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Targeting the Right Audience on Amazon:
- A traditional brand successfully reached new customers by effectively using Amazon’s targeting capabilities, facilitated by maintaining internal targets.
- AI’s role in helping target the right audience, not just for immediate sales but for incremental and profitable sales growth.
AI in Advertising Strategy:
- AI has become an integral part of advertising and campaign management. The use of AI simplifies and optimizes processes like product grouping, campaign structure suggestions, and analytics. This has allowed companies to handle larger campaigns with more efficiency.
- AI also aids in making sense of vast data points and reports, helping advertisers to make data-driven decisions and predict search terms and trends, providing significant advantages in bid optimization and identifying promising search terms.
- With AI, tasks like bid adjustments and keyword optimization, which would previously take a lot of manual effort, can now be automated.
Profit-Driven Strategy with Automation:
- Automation tools, combined with AI, focus on performance KPIs like impressions, clicks, and sales, using early indicators like click-through rates to predict performance.
- The system makes rapid decisions to eliminate wasted ad spend, pause campaigns when products are low in stock, and adjust bids based on inventory levels and bestseller ranks. Seasonal factors are also incorporated, providing a more holistic strategy for ad optimization.
Omnichannel Strategies for Amazon Sellers:
- The discussion highlights the challenge of escaping Amazon due to its dominance but emphasizes the importance of diversifying into omnichannel platforms like Walmart, Wayfair, and eBay.
- Walmart’s strong infrastructure and rapid growth make it a viable alternative, and companies are increasingly leveraging omnichannel approaches to spread their risk and expand their market.
- Integrating data across channels through platforms like Amazon Marketing Cloud allows businesses to have a centralized view of customer data, improving their ability to allocate resources and make informed decisions across different platforms. The speaker mentions how ERP systems can be used to track and analyze customer behavior across various channels.
