The operating mechanism of advertising is to attract customers to click on the advertisement to enter the product page, and then charge based on the number of clicks. The usual advertising ideas end at this point. However, this section will introduce in detail how to use new ideas to maximize advertising revenue from other perspectives.
We can imagine what will happen after customers click on the advertisement? Customer behavior can be divided into the following three types:
(1) Purchase goods;
(2) Browse the page and leave;
(3) Browse other product recommendations on the page.
We usually focus on the first customer behavior, that is, the order turnover, that is, the change in ACoS value. However, this single advertising effectiveness evaluation method is extremely one-sided and not long-term. A good advertisement can not only Observing changes in the ACoS value, we should pay more attention to the role of customers “browsing other product recommendations on this page” on the overall internal traffic digestion of the store, and this role is particularly important for popular items with huge daily traffic.
The following simulates which links customers will click after clicking on a product page: The first is the product recommendation link below the product selling point introduction.
The second is the product link of the relevant pushed product.
Once again, it is a product link for non-push products.
Finally, there are product links for related products above the “Customerquestions&answers” column.
In short, after customers click on a product to enter the product page, unless some customers choose to leave the page directly, the traffic attracted by the advertisements will be diverted by the links in these columns. Then we can draw a conclusion:
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The effect of advertising is directly proportional to the number of recommended links to the same store product on the product page, inversely proportional to the number of links to competing similar products, and inversely proportional to the number of links to substitutes.
We can set the advertising effect as R, the number of recommended links for products in the same store as M, the number of links for competitive similar products as N, and the number of links for substitutes as N.
The advertising effect is nothing more than the order volume. Combined with the calculation method of orders, the formula (5-1) can be rewritten into the following formula (where the traffic brought by the advertisement is set to na, and the conversion rate of the advertisement is set to Pa , the number of links to products from the same store under one listing is
The first set of data: advertising expenditure, ACoS→number of clicks, conversion rate→na and Pa of the product.
The second set of data: changes in the data of related products in the same store when hot items are advertised or not → na and pa of related products.
The third set of data: can be obtained from multiple recording experiments of the first and second set of data.
What is the use of calculating the three coefficients? For example, if you can determine the three specific coefficients of advertising effectiveness and calculate the relationship and number of all links on the product page, you can calculate it more accurately. How much traffic can be absorbed in a day by listing a hot-selling style in the store without causing the undesirable loss of traffic?
Of course, if it is difficult to accurately calculate each specific value, you can judge whether you need to invest a lot of advertising for a certain product based on the following points:
The number of related products in the same store The more, the better;
The fewer low-priced competing products in related products, the better;
The fewer substitute products in related products, the better;
Associated products The lower the product review score of this store in China and Africa, the better.
To sum up, for new products, good advertising refers to those advertising strategies that can promote the product without incurring huge expenses; for popular products, good advertising refers to The most important are those advertising strategies that can bring huge traffic and allow this traffic to be absorbed within the store instead of being lost.
Since 2019, Amazon has reedited the pages on the site, and the recommendation columns for “reading again and again” and “buying again and again” have been increasingly replaced by advertising recommendations. But in essence From the above point of view, the purchasing habits of customers have not changed fundamentally, so the above judgment criteria are still valid when the recommended position below the listing is occupied by advertisements.