Mansour Norouzi on LinkedIn: #amazonadvertising | 26 comments (2024)

Planning a new strategy? Consider the worst-case scenario first.Many overlook this, focusing instead on the best outcomes.A common error in Amazon Advertising? Ramp up the ad spend hoping for higher sales and visibility.But what if sales don't increase at all?Before you boost your budget, ask yourself: Can you handle zero growth?Here's how I approach it:Current spend: $100,000 monthly at 15% TACoS.Critical question: What TACoS increase is acceptable if the strategy underperforms?Suppose the answer is 18%.Calculating the extra budget:Extra budget = (1 - 18/15) * $100,000 = $20,000Now I know how much I can safely test with, staying within the worst-case scenario limits.If results exceed expectations, only then consider further budget increases.Curious about how I calculated this? Comment "budget planning" and I'll break it down.

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Missed the latest in Sponsored Display?- Drive traffic directly to your store.- AI-generated options in creative.Catch up now!

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Amazon is offering a $9.99-a-month grocery delivery subscription for Prime members. The subscription fee covers unlimited delivery from Whole Foods for orders over $35, one-hour delivery windows at no extra cost, unlimited 30-minute pickup on orders of any size, and priority access to recurring reservations for a weekly grocery order.The service is being rolled out in more than 3,500 municipalities across the U.S. after being piloted in Columbus, Ohio; Denver; and Sacramento, Calif., in late 2023.

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Image Generator has a new home under Creative Tools in the Advertising Console.Have you explored it yet? How effective do you find it?

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Can you see the trend of your brand searches on Amazon? what about comparing your Customer Lifetime Value with your competitors?The answer is yes, and it's all in Brand Analytics under Advertising Console.In the Awareness segment, you can track total brand searches over a selected period and compare them to the category median and top performers.Want to know your Customer Lifetime Value? You can find it in the Purchase segment, where Amazon shows the return on engagement for all customers over the last 12 months.Not only that, but you can also see the CLTV for the category median and top performers, giving you a clear picture of how you stack up against the competition.Two important points to keep in mind: broad sub-categories may skew comparisons, and Amazon calculates CLTV based on 12 months of return sales, which may not reflect the full customer lifetime value.Despite these limitations, Amazon's Brand Analytics provides valuable insights into your performance and opportunities for growth.

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Are you using Amazon Creator Connections? If so, what has been your experience with it?

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Rethinking CLTV for Brands on AmazonCustomer Lifetime Value (CLTV) is the total revenue a brand can expect from a single customer over their entire relationship with the brand.When brands calculate CLTV, the primary reason is to determine how much they can spend to acquire a customer.But on Amazon, that doesn't work.Once you win a customer, the spending doesn't stop.Due to the nature of sponsored ads, you might be paying again for every customer you have already acquired.However, there are many other insights you can get from CLTV.Here are some:● What is your CLTV compared to competitors and how to increase it?● It could help you find issues to boost customer loyalty and retention.● It helps you target your ideal customers and lookalike customers with high CLTV.● Increasing CLTV can reduce customer acquisition cost and increase overall profitability.● It could help you with financial planning.● CLTV trend can show you how to improve your product.To calculate CLTV, you can simply use Amazon orders report.For a more sophisticated approach, consider Amazon Marketing Cloud. It combines data from Amazon Ads and Paid Amazon Insights (Amazon Flexible Shopping Insights) to understand the lifetime cost of keeping a customer.Do you calculate CLTV for your Amazon business? How are you using it to optimize your strategy?

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How is your brand performing compared to others in your category?This is a critical question.It highlights where you stand.Yes, Amazon has a tool for that.Check out Brand Metrics on Amazon.You'll see how your purchases stack up against the category median and top sellers.Amazon also compares your customer lifetime value to these groups.But what if the category is too broad?That is what Purchase Index is for. It measures your sales relative to the most comparable brands.For example, our brand outperforms 76% of similar brands in this category at the purchase level.PS: I will work with Amazon for deeper insights on their peer comparison metrics. I'll keep you posted. Any thoughts or experiences to share? Comment below!

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My Journey and Learnings Navigating the of the Supplement WorldLast year marked the beginning of an exciting and challenging journey for me as I decided to enter into the competitive supplement industry—a niche I had previously steered clear of. My decision to launch a supplement brand in Canada was driven by a desire to create products that I personally believe in and consume. This wasn't just business; it was personal. I was my target audience.From the onset, I knew I wanted my brand to stand out. Not just through the supplements it offered but how I presented them to the world. I created a brand with cute and premium packaging.The first product targeted a smaller niche, one with sales highly concentrated around a few keywords. According to Amazon data, the best seller in this category was moving just over a thousand units. I was fully aware of the challenges, including the low sales volume. Yet, I was motivated by a desire to "get my feet wet" rather than make a splash.I launched the product mid January (2024). Within 30 days, the product climbed to number 4 in the category, selling 25-30 units per day, and we garnered around 110 subscribe-and-save customers. However, it wasn’t all smooth sailing.● Stock Management: A miscalculation in sales volume led to run out of stock.● Customer Feedback: While we saw the value in premium packaging, our customers pointed out that it was unnecessarily extravagant and wasteful of resources● Unforeseen Challenges: I faced unexpected setbacks, including a suspicious 1-star rating at launch and confusion over product dosage instructions, which impacted our reviews.These experiences were invaluable. They taught me about the importance of adaptability, understanding customer needs, and the nuances of market entry strategies. I've made some changes based on feedback, including updating the label design, making dosage instructions clearer, and removing the packaging. Now, I'am getting ready to release the second batch and introduce a new product in a niche with more competition and much higher sales volume.To those navigating the supplement industry, I'm curious to hear your stories. What challenges have you faced? What lessons have you learned?

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Check out Our Latest YouTube Video for the Newest Amazon UpdatesLink in the comments ⬇

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