Amazon Advertising Benchmark Report - How to Outperform Competitors

Hi guys and welcome to another video. Today I'm going to talk about sponsor brands category benchmark report. What it does, it actually gives you information how you stack against the competition on sponsor brand campaigns only. And as you know sponsor brand is being more and more important because of the videos and videos are something that Amazon is going to focus more and more as we heard on the accelerate. So, where you can find these reports? It's pretty easy. Just navigate to your sponsored product reports. Then select by default it's on sponsored products. Select by sponsored brands. And then from the drop down, I encourage you to go through all of these because each one of them is really a good one. You want to select for this occasion category benchmark. Select your country, your date range, name it properly, and run the report. This is what you'll get. It's basically a breakdown. I removed all of the other products because just doesn't matter. But what what you get is the breakdown per top category and subcategories of your products. And for each subcategory, you will see uh impressions, clickthrough rate, and a cost compared to your category peers. Now, um Amazon defines peers as competitors who are closest to you in terms of pricing and sales volume. So if there are only one of your competitors like that then you know it's about uh that you're comparing with them directly. So here you can see the breakdown of impressions and then for each of the metrics you will see bottom 25% median and top 25% for impressions for clickthrough rate and a cost. But it's not just what you can see. Let's try to interpret the data for a little bit just as a guideline on how you can do it yourself or how you can forward this video to your team to do it. Um in impressions for example you can see that we this brand is around 700,000 that's closer to category top and much better than bottom 25% and u median which is cool. Okay, we get a lot of impressions, but also context is what matters. So, we're not investing that much in sponsor brands, but we are getting there uh over time. Here, what's interesting is that whenever people see our ad, they click a lot. So, here you can see that we are even better than top 25% on certain categories and for other we are pretty close. You know, 0.45 is still less than 0.49, 49, but still much better than category median. So that gives us information that whenever people see our sponsor brand ads, they actually click a lot more than category average, which is good. It gives a signal that our products, our main images are well optimized and the products are something that is of interest in the target audience. But this is where it gets interesting. So a cost how you stack up uh against your competition in sponsor brand campaigns a cost and here you can see that on some of these categories we are far below uh category top but again context is what matters. I know that for this subcategories, there are a lot of sellers who sell these kind of products, these kind of products at three times lower the price which always affects the conversion rate which is normal but and higher conversion rate the lower the a cost you have typically you know and here we can see that uh we are close to bottom 25% it is what it is but we use sponsor brands for different matter. I will explain in to you shortly. But it's important that you can see how you're stacking up uh against the competition in sponsor brands only. So it it may be that your subcategory is completely saturated with sponsor brand ads. It could be that nobody's using them. And you can see the potential here if the metrics align to what you want to uh get in terms of results. uh sponsor brands a cost doesn't matter that much. It doesn't matter if it's 50, if it's 60 because you're not trying to be profitable sponsor brands. Yes, if you can get a cost of 20% and be profitable with that with sponsor brands, that's cool. Um but for example I've seen many cases where we saw sponsor brand a cost going to 50 60% 80%. But when we pulled the overlap report from Amazon marketing cloud we saw that whoever saw sponsor brand ad and sponsor product ad ended up having much better purchase rate which is usually four times or or six times higher than when they only saw sponsor product campaigns. So it's not like just watching in isolation how your sponsor product uh campaigns function versus sponsor brands and even sponsor display. Same goes for for sponsor display. We've seen campaigns where they have um 60% of a cost 400% of a cost but combined together they actually increase purchase rate significantly. It's a the numbers tell for themselves and I'm going to record that in in my next few videos. Like when somebody sees only sponsored product ad purchase rate is 0.01. When they see sponsor product and sponsor display, purchase rate goes from 0.01 to 2.01. That's a you know a huge increase. Same goes for sponsor brand. So it's not like just focus on a cost. It's the holistic approach through to the advertising. So that's another topic, but still I wanted that to cover that. Make sure to occasionally check sponsor brands category benchmark report and I'm sure that you will see a lot of interesting data. Stay tuned for more and bye-bye.