Whenever a new advertising avenue opens—on Snapchat, on Instagram and, most recently, as an expanded opportunity on Amazon—it is tempting to roll the dice, spend a reasonable amount of money and see what pans out from a group of test campaigns.
While risk-averse, this is not the best strategy. It reflects a line of thinking rooted in FOMO (Fear Of Missing out): I need to be on every new tech, if I don’t try, then I’ll miss something. But this isn’t necessarily true. Missing something is more dependent on what you’re selling. When it comes to knowing if the time is right to jump on Amazon’s new ad play, here are three ways to tell if your business is a good fit.
Are You Selling Amazon-compatible Products?
Whether books, household goods or gifts, Amazon purchases tend to be lower-ticket items. The path to purchase, especially for Prime members, is to go into the site, search for something, perhaps comparison shop between a few highly-rated similar items on Amazon, and click the buy button.
In other words, Amazon is essentially a closed loop for affordable items. Once shoppers are on the website, they rarely have a reason to leave. If your business is selling products in the low- to mid-range, the types of things usually sold on Amazon, you’ll want to take advantage of Amazon ads so that your item can be part of the comparison shopping process. If your item isn’t listed as a suggested purchase or comparable purchase, are there consequences? Does your competition win the sale? If the answer is yes, by all means, use Amazon Ads.
Do You Specialize in Big-Ticket Items?
There’s a reason most of us do not buy mattresses or motorcycles on Amazon. Not only do such items fall outside of the retail giant’s fast-delivery model, but high-priced purchases take more deliberation. It is one reason Home Depot has been called “Amazon proof”: consumers need to see, touch and compare expensive products before rationalizing which one is worth the high price tag.
According to the 2016 Synchrony Financial Major Purchase Study, 90 percent of consumers compare prices and promotions before spending more than $500 on an item, and 82 percent said they wait until they believe they are getting the best deal. But how does this need to “experience” big-ticket items translate online?
It often starts on Google, with a search for the said big-ticket item. Take a mattress as an example. The consumer might search “mattresses,” click on your ad selling organic cotton mattresses and examine details about each product. Assuming you have tagged your ad accordingly, a Facebook ad will show up for the consumer next, inviting them to finish the buying process. The cycle will continue until that decisive click is made.
If you specialize in things that sit higher on the price scale, think first about Google and Facebook for your ad spends as Amazon might not do you that much good.
Is Your Path to Purchase Laid Out?
Do your buyers educate themselves on your product via mobile shopping sites, Instagram or consumer review publications? Do they share what they’ve learned on Twitter, Reddit or product forums? At what points in the path to purchaseAmazon should your product appear to consumers, and on which devices? Answer such questions and you will have perhaps the most critical piece of your decision making pie: a customer journey.
If your product appears regularly and seamlessly in a consumer’s daily browsing regimen, you will be “priming” them for a purchase. First, they notice your ad and don’t click, then as their interest is sustained, they’ll click and eventually, they buy.
Let your customer journey dictate which mediums you advertise on, and you’ll find your marketing ROI increase exponentially. Depending on product and customer, you’ll be able to customize each ad interaction for results—and the question of whether to use Amazon, Google or Facebook will be answered for you.