December 14,2020

The concept of incremental bidding and targeting the right keywords

Jason Magee

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Full Episode

Transcript

An audit of an Amazon account like Oh, I have a very low ACOS my revenue, whatever. What you actually realize is that their their bidding on all branded terms. Like if I'm Jason Magee T shirts? Absolutely. If I bid on Jason Magee T shirts, I'm gonna have a low ACOS and high conversion rate. But that's not incremental and so When you when you're building an Amazon or a business on anything, especially on market places, you need to build instrumentality building with income mentality in mind, which is what I have gotten this thing, this sale if I not. What if I would not have advertised or built up a following their one way that we focus on attacking this amount of attacking the right that the right terminology? But when you go to advertise and even when you're just going to just run a business like if you advertise right, you're gonna drive top line Organic growth. That's the fly with when you advertise, you should break it up into a least three buckets. My own terms. Generic terms. Which another marketplace Post article. 78% of search terms or generic in nature and Amazon Then I have competitors I want to target. So the goal, the Holy Grail is investing just enough on your own branded terms to maintain those top spots. Avoid conquest ing. But if you over invest in Brandon terms, you're gonna you're gonna cannibalize organic sales. The other opposite end. I should have a much higher ACOS the lower row as on competitive terms, but I'm stealing a competitive from somebody. It's still over my competitors. Er that is incremental as it comes in the 78% of people who just want something that's like a T shirt size medium blue. I'm winning them. It's kind of a medium level incrementality, but you should sacrifice a cost to acquire a customer through a term that is not referencing your brand. That's what other companies and investors want to see as well like,, Are you winning new customers? Advertising is incredible way to do that

Thanks,
George