums, or their brand’s own website. It’s important to remember that there’s no need to spend a tremendous amount of budget on ads that have fewer chances of conversions.
You just need to create your own advertising style, stick to what works, and keep track of your own analytics to see what’s working and what isn’t.
(Amazon Storefronts) Amazon products with shoppable images will become more popular
If you haven’t used this for your Amazon Store already, then you’re missing out!
Many Amazon Store owners are adopting the shoppable images feature which allows you to add interaction points to images, allowing customers to shop exactly what’s in the lifestyle images you include.
Once a visitor hovers their mouse over a specific interaction point, accompanying copy, images, prices, and star ratings will pop up beside it, giving them the important information on the product.
(Sponsored Brands) Sponsored brands will become even more expensive
Due to the influx of visitors, customers, stores, and advertisers on Amazon, Amazon Ads has become increasingly expensive. It is expected that in 2022, ad auction prices will continue to rise in higher amounts due to the saturation of ads on the platform.
The number of competitors will also rise as more brands are joining Amazon to expand their sales and reach. Advertisers, Amazon Vendors, and Amazon Store owners should anticipate higher risks and prices when it comes to advertising and bidding.
Adding to the pressure is the increasing amount of competition for the top ad placements, meaning they would need to shell out more and prepare a bigger budget for ad spend.
Paying higher for the ads and placement bids is only evident as Amazon’s response to its ad market being saturated as with most platforms.
To keep yourself in the top rank, you would need to budget accordingly, prepare a stronger brand-defense strategy to help keep your customers engaged and help increase your ROAS.
Brand Focus and Creativity
(Amazon DSP) Many brands will flock to DSP, making the competition tighter
Another big change that you have to look out for is the increase of businesses using Amazon DSP (Demand-Side Platform) which allows brands to buy ads programmatically in order to reach new customers both in and out of the Amazon platform.
Competition is steadily rising, making it imperative for brands to branch out of Amazon especially if that’s where they started their brand.
To keep your brand relevant and omnipresent, you have to play around with several alternative advertising strategies and platforms in order to separate yourself from the competition.
One way of doing this is by advertising using video. While this may not be the option for brands with ad budgets of less than $35,000, you may want to think about it and start planning ways in order to afford it. The reason is that many customers are more willing to purchase from brands that introduce the product via video.
This way, they can see themselves or their loved ones using the products. They can also see how much value it can provide in their lives and how quickly it can resolve their problems.
Another way of winning is by investing in Amazon selling programs such as OTT (Over-the-top) which allows you to advertise on video content platforms and streaming video services such as Amazon Fire, Twitch, or on IMDb TV.
OTT ads are shown in many types of devices such as TVs, smartphones, tablets, and gaming consoles, making its reach as flexible as ever.
Interested in taking advantage of Amazon DSP? Schedule a call with us today to learn how!
(Sponsored Brands) The focus will be shifted even more to customer engagement
With the increase of platform visits, searches, and conversions on Amazon, the focus has started to shift from giving customers millions of products and allowing brands to advertise to giving customers more control over what they see and interact with.
Amazon wants to give even more priority to shoppers visiting the platform, with the needs of the Amazon Vendors and Amazon Store owners coming second.
But while they’re focused on customer satisfaction, they’re also giving stores and brands the chance for more creative control of what they put out there.
Amazon isn’t just prioritizing just its customers’ needs. They’ve also given sellers and vendors different betas that can help them market more effectively.
Among those betas are Email Marketing, Amazon Live, Amazon Posts (looks similar to an Instagram Feed), and Brand Follows (allows customers to follow their favorite brands on Amazon).
(Sponsored Display) Defensive product targeting campaigns will still be rampant
As the search volumes continue to grow on Amazon, so does the opportunity for conversions by using defensive product targeting campaigns.
It doesn’t even depend on the type of ad campaign you’re going for. Whether you’re using Sponsored Brand, Sponsored Product, and Sponsored Display, your brand will have several rooms for growth as everything is growing in sales and spending on Amazon.
You just need to keep responding to the data you see on your dashboard and things will go naturally and positively from there.
(Amazon Storefronts) Amazon businesses will focus on creating better Storefronts
This year, Amazon Storefronts will become even bigger as many customers are becoming more interested in the related items they see when they’re browsing through an Amazon Store.
As an Amazon Store Owner, you need to make sure that you’re not simply placing all the ASINS altogether. Inject creativity by adding different elements of branding into it.
You may also create order by organizing ASINS so they look relevant to specific groups. Those are just some of the simplest ways to make your Amazon Store attention-grabbing.
To help you create an even better browsing experience for your visitors, here are some of the best ways you can improve your Amazon Storefront:
Include a short brand story
Briefly make your visitors aware of your brand’s story. Your story can help them understand the idea behind your brand, where the brand roots from, and how you differ from your competitors.
You want your visitors to have an emotional connection with your brand and this is one of the easiest ways to do that.
Categorize your products
One of the many ways top Amazon Stores win at enticing their visitors is by making sure they narrow down what’s in-store through categories.
By segmenting products into categories, not only will you make your visitor’s product search easier, you’ll be able to suggest more products in that category to go along with the items they’ve selected, guaranteeing you more profit for each conversion.
Apply branding colors, messages, and fonts
Personalize your Amazon Store by displaying assets that match your brandings such as colors, fonts, and wording. Keep everything consistent to constantly remind your customer about your brand.
Feature your bestsellers
One way of keeping your successful products noticed is by highlighting them on your Amazon Store. Dedicate a section for popular products to help customers find your bestselling items quicker.
Include a video to advertise the product
Another way of telling your brand story and highlighting your new and most popular products is through video. Videos can also pinpoint your customers’ pain points, encouraging them to purchase your products to help alleviate their problems.
Display value through product photos
Include images that show what problems your products can solve, what ways they can be used, and how they can improve their lives. Photos like those can help your visitors see themselves using your products and having their problems resolved by doing so.
Posts will be further integrated with Storefronts
As time goes, Amazon continues to provide its advertisers, vendors, and store owners with a vast range of opportunities to rank better in product searches.
To help you achieve those goals even further, try experimenting with brand imaging (e.g. Storefront posts) and the way you advertise using the different ad types available on Amazon and those detailed in this blog.