In this blog post, we bring you five PPC predictions for 2021 based on the facts we’ve seen in 2020. Will Amazon surpass last year’s success? Will the sellers’ community continue to grow? How can you dominate the PPC advertising space in 2021?
2020 - the year of challenges
The world of PPC experienced a lot of changes last year. The things that happened were beyond anyone’s expectations. Struggle with COVID-19, empty warehouses, products continually going out of stock, and sellers who had to shut down their businesses.
On the other hand, the world of e-commerce has seen ten years of growth in one year, which is fascinating! People had to stay home and buy online all the time. That’s why the sellers who had a proper inventory management strategy and managed their PPC campaigns with an analytical approach were the biggest winners last year. But how to be the winner this year? Most sellers have learned their lesson and want to focus on scaling their business with the help of PPC.
If you just started with Amazon PPC or need to improve your performance, book a free audit!
2021 - the year of new possibilities
Let’s dive into some trend forecasts that may help you predict your future steps.
1. More chances to sell your products or your business
Even in the most challenging times, Amazon didn’t give up! Estimates show that its overall revenue in 2020 was 40% higher compared to 2019! This means more space for new and current sellers to sell their products and attract more customers every day. Amazon is a great e-commerce platform because you can get significant profits in a short period. That’s why many sellers start their business here and afterward build their online webshop and continue expanding on other e-commerce platforms.
One of the next year’s potentials will also be an Amazon Exit strategy. Many people look at Amazon’s business as a lifetime investment since they can sell their brand if it’s successful enough. So, if you have established a well-known brand in your niche and brings you a lot of cash, you can sell it and use the money to enjoy other things or even reinvest in another Amazon business!
2. FBM as a back-up plan
If you are using FBA, know that there are quite a few restrictions considering the number of units you can send, costs for storing your products in their warehouses, etc. This selling method also has its advantages because you don’t have to worry about shipping the products and payments, which can take a lot of your time that you could use to develop your business.
Keeping in mind the situation with COVID-19 and inventory issues, more sellers will turn to FBM (storing products in their warehouse) to avoid products going out of stock. Even though Amazon is expanding its warehouse capacities and aiming for the upgraded shipping process, we think that one part of the sellers will use FBM as their backup option. This also opens an opportunity for third-party solutions that can offer their warehouses for storing the products.
3. The rise of video ads
According to “Wyzowl - The State of Video Marketing,” 66% of users would rather watch a video ad than read about the product. That’s quite a number, don’t you think? Even though Amazon rolled out video ads a while ago, sellers don’t use them as much. Why? Many sellers believe that only high-quality video ads are attractive enough for their potential customers. But this is not true since you can use a free tool like Canva to make the video and get the same results as if you made an expensive video solution.
In 2021, we will see more advertisers turn to video marketing strategies to attract customers and show them the benefits of using their products. Currently, video ads have a high CTR, good conversion rate, and many placements, making them more visible on the platform. Our advice is to get these ads in your campaigns as soon as possible, and don’t forget about Amazon’s requirements you need to fulfill to get your ad approved.
4. Amazon DSP in focus
Since Amazon rolled out Demand-Side-Platform, we’ve seen its possibilities to reach audiences across the internet and target the right people at the right time. This type of advertising is still expensive, especially for smaller brands, but we believe that this year DSP will be in focus and that more advertisers will try to compete with others to get more ad spots on and off Amazon.
With DSP, you have a vast potential to reach specific audiences and maximize your advertising efforts. Your ads can show up on both Amazon sites, apps, as well as on publishing partners and third-party exchanges websites. Also, the possibilities for remarketing and fine-tuning your campaigns are endless. That’s why our advice is to have in mind this advertising option and build a strategy to show off your brand across the Internet.
If you aren’t sure where to start and have enough budget to launch DSP campaigns, schedule a free consultation.
5. PPC will be a must
If you want to succeed on this platform, organic sales are just not enough. Of course, many organic visits, clicks, and conversions are a great indicator that you are doing an outstanding job with perfectly optimized listings and good reviews. But, in 2021, you will need to support your well-established marketing strategy on Amazon with PPC advertising to be more visible and get more loyal customers.
Amazon is continuously improving its advertising console, adding more ad placements across the platform and new targeting options for brand-registered sellers. This proves Amazon may follow Facebook’s practice - no ad investment, no visibility on the platform. Or at least, not enough visibility for those who resist using PPC as the primary tool to get more profit. If you didn’t start with PPC last year, our advice is definitely to think about it in 2021.
To sum it up
Amazon has a lot of potential for newcomers, so if you want to start selling, do it!
The chances are that you will encounter some downfalls, but if you have in mind your strengths and possibilities, this won’t discourage you. If you want to sell your business, that is an option too since you can earn quite a lot and maybe even reinvest in a new business.
Try always to have your products in stock and think about having a back-up plan - FBM. This way, you will leverage your inventory and prepare for unexpected situations, like the COVID-19 pandemic.
Be aware of the advertising options in front of you and act smart. Use video ads for more conversions, explore DSP in-depth, and be open to expanding your visibility off Amazon. Don’t forget, if you want to succeed, focus on PPC to get ahead of the competition and believe in your products!
Last year, we saw how things could change in the blink of an eye. So be prepared for anything that can get in your way and think in advance! This year, be open to more possibilities!
About the author
Emilija is a Content Writer and Social Media Manager at Sellers Alley. She has been involved with Amazon PPC for a year now. Before, she was working on content and social media strategies for different clients in the FMCG industry.