Guest post from dashapplications.com
Ever wonder how your Amazon Reviews affect your advertising performance? Or have you always been suspicious that your disappearing Buy Box is tanking your ads?
Amazon Reviews Affect Advertising Conversion Rates and Return
Everyone knows that the quality and quantity of your reviews on Amazon are primary factors for winning on the platform. At the most basic level, reviews provide social validation that helps customers have confidence they are buying something worth having. Great reviews allow brands to not only compete with more well-known competitors but can also help customers overcome conversion friction if your products tend to be relatively higher priced than the rest of the category. Great reviews can, therefore, support healthier margins while leading to better conversion rates, improved search ranking, and increased overall sales.
So how do your reviews affect Advertising? The obvious one is that solid reviews support a strong conversion rate that helps you achieve a profitable return on your ad spend – i.e. a low Advertising Cost of Sales (ACOS rate). What’s important for brands to understand is that as mentioned above, great reviews can overcome many disadvantages for a brand that is swinging upward within the category. Smaller budgets, minimal internal resources, and fewer products in the catalog are some of the obstacles that up-and-coming brands often face. But with advertising, even a small brand can get in front of large audiences that are flocking to Amazon. To exhibit what I’m talking about, review the below Sponsored Product ad carousel on Simple Modern’s (a large water bottle brand) product detail page to see who’s showing up in the first carousel scroll of Sponsored Ads.
As you can see, strong reviews create opportunities to win new customers and allow a brand like Hydro Cell that has great reviews but limited resources to compete with a much more established brand that has a significantly larger audience. I wrote a post about using advertising to level the playing field on Amazon for New Hope Network that you can find here if you’d like to learn more about this concept.
But what happens if reviews go wrong? With FeedbackWhiz’s Review Monitoring system, you’ll know immediately if you’ve received a bad review. And to state, the obvious, bad reviews make advertising efforts extremely difficult. What might not be obvious is that one bad review could slow down your advertising unit volume and conversions, leading to a death spiral as Amazon serves you less and less for important keywords due to your poor conversion rate. Eventually, this results in a crash landing that is painful to recover from. Not only will you have to bid higher and pay more to get served in ads, but your organic ranking will probably suffer at the same time causing you to fall behind competitors that you’ll have to pay Amazon to catch up to.
The moral of the story is to use FeedbackWhiz to closely monitor reviews. If you get a bad one, respond right away and try to work it out with the customer. Brands that crush it on Amazon are those that are relentless about pleasing the customer and protecting their review ratings.
How Buy Box Loss Stalls Amazon Advertising
What happens to your ads if you lose the Buy Box on an advertised ASIN? For Sponsored Products, your ad will cease to run for that given ASIN. This means that for as long as you do not hold the Buy Box, whether it’s due to being out of stock, a reseller offering a lower price, or Amazon hiding the Buy Box based on pricing elsewhere, your ad and your opportunity to increase unit volume and ranking is completely blocked.
For Sponsored Brands, your headline ads will continue to run even if you lose the Buy Box. Amazon’s reasoning is that you should still have the opportunity to promote your brand, regardless of who captures the sale. With that, it’s important to recognize that if you lose the Buy Box on a Sponsored Brand advertised product, Amazon will report Sponsored Brand ad sales for all sales of the advertised product and other products within your brand even if that sale goes to a reseller. You can imagine the implications of this as you look to understand the impact of your ad sales on overall platform sales – if you do not own the Buy Box on Sponsored Brand advertised products, it’s possible that the Sponsored Brand ad sales reported in Amazon are not going directly to your pocket and your Amazon account, but rather to resellers who got ahold of your product somewhere in your distribution chain.
With FeedbackWhiz’s Buy Box Loss monitoring, you can easily identify a product that you no longer hold the Buy Box on and adjust your advertising accordingly. Turning off Sponsored Brand ads that include the product may be one action to take, while also understanding that your Sponsored Product ads will no longer be running and contributing to overall sales for the given product. This understanding prevents surprises at the end of the month when you see ad sales and platform sales have contracted for a product that you know lost Buy Box within the moth.
What Happens to Amazon Advertising When My Listing Title Changes?
What happens to Amazon ads if a reseller changes your Listing Title? This is the most ambiguous element we are writing about today because much of the effect of a listing content change happens behind the curtain covering Amazon’s A9 Search Algorithm and corresponding advertising servers. Basically, a change in a product’s Listing Title forces Amazon’s algorithm to recalibrate and “see” your product differently. This often leads to a drop in organic search ranking and a reduction in ad serving, especially if important keywords have been removed from a product’s title. Amazon’s ad server looks at a product’s listing content and backend metadata to determine whether it is relevant for a given search by a customer and the corresponding keywords or product targets you are bidding on in advertising. If your listing suddenly lacks important keywords, you will have little to zero chance of being served for the customer searches including the keywords in the question and will notice a drop in your sales for both advertising and the platform as a whole.
With FeedbackWhiz’s Listing Title Changes monitoring, you will immediately know if your listing has been changed. This is critical to Amazon performance for all the reasons described above so anything you can do to mitigate changes to your listing should be undertaken right away. If FeedbackWhiz notifies you of a change, you should immediately submit the original content to Amazon and open a support case to get it changed back. This will help minimize the disruption to your ad serving and organic ranking, and get you back up and running quickly.
How Dash Applications Complements FeedbackWhiz with Amazon Advertising Analytics
To gain comprehensive control over your Amazon Advertising, you can use the Dash Applications Analytics platform in conjunction with FeedbackWhiz’s monitoring tools for a powerful combination of analytics monitoring and platform monitoring provided by each respective platform. Dash’s Analytics platform complements FeedbackWhiz’s monitoring tools by allowing you to clearly the see the collective impact of Review changes, Buy Box changes, and Listing Title changes on your advertising performance down to the ASIN level.
The next level of advertising excellence is to gain a deep understanding of your advertising numbers and craft the story of your Amazon Advertising performance. Whether it be a campaign, ad group, keyword, or specific ASIN contributing to the positive or negative change period over period, Dash can help you identify exactly what is driving performance. Once you have a comprehensive story of advertising in hand, strategy development can be undertaken with confidence and you can launch initiatives that you know will align with your brand’s Amazon goals.
Without the views that we have created in our platform, brands are left wondering, “What happened to my ad performance?” and, “What caused the changes month over month?”. Additionally, Dash allows the ads manager to set goals for the account, with an alert and notification system that notifies the manager when things are getting off the tracks, helping brands save advertising dollars and pinpoint areas of inefficiency in the account that can quickly be corrected.
Too Long Didn’t Read – Key Takeaways:
– Reviews, Buy Box Loss, and Listing Title Changes significantly affect your ability to advertise on Amazon so monitoring the components will help ensure you are running advertising efficiently and consistently.
– Amazon requires an understanding of operational marketing. Without blocking and tackling on fundamental operational tasks like listing optimization, nurturing strong reviews, and continuous inventory coverage, not only will your Amazon Advertising suffer, but so will your organic search results and overall platform performance.
– Having a tech stack that includes monitoring and analysis solutions like FeedbackWhiz and Dash Applications can help you gain full control over your Amazon Advertising performance.
At Dash Applications, we address questions like these all day long as we look to explain how your Amazon Operations affect your Amazon Advertising performance and vice versa. We call this relationship operational marketing and an understanding of it is critical for success on Amazon. Dash Applications is actively building a solution to give brands and agencies a unique look into how operations and advertising interact in our Amazon Advertising Reporting and Analytics platform created to help brands assess advertising performance in a sophisticated way. If you’d like to learn a little bit more about Amazon Operations and the data that you should pay attention to, check out an article I wrote linked here. In today’s article, we are going to explore how things like Reviews, Buy Box, and Listing Titles affect your Amazon Advertising performance, and how you can use both FeedbackWhiz and Dash to be in full control of your advertising presence on the platform.