In this episode, Ali & Zamir explore the philosophy of advertising, by comparing strategies on Google and Amazon.

While the core principles of advertising remain consistent - focusing on customer acquisition and lifetime value - the application differs significantly between platforms.

On Amazon, advertisers need to leverage paid ads to enhance organic visibility, as the two are interconnected in a way that differs from Google. Hear about the importance of precision in keyword targeting on Amazon to improve organic rankings, due to the unique dynamics of the platform.

This episode also provides insights into navigating the complexities of digital advertising, particularly when transitioning from direct-to-consumer (DTC) models to Amazon's ecosystem.

Key Takeaways:

• Advertising on Amazon requires a different philosophy than Google or Meta platforms.
• The key to successful advertising on Amazon is understanding the importance of visibility.
• Amazon's advertising can directly influence organic sales rankings in a way other platforms can't.
• New sellers on Amazon often underestimate the difference in advertising dynamics compared to DTC sales.
• Focusing on specific keywords in your Amazon ads can improve your organic ranking.
• Both Google and Amazon advertising aim to enhance non-paid sales through initial paid efforts.

Quote of the Episode:

"How much do I need to spend to get a new customer through the door?” - Zamir

In this episode, Ali & Zamir dive headfirst into a common misconception surrounding Amazon advertising: that higher bids guarantee more visibility.

Hear how click-through rates (CTR) significantly influence the value of bids, and how focusing on optimising listings will lead to higher engagement.

Amazon's payment structure is primarily based on clicks, not impressions, meaning that having a compelling listing can lead to better ad performance even with lower bids.

This episode also highlights the importance of using Amazon's Brand Analytics to understand competitive metrics for both paid and organic visibility.

Remember - CTR x Bid = Value to Amazon

Key Takeaways:

• Amazon advertising works on a pay-per-click model, emphasising clicks over just impressions.
• High click-through rates can lead to lower bids while maintaining visibility on Amazon.
• Brand analytics provides crucial data for targeting click-through and conversion rates effectively.
• The relationship between bid amounts and click-through rates is vital for advertising success.
• Amazon prioritises products that convert well, impacting both paid and organic rankings.
• Understanding Amazon's revenue model helps sellers optimise their advertising strategies.

Quote of the Episode:

"Amazon get paid on commission, they're looking for products that give them the highest conversion rate" - Zamir

In this episode, Zamir and Ali dive into the economics of search, and in particular, Amazon advertising. They explore the concept of search as a form of inventory with a very short shelf life, the dynamics of search activity throughout the day, and how advertisers can leverage fluctuations in cost per click to their advantage. The episode also highlights the importance of using AI-driven bidding tools, to maximise your advertising budget and avoid overpaying for clicks.

Key Takeaways:

• Search is inventory with the shortest shelf life ever.
• Cost per click fluctuates throughout the day based on search activity.
• Search activity peaks during specific times of the day.
• Advertiser budgets often reset at midnight, affecting demand.
• The interplay between supply and demand influences advertising costs.
• AI tools are essential for optimising advertising bids.
• Using AI can lead to significant savings in advertising costs.
• Without AI bidding, brands are likely overpaying for ads.
• Effective advertising requires understanding the dynamics of search activity.

Quote of the Episode -

"You can literally pick up searches clicks for bargain bucket prices." - Zamir