ACoS vs. TACoS vs. ROAS: Which Amazon Metric is Best?

ACoS vs. TACoS vs. ROAS

ACoS — or Advertising Cost of Sale — is the metric that most Amazon advertisers and sellers care about. But you might be wondering about ACoS vs. TACoS vs. ROAS, and which one is best for your brand to monitor.

What is the difference between these three metrics? When should each be used? Is one better than the other? Read on to find out.

ACoS vs. TACoS vs. ROAS

ACoS tracks the impact of your ad spend on your ad sales on Amazon. ROAS is the reverse of ACoS, similarly indicating how your ad spend impacts your revenue. TACoS provides the full picture of your Amazon efforts, dividing ad spend by total sales.

ACoS

What is ACoS?

Amazon ACoS is a metric for tracking how much money you make from advertising. The formula to calculate ACoS is:

Ad Spend ÷ Ad Sales

So, ACoS reflects how your ad spend directly impacted your sales — or, for every dollar of money you spent on advertising, how many dollars you made in sales.

A 100% ACoS would mean you are breaking even between your ad spend and sales. Anything less than 100% means you are still making a profit; anything more means you are spending more on advertising than you are earning in sales.

Why ACoS Is Important

ACoS is important at a campaign level, as you’ll likely have different target ACoS for branded vs. non-branded campaigns. Branded campaigns will have a higher ACoS because you are buying new customers, while non-branded campaigns will have a lower ACoS because there is lower competition and higher intent.

ACoS is specific to ad performance only — for example, if you spent 20K and drove 100K in ad sales, you were running at 20% ACOS. But, the downside of ACoS is that it’s only telling the story of advertising and the sales resulting from those ads, not your total sales.

TACoS

What is TACoS?

TACoS is the whole picture of your Amazon business. Whereas ACoS only tracks the results of your advertising efforts, TACoS takes all of sales into account — regardless of whether they came directly from advertising or not. To calculate TACoS, use this formula:

Ad Spend ÷ Total Sales

Why TACOS Is Important

TACoS tells the entire story of your Amazon business — in essence, it’s your total advertising cost of sale. TACoS is key to focus on, and you want to make sure it is aligned with your overall performance.

Your advertising might be driving higher ACoS, but your overall TACoS is low because you’ve had great success with organic search conversions. You might have a 39% ACoS and a 20% TACoS because of how your advertising performs within the holistic view of your account performance. Advertising on Amazon is non-negotiable, but you can have sales that come from outside of it.

ROAS

What is ROAS?

ROAS, short for return on ad spend, is again focused on advertising, not overall performance. ROAS is essentially the reverse of ACoS—dividing what you made by what you spent, instead of vice versa.

Ad Revenue ÷ Ad Spend

ROAS is still used in reporting on Amazon, as it is a familiar metric to many in the digital advertising world. Like ACoS, it focuses on the results of your advertising, but ROAS indicates how much money you made for every dollar you spent on advertising. It is the inverse of ACoS, which indicates spend.

Why ROAS is Important

ROAS is an important metric as it indicates the success of a specific advertising campaign. Different types of campaigns will have different target ROAS—retargeting campaigns should have a high ROAS (but low ACoS), and prospecting (or new customer acquisition) campaigns will have a low ROAS (but high ACoS).

Should I Use ACoS, TACoS, or ROAS?

The answer is more complicated than just personal preference or what your CEO wants to see. In general, ACoS and ROAS should be used to monitor individual campaigns, and TACoS should be used to measure the holistic performance of your Amazon brand. Feel free to monitor and use all three metrics in your reporting to give a full picture of your brand from individual campaigns to your overall sales!

Need help navigating the confusing world of Amazon metrics? The Marketplaces Team at Blue Wheel is here to help.

Amazon Brand Store: Everything You Need to Know

amazon brand store

If you’re selling on Amazon, you need a high-quality brand store. Period.

Not only does your brand store allow you to “own” a landing page on Amazon, it also allows your brand to create a consistent experience across all of your marketplaces. The more that Amazon, and other marketplaces like Walmart, continue to take over our ecommerce world, the more important your Amazon Brand Store will be.

Your Brand Store on Amazon is more than just a place to house all of your Product Detail pages — it can dramatically increase your sales, build brand loyalty with your customers, and provide education for your customers.

Landing for Conversion

The data speaks for itself — linking a Sponsored Brand campaign to an Amazon Brand Store has a 64% better return compared to linking to a product page.

Additionally, you have the opportunity to increase the purchase amount of each transaction, encouraging buyers to buy more than one item from your brand. Any opportunity to increase 

Amazon has traditionally been simply a marketplace to buy multiple products from multiple brands, but having a brand store allows consumers to become more brand loyal on Amazon than they were previously. By linking your Sponsored Brand campaigns to your Amazon Brand Store, you encourage that brand loyalty.

Owning Your Amazon Brand Store

Brand stores have made Amazon more brand friendly. Ever since Amazon let brands own a specific url (amazon.com/brandname), the marketplace has become less of a brand neutral platform and more of a one-stop destination for all your product needs — including brands you love.

Customers can now follow your brand on Amazon by pressing the +Follow button on your Brand Store (see screenshot below), which allows them 

amazon brand store amore pacific

One of the disadvantages people used to point out about Amazon was that you didn’t have any control over your customers like you do on your owned website — you don’t have any way to contact them about product updates or new releases like you would with your email list.

But now, with the follow feature in brand stores, you have a similar ability! When someone follows your brand, they’ll receive updates when your brand launches a new product, encouraging repeat purchasers and brand loyalists.

Seasonality

If your brand has seasonal products, your brand store is a great opportunity to rotate out products based on when they’re most relevant to the consumer. By doing this, you also increase the opportunity for more sales from your brand, especially if you place relevant products together (more on that later).

Clothing brands are typically seasonal, cycling clothing that matches with the current season. But other vertical can also be seasonal! Beauty brands can cycle out products for dry winter skin and sunscreen-covered summer skin. One premium tea brand we work with cycles out their tea flavors based on the season — selling fruity teas in the summer and spiced teas in the fall.

Opportunity for Education

If your product can be used with other products you sell (for example, in the beauty space), your brand store is a great place to educate your consumers on what products work best together, giving you the chance to upsell!

For example, you could group your skincare products by skin type, listing products together that are best for dry, oily, or combination skin. Or, maybe you offer socks to go with your shoes — you can suggest the best socks for boots, athletic shoes, or dress loafers.

No matter your product, there is likely an opportunity for upselling through education in your Amazon Brand Store. Feel free to get creative and really let your brand’s voice come through while you educate customers.

Want expert guidance when creating your Amazon Brand Store? The team at Blue Wheel can help!

Why Your Amazon Marketing Strategy Should Include More Than Amazon

amazon marketing strategy

Your Amazon marketing strategy should include more than just Amazon.

That might sound a little counterintuitive, but we really mean you should have a holistic marketing strategy that includes more than just Amazon. We’ve dubbed this omni-echannel marketing, but the concept is the same — not putting each individual sales channel in a silo, but rather viewing them as an integrated whole.

If you’re selling on Amazon, your Amazon marketing strategy needs to include more than just Amazon. Here, we’ll present some situations where having this holistic strategy would benefit your business!

The Situation

If you’re wondering why you lost the Amazon Buy Box, it could be a result of lower pricing at one of your wholesale retailers.

Let’s say your brand makes and sells backpacks, and you wholesale to various retailers such as REI, BackCountry, and Dick’s Sporting Goods in addition to running your own brand store on Amazon.

Then let’s say that REI runs a promotion on your best-selling hiking backpack. The list price is typically $99, but REI is selling it for nearly half off at $59. If you have no knowledge of this promotion, you’ll likely keep selling that backpack at its usual $99 price on Amazon.

The Problem

Here’s the problem — Amazon keeps track of the prices of items on and off Amazon. So, if their crawlers detect that the price of an item on Amazon is priced “significantly higher than recent prices offered on or off Amazon,” they’ll remove the Buy Box from your listing, or even remove the listing all together in some cases.

They call it their Marketplace Fair Pricing Policy. Here’s a summary from Amazon:

“Amazon regularly monitors the prices of items on our marketplaces, including shipping costs, and compares them with other prices available to our customers. If we see pricing practices on a marketplace offer that harms customer trust, Amazon can remove the Buy Box, remove the offer, suspend the ship option, or, in serious or repeated cases, suspending or terminating selling privileges.”

So, if one of your retail partners drastically undercuts your price — either temporarily or permanently — your Amazon sales will be affected, and your Amazon marketing strategy will be negatively affected.

Some sellers have even reported that similar (not exact) items listed at lower prices on other marketplaces have caused them to lose the Buy Box as well.

Obviously, this is a problem for anyone who sells their products at retailers and on Amazon. Not having an Amazon marketing strategy that encompasses more than just Amazon means that your entire ecosystem is disconnected, and each area can suffer if you’re not fully aware of what’s happening at all times.

The Solution

Email Marketing

One solution to integrate your Amazon marketing strategy is to invest in email marketing. Even if you don’t have a dotcom site, you can still invest in email marketing. When you send out an email announcing a new product launch, you can still link to your Amazon PDP to drive sales there.

By creating a simple landing page with a form that collects email addresses, you can create a list of customers who are your fans and want to buy your products. This list will supplement your Amazon Advertising that reaches the right people who are searching for a product like yours.

Monitor Retailers

This may seem like an obvious solution to your Amazon marketing strategy struggles, but it really is essential to creating a holistic marketing strategy. By monitoring the prices your retail partners are offering your products, you will better be able to reprice (or not reprice) your own items on Amazon in light of Amazon’s Marketplace Fair Pricing Policy.

In addition, this monitoring will allow you to have better inventory management to account for potential increases in sales on Amazon.

Integrate your Amazon Marketing Strategy with the rest of your marketing with the help of Blue Wheel.

Why Walmart Advertising and Why Now?

walmart advertising

With the launch of Walmart Connect earlier this year, Walmart continues to accelerate its expansion into the digital space, challenging Amazon and becoming a more serious ecommerce marketplace. With greater support being funneled to Walmart Performance Ads and the launch of self-service Display ads, Walmart is beginning to truly rival Amazon in their advertising offerings and driving itself toward a platform that can no longer be ignored. 

The question is no longer “should my brand be advertising on Walmart?” but instead should be “how do I get started?” We chatted with Peter Kearns, VP of Marketplaces, and Melissa Ardavany, Director of Marketplace Services, to learn more about why your brand should be advertising on Walmart.

Largest US Retailer

According to Walmart’s first-party research, they’re the largest retailer in the United States, serving 150 million consumers each week in-stores and online. And with 35% of in-store shoppers visiting walmart.com shortly before shopping in person, the opportunity to capture consumers online and in stores rivals any other major ecommerce platform  

With the opportunity to capture additional search volume on Walmart.com growing during the pandemic, an additional 70,000 sellers joined Walmart marketplace in 2020 according to Reuters.com

“As 70,000 additional sellers aim to take advantage of the more than doubling of Walmart’s ecommerce business over last year, it is critical that brands take advantage of this marketplace gold rush.” Says Kearns. “If you aren’t advertising on Walmart, your competitors are!”

Placements Across Walmart.com

Placements in search results, on product detail pages, and in buy boxes allow Walmart Performance Ads to help brands maximize visibility and reach more consumers than ever before. One in four Walmart.com purchases start out as a search and with 185 searches happening per second on Walmart.com utilizing advertising to give your brand prominent placement is key to a successful Walmart plan. 

“As with any major ecommerce platform, your participation and performance on Walmart Ads will impact your organic positions on search results pages. It is imperative to generate relevance for your products before competition has the opportunity to take over the space, and the best way to do that is to take advantage of Walmart’s full suite of advertising offerings.” Says Ardavany.

Full Picture

One of the main draws to Walmart Advertising is that you can get the full picture of how your products are selling at Walmart online, on mobile, and in store.

Walmart states, “Only Walmart can accurately measure the effect of your digital campaign not just on our site and mobile apps — but in our stores.” If you sell your product on Walmart’s online marketplace as well as in store, you can easily see the results of your campaigns from a full-funnel perspective.

As marketing becomes more focused on the full-funnel ecommerce experience, marketplaces that offer full visibility like Walmart become more valuable.

Because so many Americans live within 10 miles of a store, there’s the opportunity to buy or return items in store. Amazon is currently unable to offer similar in-person returns, and many Americans can’t experience their in-person shopping experience due to limited locations in large cities. Walmart, though, is the main shopping destination for much of rural America.

Get In Early

Industry leaders stay ahead of trends, giving them the opportunity to take advantage of uncrowded spaces, and figure out marketplace strategies before competition. Walmart’s first-price auction structure means a longer road to full optimizations which will make it even more difficult to play catch up for brands left behind. 

With low competition currently on the platform the opportunity for success is higher now than it will ever be again. Don’t wait and let your competitors gain the edge. Talk to your Blue Wheel Media contact today for more information on how we can help launch your business on Walmart Performance Ads. 

Looking to up your Walmart Advertising game? Talk to our Marketplaces team today.

Blue Wheel at Prosper Conference

Blue Wheel is honored to be a sponsor of the 2021 Prosper Show! Prosper Show is ideal for the Amazon seller’s of all sizes for learning how to make their business more profitable and for meeting leading solution and service providers that are eager to help sellers and brands scale their business more efficiently.

Our Vice President of Marketplaces, Peter Kearns, is on the advisory council for the conference and will be speaking at the event. As a former Amazon Insider, he knows all the ins-and-outs of Amazon and has had proven success with hundreds of brands.

Peter’s presentation, Find, Click, Buy: Levers To Success With Amazon Advertising, is on July 15 at 10am. He’ll be presenting alongside Jason Boyce of Avenue7Media and Liz Downing of Teikametrics; together, they’ll be sharing their advanced advertising strategies for success on Amazon. They’ll also be participating in a live Q&A with the audience!

Thinking about going? Use promo code COUNCIL8 to get $100 off your Conference Attendee pass! Register here.

If you’ll be at the conference, give a smile and wave to Peter (we promise he’s friendly) and post a selfie with your super-cool Blue Wheel lanyard and tag us on Instagram!

Everything You Know about DSP Has Changed

DSP

You might have tried DSP in the past and been disappointed in the results — high cost for a low return. But DSP has changed a lot in the past few years, and these changes have likely shifted the way DSP could perform for your brand.

If you’ve tried DSP and didn’t see the results you desired, you might consider trying again. While DSP certainly isn’t right for every brand, it can be an incredible asset to brands who are at the right stage in their advertising, especially with these new updates.

We chatted with Danielle Young, Senior DSP Manager at Blue Wheel, about how DSP has changed in the past few years — and what that could mean for your brand.

Third-Party Data

The addition of new third-party data from Oracle and LiveRamp drastically changed the DSP landscape. When DSP first launched, only a finite amount of data was available from Amazon,  which limited how precise you could be with your targeting. Now that Amazon has partnered with third-party companies to gain access to their data, brands have the ability to target more accurately. Large amounts of new and diverse in-market and lifestyle segments are the result of this addition.

“The addition of this third-party data has likely over tripled the amount of access we have to segments and allows us to target much more specific pools of users with how refined these new segments can be,” says Young. This allows for much more customization in your DSP advertising.

Audience Builder

Before July 2019, you would have to physically email Amazon support to ask for a segment to target for a specific ASIN. Amazon would also only provide segments for ASINs that you own — you couldn’t get a segment from a competitor’s ASIN. 

Now, however, you can use ASIN retargeting on any ASIN, regardless of whether you own it using the in-console Audience Builder. This update is incredibly beneficial to brands, as it allows you to market your products to people who are looking at competitor products similar to yours. You can also, of course, still target your own ASINs to re-engage with customers who have shown interest in or previously purchased your products, keeping your brand top of mind to consumers. “The addition of the Audience Builder tool in 2019 opened up a whole new world of retargeting possibilities and immensely improved the campaign build time,” says Young.

New Inventories

Every year since 2017, Amazon has been adding new inventories to their DSP platform. “When DSP started in 2016, there were a handful of available inventories, but now there’s much more,” says Young. “Each year they’ve rolled out new inventories available in the system.”

Now, companies that Amazon runs their ads through — such as Google or Adex — will provide new inventories for ads to be served on, giving brands a lot more opportunity to scale their DSP advertising across the web.

Young advises that this increase of available inventories is a gamechanger for DSP advertising: “If you ran DSP in the past where we weren’t able to scale, there is now so much more available in DSP that can allow you to scale more efficiently.”

Don’t let just anyone manage your DSP. Reach out to the experts at Blue Wheel by filling out the form below!

2021 Prime Day Strategies

prime day strategies

Ah, Amazon’s Prime Day — one of the biggest sales days for both buyers and sellers. Millions and millions of people flock to Amazon to find the best deal on a wide variety of products. And, for most brands, this is one of the largest sales days all year.

With Prime Day quickly approaching this summer, many brands are looking to finalize their 2021 Prime Day strategies to set them up for success this year. The experts at Blue Wheel have provided some of their top tips to help you see great success this Prime Day.

Pre–Prime Day Advertising Strategies

In the past, Prime Day spans over the course of two days — but a successful Prime Day started months in advance but shoppers tend to begin window shopping a few days before and your strategy should reflect this.

Think about how many consumers prepare for Prime Day. They head to Amazon, browse around for some products they’re interested in, and add them to their cart or wishlist.

To take advantage of this, begin boosting your advertising bids 2–3 days before Prime Day to ensure you’re winning the ad placement, so when people are searching for deals a few days later, your products will already be in their cart. Additionally, this helps keep your brand top of mind even a few days before.

By lifting your bids a few days before, you won’t see high conversions during those few days — but you will see conversions on Prime Day which will be later attributed to the placements from before Prime Day.

Take advantage of this shopping window for Prime Day to set your brand up for success during the actual two-day event.

Participate (AKA Don’t Help Your Competition)

Prime Day is a staple, and every brand must participate. The last Prime Day was less than a year ago in October 2020, but that doesn’t exclude you from participating. If anything, it should motivate you to take advantage of another high sales day!

But the truth is, participating in Prime Day is about taking advantage of the increased traffic and sales. And, most importantly, it’s about not losing traction.

If you don’t participate with at least maintaining your relevancy, you could lose it later to a competitor who spent more on Prime Day. Your baseline participation should be to maintain your relevancy, but of course there are many other Prime Day strategies that would help grow your business (more on that later).

Because the last Prime Day was less than a year ago, you might think that this year’s total sales won’t be as high. But Amazon saw incredible growth throughout 2020 as people shifted their shopping habits to primarily be online versus in store — so our experts predict that this Prime Day will be just as successful as last year.

Kyle Slunick, Amazon Advertising Account Manager at Blue Wheel, believes that this Prime Day will be no different than past years. “Year over year, Amazon breaks records every single Prime Day for sales and traffic. This year will be just as strong.”

Melissa Ardavany, Director of Amazon at Blue Wheel, echoes Slunick: “I originally thought this year’s Prime Day might be just okay, but now I’m more optimistic that it will be more solid sales-wise. With the surge in traffic and increase in conversion rates, and with proper preparation, Prime Day can set up a brand for increased growth for 2021.”

Focus on Placement

During Prime Day, you want to obviously make sure you have the Buy Box and a low or competitive  price to help increase conversion, but just as important you want to focus on where your ads are showing up.

It has been estimated that 95% of consumers don’t look past page 1 of search results, and 75% purchase from the top half of page 1. With that, the placement of your ads is incredibly important.

Raise your bids and utilize top-of-search modifiers, and pay that extra percentage to get at the top of page 1. We suggest raising bids across the catalogue to capture all of those search terms, especially ones you’re not ranking organically for.

This strategy will help you maximize high-traffic, high-purchase days like this to gain a larger portion of the market share on each SERP. If you’re past the bottom of page 2, you’re losing out on sales.

Accomplish Strategies in Less Time

Not only is there increased traffic during Prime Day, but everyone is looking to make a purchase — so brands can accomplish a lot in a shorter amount of time.

Any strategies brands had planned to accomplish over the course of 4 weeks or so might now only take 1–2 weeks with Prime Day. Most tactics are easy to accomplish if you leverage your advertising during this high-converting period.

In addition, all ecommerce sees a lift during Prime Day, as other online retailers like such as Wal-Mart, Target, Ulta, Sephora, and Best Buy also run sitewide deals during this time period. So if your brand is on Amazon and available at other retailers, you can really leverage the traffic over the course of these two days to have great success in a shorter amount of time. But, keep in mind that if you’re running discounts off Amazon at the same time, Amazon will often suppress your Buy Box for price parity, which will result in Sponsored Product Ads not being able to run 

Other Prime Day Strategies

Promotions & Discounts: Use Discounts Wisely

Deals, discounts, coupons — however you refer to it, it’s a huge part of Prime Day. Every consumer is looking for the next best deal, and if your products don’t have some sort of discount, conversion rates can be negatively impacted.

However, that doesn’t mean you should just run discounts willy nilly over the course of Prime Day. Whether you choose to utilize coupons, lightning deals, or Prime Day exclusives, there are some crucial strategies to keep in mind.

Coupons

Coupons are best for conversions. We typically recommend using coupons if clients want to offer some sort of discount on Prime Day. Even discounting by just $1 puts that little green badge on your listing on the SERP, positively affecting CTR and conversions! Coupons are also displayed in all search results, so customers glancing at the SERP will see the discount without having to click into the detail page.

Lightning Deals

Lightning Deals are kind of a mixed bag. They can be great for exposure if you get a good placement. Getting a 1:30 AM placement probably won’t result in many conversions; but a 1:30 PM placement will likely convert really well. It’s just hard to ensure you get that ideal placement.

In addition, in 2019, Amazon extended the window of Lightning Deals to a week before Prime Day, so a lot of brands got burned because they paid the fee, had their inventory set, and then got no exposure because their deal ran at 8am on a random Tuesday — not on Prime Day. No one can verify that Amazon won’t do that again in 2021.

The most successful Lightning Deals are items that are retail ready, with built-out PDPs with relevant keywords, compelling images with infographics, video, reviews, and strong inventory position. Because the minimum discounts need to be at least 30%, you won’t be making your usual profit margins, even if you get high exposure.

Prime Day Exclusive Deals

We’ve seen the greatest success using Prime Day Exclusive Deals. You do have to schedule them ahead of time at a set due date before Prime Day. We typically recommend a minimum discount of 20–25% to get that little green badge on your listing. We’ve seen consistent increased conversions with Prime Day Exclusive Deals!

Brand Halo: Post–Prime Day Strategies

Your Prime Day Strategies shouldn’t end after the two-day sale. By allocating additional budget for retargeting campaigns (such as DSP, ASIN retargeting, and retargeting based on impressions), you’ll be able to capture new to brand customers resulting in a higher lifetime value of a customer.

This Prime Day Strategy pairs well with the Pre–Prime Day strategy you’ll hopefully enact! With all of this gained exposure and conversions, you’ll find an entire new audience that is in the market for products you offer.

Utilizing a 30-day lookback window, you’ll be able to effectively retarget to customers who didn’t purchase your products on Prime Day. By putting your product in front of their faces on and off Amazon, you’ll be able to convert more customers.

Preview of Black Friday & Cyber Monday

Prime Day is a bit of a “dress rehearsal” for Q4, so brands should also review their Prime Day performance to determine if there are areas of improvement. Did products run out of stock? Did conversion rates drop due to not having a coupon or promotion? Brands should use Prime Day as a way to identify processes that need to be improved. If a brand succeeds on Prime Day, they should feel confident going into Q4!

Want an expert to enact your Prime Day Strategies? Reach out to the team at Blue Wheel today!

Are We The Amazon Agency for You?

amazon agency

We get it — there’s a lot of Amazon Agencies out there. From full-service agencies to account management agencies to dedicated advertising agencies, there’s so much to consider. Which Amazon Agency is right for you? (Well, if you’re a good fit we hope it’s us.)

We’re Blue Wheel, and there’s a lot that makes us different from any other Amazon Agency you might have stumbled on in your search. We like to let our work speak for itself, but if you need a little more convincing, here are some top-notch reasons that Blue Wheel might be the Amazon Agency for you.

Amazon Advertising Experts

We’re not a full-service agency, so we don’t directly manage inventory, forecasting, or customer service. (If you need help in those areas, we have partnerships that can easily handle any account management services for you!)  We specialize in Amazon Advertising, so your advertising performance and ecommerce growth is our sole focus. And when it comes to Amazon, you want a dedicated team managing your advertising, because that ultimately determines how successful your brand is on the pay-to-play platform.

We created an advanced bidding philosophy called Search Term Isolation, which has proven to have great success with our clients, and with us (more on that later). Essentially, this technique involves bidding on keywords that have proven to convert and negating keywords that don’t, so you only bid on what is profitable for your brand.

Proprietary In-House Ad Technology

We’ve been an Amazon Agency for nearly 10 years, so we’ve tried out our fair share of Amazon Ad Technology — and to be honest, none of them did everything we needed.

So we built our own!

We developed Companion because no other existing ad tech was cutting it.

Now, our clients get the brain power of our expert Amazon Advertising Account Managers and Specialists and the powerful AI technology of Companion. (We should note that Companion is only available to our managed service clients while working with us, it is not offered as a SaaS.) 

We’re Sellers, Too

Our Amazon selling and advertising strategies made us one of the top sellers on the platform in just 2 years — a feat that less than 1% of Amazon sellers reach.

So when we manage your Amazon Advertising, we don’t do it as someone who just understands the basics — we’ve actually done it. First for ourselves, then for our clients. Most likely, anything our Amazon Advertising Account Managers recommend to you, we’ve tried on our own accounts and had great success. And, we’re always on the cutting edge of new trends.

Month-to-Month Contracts

Listen, some Amazon Agencies rope you in to 1- or 2-year contracts with convincing words like “it’s a great value” and “we need time to show results.”

But at Blue Wheel, we do things a little differently. We’re so sure that our approach will bring you success, that we offer risk-free, month-to-month contracts. Our average client identifies and reallocates 39% in wasted monthly spend, and sees sales increases of 78.1% just 2 months into working with us.

Bottom line: if you’re already selling and advertising on Amazon and are ready to really scale your business, we believe our team can make an immediate impact on your bottom line in just a month or two — with larger, more strategic changes taking place over time. 

Have we convinced you? Reach out for a free Amazon Audit today and see how much spend you’re wasting each month!

Why DSP Isn’t Right for Every Brand

amazon dsp

Everyone is talking about DSP these days — from sellers to agencies and even Amazon themselves. Amazon reps recommend DSP to most sellers on the platform, so many brands are anxious to try this ad type as a means to grow their business.

But DSP isn’t right for every brand.

This might come as a shock to some sellers, especially since Amazon themselves push DSP. But, like most forms of advertising, one size is not fit all. And DSP is definitely not for everyone.

As an Amazon Advertising agency, we typically only open up a conversation about running DSP only after a brand reaches a certain point. Read on to discover when DSP is the wrong and right choice to help you determine if DSP is right for your brand at this time!

When DSP Is the Wrong Choice

Before you even begin thinking about DSP, you need to be utilizing all advertising types on Amazon, including:

  • Sponsored Product Ads
  • Sponsored Brand Ads
  • Sponsored Brand Video
  • Display Ads

In each of these ad types, you should be implementing a variety of different strategies to reach different goals, utilizing all of your budget, and consistently hitting your ACoS or revenue goals. These strategies could include ASIN targeting, brand defense, and ranking campaigns.

The goal is to maximize everything you’re doing on search first. If you’re not taking full advantage of all ad types and all strategies, you won’t benefit from DSP at this stage anyway. You’ll just be wasting money.

When DSP Is The Right Choice

Once you’ve maximized all the other ad types, then you can start thinking about investing in DSP.

When consulting with our clients, we open up the conversation to explore DSP when we start to see bottom line sales plateau, as this likely means they’ve got great coverage on your current advertising.

At this point, DSP can be used to grow brand awareness and invest in retargeting strategies. “Because DSP utilizes Amazon’s first-party data for shoppers and audiences, we can target ads based on audiences instead of keywords or ASINs, which is what we do with other forms of advertising,” says Vanessa Lee, and Amazon Advertising Account Manager at Blue Wheel.

Most marketing strategies, whether on or off Amazon, begin with lower-funnel strategies and work their way up to upper-funnel strategies. Upper-funnel strategies focus on reaching new customers, so they typically have a higher ACoS on Amazon.

When you’ve successfully implemented DSP, you’ll eventually see a brand halo effect. When we started running DSP with one of our clients, we pretty quickly saw a correlation between DSP and branded search. After we began running DSP, we saw an overall increase in branded search as consumers saw our ads off Amazon and then searched for the brand on Amazon.

amazon dsp graph
amazon dsp chart

So, while you likely won’t achieve a high ACoS on these campaigns, you will likely see a halo effect over time. It’s important to go into DSP with the expectation that you won’t get direct returns, it’s an expensive investment (minimum $5K/month), and it’s a long-term strategy. But, if you have fully invested in all other search options, DSP makes a great addition to your overall strategy.

Wondering if DSP is right for you? Looking for someone to manage your overall Amazon Advertising? Chat with an Amazon Advertising expert at Blue Wheel today!

Amazon PPC Part 2: Could Your Content Be Killing Your PPC?

amazon ppc

This post is part 2 in a 2-part series on Amazon PPC. Read Part 1 here!

Amazon PPC is a vital part of any successful Amazon business. (Yes, it’s still essential for winning on Amazon.) But what if you’re not seeing the desired results from your PPC campaigns? You’ve done your keyword research, implemented Search Term Isolation, and optimized your campaigns — but still aren’t converting the sales you want.

The truth is, the content on your product detail page plays a huge role in your PPC. While, of course, your keywords and bids are primary indicators of your Amazon PPC ads, your content can heavily impact conversions.

If you’re not optimizing content, you can’t fully expect PPC to do all of the legwork in achieving your goals. Here, we share some indicators of when you might need to optimize your content, as well as some ways to optimize each area of your content!

Indicators of Poor Content

If you’re looking at your Amazon PPC stats and noticing that you have a high clickthrough rate but low conversions or purchases, your content could be the issue.

Clearly, you’ve piqued the interest of the consumers who are searching for a product like yours, so your keyword isn’t probably not an issue. The issue is most likely something about your product page is preventing them from clicking the “add to cart button” and actually purchasing.

Of course, there are a variety of factors outside of your content that could be affecting this, such as price, not enough reviews, or a high number of negative reviews. If you’ve been able to identify that the conversion problem isn’t the result of high price or negative reviews, here’s a list of other areas to review.

Content Improvements: Make it “Retail Ready”

Titles

If you’re experiencing high clickthrough rates, your title is likely accurate for the search terms you’re going after, so you might not need to alter much. But, it’s still a good idea to assess whether or not this aspect of your content could be killing your PPC.

Is your title accurate? Or does it just match whatever keywords you’re going after? Make sure it accurately describes the product you’re trying to sell. This will result in higher conversions. You should also be mindful of how your title and content looks on mobile, since 45% of customers only use Amazon’s mobile shopping app.

In order to comply with Amazon’s guidelines, your title should start with the brand name. Amazon crawls the first 1,000 characters of your product detail page (including the title, bullets, and description), so make sure everything is relevant to your product! In addition, you should list the product specification details and high-volume, relevant keywords in the title. But be careful to not “title” stuff your product title as this is a violation of Amazon’s terms of service.

Backend Keywords

Although no one but you will see your backend keywords, this part of your content is incredibly important for maintaining your Amazon PPC. It helps Amazon’s algorithm understand your product better and will ideally improve your organic ranking somewhat.

The search term limit is 250 characters. You shouldn’t include commas, but do include your brand name in keywords but not competition, which is against Amazon’s terms of service. Be sure to include high-volume terms that relate specifically to that individual product.

Images

Product images are probably the most important element to a product detail page after the title. Do not underestimate the impact that high-quality, informative images can have on your conversion rate — and your PPC advertising. Your primary image should clearly show your product on a white background. Subsequent photos (you should have a total of 7 per listing) should have text overlays highlighting the main features of your product, measurements, value proposition and specific parts of your product. Make sure to provide lifestyle images that show how and where your product is used. You should also include a video of your product.

No matter what, make sure you use high-quality images. And if you need to photoshop your product into an image, make sure it’s well done and doesn’t look too photoshopped. (We’ve all seen those kinds of images on Amazon.)

Bottom line when it comes to images, don’t cut corners. A lot of brands will “check the boxes” when it comes to product images and be ok with having images but if they’re the wrong images it will hurt conversion rates

Bullet Points

Bullet points are one of the first things consumers see on your Amazon product detail page once your title and images have piqued their interest. This section of your Amazon content is crucial to detailing the specific benefits and features of your product in an easy-to-read, scannable way.

Your bullet points should each start with a capital letter (sentence case) and don’t end with any punctuation. Your content here should reiterate the important information in your title and description, and you should avoid promotional pricing information.

Product Descriptions

As expert Amazon sellers know, the product description is prime real estate to contain keywords, descriptors, and key selling points. The product description should provide all the necessary information a customer 

But is your description killing your PPC? Are you highlighting the best features of your product, or the features that help solve the problem your consumer is looking to fix? Are you keyword stuffing so much that your description is unreadable?

Make sure your product descriptions provide all of the details a customer would need to know before they purchase. You can even include practical use cases for how your product can be used in daily life.

A+ Content

Last, but certainly not least, is your A+ content. While A+ content is the last piece of content to appear on your product detail page, it’s arguably one of the more important parts.

A+ content is your chance to really dive into the details of your product in whatever way you see fit. Because the content is all image-based, it doesn’t impact your Amazon SEO, so you don’t have to worry about including valuable keywords (although it doesn’t hurt). A+ content will share your brand story and increase brand awareness while informing your customer about your product. This is your space to address barriers to purchase and highlight other important information. Comparison tables are a great addition here, as they can address many concerns your customers might have.

Transforming your A+ content can mean shooting entirely new content to fit the message you want to send. You might include lifestyle shots, show your product in use, or include a breakdown of products/ingredients/etc. Be sure to include overlaid text on top of photos to make the content in this section look seamless, but not too text-heavy. Include your brand logo at the top or bottom of your A+ content.

Whatever you choose to do with your A+ content, it should still fit into your brand’s overall message, style, and voice. Your A+ content can show off different parts of your product that you weren’t able to include in your title or description. Combining high-quality imagery with informative copy is the key to successful A+ content!

Looking to up your content to improve your PPC game? Reach out to the team at Blue Wheel today.