Understanding Brand Goals
Hitting Forecasts and Sales Goals
One of the primary and arguably most critical goals for any brand is to hit forecasted sales plans. Sales goals are the north star by which any advertising strategy should focus on, but this is especially true for brands with large catalogs. Secondarily, it’s important to know that with a large catalog, not each product should be treated equal. Adjusting budgets based on current sales increases is a proven tactic to optimize campaigns and better meet goals.
With large catalogs, one strategy to meet sales goals is by focusing on products with the largest period-over-period sales increases. By identifying these high-growth products, brands can leverage advertising to drive incremental traffic and sales.
For example, if a product has shown a significant year-over-year sales increase, it's a prime candidate for advertising. The objective is to use search and DSP (Demand Side Platform) advertising to drive more traffic to these product pages than other PDPs, ultimately boosting sales and helping to close any gaps in forecasted growth.
Launching New Products
Investing in new product development is another critical aspect of strategy. With large catalogs, it’s likely that new products or offerings will occur often, and it’s important to utilize a different advertising approach to gain traction. Leveraging advertising early on can signal to the Amazon algorithm that these products are popular, helping them to rank higher organically over time. By driving significant traffic to new product pages shortly after launch, brands can create a positive feedback loop, or "flywheel," where increased visibility leads to higher sales, further boosting the product's organic ranking.
Balancing Multiple Initiatives
Mixed Approach for Advertising
Balancing growth and new product initiatives is essential for brands with large catalogs. Code3 Search Strategists prefer a mixed approach, where the advertising budget is allocated between high sales drivers and new products. This ensures that while established products continue to grow, new products also get the necessary support to succeed.
The key is to invest the majority of the budget in products that drive the highest sales while still allocating a portion to new products. This balanced approach allows brands to achieve both immediate sales growth and long-term success with new products.
Navigating Large Catalogs with Multiple Categories
Identifying Focus Categories
For brands with large catalogs spanning multiple categories, prioritizing categories based on growth potential and current performance is crucial. Focusing on categories that show the most promise or those where the brand already has a strong presence is an important strategic move.If a brand excels in Category A but wants to grow in Category B, the advertising strategy will differ based on the brand's goals. If the goal is overall sales growth, more investment should go into Category B. However, if the focus is on efficiency and return on ad spend (ROAS), Category A might receive more attention due to its higher conversion rates.
Recommendations for Large Catalogs
When dealing with large catalogs, variation strategy and best seller rank become even more important. Brands should consider how their products are varied, such as different colors or sizes, and use this to their advantage in advertising.
For instance, if a product comes in multiple colors, advertising one or two variations can drive traffic to the entire product page, showcasing all options. Additionally, focusing on products with high organic rankings can help improve their performance even further with targeted advertising.
Budget Management for Advertising Campaigns
Strategic Budget Allocation
Effective budget management is vital for successful advertising campaigns. A successful method Code3 Search Strategists utilize for dividing the budget across products is by breaking it down into a monthly and then daily budget. This approach helps brands - and marketers - understand how much they can spend per product to make a significant impact.
While there's no one-size-fits-all guideline for daily spending, understanding the budget in relation to the number of products being advertised can help brands make informed decisions. This ensures that the advertising spend is impactful and aligned with the brand's overall goals.
Advertising for large catalogs requires a tailored strategy that balances hitting sales forecasts, launching new products, and managing multiple categories effectively. By prioritizing high-growth products, leveraging new product advertising, and strategically managing budgets, brands can maximize their advertising success.
If you need personalized advertising support and strategies, reach out to Code3 for expert guidance and proven solutions. Our team of experts is here to help you navigate the complexities of digital marketing and achieve your business goals.