q4 product advertising strategy for retail brand manufacturers & suppliers

Product Advertising Strategy for Retail Brands This Q4

Where Brand Manufacturers & Vendors will Find the Biggest Opportunities this Holiday Shopping Season

R E T A I L A D V E R T I S E R C O U R S E

Jeff ColemanDirector of Account Management

Amazon Specialist Google AdWords Qualified Professional Over 7+ Years Experience With Retail Search

Before We Get Started

Session Recordings Will Be Sent Next Week

Q&A Following the Presentation

Submit Questions In the Chat Box to the Right

Logistics SpeakersJeff ColemanDirector of Account Management CPC Strategy

Elizabeth JacksonCMO & EVP Corporate StrategyHookLogic, Inc.

•Founded in 2007

•Over 300 active retail clients

•Top 50 fastest growing company in San Diego 3 years running

•Recognized as an Official Google Shopping Partner

•Custom-built retail search technology platform, CAPx

Solutions

Retail-focused Paid Search

(PPC)

Google Shopping

Management

Shopping Channel

Management

Amazon Sales AccelerationCPC STRATEGY HAS BEEN FEATURED ON

DELIVERING LASTING RESULTS FOR OUR CLIENTS

VISIT CPCSTRATEGY.COM

Poll QuestionAre You Currently Using Amazon Marketing Services?

o Yeso No

Amazon Marketing Services (AMS)

Headline Search Ads• Placement: Appear at the top of the search results on an Amazon SERP

• Keyword Targeting:

• Long-tail (specific) searches: Consider using a specific product detail page as your landing page

• Short-tail (broad) searches: Create a custom landing page by doing your own search on Amazon for

3 – 5 of your ASINs, and copy the URL from that search. Use that URL as your landing page.

• Bid Strategy

• Bid conservatively to start out & increase over time

• Don’t get emotionally tied to a product – follow the data & promote what sells. Not every product is

a winner with PPC advertising

w w w . C P C S t r a t e g y . c o m | 6 1 9 . 5 0 1 . 6 1 3 8 | c o n t a c t @ c p c s t r a t e g y . c o m

Amazon Marketing Services (AMS)


Product Display AdsPlacement: On product detail pages below Buy Box

Defensive Placement:

• Target your own product detail pages to prevent competitors

from advertising against your products

• Complementary items typically do well here

• ROI will typically be poor, but these ads are here to prevent

competitors from poaching your customers, not to drive ROI

Offensive Placement

• Target related products of competitors to ensure placement on

their detail pages

• Turn their customers into your customers

Demand Forecasting

Finding The Report• Amazon Retail Analytics Basic

• Locate Demand Forecast Report

Production Planning• Scroll right to see the Demand Forecast for future weeks

• At the time of this recording, Black Friday is +13 weeks

• You should see spikes in demand from +13 weeks through

+17 or +18 weeks; some products may spike sooner

• Use their forecast to plan production ramp ups or increased

POs to your suppliers in time


Amazon Retail Analytics Basic

Maximize Profits through Direct-to-Consumer Sales

BenefitsIncrease Per-Unit Profit:

• Wholesale discounts to Amazon can be as much as 40% off your regular MSRP

• Selling as a 3rd Party through Seller Central, Amazon’s commission will be 15% or less,

with FBA’s fixed fees usually falling in the range of 7% - 10% of product price (though that

can vary).

• Price Control: Reprice at your own discretion to maximize profit

• Selection: Sell products Amazon doesn’t want to buy

Risks• Buy Box: If you’re not winning the buy box as a 3rd party seller, sales velocity can drop

• Selection: Carefully analyze projected FBA fees so you’re not losing money by selling the

product as a 3rd party


Performance Marketing for Brands.

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Reach Shoppers In the Moment of Need.

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Drive Traffic To Your Product Pages.

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Direct Measurement

Attribute Sales And Optimize ROI.RSX provides transactional direct data from network retailers.

Units Sold

Revenue

Share Shift

Basket Analyses

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Performance Marketing For Brands.

Drive Traffic

Billions of ecommerce product searches

Attribute Sales

Unprecedented control and data in ecommerce

Reach Shoppers

More high intent category shoppers than amazon & google

+ +

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Across World’s Largest Retailer Network.

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MobileEverywhere

Product Detail PagesCross-Sell & Conquesting

Browse & Search ResultsActive Consideration

And More!

HomepageBranding & Discovery

RegistriesPoint of Entry

Ads Support All Business Strategies.

RetargetingDrive To Retail

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Brands Winning With HookLogic.

+ thousands more!

Key Takeaways: Q4 2014.

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2014: A Very Merry Holiday Season.

Overall Holiday Sales Up 4.1%

Online Sales Up 13.9%

Mobile Sales Were22.6% Of Online Sales

Conversion PeaksAfter Cyber Week

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Cyber Mon Reigns, Black Friday Was BIG.

• Thanksgiving: A New Contender– Conversion Index: 2.1x

• Black Friday Was BIG– Traffic 5x

– Conversions 2.3x

• Cyber Monday Reigns– Traffic 5.5x– Conversions 2.2x

• Christmas Still Sees A Climb– Week before Christmas,

Traffic 2.2x & Conversions 1.5x

Traffic

w/o10/27

w/o11/3

w/o11/10

w/o11/17

w/o11/24

w/o12/1

w/o12/8

w/o12/15

106125

161185

327

280240

219

Conversion

w/o10/27

w/o11/3

w/o11/10

w/o11/17

w/o11/24

w/o12/1

w/o12/8

w/o12/15

112114

119125

167175 176

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Traffic = total page views, Conversion rate = % of product page views that result in sales Baseline = 9/29-10/26. 2014 Retail Search Exchange Holiday Network Data

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CE Sales Spike After Cyber Monday.Holiday Traffic And Conversion: Clothing

18001600140012001000

800600400200

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2500

2000

1500

1000

500

0Oct 27 Dec 30Nov 30

Traffic Conversion

Clothing •Significant Black Friday/Cyber Monday traffic spikes, with more ‘shopping around’ before buying

Electronics Conversion differs vs other categories•Conversion peaks on the Friday after Cyber Monday at 25x the baseline

•Two more rallies (the following Tues and Sat) as deals continue.

18001600140012001000

800600400200

0

2500

2000

1500

1000

500

0

Holiday Traffic And Conversion: Electronics

Oct 27 Dec 30Nov 30

Traffic Conversion

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31.2% 13.4% 55.4%

Mobile Has More Room To Grow.• Mobile was 46.6% of online traffic, 22.6%

online sales • Tablets were better for conversions

– Sales: smartphones 9.1% vs tablets 13.4%• Highest time for purchases via tablet is 3 - 5

p.m., smartphone is 8 a.m. – 10 a.m., desktop is 9 a.m. – 5 p.m.

Traffic

Sales

Overall44.6%

(Incr. 25.5%)

Mobile Holiday Traffic And Sales

Overall22.6%

(Incr. 27.2%)Smartphone Tablet Desktop

* Criteo Holiday Report, 2014

9.1% 13.4% 77.4%

Top 5 Opportunities In 2015.

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Top Opportunities for Q4 2015.

Retail Rules over search engines

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Focus on Cross-Selling to drive new users

Mobile is the future

Product Detail Pages will make or break the sale

Always-On is key for the expanded decision days

2 3

4 5

28| Confidential. © 2015 HookLogic

Source: Market Tree LLC, 2015, online survey of 600 shoppers

2/3 of shoppers’ starting point

Retail Sites

1/3 of shoppers’ starting point

Search Engines

Retail Rules: Use It Wisely.2/3 of shoppers begin their product searches on retail sites, NOT Google

1

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Don’t Waste $ Competing With Retailers.

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Your Ad Here

• Shoppers visit 3 sites on average – an Amazon-only strategy isn’t enough

The Browser Is The Store.

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Your Ad Here

Do You Know The Latest Updates?Amazon

• Deprecation of Product Ads in favor of higher placement for Sponsored Products

• Sponsored Products is now available in AMS (previously only available to 3P sellers)

• Investment in A+ content, specifically video (which seems like it aligns with some content topics they're going to cover)

HookLogic

• Campaign manager

• Bid multipliers

• Retargeting

• Macy’s & Peapod live, other big apparel retailers on deck

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Cross-Selling Is Critical.• Shoppers are open to consider your brand

– More than half of consumers give holiday gifts from brands they are not loyal to

• There’s more room in the cart– Retailers see increases in average cart size – On average, Apparel shoppers buy 4 items per shopping trip, vs 2-3 in

other categories.• 40% of shoppers tend to buy products they planned to buy, plus others that

caught their attention– CE shoppers can still be influenced to “add to cart” during their buying

process. • 50% only buy the type of product(s) they were originally looking for,• 37% add on additional items, suggesting opportunities for cross-selling

2

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Cross-Selling Insights.

ClothingMost often purchased with Shoes,

followed by Accessories and Wallet & Handbags

Art & Drawing ToysMost often purchased with Shoes,

followed by Accessories and Wallets & Handbags

CosmeticsMost often purchased

with Fragrances

FoodOften purchased with Beverages,

followed by Beauty & Baby products

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Cross-Selling Insights.

CategoryArt &

Drawing ToysBoard Games Flying Toys Musical Toys

Portable Electronic

Games Card Games Play Vehicles

Incidence Of Cross-Sales 50% 47% 39% 36% 33% 33% 30%

Most Frequently Purchased

With

Dolls, Playsets & Figures Board GamesDolls,

Playsets & Figures

Building Toys Play Vehicles Pretend Play Educational Toys

Dolls, Playsets &

FiguresBuilding Toys

Pretend Play Play Vehicles Educational Toys Play Vehicles Electronic

Toys Building Toys Pretend Play

Play Vehicles Pretend Play Board Games Building Toys Board Games Educational Toys

Educational Toys Pretend Play Educational Toys

Video Game Software Play Vehicles Board Games

Sub-Categories With the Highest Incidence of Toy or Game Cross-Sales & Most Frequently Purchased

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How To Achieve Cross-Sell Success.Strategy-Based Bid Multipliers: Set bid multipliers by Shopper Target and Placement Type to align with different business strategies.

– Shopper Targets• In Market: Consumers actively shopping the product category.• Cross Sell: Consumers actively shopping a related or complementary category.• Max Reach: Consumers actively shopping any category.

– Placement Types• Homepage & Discovery: Top-of-funnel and entry point pages.• Browse And Search: Search result pages based on shoppers’ site navigation or

keyword entry.• Product Detail And Cart: Product detail and shopping cart pages

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Make Mobile A Main Priority.• Mobile is overtaking desktop browsing and buying, so digital media

strategies should be mobile centric.

• Native is the future of mobile. Native advertising important in desktop, but critical in mobile with smaller screen size and varying consumer focus.

• Mobile impacts the entire purchase path. From discovery to research and consideration to purchase.

• Cross-device usage is now enormous: Consumer use of multiple devices to make a single purchase makes up 40% of ecommerce transactions .

� Criteo’s Q2 State of Mobile Commerce Report

3

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No Room For Display.• No one wants intrusive ads. Retailers have already removed

display from their mobile sites.

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Native Or Nothing.• Be mindful of ad formats, in-grid (in-feed) native or nothing

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Mobile Native Is The Future.• HookLogic is native mobile.

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Create Powerful Product Detail Pages.

82%

61%

59%42% 38%

21%15%

“Please rank the 3 factors that most influence the type of productyou typically buy online when you get to an actual website.”

Price Product Description

Product Ratings Or Reviews

Product Images

Product Materials/Ingredients

Product Name

Product Video

% Of Consumers Selecting As A Top 3 Influencer On Purchase

• Price rules. Top influencer across all categories.• Product Descriptions matter. Be detailed & transparent, especially with materials &

ingredients• Ratings & Reviews are key. Both user & expert reviews are important• Product Images need updating. Primary visuals are important, but show all the benefits

of the product.

4

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Creating A Stellar Product Description.

• 63% of consumer chose it as a top influencer

• Ensure cross-site consistency

• Be competitive with your claims

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Video Increasing In Importance.

• Consumers are engaging in video, even if not top influencer

• Great opportunity for you to share the brand and product experience

• Invest in video - For every single product or at least each product line.

Video Viewing By Category

Baby

Electronics

Health & Beauty

Clothing

0% 20% 40% 60% 80% 100%

Figure 3. In the past 12 months, have you clicked on a video or video demonstration within the product page of a retailer website when considering whether or not to purchase online?

Yes

No

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Stay On & Strong.• There is no longer just Black Friday & Cyber Monday.

– Pre-Thanksgiving Sales– Cyber Week– Green Monday

• The entire season is a ‘spike’• Conversion actually rises to a holiday peak the week after

Cyber Week, and doesn’t return to normal baseline levels until Christmas week.

• Week after Christmas also rises in both traffic and conversion as shoppers take advantage of closeout deals and start spending their gift cards.

• Traffic for the 5 days between Christmas and New Year’s Day is nearly equal to two Cyber Mondays.

?

More Decision DaysThan Ever

5

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Top Opportunities for Q4 2015.

Retail Rules over search engines

1

Focus on Cross-Selling to drive new users

Mobile is the future

Product Detail Pages will make or break the sale

Always-On is key for the expanded decision days

2 3

4 5

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How HookLogic Works.Step 1

Determine investment levelStep 2Select product categories & campaigns

Step 3Go live in 24 hours

Ad Delivery Engine• Optimized ad placement

Detailed Reporting• Actual transaction-based

online attribution

Advertiser UI• CPC model• Self-service Bid-by-SKU

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Learn More & Get Started.Contact Us: HookLogic.com/ContactNew & FREE Research: HookLogic.com/Retail/Resources