Investment-related actions on Amazon are the biggest levers to moving the needle. However, if they are used inefficiently, it can be time-consuming and cost-intensive. That’s why it’s crucial to fully understand the individual and collective impact of deals & AMS on your business and performance.
Whether you are looking for an overview and full review of the performance of all your deals and advertising, or you currently need to review and analyze your Prime Day campaign, we are here to support you with our analyses, as follows.
What is AMS?
Amazon Marketing Services is the equivalent of Google AdWords. Keyword-based product ads are placed in places above, within or below organic search results. Payment is made according to the cost-per-click model, where payment is not made until a prospect clicks on the ad.
On the basis of a fixed budget, it is possible to go to the auction for profitable, much sought-after keywords and buy advertising space at auction. The principle is similar to that of Google AdWords, but advertisements via AMS have a clear advantage: they pick up the customer – as mentioned above – shortly before the purchase decision and are thus much more profitable than advertisements on Google AdWords. The audience reached on Amazon already has a high willingness to buy, an account and a positive buying experience on Amazon.
For manufacturers and retailers, Amazon Marketing Services offer the potential to increase their own sales at currently still low prices, to improve the ranking in the Amazon search algorithm and to draw comprehensive learnings in e-commerce performance marketing.
Deals & AMS Performance Analysis
What do we analyze?
With this analysis, we will help you to identify the individual and collective impacts of your current deal and advertising strategy on your sales. Additionally, we analyze the relationship between the AMS and Deals and their impact on your business performance. With this information, we will guide you in the implementation of the adjustments needed to maximise the outcome of Deal periods, and we will help you to construct the best deal and AMS strategy for your business.
How do we measure the performance?
Firstly, we analyze the former year and all deal and promotion initiatives that took place from a short-term and long-term perspective to understand how the deal periods are playing out in a specific category. Secondly, we draft a deal strategy for the coming year, with the aim of maximizing market share wins.
Outcome
We guide you in the:
- Reallocation of budgets between a deal period (eg. Prime Day) and your Deal and AMS strategy of the year
- Refinement of your Prime Day strategy and next deal periods to come to maximize the outcome based on learnings
- Optimization of the AMS campaigns
Prime Day Performance Analysis
What do we analyze?
As one of the biggest promotion events, Amazon Prime Day is generally believed to be a promising opportunity for sales growth. The only way to determine if this is true for your business is by analysing the performance and impact of Prime Day in your category. We do so by answering the following questions:
- Are there specific brands/projects that perform especially well during Prime Day?
- What are the factors that can influence sales during Prime Day? Is there a significant correlation between them?
- What is the pricing strategy for the market during Prime Day?
How do we measure the performance?
We consistently analyze the competitive landscape of Prime Day for each market category and evaluate different factors that influence the performance of your deals on Prime Day. We test different hypotheses and generate learnings from the outcome of those tests by:
- Integrating historical data and Prime Day data for comparisons using various relevant KPIs
- Applying Pearson Correlation methods to see the impact of factors
- Attempting regression modelling to find quantitative relations between sales and independent factors
Outcome
We provide a detailed report on the impact of Prime Day on your sales. As well as indications concluded from the correlation analysis between sales and influential factors:
- If you actively participate in Prime Day, how can we adjust your strategy for better performance?
- How to generate incremental sales in the long term with your Prime Day deals and advertising strategy?
- If you are not, should you participate next time?
Interpretation
- Deals have a positive impact on Brand A’s market share, especially in the short term, creating an overall deal uplift of 6%
- This shows the evolution of the market share over time. Clearly, the market share was really high during June 2021 (e.g. Prime day 2021), which proves a great impact
- On the left side, we evaluate the uplift of the deal in the short- & long-term
Insights
View all insights
Questions?
Partner