2024 So Far & What’s to Come
2024 has started with a bang, and there’s only one way that brands on Amazon should respond: by understanding the current landscape, anticipating potential shifts, and crafting adaptable strategies to capitalize on the platform’s opportunities in 2024. We’ve rounded up leaders from various divisions across Global Overview to help you accomplish this, illustrating what they're seeing from our brands so far this year, as well as several areas in which you can optimize your Amazon business for success. Let’s dive in.
What We’re Seeing in 2024 So Far.
Sales & Advertising Growth
“Our teams consistently drive incredible value for our clients, and 2024 is no different! Year-to-date data shows that our brands are growing at a faster rate than traffic, driving stronger conversion with their New Year New You strategies. When comparing January 2024 versus January 2023, GO brands saw a cumulative sales increase of +17% even though cumulative traffic was only up +4%. Our data also indicates that our brands are leaning further into Amazon's advertising tools in 2024. In January, GO brands saw cumulative paid traffic grow at a higher rate than organic – +8% year-over-year – which was driven by upper-funnel tactics and resulted in an +18% cumulative new-to-brand growth.”
Tracking our clients’ year-over-year performance has provided invaluable insights into Amazon’s current landscape in 2024. It also underscores the increasing belief that our clients have in the efficacy of tools beyond search, leading them to provide incremental spend for DSP, Streaming TV, and Online Video to promote long-term, sustainable growth. Our GO team has extensive experience in stacking multiple ad tools to achieve success for our clients – check out the following case study to see this in action:
CASE STUDY – Full Funnel Media
The Power of Real-Time Data
“Throughout January, Amazon Marketing Stream was beneficial in helping our team adjust Sponsored Ads bids and budgets across different times of day (dayparting) and days of the week (weekparting) to ensure our clients are leaning into the most opportune timeframes for their products. It’s also been informing future dayparting and weekparting initiatives as we test and learn optimal moments to reach customers.”
Due to the strong success our team has seen with Amazon Marketing Stream, we highly recommend you utilize it to boost your brand’s advertising strategy in 2024. If you’re unable to make it an always-on process, we encourage you to at least use it during tentpoles like Prime Day, Prime Big Deal Days, and Turkey 11 to optimize strategies mid-event for optimal performance. To see how GO utilized Amazon Marketing Stream during Prime Day ’23, click the case study below:
CASE STUDY – Amazon’s Real-Time Data Aided in Prime Day Success
Leaning Into Operational Excellence
“Brands are looking to maximize efficiency through the inbound process, aiming to reduce fees and optimize inventory levels. On the Vendor wholesale side, they are leaning into purchase order consolidation through Amazon’s Pallet Ordering program and implementing Direct Fulfillment on items that are unable to ship to Amazon fulfillment centers.”
One of GO’s core tenets in 2024 is optimizing efficiencies for our clients, and they appear to be in alignment with this as they are interested in finding new ways to eliminate unnecessary costs and improve operational processes. Need help in this regard? Click below to see how GO creates above-industry-standard operational results for our clients:
BLOG – Implemented operational excellence to achieve an above-industry-standard chargeback rate.
Increased Necessity for Video Creatives
“In January, our creative team received an increase in video creation requests from our clients. The need for original content development has also been increasing to drive stronger ad placements as well as further build out PDPs and Brand Stores. It’s becoming more and more clear that the customer is looking for in-depth education around brands and key products, and videos in prime placements provide that information in clear and concise ways.”
Our brands want informative and unique video content to differentiate themselves from competitors in 2024. Our creative department, GO Studio, is up to the task and is aligning this effort with insights and strategies from our operations, retail, advertising, and data departments. To see how a creative team within a full-service Amazon agency could help your brand create optimal content in 2024, check out this blog:
BLOG – How a Full Service Amazon Agency Leverages the Advantages of an Internal Creative Department
What We’re Excited About in 2024.
Sight, Sound & Motion Across the Marketing Funnel
“Amazon continues to evolve lower-funnel video tactics by introducing a Sponsored Brand Video top of search placement and a Sponsored Brand Video vertical format for mobile. They’re also making upper-funnel capabilities more accessible with Sponsored TV and expanding brands’ reach through ad-supported Prime Video. This allows brands to fully lean into video’s story-telling approach, generating more awareness for their products and staying top of mind with audiences while showing up in more prominent positions in search results as consumers are actively shopping.”
Utilizing video throughout the entire path to purchase is a pivotal strategy to enable customers to remember and purchase your products, and we’re thrilled that Amazon is opening this approach to a wider range of brands. To better understand how sight, sound, and motion can help you impact all stages of the consumer journey, explore the following blog:
BLOG – The Reasons to Use Video in Your Amazon Advertising Strategy
Omnichannel Metrics Proving the Value of Amazon Ads
“A study from Shopify stated that 59% of shoppers check out a product online and later buy it from a physical store. Amazon’s Omnichannel Metrics allows us to quantify how this is impacting our CPGs and Hardlines brands. In fact, GO was an early beta tester of this offering for a Hardlines product and found that for every 10 shoppers that bought the advertised product, 2 additional shoppers were exposed to the campaign and purchased off-Amazon. This data is instrumental in helping our brands understand the larger impact that Amazon Ads has on their broader business.”
Our team is always eager to garner more visibility into how online advertising drives offline sales. What’s so fantastic about Omnichannel Metrics data is that it is gathered speedily, allowing brands to make campaign optimizations mid-flight so they can fully benefit on and offline sales. To see how GO took advantage of this data to boost performance for one of our clients, read through the case study below:
CASE STUDY – Omnichannel Metrics
Fee Reduction Opportunities & Packaging Efficiency
“I’m thrilled about the package design library that Amazon recently launched as it allows brands to start moving towards efficient, easy-to-open, and recyclable packing materials. Amazon has also announced new FBA size tier breakdowns where the small standard-size tier (less than 1 lb.) will be measured at intervals of 2 ounces and the large standard-size tier (1 to 20 lbs.) will be measured at intervals of 4 ounces. This means that if brands can reduce their products’ weight by just a small amount, they can see cost savings.”
2024 is a great year for brands to explore new packing sizes and start investing in more eco-friendly packaging. If you’re struggling to understand or implement Amazon’s new packaging opportunities, connect with our team. To see an example of how we reduced FBA fees for a client through a repackaging strategy, click the case study below:
CASE STUDY – FBA Fee Reduction Through ASIN Repackaging
Enhancing Consumer Shopping on the Brand Store
“I’m particularly excited about the continuing evolutions of the Brand Store and optimizing this space to create a more holistic shopping experience for the customer. From a content perspective, there is so much opportunity here to develop compelling placements that encourage engagement and solidify brand loyalty. For so many, the act of shopping is a tactile and somewhat emotional experience, and this space offers that back to the customer as they’re shifting to more online shopping overall.”
While the Brand Store is not a new tool, GO Studio is excited to elevate our clients’ presence on that page in 2024 by identifying new and innovative ways to approach graphics and copy. To see how we elevated a consumable client’s Brand Store creatives, check out the following case study:
CASE STUDY: Brand Store Performance Boost
Need Assistance in Capitalizing on All These Opportunities in 2024?
Let our team help. We’re not only proficient in implementing these tools and processes, but we’re also enthusiastic about the potential they hold to significantly elevate your brand. Schedule a call with us today, and let’s explore how we can propel your brand’s growth together this year.