In 2021, more than 250 million items were purchased by Prime members worldwide over the two-day timeframe. This year, preparations for Prime Day should be well underway by now so that your brand can be ready when millions of consumers shop during one of the most significant retail events of the year. Here are a few tips so you can be prepared ahead of time.
Amazon Prime Day Tips:
View your historical performance of past Prime Day events
Create a ‘Prime Day’ page within your Amazon Store
Start planning your budgets NOW. Remember, traffic to Amazon’s website is increased exponentially during the Prime Day event, so you want to capitalize on this. If you don’t have enough budget for your campaigns to stay visible throughout the day(s), your ads will be paused until the next day.
Build brand awareness ahead of the event with Sponsored Display Ads and Sponsored Brand Video ads. Shoppers are more likely to purchase a product during Prime Day that they discovered during the lead-up to the event.
During Prime Day, use Sponsored Display and Sponsored Product ads to engage with shoppers browsing similar products or even remarket to audiences that visited your product detail pages before Prime Day to stay top of mind on the day of the event.
Use negative targeting to help prevent your ads from appearing on shopping results pages that don’t meet your performance goals.
Check your inventory levels for your products, as well as understand your top-selling and least-selling products, so you know where to focus your efforts.
Create and choose strong products to focus on in your Sponsored Product campaigns. Ensure their product detail pages are informative, have high-quality and detailed descriptions, and include four or more high-resolution images with a strong title.
There are many more solutions for brands to reach audiences you might not be aware of. Consider diversifying your content before Prime day by streaming a video game on Twitch, listening to music through Amazon Music’s ad-supported tier, or streaming video via Freevee (formerly IMDb TV) and Fire TV…all of which are available via Amazon DSP ads.
Use Sponsored Display Ads to target other products in your category to help reach new customers, or consider targeting your product detail pages to introduce shoppers to other products you sell. Let’s take ‘Computers & Office’ as an example: to engage new customers and ensure that your laptops are top of mind, you can target similar product pages within the Computers & Office category, or you can target your own product pages to promote your complementary products (e.g., laptop cases or external hard drives).
Lastly, don’t forget, there’s the lead-up (- two weeks) and lead-out (+ two weeks) of the Prime Day event. Brands that advertise throughout all phases of Prime Day can better build brand presence with shoppers. According to Amazon’s internal data, “Brands that advertised leading up to and during Prime Day showed a 216% increase in awareness and 214% increase in considerations, compared to the week before.”
Amazon Prime Day Deadlines
Keep the following deadlines in mind for Prime Day as they are right around the corner, and some have already passed.
Prime Day Deals Deadline (for consideration):
Lightning Deals Submission Deadline:
April 29 (U.S. and Canada)
May 13 (France, Germany, Italy, Japan, Mexico, Portugal, Spain, and the UK)
Coupon Submission Deadline:
June 10 (U.S., Canada, France, Germany, Italy, Japan, Mexico, Portugal, Spain, and the UK)
FBA Inventory Cutoff Deadline:
June 20 (U.S., Canada, France, Germany, Italy, Japan, Mexico, Portugal)
June 29 (Japan)
Inbound Shipping Cutoff Deadline:
June 2 (U.S. and Canada)
June 22 (Mexico and Portugal)
June 29 (France, Germany, Italy, Japan, Spain, and the UK)
Prime Member Promotions Deadline:
April 29 (U.S. and Canada)
May 13 (France, Germany, Italy, Spain, Mexico, Portugal, Australia, Japan, India, the Kingdom of Saudi Arabia, the United Kingdom, and the United Arab Emirates)
Prime Exclusive Discounts Deadline:
July 8 (the U.S., Canada, United Kingdom, France, Italy, Germany, Spain, Mexico, Portugal, Australia, and Japan)
July 19 (India, the Kingdom of Saudi Arabia, and the United Arab Emirates)
As a marketer, you know that paid ads and organic social media traffic are both valuable. But how much effort and resources should you put into each? In this article, we'll explore the pros and cons of each campaign type to help you make smart choices. We'll also offer tips on how to measure the success of your campaigns. Read on to learn more.
What are paid ads, and what are they used for?
Paid ads are one of the most popular online marketing strategies for people and businesses to get their message out and drive traffic through their sales funnels.
There are many types of paid ads, but the most common are pay-per-click (PPC) ads. As the name implies, the advertiser pays each time someone clicks on their ad.
Paid ads can be a great way to get your brand in front of an audience that’s already interested in what you have to offer. Since you're only paying for results (clicks), it can be a very cost-effective way to market your business.
Benefits of Using Paid Ads
One of the biggest advantages of using paid ads is that they can quickly provide results. Unlike building followers through creating content and relying on SEO, which can take months to bring results, you can start seeing traffic from your paid ads almost immediately.
Customers like them and respond well to them: especially social ads that feel native to the social media feed. Facebook advertising has been growing by leaps and bounds over the last few years and has many options for detailed audience targeting.
In general, people like seeing ads that are targeted to their interests, and they're more likely to click on them.
You can track and measure results: When you're running a paid ad campaign, you can track how many people are seeing your ad, how many are clicking on it, and what they do after they click through to your website. This information is invaluable in helping you to fine-tune your marketing strategy and optimize your campaigns.
Paid ads can reach a large audience. For example, with Facebook Ads you can set your ad to appear to people in a certain geographic area.
Paid ads can generate a lot of traffic quickly and easily. Simply create the campaign, choose where you want it to show, and make it live.
Drawbacks of Using Paid Ads
One of the biggest drawbacks of using paid ads is that they can be costly, especially if you're in a competitive market. The cost-per-click (CPC) can be high. You might also need to spend a lot of money on your ad campaign before seeing results. For example, the more your ads are served to potential buyers, the more data Facebook is able to collect. More data leads to better targeting and higher conversion rates down the line, but conversion rates may not be great starting out.
Campaigns need to be constantly monitored and adjusted to be effective. You need to keep an eye on your CPC and cost per action and ensure you're getting the results you want. If not, you may need to re-evaluate your strategy.
Some people find paid ads to be disruptive and annoying. Paid ads have the disadvantage of being seen as a form of spam, and some may be less likely to trust your brand as a result.
What is Organic Social Media Traffic?
Organic social media traffic, on the other hand, is driven by unpaid posts, stories, and blogs, etc. that appear on social media sites like Facebook, Twitter, and LinkedIn.
Organic social media content can be a great way to increase brand awareness and build relationships with potential customers. It’s also less disruptive than paid ads.
Benefits of Targeting Organic Social Media Traffic
The most obvious benefit of targeting organic traffic through social media is that it’s free. You don't have to pay for each click or impression as with paid ads.
Organic traffic is also more likely to convert than paid traffic. This is because people who find your business organically may be further along in the buyer’s journey; they're actively searching for information related to your business, product, or service.
Organic social media marketing campaigns are more sustainable in the long run than paid ads. Once you build a following, you'll continue to get organic traffic as long as you maintain the quality of your content. This is not the case with paid ads, which need to be continuously paid for.
Drawbacks of Relying on Organic Social Media Campaigns
Organic traffic can be slow to build: One of the biggest drawbacks of relying on organic social media content is that it takes time to create quality content and build a following, and you may not get much traffic until you do so.
To get the most out of organic social media content, you need to pair it with investing time and resources into search engine optimization (SEO). This includes keyword research, link building, and content marketing. The same principles that make your content valuable to search engines also make it valuable on social media, which in turn drives more traffic to your site and signals to search engines that your content is useful.
Organic Content vs Paid Ads: Which is Better for Your Business?
The answer depends on your business goals and objectives. If you're looking for a quick way to increase brand awareness or generate leads, paid ads may be the way to go. However, if you're interested in sustainable, long-term growth, organic ads are probably a better option. There’s a good chance that your business would benefit from both, but the relative resources you invest in each strategy can be assessed by looking at the pros and cons of each one.
Both options have their pros and cons:
Both require ongoing management and optimization: Otherwise, your return on investment could be negative.
Paid ads offer consistent and reliable returns: Since paid ads get more impressions from potential new buyers, they generally perform better than organic results.
Organic content is free (aside from the time it takes to create, post, and manage it).
Paid ads can be disruptive: Ads can be intrusive and may put potential customers off your brand.
In the end, if you’re not sure where to start, try experimenting with both paid and organic social media campaigns to see what works best for you.
How to Measure the Success or Failure of Each Type of Campaign
An analytics program is needed to determine whether specific content from your organic social media campaign is performing well and the ROI you’re getting compared to your paid ads. To work out the best formula for how to divide your resources, use a combination of ad spend and organic content and analyze the results. The best way to do this is using an ad management platform like MarinOne. With MarinOne, you can see all your campaigns in one place, including performance data for both organic social media content and paid ad campaigns. This makes it easy to track the success of your organic and paid ad campaigns and compare the two side-by-side.
5 Quick Tips for Implementing a Successful Campaign With Both Types of Advertisements
Identify your goals before running a campaign. This will help you determine which type of ad is best suited to your needs.
Define your target audience. This helps to ensure you're targeting relevant users and not wasting ad spend on a demographic uninterested in your product or service.
Budget for both paid and organic campaigns. Don't put all your eggs in one basket—a mix of both can lead to the best results.
Monitor your campaigns regularly and make changes as needed. What works today may not work tomorrow. So, it's important to stay on top of your campaigns and keep tweaking them for optimal performance
Use MarinOne to simplify your efforts.
While paid ads can be very effective when done correctly, they do require investment, which might not be feasible, depending on your budget and the industry. To make paid ads work for you, be prepared to do A/B testing, reallocate funds if needed, and make sure to use retargeting strategies. Organic social media marketing is free, but it takes effort. You won't see results overnight, but investing in building a solid organic foundation can lead to great long-term exposure for your company.
Regardless of how much you put into each strategy, you’ll likely find that integrating both types of campaigns into your marketing strategy works the best. To fully take advantage of both types of campaigns, however, you’ll need a tool to automate and syncrhonize your efforts. This is where a platform like MarinOne comes in.
How MarinOne can help
With MarinOne’s automation tool, you can set up goals on your site using the programmable automation features in Google Analytics. You'll be able to track ad metrics, CLV, and conversions without having a full-time employee dedicated solely to analytics duties.
Analyze your organic traffic and paid ad data early and make changes according to your results, automatically boost popular organic posts, and build campaigns from your product feed. Since MarinOne works with Google Analytics, there’s no need for a separate tracking code or web property ID either.
Learn more about MarinOne’s ad automation tools today. Get in touch to speak with a team member to see how we can help you get the information and tools you need to increase the effectiveness of your paid ads and organic content.
Victoria’s Secret has undergone an evolution over the past several years, and part of that evolution is testing new opportunities. The ecommerce giant recently announced that it would break the tradition of direct selling only with an Amazon storefront. Fans of VS will now be able to shop roughly 120 Victoria’s Secret Beauty and Pink Beauty products on Amazon.
While a Victoria’s Secret x Amazon collab line is probably not on the horizon, this move could be indicative of future D2C expansion onto the infamous selling platform. It’s also indicative of the current success that many sellers are seeing on the platform.
Amazon accounts for significant percentages of retail ecommerce sales share across a wide variety of product categories (graphic below). Plus, Research shows that 56% of US consumers say that if they could only shop at one store, it would be Amazon. Amazon has a purchase-ready audience that sellers can leverage easily and effectively.
Unlike Google Ads, Amazon never takes users off of the platform when they tap on an ad. They’re able to seamlessly purchase items of interest and remain on a trusted platform for the entire experience. No wonder this Amazon Ad Agency reported an average conversion rate of 9.5% on Sponsored Product Ads!
Another bonus of selling on Amazon for retail giants like Victoria’s Secret: they have leverage to negotiate Amazon’s fee structure. This is especially advantageous given the increased cost of advertising on the platform. In Q1 2022, Amazon’s advertising business increased by 23% per Insider Intelligence. Retailers are realizing that if they don’t pay to have their products on Amazon, third party sellers and competitors will.
Victoria’s Secret isn’t the first major D2C player to foray into the world of Amazon selling - other household names like Adidas and Levi’s currently have storefronts on Amazon. Amazon has the volume and customer base to make selling worthwhile, but only if it doesn’t come at a cost that eats into the bottom line.
Companies that are already advertising (or interested in advertising) on Amazon can leverage Marin Software to make the most out of their efforts. Our unique Amazon integration allows advertisers to import Amazon Advertising campaigns into our platform, enabling you to view and comprehensively manage your Amazon campaigns, as well as accessing our full suite of automated bidding and reporting options. Reach out to your Marin Software representative to learn more!
CLV is how much money a customer spends with your business for the duration of your relationship. It’s an important—yet overlooked—metric: rather than looking at a sale as simply a one-off exchange, CLV considers how valuable a customer is over time.
Understanding this can help you spend your marketing budget more wisely and keep your customer acquisition costs low. After all, it costs more to attract a new customer than it does to close an existing prospect or keep an existing customer.
Keeping your CLV high is vital to the long-term success of your business.
What is CLV?
Customer Lifetime Value (CLV) refers to the profit you expect to make from a customer over time.
For some businesses, this may mean that your profitable customers make larger purchases or many repeat purchases, thereby increasing their value to your business over the lifetime of their relationship with you.
However, for many industries with long sales cycles, that profit may come months or even years after you’ve established the awareness of your business with the customer at the top of the funnel (think: buying a car, applying to a university, procuring new software, or purchasing a home). These are big decisions and consumers need time to evaluate their purchases.
5 Reasons to Measure CLV for Your Paid Search Advertising Campaigns
Regardless of the nature of your customers’ CLV, optimizing your marketing campaigns to CLV is good for business. Here are five reasons CLV matters:
It helps you keep valuable customers
If you can identify and target high CLV customers, this should translate into higher ROI and could be a good way to improve your campaign performance.
You may find that there are segments of the market who value your product but have a lower than average CLV/CAC ratio, meaning you're spending too much on acquiring individual customers. If so, it may be worth exploring ways in which you can acquire these new customers at a lower cost or perhaps look for marketing activities where you might get more exposure for the same budget (e.g., by increasing reach).
It decreases CPA costs
Customer Cost-Per-Acquisition (CPA) is the amount of money a company spends on acquiring new customers divided by the number of new customers acquired during a given period.
You'll notice that different customer types have different CLVs, which means they contribute more or less than others towards paying your CPA. You can use CLV to compare campaigns and determine which ones are performing better, resulting in improved return on investment (ROI).
It's important to monitor this metric over time, as you may find you can reduce CPA while maintaining or even improving your bottom line. This is because the lifetime value of certain customer segments will increase with time on your platform, resulting in an overall decrease in acquisition costs.
It allows you to optimize your bids to different stages of the funnel
Full-funnel bidding allows advertisers to use top of the funnel conversion types for bidding while also factoring in final sales as a second bid factor. This bidding solution enables advertisers to grow efficiency and revenue from the sales funnel’s final stage while maintaining reactivity to recent market changes. Bids stay reactive to market changes, while efficiency targets are based on latent conversion metrics.
It helps you calculate campaign effectiveness
CLV will reveal which paid search campaigns are more successful, allowing you to optimize your total marketing spend.
You can compare campaign effectiveness by sub-segmenting customers by their CLVs. For example, instead of just looking at conversion rates for all traffic sources as a whole, you could break down the conversion rates by each campaign. This will make it easier to understand which traffic sources are most effective at converting.
It helps you grow in the long run
CLV isn’t something you need to track all the time, but ignoring it could spell trouble. Keeping an eye on CLV helps you spend your marketing budget more wisely, engage with your customers more effectively, and keep your CPA costs down through better loyalty—all of which helps your bottom line.
How to Calculate CLV
The simplest formula is as follows:
CLV = Customer Value (average order spend x number of orders in a year) x Average Customer Lifespan (in years)
To calculate CLV, you need to track customer metrics over time and calculate your customer churn. This will allow you to determine CLV across any given timeframe.
You may want to deduct CAC (customer acquisition cost) from your total to give you a deeper understanding of the true value of a customer.
Using a comprehensive reporting suite like MarinOne, you’ll be able to Identify which channels are driving revenue to your business. You’ll then need to track offline sales and interactions back to their source with a conversion tracking solution like Marin Tracker. Make sure to continue tracking touchpoints beyond the initial click-through, all the way through conversion.
How to Improve CLV
Here are some tips on improving your CLV.
Optimize onboarding. As soon as possible, the user should be able to get value from your product or service (e.g., signups, downloads).
Don't focus on customer acquisition alone. It's important to make sure users are retained over time.
Optimize CLV by marketing based on customer behavior. If people aren't making repeat purchases or converting to long-term high-value purchases, consider investing in marketing efforts to increase retention.
Look for ways to improve value. If customers are joining, but not staying around or buying after a certain period of time, focus on improving user experience and product features.
Over-deliver. If your product and service are great, people will come back.
Boost user experience. If you can provide an improved user experience, make sure to communicate this benefit in all your marketing efforts. Consider advertising on social media platforms that offer the opportunity for strong engagement.
Increase average value order. If customers are buying, but not purchasing many items per order, then there is room to boost sales.
Gather market research. If you can gather unbiased opinions about your product or service from potential customers, use this data to create marketing campaigns that will appeal directly to your target audience.
Uncover business drivers. You may need to modify your business plan based on what customers are saying.
Improve customer service. If you’re not delivering great customer service, customers will avoid dealing with you in the future. Not only that, but they’ll likely share their experiences on social media—which could turn away potential new customers.
Measuring CLV plays an important role in determining ROI, optimizing your advertising spend, and keeping your CPA low—all of which means less budget spent on search campaigns. Optimizing your CLV can provide valuable insights regarding whether or not there is excessive spending on your search campaigns. CLV allows you to evaluate the financial impact in order to re-strategize regarding how various programs are measured and attributed.
How MarinOne Can Help
MarinOne’s powerful self-serve platform connects your offline conversion data to the ad clicks that ultimately drive the sale, making it easy to see which customers are the most valuable and which campaigns have been effective in closing customers. From analysis and reporting to advanced bidding algorithms—analyze the most valuable shoppers, optimize your bids to revenue, and focus your efforts on your best customers. This leads to extending your marketing spend while attracting high-value customers to your brand.