Episode 34 - Recent Developments in the World of Amazon
SOLOCAST WITH BOBSLED CEO KIRI MASTERS
Today’s episode will revolve around the most recent news in the ever-changing world of Amazon. Here are the topics Kiri will approach on the show:
The groundbreaking Amazon mobile video ads
The most recent Feedvisor study about online shopping behavior
Amazon’s pricing policy change
Branding is still important - customers are looking for recognizable brands on Amazon
We’ll start with the revolutionary new type of ad placement called mobile video ads. This will be a new and rich way of selling a product that goes so much more beyond the text ads and paid search on Amazon. Mobile video ads are going to be available through AMS, which makes it a huge opportunity for Amazon to capitalize on shoppers, the traffic to their site as well as the loyalty that people have to the prime program.
Next in our agenda will be the most recent Feedvisor study about online shopping behavior. One of the headlines from the study tells us that 89% of consumers are more likely to buy products from Amazon than other ecommerce sites.
Our third point of discussion is the “most favored nation” Amazon’s pricing policy. Brands selling on Amazon were previously required to offer their most competitive price to Amazon amongst all online & offline channels. So you couldn't list your products for a lower cost on your website that you did on Amazon. Even though this policy was removed from Amazon’s terms of service last week,it seems like not much has changed. At least not in practice.
And the last but not the least important point is that the customers are looking for recognizable brands on Amazon, hence product branding is still important. The study found that nearly three quarters of consumers cited brand name as an important factor when selecting a product. DSP (Demand-Side Platform) gives us the ability to drive awareness across the buyer's journey, which makes it s a very interesting opportunity for brands who are looking for expansion and more brand awareness.
Mobile Video Ads
A new ad type will be made available through AMS
Bloomberg reports there is a $35,000 minimum spend in the first 60 days for this ad type
A rich way of selling a product
Probably out of reach for a lot of smaller brands
89% of consumers are more likely to buy products from Amazon than other ecommerce sites
A compelling reason for brands to put Amazon first, as a sales and marketing channel
There is a lot of trust in Amazon as a payment company, platform that understands shopper’s preferences, and getting a pretty good price for a product
You shouldn't frustrate an Amazon customer or try to get in their way of buying something from your brand just because of the channel economics
Amazon used to require brands to offer the most competitive product price on Amazon
The policy has been changed and it got removed from Amazon’s Terms of Service
Speculation around Amazon really changing the policy or still enforcing the “most favored nation” pricing by suppressing the buy box for those brands
Amazon is indispensable throughout the shopping journey
The importance of being proactive with content on Amazon
Making sure to optimize content for people, not just search
Private Label Brands are not the threat that a lot of brands imagine them today
Brands are important for customers looking for recognizable names and a marker of quality
Shoppers are looking to make a convenient and reliable purchases so they are searching for brands
Branding is still an important exercise
DSP (Demand-Side Platform) is a very interesting opportunity for brands who are looking at expansion and more brand awareness
MENTIONED IN THIS EPISODE
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