NTB PPC Sales Don't Matter - Here's Why New to Brand PPC KPIs are Dumb

TL;DR

Only a small fraction of Amazon PPC spend is generating new customers for brands, indicating that brand loyalty is low on the platform.

Transcript

I've spent a lot of money on Amazon PPC so much money I could buy several Lamborghinis with that amount $791,000 to be exact of my own money on Amazon PPC this video is going to be about some of the metrics uh that I've learned about that spend specifically though this is the one that's going to bend your mind a little bit and that is the new to Br... Read More

Key Insights

• ❓ Most Amazon shoppers prioritize finding a solution over loyalty to a specific brand.
• 💪 Advertising on brand terms may not be cost-effective unless the brand has a strong presence.
• 😘 Brand impressions on Amazon are significantly lower compared to non-brand impressions.
• 🏃 Investing in improving brand identity through platforms like TikTok and user-generated content can potentially benefit brands in the long run.
• 🍉 Allocating a budget to both brand and non-brand terms is recommended for Amazon PPC campaigns.
• 👶 Acquiring new customers on Amazon often involves starting from scratch rather than leveraging existing brand loyalty.
• 👶 Only a small fraction of Amazon PPC spend is contributing to new customer acquisition for brands.

Questions & Answers

Q: Why is the speaker spending so much on Amazon PPC if it doesn't generate many new customers for their brand?

The speaker explains that while brand loyalty may not be high, they are still acquiring customers from scratch nine out of ten times. Additionally, Amazon shoppers primarily look for solutions, so advertising on non-brand terms is crucial for sales.

Q: How does the speaker address the argument that spending on brand terms is ineffective?

The speaker acknowledges that spending more on brand terms won't yield significant results unless the brand is already well-established like Yeti. However, they believe that improving brand identity can still be beneficial in the long run.

Q: What strategies is the speaker using to improve brand identity on Amazon?

The speaker mentions investing in TikTok and user-generated content to build their brand. They believe these efforts will help improve their brand's presence and potentially increase brand loyalty over time.

Q: Is there a recommended approach for managing Amazon PPC based on this analysis?

The speaker emphasizes that this analysis is not necessarily actionable. They suggest considering the lack of brand loyalty when making PPC decisions and allocating a budget to both brand and non-brand terms.

Summary & Key Takeaways

• The speaker has spent a significant amount of money on Amazon PPC, but only a small portion of it has resulted in new customers for their brand.

• Most people searching on Amazon are looking for a solution rather than a specific brand, indicating that brand loyalty is not high.

• Brand advertisements on Amazon have limited impressions compared to non-brand terms.