Planning an Amazon Advertising strategy for Q4 – Molzi

September 15, 2020

Amazon Q4 is around the corner and it’s time for Sellers and Vendors to start planning the holiday season. Q4 is a major retail event, with Amazon generating a total net sales of $87.4 billion in Q4 2019. Now, with Prime Day most likely set to happen later in Q4, and ecommerce in the UK rising by 14.7% due to COVID, unsurprisingly it’s shaping up to be the biggest ever selling period for brands on Amazon.

Why an Amazon Advertising strategy for Q4 is so important?

Planning an Amazon advertising strategy should be a major part of your overall Amazon plan in Q4 because Amazon advertising allows for brands to fully showcase their ASINs during a period guaranteed to attract more traffic its proximity to Christmas. The fourth quarter gives advertisers the opportunity to target new to brand consumers which improves brand awareness and sales before the end of the year. Despite being a period where advertising bids are more costly because of increased competition on the marketplace, Amazon advertising remains important by ensuring that your brand is seen during what will be the most important period of 2020.

Key insights into Amazon Advertising in Q4
Amazon is a popular advertising platform

Amazon is the 3rd largest advertising platform behind Facebook and Google. In 2019, Amazon posted $280.5 billion in US revenue with an estimated $14 billion from advertising. Additionally, Amazon DSP spend grew 44% from Q3 to Q4, the largest quarter-over-quarter jump of 2019. Off-platform advertising is becoming an increasingly popular strategy with Amazon advertisers as a tactic to avoid Amazon which is oversaturated with ads and promotions during Q4’s retail events.

Brands with more digital touch points are more likely to be selected by consumers

Every marketer worth their salt knows that very few shoppers convert on their very first impression of an ad. Although it varies depending on product, cost and even the consumer themselves, shoppers need to see a brand or product ad at least 5 times before they consider converting. Great advertising campaigns take into account the number of digital touch points needed to encourage shoppers to buy especially over Q4. Timing when shoppers reach the required conversion stage with Prime Day or Black Friday will increase the chance of conversion especially in correlation with a deal/promotion.

Advertising Return of Investment determines your future successes

Every brand loves a good ROI because it means good sales, but it also helps plan future business decisions. Whether a good or bad ROI, looking at past ad campaigns make it easier to determine how successful a new one will be. The ability to calculate return on investment is extremely valuable for any business, regardless of size. This is especially true over Q4 due to the the number of holidays it holds. Having a healthy ROI will help you determine if you need to change your ad strategy for this Q4.

‘Amazon is now the 3rd largest advertising platform behind Facebook and Google and customers are compelled by great advertising campaigns. This is the key reason why a full funnel advertising strategy is so important; you can engage with customers at every stage of the funnel. From awareness to retargeting, you can maximise your ROI no matter where they are in the sales journey..’

David Bradley, Molzi Head of Advertising
Molzi’s tips for Q4 success

To be successful this Q4, brand’s must get in front of shoppers and be poised to handle demand. Remember, shoppers will not go out of their way to find your products, you must bring your products to them. Having a comprehensive Amazon advertising strategy is crucial for leveraging increased Amazon traffic. In order to help brands this Q4, here are some thing you should be looking at.

1. Use Data from previous q4s

Not every Amazon ad campaign will be a success. In fact, by looking at your past retail advertising data you might see initial patterns begin to emerge. Whether it is the same ASIN that struggles to perform year on year or something as vague as a specific colour of a product that you advertise, there is always something to use from past data to help learn more about your target customers as well as your bidding strategy.

2. Plan Inventory to a ‘T’

It doesn’t matter if your PPC campaign is as optimised as it can be, if you don’t have enough stock, your ads are all but useless and. Also, if you remain out of stock for too long, your organic search ranking will suffer. This puts your ASINs at a major disadvantage for the rest of Q4 because your product will be even harder to see by consumers without spending money. Equally, if you have too much inventory, there will still financial repercussions which may not affect search ranking but will reduce quality and lead to lost profit and even increase your return rate.

3. Test Ad Copy, keywords and bidding

No-one is able to pick up a task and get it completely right first time. It takes time and several adjustments to optimise an ad campaign and even then, it can always be improved! Ad copy and keywords can always be made better and in fact should be tested during Q3 and the beginning of Q4 as part of your Amazon advertising strategy since search terms and consumer desires consistently change throughout the year. A specific tagline last year may not have such a strong compulsion on a post-COVID shopper. Additionally, your bidding strategy should also be considered to ensure that your products are being seen when and where you want them to be.

4. Make sure ASINs are Retail Ready

Your Amazon Advertising strategy is only as strong as your content strategy. If your ads send customers to an unoptimized listing, you will be wasting ad spend and ruining your brand reputation. Instead, ensure your ASINs present everything a consumer wants to see and know about your product; reviews, high quality images and clear concise bullet points will all help consumers convert especially in conjunction with an irresistibly placed deal.

5. Utilise your Amazon Store to the extreme

Your Amazon Store should be used to its full potential. Build Sponsored Brand ads that will entice consumers to view your products before they see any of your competitor’s. By optimising your Amazon Store by showcasing your best deals on your Home page, you will create a virtual space where Q4 shoppers will only see your promotions. This will help improve the number of shoppers that move through your marketing funnel without competitor products stealing attention from your ASINs.

6. Use Amazon DSP to attract off-site consumers

The beauty of Amazon’s Demand-Side Platform (DSP) is its ability to retarget consumers close to conversion off-site. This is an advertiser’s dream situation when planning an Amazon advertising strategy for Q4 as the high traffic that each retail holiday will accumulate will provide a larger demographic that has already shown interest in your products. Brands can easily target specific shoppers who looked at their deals to convert them during the next retail event or promotion they place on an ASIN. Additionally, brands can target these consumers in Q1 to start the year off with an additional boost.

7. Don’t underestimate Lightning Deals

People love a limited time offer. It creates an urgency that increases a higher level of conversion. In fact, a product on average sees a 65% increase in sales the day their Amazon Lightning Deal goes live during Prime Day. The number of retail events coming up this quarter can be the perfect situation to set up a mix of Lightning deals and vouchers to improve brand awareness or slow sales, remove excess inventory or increase product visibility.

Final Thoughts

With new features such as shoppable images and the access to Sponsored Brand videos in the UK, it has never been more important to advertise and promote your brand efficiently to attract attention away from competitors. Constructing an advertising campaign for the holiday season that balances budgets, profitability, and reach should be the ultimate goal. But a holistic approach to all aspects of Amazon selling is the only way to assure your efforts make a significant increase of sales before, during and after Q4.

Looking for support to increase conversions and sales on product listings? We can help! We have a team of SEO copywriters, UX and graphic designers and Amazon marketing specialists that have experience working with large brands to showcase products through imagery, video and content.


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