In a competitive eCommerce landscape, it is challenging for brands to get noticed by customers exposed to countless types of digital advertising. If you’re vying to succeed on Amazon as a brand and win the digital shelf, it is crucial to take a step beyond measuring ROI and ROAS and start tracking Share of Voice (SOV).
What is Amazon Share of Voice?
In simple terms, SOV is the percentage of the market that your brand owns when compared to competitors. Your SOV reflects the ability of your brand to dominate on Amazon, own customer dialogue, and appear visible to the target demographic. The extent to which your brand can capture SOV depends on factors such as product ratings and reviews, content, keyword research, discoverability, and pricing.
Why Track Share of Voice on Amazon?
One of the best ways to stay ahead on Amazon is by integrating SOV in your roster of eCommerce KPIs. It is important to note that SOV is more than a measure of brand health but is also crucial from the perspective of competitive research and analysis. More specifically, tracking SOV serves as a means of answering questions such as:
- What keywords are my competitors targeting?
- What type of Amazon ads are my competitors running?
- Where are my resources better invested as a brand?
- What Amazon ad types are the most effective for my business?
The Three-Tiered Approach to Share of Voice Analysis on Amazon
The SOV Analysis comprises of three broad levels – brand, product, and keyword. Conducting an SOV analysis on a brand level is important to scan the competitors that are targeting your branded keywords through advertising.
This level of analysis is critical for developing a macro view of the competitive landscape. At a micro level, the SOV analysis transitions the keyword or product level. These three approaches are similar with the difference being the initial search.
What are the Best Practices for Analyzing Share of Voice on Amazon?
The dimensions of SOV include your brand’s impressions, sales, and clicks in addition to your competitive standing in a product segment or category. Depending on the brand’s needs and outlook, SOV analysis can help provide a broader overview of your brand or assist in gauging the outcomes of a specific campaign.
Here the some of the aspects to consider when performing an SOV analysis:
Set a SMART SOV Goal
Analyzing your SOV starts with knowing where you stand against competitors. Once you have identified that, set a SMART (Specific, Measurable, Achievable, Realistic, and Time-Bound) goal that is relative to your competitors.
Once you defined that goal, communicate clear expectations across the team. Ensure that you maintain awareness across all areas (sales & marketing and operations) so that there are no surprises or conflicts when moving forward.
Monitor Trends in SOV
Your SOV offers valuable brand and competitor insights. By periodically revisiting it, you can find out what’s working for the brand and where to invest your time and resources to keep things afloat.
Furthermore, if something isn’t going right then bi-weekly or monthly SOV check-ins will help track wins/losses. Remember, a successful business relies heavily upon its ability to stay ahead of competitors by identifying opportunities before it’s too late!
Let SOV Data Inform Decision-Making
SOV insights are useful for deciding the strategic direction of your ad targeting campaigns on Amazon. As noted previously, this data can uncover your competitor’s keyword strategy. Through SOV analysis you can fill in the gaps in your decision-making.
For example, by targeting keywords where your competitors haven’t dedicated much of their ad spend. While engaging in this exercise, you will also realize what’s not working for your brand. This will allow you to make informed decisions regarding optimizing your campaigns.
Closing Thoughts for Share of Voice on Amazon
By consistently tracking your SOV on Amazon, you can assess your market share and also understand the extent to which you own the customer conversation in your target demographic. Combining SOV analysis with other KPIs such as ROAS and ROI can put your brand in a stronger position to compete in the market.