Amazon Advertising Case Study (Part 2)

Amazon Advertising Case Study (Part 2)


background:

With the coming of Christmas, the peak season of 2020 has also ended. According to past experience, the traffic will drop drastically from the 23rd. As the traffic drops, I would like to discuss with you how to make good connections during this traffic transition in terms of advertising promotion.
 
First of all, we need to look at it based on whether it is a seasonal product or a non-seasonal product:
 
1. If it is a seasonal product, basically don’t keep the advertisement, just turn it off if necessary.

2. If it is a non-seasonal product, advertising should definitely continue.
 
The end of the peak season is the same as the end of the normal activities. To put it bluntly, the traffic drops off a cliff. Before this, the orders, rankings, and weights of the products must have increased to a certain extent. After the peak season, it is necessary to continue to run advertisements or even slightly increase advertising investment to maintain stability.

reason:

First of all, it is impossible to determine "how to maintain your ad ranking without too much change when reducing budget and CPC bidding." The result of this operation is likely to be that the ranking will drop suddenly and quickly. The ranking is easy to drop after the peak season, so it will be easier to drop in this way, and it is difficult to control.

 Secondly , in the overall environment, your competitors may have the same idea as you and reduce advertising. At this time, maintaining advertising for a period of time may be an advantage.
Because: the principle of bidding ranking is that the click cost = the bid ranked behind you / (click-through rate × average customer unit price) + 0.01. It is easy to see that your bid actually has an advantage at this time, and your ranking is likely to rise further.

 Finally : The essence of advertising is to attract traffic and increase exposure. After the ranking goes up, more traffic from more channels is needed. The traffic itself is very small, and the budget and bidding should not be reduced.

If conditions permit, you can appropriately add other advertising groups, such as ASIN advertising, low-price automatic leak advertising, video advertising, and DSP advertising, to further expose and increase traffic. At this stage, pay attention to the input-output ratio. If it is cost-effective in the end, why not do it?

 Advertising itself is a dynamic process. We cannot say that if the traffic drops drastically, we will adjust it downwards. It is not like that. The core purpose of advertising is to generate orders and serve the ranking and weight.


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