Amazon Ads have quietly rolled out a powerful new feature for Sponsored Brands campaigns – placement modifiers that let you specifically target new-to-brand (NTB) customers. But while it sounds like a win for smarter targeting, is it always the right move for your strategy?
It sounds promising – more control, better targeting – but how do you know if these placement modifiers are worth it for your strategy?
Courtesy of the brilliant Elfie Brocklehurst, one of the Venture Forge team’s Amazon Ads gurus, here are 4 key factors to consider before diving in…
Think about how people shop in your Category
Customer behaviour differs massively from category to category – in some, top-of-search visibility drives fast conversions, in others, customers prefer to browse, compare and shop around before buying.
It’s crucial to understand what your potential buyers are doing before you jump in, so you can better tailor your placement to meet them at the perfect stage in their journey.
Our take?
Use tools like Helium 10 to understand your category’s buying habits before you invest in high-visibility placements that might not align with how your customers shop.
Are you selling to Businesses?
If a portion of your Amazon sales does – or could – come from B2B buyers, B2B-specific placements could be worth exploring.
These customers often buy in bulk, are more price-conscious and may be less brand-loyal – but they can drive serious revenue when targeted effectively.
Our take?
Before using B2B placement modifiers, assess how much of your catalogue is relevant to business buyers – and see whether there’s untapped potential to grow that audience.
What’s your Customer Lifetime Value?
This one’s key – especially in FMCG.
If you’re in a category with high repeat potential, modifiers that attract new-to-brand customers can pay dividends over time – even if they don’t always deliver the lowest ACOS straight out of the gate.
Our take?
Think beyond today’s conversion. Where lifetime value is high, it’s always worth investing in those first impressions…
Where are you in your own Amazon Journey?
When it comes to making decisions on how to invest in Amazon, your band’s maturity on the marketplace should be a big part of what shapes your strategy.
Our take?
If you’re new to Amazon, look to placements that maximise visibility and discoverability.
On the other hand, if your brand is more established now could be the perfect time to refine and optimise, using NTB placement modifiers to attract NTB customers, build loyalty and grow your market share.
And if you’re already running Amazon Marketing Cloud (AMC)? This is the place to turn to get even more insight to guide your decisions.
The Bottom Line
Sponsored Brand placement modifiers can be a great tool – but (you guessed it!) only when backed by the right data and aligned to your brand’s own unique growth goals.
Used well, they can help you reach the right audience, improve efficiency and support your long-term growth on Amazon.
Used blindly? Like so many things in paid advertising, they’ll burn your budgets fast.
If you’d like our award-winning take on your Sponsored Brands strategy, Elfie and our Amazon Ads experts are on hand to help bring the data-led insights, creative execution and commercial clarity you need for profitable growth. Speak to the team today.
Useful Links
Looking for help to maximise opportunities and/or tackle challenges for your marketplace business? Click here to speak to our Award-Winning Amazon Team!