What are top Major Appliances advertisers doing to grow on Amazon.de?

By: Jo Wenderoth, Senior Analytics and Media Manager, and Ashton Brown, Technical Writer

In this 2020 study of over 100 brands in the Major Appliances category on Amazon.de (Germany) we compare advertising strategies of top- and lower-performing advertisers. We then use this comparison to derive actionable insights advertisers can use to improve new-to-brand customer growth rate and detail page view growth rate year over year.

Story highlights:

In this study, we analyzed over 100 brands in the Major Appliances category in Germany between June 2020 and May 2021. The Major Appliances category includes brands selling large appliances including refrigerators, ovens, and washing machines. To perform our analysis, we grouped Major Appliances brands into four clusters, with cluster one being the most successful in terms of detail page view year-over-year growth rate (DPVGR) and new-to-brand customer year-over-year growth rate (NTBGR), and cluster four being the least successful. Our analysis finds that top-performing Major Appliances advertisers (Cluster 1) had a 3.9x higher NTBGR and a 3.6x higher DPVGR in comparison to lower-performing advertisers (Cluster 4).

Top-performers

3.9x

Higher DPVGR

3.6x

Higher NTBGR

To provide advertisers with actionable insights, we used machine learning to analyze 40+ advertising attributes (products, strategies, and tactics) that contribute more, or, less to DPVGR/NTBGR. We then identified which advertising attributes have the largest positive impact on the year-over-year growth rate of detail page views and new-to-brand customers. This article provides insights and best practices on the key attributes or strategies by quantifying the degree to which top-performing Major Appliances brands (cluster 1) and lower-performing Major Appliances advertisers (cluster 4) have adopted each key attribute or strategy.

For more on how we performed this study, see the Methodology section at the end of this article.

1. Top-performing Major Appliances advertisers were 9.5x more likely to use Sponsored Display

During the period observed, 39% top-performing Major Appliances advertisers used Sponsored Display in their campaigns, while only 4% of lower-performing Major Appliances advertisers used Sponsored Display in their campaigns. This is significant because our analysis shows that Sponsored Display is a great addition to Sponsored Brands and Sponsored Products as you can reach new audiences wherever they spend time and help drive growth of new-to-brand customers.

Percentage of campaigns that used Sponsed Display

39%

Top-performers

4%

Lower-performers

Why use Sponsored Display?

  • Quick implementation: Sponsored Display is a simple, easy-to-use option that doesn't require a large budget or the ability to design your own ad creatives.
  • Efficient spend opportunity: Sponsored Display ads only show when your products are in stock and are the Featured Offer, and you only pay when customers click on your ads. Control how much you spend by setting your budget and bid per click.
  • Amplification possible when combined with retail deals: During events such as Prime Day and Cyber Monday, use Sponsored Display campaigns to highlight your product deals on product detail pages of similar products so customers won’t miss important promotions.

2. Top-performing Major Appliances advertisers ran Sponsored Products always-on campaigns throughout the year

Two key contributors to DPVGR and NTBGR are brand awareness and campaign optimization, both of which are improved by running Sponsored Products always-on campaigns. In the twelve months studied, top-performing Major Appliances advertisers ran Sponsored Products always-on campaigns for an average of 50 weeks per year, compared to 37 weeks per year from lower-performing Major Appliances advertisers.

This means that top performers were able to deliver impressions and reach customers for an average of 13 more weeks. In addition to delivering more impressions, which can equate to more brand awareness, top performers also received more insight about their campaign performance. More insight means more opportunities to learn and optimize their campaigns according to how customers are responding.

Number of Sponsored Products always-on weeks

50

Top-performers

37

Lower-performers

Learnings and best practices when using Sponsored Products

  • Use a full-funnel approach: Sponsored Products always-on campaigns work best when awareness, consideration, and conversion tactics are implemented together. Awareness and consideration tactics, such as using category keywords, can help encourage new customers to move down the funnel and conversion tactics, such as using branded keywords, can help drive conversion.
  • Strive for continuity: Continuity is key for campaign performance; running campaigns intermittently may result in going over a ramp-up period every time you launch a campaign and may take longer to reach peak performance.
  • Have a consistent promotion strategy: To support discovery and relevancy, allow for a sufficient time period of advertising support and avoid changing promoted ASINs too frequently, such as daily or weekly.
  • Optimize for peak seasons: Always-on helps with campaign planning by uncovering best practices via testing during slower periods.
  • Be mindful of seasonal budgets: Shoppers’ browse and purchase behaviors have peaks and dips throughout the year, and mapping budgets accordingly can help maximizing the ROI of your always on campaigns. This analysis showed the top-performing brands in Major Appliances increased ads usage during Amazon shopping events like Prime Day, Black Friday, and Cyber Monday.

3. Top-performing Major Appliances advertisers were 8.5x more likely to use Sponsored Brands

Similar to the Sponsored Products impact on DPVGR and NTBGR, Sponsored Brands can also lead to increased performance on Amazon.de. Our analysis found that 69% of top-performing Major Appliances advertisers incorporated Sponsored Brands into their campaigns, while only 8% of lower-performers incorporated Sponsored Brands into their campaigns.

Why does this matter? Sponsored Brands can help you increase your brand’s visibility on shopping results pages. Sponsored Brands also feature multiple products and can drive traffic to a Store or list of products, so it is also one of your best options to drive awareness across multiple ASINs or newly launched products—both of which can help increase DPVGR and NTBGR.

Percentage of campaigns that used Sponsored Brands

69%

Top-performers

8%

Lower-performers

Learnings and best practices when using Sponsored Brands

When considering using Sponsored Brands, advertisers should create a brand Store on Amazon that showcases their full suite of products.

Conclusion

As seen in our analysis, top-performing Major Appliances advertisers have been able to grow their detail page views and new-to-brand customers through (1) using Sponsored Display to drive consideration and conversion; (2) running Sponsored Products always-on campaigns throughout the year ; (3) testing and using Sponsored Brands to increase brand awareness.

Methodology

We first used a supervised model to identify a list of advertising attributes that help improve the composite score among 40+ media and retail advertising attributes. Specifically, we followed a five-step process to create a success metrics of detail page views year-over-year growth rate (DPVGR) and new-to-brand customer year-over-year growth rate (NTBGR), and then identified the top advertising and retail strategies to help increase the success metrics with machine learning algorithms.

  • Select brands: 100+ brands in Germany Major Appliances category between June 2020 and May 2021 .
  • Create success metric: Calculated based on year-over-NTBGR and DPVGR.
  • Identify effective ad or retail actions: Used machine learning algorithms to identify top actions that increase composite score (actions that lead to higher year-over-year NTBGR and DPVGR).
  • Group brands: Brands grouped by composite score (DPVGR and NTBGR) into four clusters ranked from highest to lowest performing.
  • Compare brand groups: Identified what strategies top-performing brands (Cluster 1) use to increase year-over-year NTBGR and DPVGR, compared to strategies that lower-performing brands (Cluster 4) are or are not using.