Amazon is without a doubt the largest retailer in the world. More businesses than ever are turning to Amazon to expand their reach. Unfortunately, the Amazon marketplace has become extraordinarily competitive in recent years.
Companies that utilize data analytics to make the most of their business model will have an easier time succeeding with Amazon. One of the best ways to create a profitable business model with Amazon involves using data analytics to optimize your PPC marketing strategy. Amazon used big data to rule the e-commerce sector, so companies using their platform should as well.
Amazon has its own in-house PPC platform, which companies can use to expand their reach and maximize sales. Companies that know how to take advantage of data analytics will have better insights when executing their PPC marketing strategy.
How can companies use data analytics to optimize their PPC marketing strategy with Amazon?
Amazon PPC traffic has extraordinary conversion rates. Marketing experts estimate that the conversion rate is around 9.55%.
However, conversion rates aren’t nearly that high for companies that have just started marketing their products on Amazon with the internal PPC platform. It takes a lot of split-testing and data collection to optimize your strategy to approach these types of conversion rates.
Companies with an in-depth understanding of data analytics will have more successful Amazon PPC marketing strategies. However, it is important to make sure the data is reliable. Data quality is possibly even more important than data quantity, because you can be led astray by relying on data that doesn’t accurately depict the perspective of your customers and the actions they take after clicking on your Amazon PPC ads.
Grow Amz shared some major benefits of using quality data to promote your business with Amazon PPC.
More accurately understand your target customers
One of the most important aspects of marketing is understanding the demographics of your target customer. You need to create an accurate profile of the people that are going to be purchasing your products before you can hope to reach them.
Data analytics makes it a lot easier to research your online customers. You can use analytics driven tools like Quantcast, CrazyEgg and Google Analytics too figure out more about the demographics of people looking for various products and services. If you are selling to customers in a specific region, then you can also use government data, such as the Census website to find out more about the ages, income and other demographic variables of people living in that area.
There is so much data out there that can help you find out more about the people that you intend to sell to. However, is important to make sure that the data is actually accurate. The last thing that you want to do is use data from unreliable sources, because you might tailor your PPC marketing strategy to the wrong buyers.
It is better to get a smaller quantity of data that is highly reliable then compiling data from various consumer resources that might be a lot more questionable. This is going to involve vetting different sources of data before you begin collecting it. You are probably going to get more quality data by relying on resources from the government or respectable market research firms.
Identify the best performing keywords when running PPC campaigns
Any PPC marketing campaign is going to largely depend on the keywords that you focus on. This is just as true for Amazon PPC marketing as it is for Google Ads or Microsoft Ads.
But how do you know which keywords are going to convert the best? The frustrating truth is that you don’t – at least at first. Intuition is very often inaccurate when it comes to marketing. Any seasoned marketer will tell you that their logical preconceptions about what would actually work in real life is different from what customers actually do. This is just as true for targeting keywords as anything else.
This underscores the importance of using data analytics to identify the best keywords for your Amazon PPC marketing strategy. You are going to need to run a variety of split testing campaigns and see which keywords perform the best. If you are diligent about collecting data from your conversions, you will have an easier time accomplishing this.
Again, you are going to have to make sure that you accurately record the keywords customers are searching for. Amazon’s PPC interface should share the right keywords, but you have to make sure they are earmarked properly when adding them into your database.
Identifying the best marketing copy and images
There are a couple of huge advantages of marketing products on Amazon over your own website or other e-commerce platforms. One of the biggest benefits is that conversion rates are around five times higher. Another benefit is that most lending pages are relatively similar. You don’t have to test a ton of different variations of landing pages, because the overall style is relatively uniform across the site.
However, this does not mean that you don’t have to test anything at all. You are still going to have to test different types of copy and images to see which drive the best conversion rates. You don’t want to be negligent with your testing, because you are paying for every click to your sales page when you promote it with PPC. You can quickly burn through your budget without having a great return if you haven’t tested things carefully.
This is another important area where data analytics is going to help. You will be able to use analytics tools to split-test different versions of your sales pages. However, data quality is again going to be very important. You must make sure the right sales page versions are stored in your database. You have to also be careful about ruining your data quality by making intermittent changes along the way that might taint your conversion data.