A Business Case for Amazon Integration into Your e-Commerce Marketing Plan
Thanks to Amazon, e-Commerce continues its meteoric rise. Instead of pulling together a bunch of statistics, let’s talk real-life examples! There was recently a really interesting story on Clorox and how they are executing a forward-thinking e-Commerce strategy. A key component of this strategy is their Amazon play. By spending more on digital marketing with a focus on paid search on Amazon.
Clorox has executed what it calls its “2020 Strategy” since 2013 to deliver long-term profitable growth through 2020. One pillar of the plan is using data and technology to improve marketing and essentially drive sales on the digital shelf, said Eric Reynolds, CMO for The Clorox Company. E-commerce — which Clorox defines as digital sales occurring on the likes of Amazon, Target.com, Walmart.com and Jet.com, rather than on its own website — now represents around 4 percent of its total company sales, compared to just under 5 percent at Procter & Gamble.
While Reynolds declined to disclose the baseline, he said that last year, Clorox’s e-commerce business grew by 50 percent overall and 98 percent on Amazon alone. “We see e-commerce as both a merchandising channel and a marketing channel,” he said. “We treat Amazon the same way we treat Google, YouTube and Facebook, for example.”
Should sponsored product ads be included in your e-Commerce marketing plan? We think so. Sponsored product ads are one of the ways for brands to bid on certain search terms on Amazon, thus making the brand more discoverable. While the ad doesn’t appear to look like one from Clorox itself, it’s appearance suggests that it’s an ad from Amazon.
Clorox gets the final sale if the shopper makes a purchase through the sponsored ad listing.
In addition to Amazon, Clorox is running lookalike audience targeting through its in-house DMP to direct consumers to buy Clorox products on the likes of Amazon, Jet.com and Target.com, according to Reynolds. For instance, if people sign up for Kingsford email promotions, the marketing team at Clorox will go to its DMP and find other people with similar profiles — based on gender, age, purchase behavior and other traits — who may be interested in Kingsford, and then serve them ads, he said.
“We are seeing much higher ROI online through lookalike audience targeting,” said Reynolds.
Read the full story on Clorox’s e-Commerce growth at DIGIDAY.