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The huge impact of the launch of "Cashback Display Advertising" on sellers, Amazon's ten new advertising functions are analyzed one by one

10/31/2022
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The huge impact of the launch of "Cashback Display Advertising" on sellers, Amazon's ten new advertising functions are analyzed one by one

Today is the last day of October 2022 and the first major festival of this year's festival season "Halloween". Starting today, the Amazon marketplaces in the three North American countries, seven European countries, Japan and Southeast Asia will fully enter the holiday season shopping peak .

Just last week, Amazon Advertising, the fastest-growing division of the entire Amazon sector, held a conference called "Unboxed 2022" in New York. During the three-day conference, Amazon Advertising had a Tone announced 10 new features for advertising. One of the most notable is the new in-site advertising type "Cashback Display Advertising". what is it? Whether the new advertising function will have a greater impact on the already white-hot Amazon site advertising, in today's article, we will analyze it with you one by one.

Part 1: A Quick Look at the Top 10 Amazon Advertising Features

The following are the 7 major advertising functions announced by Amazon last week. We are now based on the types of advertisements, applicable sellers, applicable categories, and the impact on Chinese sellers, so that you can quickly understand:

01

Estimated Effect Forecast

"Forecast", which is very similar to Facebook ads, means that when you create an ad, Amazon will give you an estimate of the effect of your order based on the products you choose, your daily budget, and negative keywords. However, after the actual operation of Huiwang, it is found that the relevant functions are still in a very early stage, because:

Applicable ad type: Only applicable to automatic ads Applicable sellers: All sellers Applicable categories: All categories Impact on Chinese sellers: Very small, we use the same product and set a budget of $10 to $100, but the expected results are the same Yes, they are 1-15 orders per week.

02

Keyword Ads Default Function

Sponsored Products campaigns with presets are not new. According to data provided by Amazon at the conference, ads with preset functions can increase clicks by 77% and conversions by 29%. However, Huiwang still holds a conservative opinion on this function, because after we complete the preset (Preset) for Hui members in Smart Camp, we will find that Amazon's expenses will increase greatly, and the ACoS will be much higher than that without setting the preset. . The relevant situation can also be seen from the data provided by Amazon above (77% clicks, 29% conversion lift).

Applicable Ad Type: Keyword Ad Applicable Seller: All Seller Applicable Category: All Category Impact on Chinese Seller: Little

03

Image Display Ads

Image display ad Display Image Format. If you have listened to our article last week, you should know that Amazon now increases the number of competitors’ ad slots from 1 to 3 under the shopping cart on the product page with the highest sales volume. The one that has the greatest impact on the listing conversion rate is called “Good Value Alternative”. ” (more cost-effective products). And it is achieved through the current Display Image Format advertising and the past display advertising. In addition to this, Amazon will place this ad in another 9 ad slots.

Applicable advertising type: Display advertising Applicable sellers: Sellers who have passed the brand registration Applicable categories: All categories Impact on Chinese sellers: Great positive impact, will greatly increase product exposure and conversion rate

04

Video Display Ads

Video display ads (Display Video Format) Previously, video placement could only be done through brand ads, but now Amazon has opened several important positions for video ads on the site, which are:

(1) Amazon homepage (mobile terminal) advertising video display

(2) Amazon homepage (desktop) advertising video placement

(3) Competitor Listing product details page FAQ

Applicable advertising type: Display advertising Applicable sellers: Sellers who have passed the brand registration Applicable categories: All categories Impact on Chinese sellers: Great positive impact, will greatly increase product exposure and conversion rate

05

Amazon Brand Video Ads Flagship Store Promotion

Sponsored Brand Video for Amazon Store promotes Sponsored Brand Video for Amazon Store. In the past, Amazon's video advertisements generally only promoted one ASIN (product), but now Amazon allows consumers to be directly guided to the flagship store through video advertisements.

Applicable advertising type: Display advertising Applicable sellers: Sellers who have passed the brand registration Applicable categories: All categories Impact on Chinese sellers: Great, has a positive impact on the sales of the entire product in the flagship store

06

Display video ad creative tools

Sponsored Display Video Creative. This is not an ad type, but a creative creation tool. You can now see it in the campaign management page – Creative. It can be said that the current templates and functions are still very few and very basic.

Applicable ad types: Display ads Applicable sellers: All sellers who have completed brand registration Applicable categories: All categories Impact on Chinese sellers: Helpful for beginners

In addition to the above features that are open to all Chinese sellers, Amazon has also introduced more ad types that are only available to U.S. sellers :

07

cashback display ads

It is called "Rewarded Sponsored Display" in Chinese. After hearing this name, I believe everyone will be surprised. Amazon prohibits cashback, and why can cashback be promoted through advertising now? But, yes, cashback ads will appear as a whole new form of advertising. Sellers will be able to tell customers in their ads how many Amazon Cash coupons (gift cards) they will receive for purchasing the product.

Applicable Ad Type: Display Ad Applicable Seller: Temporarily US Seller Applicable Category: All Category Impact on Chinese Seller: Great Negative Impact

08

DSP Advertising for Non-Amazon Merchants

DSP Ads for Non-Amazon Merchants Sponsored Display for non-endemic brands. This ad is primarily to allow merchants that don't sell on Amazon (eg restaurants, auto insurance companies) to promote their products and services through Amazon's live-streaming platform Twitch.

Applicable ad types: DSP ads Applicable sellers: Non-Amazon sellers Applicable categories: Catering, service industry Impact on Chinese sellers: None

09

DSP digital collection advertising

DSP Digital Signage Ads in Amazon DSP. This ad is in very early stages and is only for Amazon Fresh and Whole Foods.

Applicable ad type: DSP ad Applicable seller: Amazon physical supermarket supplier Applicable category: Fresh food Impact on Chinese sellers: None

10

AMC Enhanced Edition

Amazon Marketing Cloud (AMC) enhancements. This is still mainly for DSP advertising merchants, and Amazon can now show them more display and performance data.

Applicable advertising type: DSP advertising Applicable sellers: Amazon's large-scale sellers Applicable categories: all categories Impact on Chinese sellers: small

Part 2: 5 Amazon Advertising Trends to Watch

From the above, you can see that Amazon's advertising is undergoing the following changes:

01

Auction ads are faded

Among the above 10 new advertising functions, only #1 and #2 are for commodity auction ads. If the #2 Preset (preset) is not a new function, then the #1 Forcaset (effect estimate) function is actually It's more about helping novice sellers understand how to run automated ads. It can be said that Amazon already knows that bidding ads are completely saturated, and it is not ready to let more sellers focus on bidding ads for product keywords.

02

The weight of content advertising has been comprehensively improved

Compared with bidding ads, Amazon's new advertising features for all sellers this time are almost entirely focused on content. In addition to the #3 introduced above, which is aimed at product image ads, the rest #4, 5, and 6 are all aimed at videos. It can be seen that high-quality image and video advertising will be a new high ground for Amazon sellers starting this festive season.

03

Display ads are gaining weight

Eight of the above 10 new features are for display advertising, which once again fully shows that Amazon believes that traditional keyword bidding advertising has come to an end and cannot bring more cost-effectiveness to Amazon and sellers. For example, customers who search for products through keywords will only see the price, evaluation, and star rating of the product, but almost no customers will know the difference in product performance, which will only worsen the price war of products on the site. However, display advertising is more educative to customers, and the increase in the function and weight of display video advertising shows that Amazon believes that an effective way to get out of the current seller price war cycle is: explain the selling point through video + large-scale products exposure.

04

Integration inside and outside the station

Although Chinese sellers still don’t feel much, the above advertisements for US sellers have made it very clear that Amazon is targeting US offline retailers, retail stores, supermarket suppliers, and even travel agencies, banks, insurance companies and other professionals Service agencies offer more advertising opportunities. And I believe that after listening to Hui.com's article two weeks ago, you can understand that Amazon's new "more best-selling products from the same brand" section on the Listing page is encouraging sellers on the site to advertise on Google. . At the same time, the recent “Buy with Prime” popularized by American sellers has turned Shopify into Amazon’s flagship store for off-site merchandise. In any case, the trend of on-site and off-site traffic integration and advertising integration is already a trend that every Amazon seller has to seize as soon as possible.

05

Going straight to Google, Facebook

As the world's #3 online advertising platform, Amazon has been eyeing Google and Facebook's turf. Facebook seems to have hit a dead end recently, with inexplicable titles and platform policies overwhelming many merchants, and parent company Meta’s (Metaverse) investment in virtual worlds feels too illusory. In contrast, Google's ad performance and price-to-performance ratio have improved significantly over the past few years. While Google is working hard to develop the e-commerce market through new functions such as Shopping, Map, and Business, Amazon is obviously grabbing Google's inherent customers in terms of advertising layout, functions, and new functions launched for local merchants in the United States.

Part 3: Summary of Amazon’s New Advertising Usage Scenarios and Expected Results

From the above Amazon's new advertising features and focus, it is enough to see that Amazon is leading platform sellers to meet the huge changes in consumption habits. We now share with you the above applicable scenarios of advertisements that have a great impact on Chinese sellers:

01

cashback display ads

This should be the type of advertising that threatens Chinese sellers the most among the new advertising features launched by Amazon this time. If the previous price war was just product prices, coupons and discount codes that stayed on the first page of Amazon’s front-end search results, then the launch of “Cashback Display Ads” will make the previous test delivery method completely on Amazon. Front desk, as this is tantamount to the consumer getting an in-Amazon gift card from the merchant after purchasing the product to buy any other product they wish to buy. And the usage scenarios here will be very broad, including:

"Low-price promotion" of new products maintain and improve BSR-targeted "replenishment orders" to reduce redundant inventory "clearance"

02

"Brand Video Ads" and "Flagship Store Video Ads"

The power of these two types of advertising is second only to "cashback display ads". Its usage scenarios are more focused on quickly attracting customers and educating customers through videos within 45 seconds.

At the same time, we need to remind everyone that video advertisements can undoubtedly display products very intuitively and vividly, but just like the advertisement videos of other products are always inserted during the playback of Youtube videos, consumers only want to close the inserted advertisements as soon as possible, and continue to view content that interests you. Therefore, when this type of advertisement is placed, it is more important to pay attention to "the number of times each customer is served" rather than the number of impressions.

03

Image Display Ads

This type of advertisement is also aimed at quickly attracting and educating customers. This is almost the first time that Amazon has allowed sellers to use multiple images to advertise, especially after the main image is matched with the scene image, displayed on the opponent's Listing page, which can be compared to simply using Product ads and category ads targeting rival ASINs in “Sponsored Products” have more exposure, higher click-through rates and higher conversion rates.

However, we still need to remind everyone that Amazon is like a big supermarket, and customers have little patience for new product knowledge, and because most customers know about products outside Amazon, and place orders after searching for target products on the site, Therefore, off-site promotion must not be ignored. It is for this reason that from today until December 31st, Hui.com will provide the following free weekly promotions on and off the website for all the Smart Camp members who send their products to the Vancouver studio of Hui.com:

Huiwang Zhiying Hui member festival season free promotional content

Amazon (no mandatory discount code requirement)

1. Amazon Reds Live Streaming

2. Recommended by Amazon Reds

3. Amazon Reds

Google (no discount code required)

4. Shopify independent station collection and release

5. Google Shopping product collection

6. Google Search and Product Ads

Social Media: (no mandatory discount code requirement)

7. YouTube release and keyword ranking (keywords provided by Smart Camp members)

8. TikTok live broadcast and post promotion

9. Instagram live broadcast and post promotion

Forum promotion (requires 50% discount code)

10. Reddit promotion

11. DealNews promotion

12. More discount platforms

News media evaluation:

13. MarketWatch

14. Yahoo News

15. Google Blog Blogger

16. USA Today

17. Fox News

18. More Media

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