More Effective Advertising Using the Correct Target Definition

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AI Handles Millions of Bids with Precision and Reliability

19th August 2019

Marcel Pirlich was recently interviewed about the development of advertising opportunities on Amazon and how to best prepare for them. 

Amazon has recently expanded its advertising capabilities. Would it make sense to focus solely on Amazon Advertising?

This very much depends on how your objectives are defined. For the time being, I don’t think it would make sense to shift your entire advertising budget to Amazon. As a matter of principle, retailers who sell on Amazon certainly need to look into the new advertising opportunities. However, even those retailers who aren’t on Amazon should consider expanding their product presence to this platform; yet other platforms like Google, Bing, and Yandex should not be disregarded. Here, too, a strategy adapted to the particular platform is required, along with clearly defined objectives. Close monitoring is particularly necessary at the moment, since traffic from organic search results is currently on the decline.

What makes advertising on Amazon so successful?

From its humble beginnings, retail giant Amazon has strived to successfully build an empire, focusing heavily on customer experience. Among other things, this has led to many customers using Amazon as a product search engine in what represents an almost perfect entry into the customer journey. Over half of all product searches nowadays start on Amazon. Because of fierce competition among individual vendors, you need to make sure your products are easier to find than others’.

What needs to be done to advertise successfully on Amazon?

First of all, the objectives need to be clearly defined. Moreover, everyone should be aware that the complexity that Amazon offers requires a significant amount of time and effort to achieve such advertising goals. There are a lot of factors that need to be tweaked in order to advertise successfully. By the way, this also applies to all other platforms. The more products you want to advertise, the more effort it takes to adjust the necessary factors. In general, the requirements include the selection and continuous updating of the correct search terms, and, further down the line, bid optimization. Advertising on Amazon is auctioned off to the highest bidder – and optimizing this process is heavily reliant on statistical skills rather than creativity.

This calls for an automated solution like Adspert. What are the benefits of such?

The greatest benefit for advertisers is the freedom gained for creation, while still maintaining control over and keeping track of advertising efforts. Our AI, which evolved from a stock trading solution a few years ago, optimizes bids on advertising platforms several times a day and monitors all factors and predefined targets. In Amazon’s case, the system can even independently create and manage all ad campaigns. Quite a time-consuming job for most people, especially when many keywords are involved. This can be better and more accurately solved by harnessing AI. Several million bids are now necessary for large volumes of keywords, ad groups, and products to get the most out of Amazon Advertising. To ensure high profitability on Amazon, budgets must be invested very precisely.

What experience have clients gained by using automation?

To begin with, handing over complete control over advertising bids entirely to the Adspert AI was an unusual experience for many clients. In some cases, objectives had to be first clarified and strategies adapted to the change. AI works differently from humans, since automatically factoring in countless correlations goes beyond human capabilities, but poses no challenge to AI. Understanding and taking advantage of these new opportunities requires a mindset change that often induces a permanent transformation in our clients: technology complements humans and gives back control over BigData. The successes, however, speak for themselves, with increases in sales and cost reductions sometimes exceeding several hundred percent.