7 tactics beauty brands are using on Amazon
When it comes to Amazon, many beauty brands have reservations about selling on the marketplace or the regular retail side of the platform. However, if a brand is not on Amazon, its competitors will claim market share. To compete, brands must have a strong omnichannel strategy that prioritizes Amazon.
The customer journey has changed and now almost always includes Amazon. According to a Kantar personalized survey of U.S. skincare buyers in 2019, 34-47% of consumers visit the ecommerce site at some point in their buying process, even if they don’t. not end up buying there.
Amazon has become a driving force in the omnichannel beauty shopping experience and a full funnel approach to converting customers. There are many marketing tactics that brands can take advantage of to increase brand awareness and conversions on the ecommerce platform. The following approaches will allow marketing teams to take advantage of Amazon and integrate its opportunities into the e-commerce strategies of beauty advertisers.
Ongoing advertising includes isolation of search terms on Amazon
Isolation of search terms is an advanced bidding tactic on Amazon. In its simplest form, it bids on search terms that convert while canceling search terms that don’t. It helps evolve basic conversion keywords, build rankings, and improve conversion rates overall while eliminating unnecessary expense.
This technique is an important growth engine for brands on Amazon. For example, a spa brand managed by the Blue Wheel team sees performance campaigns representing 80% of its revenue on the platform. Based on these results, it increased its investments by 68% year over year.
Types of ads: Sponsored product and sponsored brand ads generate ROAS
Sponsored Product and Sponsored Brand ads are valuable when used separately, but are even more effective when used together. According to Amazon data published in an April 2021 internal report (“Helping Advertisers Get Results with Sponsored Brands”), advertisers who use Sponsored Brands and Sponsored Products together saw an average increase of 30 % of category impression share. They also saw an average 16.5% increase in ROAS after three months of simulcasting these two ads.
As an example of how the tactic worked, the Bliss brand recently managed to dominate search engine results pages (SERP) by combining sponsored product and sponsored brand ads. Beyond this result, there are additional benefits of running both types of ads at the same time: better visibility of individual products, lower cost per click, visibility on product pages, and the ability to feature products relevant to purchase queries.
Video on sponsored brands has become an Amazon staple
Sponsored Brands video is the most recent type of ad on Amazon that has increased performance. Based on an internal analysis by Blue Wheel of their Amazon customers, click-through rates for Sponsored Brand Video are 59.3% higher than Sponsored Product Ads and 53.1% higher than Sponsored Brand Ads sponsored brands.
Case in point: When a Blue Wheel partner luxury hair care brand launched Sponsored Brands video ads in December 2019, there were limited video placements and lower overall engagement. As new locations became available, the brand created more videos specific to Amazon Standard Identification Numbers (ASINs), resulting in significant increases in impressions and sales. Since its launch, brand impressions have increased 243% and ad sales have increased 384%.
Sponsored Display introduces new targeting opportunities
Sponsored display ads engage audiences, both on and outside of Amazon, who are in the spirit of browsing, discovering, and purchasing products. These cost-per-click ads are specific to ASIN. They also have a new audience targeting feature that allows marketers to define audience reach, help them introduce new products, engage new customers, and retarget.
Beauty brands take advantage of PSDs
Demand Side Platforms (DSP) offer many benefits for beauty brands. Brands can use DSPs to penetrate a non-traditional consumer demographic. For example, they might target a client in their twenties with anti-aging products.
The basic capabilities of a DSP make it a versatile option for many, although it may not be suitable for all brands at every stage. With a DSP, marketers can target new customers based on their buying habits, interests, and demographics.
Additionally, brands can re-engage interested users or former customers with Amazon’s exclusive ASIN retargeting data. Ads run on and off the platform on a cost-per-impression basis, showing either creatives generated by Amazon or custom designs by the marketing team.
Successful product detail pages depend on high quality content
While advertising is certainly the key to success on a paid platform like Amazon, product detail pages create the best opportunity to impact conversion. Optimized product pages will inform visitors about the benefits of a brand’s product and, if done right, convert them into customers.
A product detail page has several main elements: the title, bullet points and descriptions, a carousel of images, and high-quality content.
Each of them has a different impact on rankings and conversion rates. Amazon explores the title, bullet points, and descriptions to determine relevance. High quality images and content are used to further describe a product. Visuals matter a lot: marketers need to consider whether their images could describe the product to a 5-year-old who can’t read.
Optimized Amazon Brand Stores Increase Returns for Beauty Brands
An Amazon Brand Store is an opportunity to fully showcase a brand. Brands have a greater amount of personalization on this page, allowing them to create category pages to organize products.
Customers also have the option of following a brand, which allows brands to send them updates when new products are launched. On average, linking a Sponsored Brand campaign to an Amazon brand store has a 64% higher return than a link to a product listing.
Brands must also include a lifestyle image in the sign, along with related product ASINs to be advertised alongside the photo. Branded stores should be updated for seasonality or major sales events, such as Prime Day.
Beauty brands that follow these tactics will find more opportunities for growth and customer retention on Amazon, now and in the future. They can shape their campaigns based on how they look, feel, and customer expectations, and they can claim their market share on Amazon before their competition earns more sales.