A couple weeks ago, I went into a grocery store to buy my mom flowers for Valentine’s Day. Flowers were the only item on my mental shopping list.
As I rounded out of the flower aisle, bouquet of pink roses in arm, I saw a display featuring chocolates, teddy bears, and goofy cards. After surveying my options, I selected a card to purchase too.
Has this ever happened to you? –You enter a store with intentions of buying just one thing yet you leave with many things? I’m willing to bet that it has and that it’s happened more than once.
Shoppers enter stores wanting to spend the minimum amount of their money, and stores are strategically structured to convince shoppers to spend their maximum.
The same can be said for Amazon.
Welcome to part two of our four part mini-series all about Amazon Advertising Brand Analytics!
Last week we covered its Search Terms report tool, and in coming weeks we’ll explore Item Comparison and Alternate Purchase Behavior and Demographics. The article you’re about to read and enjoy, however, regards Market Basket Analysis.
First we’ll cover important lingo and theories relevant to Market Basket Analysis and then, when you’re up to speed on all the nitty-gritty, we’ll offer six straightforward steps to use paid traffic to gain maximum organic traffic.
Important disclaimer: The information in this article is only relevant to registered brands on Amazon. If you’d like access to this tool, apply for Amazon Brand Registry.
Neat-o! Let’s learn.
What exactly is Market Basket Analysis?
If a person has an affinity for another person that means they have a certain rapport and liking for each other.
When stuff shares an affinity, however, it means the stuff has similar characteristics or somehow complement each other. This is relevant because Market Basket Analysis is a component of affinity analysis.
Affinity analysis is a data analysis and data mining technique that discovers relationships between items. Retailers, like Amazon, use affinity analysis to perform Market Basket Analysis.
In simpler words, Market Basket Analysis strives to understand shopper’s purchase behavior and then uses this information to cross-sell and up-sell relevant items.
Market Basket Analysis is the study of bundling.
Amazon studies shoppers who view and purchase two complementary items.
Let’s say someone puts a yoga mat in their Amazon shopping cart and then scrolls down the page to browse the Frequently Bought Together row. There they might see yoga towels or dumbbells or resistance bands.
The shopper wasn’t necessarily searching for those products, but upon seeing them, they might remember, oh yeah, they do need a fresh yoga towel to replace their ratty one.
That yoga towel is not a sponsored product; it’s a product determined by Amazon’s Market Basket Analysis as typically relevant to the average yoga mat shopper. It’s a complementary product.
To view your Market Basket Analysis, peruse your Market Basket Report in Seller Central.
The Market Basket Report displays the top three products most frequently purchased at the same time as the Brand Owner’s products, along with the percentage of time each of the top three products were purchased with the Brand Owner’s products during the reporting range selected by the user.
Amazon offers quarterly, monthly, weekly, or daily reporting timeframes to view the Market Basket Report. If you’re curious which report to study, we always recommend beginning with as much data as possible.
The Market Basket Report displays all of your ASINs for the selected timeframe and shows which three products were most frequently bundled with your other products.
The Market Basket Report does not, however, explain how those frequently bundled products arrived in the same shopping cart. There is no way to know if a shopper purposely and knowingly searched and purchased the two items or if it was mere coincidence.
All we know is the combination percentage, which, according to Amazon, is the percentage of orders that contain both your product and the number one purchased product in comparison to the total number of orders that contained at least two different items, including your product.
I’ll let my Badger buddy, Stephen, explain this in layman’s terms.
Most people wouldn’t naturally think to buy a Bluetooth speaker if the only other item on their list was toilet paper. Those two products are distinct and separate from each other.
The Market Basket Report shows all the products associated with brands the Brand Owner has successfully registered with the Brand Registry. Products not associated with the brand only show up in the report if they are one of the top three products purchased at the same time as one of the Brand Owner’s products.
A probable exception to the complementary product is in the case of consumables. Sometimes for consumables shoppers purchase similar products by different brands to determine which they prefer.
For example, I like birthday cake flavored protein bars, and I like trying that flavor by as many brands as possible; I frequently bundle similar products by rival companies in my cart.
However, it’s most likely not common that your Market Basket Report will determine your product is most frequently purchased alongside your competitor’s similar product. It’s more likely that your products will be bundled with a complementary product. The product might be a competitor’s complementary product, but that’s a complementary product nonetheless. (This tidbit will be covered more in-depth in part three of our Brand Analytics mini-series.)
While we’re on the topic of competitor’s, no, you cannot search the Market Basket Report for products that are not yours.
Now that you’re aware how golden the Frequently Bought Together spot is, don’t you want to know our strategy for using paid traffic to garner a lifetime value of free advertisement in this coveted spot?
Say no more.
6 Simple Steps to Maximize Market Basket Report Data Return
To win the Frequently Bought Together spot– the free, golden, shimmery, glittery, wonderful, highly coveted spot– on a product page, use your Market Basket Report.
We want your product in shopping carts with another specific product as often as possible, and you will achieve this with product targeting and a unique “product page only” campaign.
Do this in six simple steps.
- Step 1: Create a manual sponsored product campaign.
- Step 2: Create a product targeting ad group.
- Step 3: Enter ASINs as product targets.
- Step 4: Bid low on product targets to reduce search impressions.
- Step 5: Increase bids on product page targeting in campaign setting.
- Step 6: Repeat steps 3-5 monthly.
If those steps seem dubious, allow me to clarify the concept.
Step 1: Create a manual sponsored product campaign.
You’ve done this before, right? It’s easy! Jump into the Campaign Manager and select Create Campaign.
Step 2: Create a product targeting ad group.
After naming your campaign and giving it a budget, set up your first ad group. When given the option of choosing “keyword targeting” or “product targeting,” choose product targeting!
Step 3: Enter ASINs as product targets.
Browse your Market Basket Analysis for the ASINs that are frequently purchased with your product. These are solid leads for product targets.
Step 4: Bid low on product targets to reduce search impressions.
Our rationale for bidding very low on product targets is because we recommend an exaggeratedly high bid increase on the product page ad placement.
Increase bids on product page targeting in the campaign setting, not the ad group setting.
Step 5: Increase bids on product page targeting in campaign settings.
Keep in mind that the Adjust Bids by Placement feature is a campaign-level setting. This option does not exist for ad groups yet.
Bid low on the product target itself to reduce search impressions. Go into placement settings and increase the bids on product page targeting to have a strong product page bid, but a very low search bid.
Our theory is that landing your ad on another product’s details page as often as possible will increase the chances of your item being bundled together in the same shopping cart. This gives you an opportunity to win a spot in the Frequently Bought Together section.
Where you target your ASIN, your product will appear near that ASIN on the same page. Product targeting is like stalking an ASIN wherever it goes, whether it’s on a search page or a product details page. Browsing is like scrolling to the bottom of search on a product details page.
If you target a competitor’s ASIN, possible search terms that could qualify your product would be generic search terms or branded keywords to appear on the page. If you target their ASIN, you’ll appear on that page.
Your CPCs, or cost per clicks, are determined by how relevant Amazon considers your product to that search query. If you sell bananas and you target avocados, Amazon might not think the banana is a relevant search term for an avocado and therefore will charge you higher CPCs than the avocado.
Ad placements in the search results page can get expensive quickly! This is why we target the avocado’s product page for ad placement, where CPCs are more affordable.
If you’re the banana and you target avocadoes, you also run the risk of having low conversion rates. You might spend a lot of money to show up on the search page but customers won’t necessarily find your product relevant or compatible.
If you appear on the product pages, however, odds are that your CPCs will be lower because Amazon will consider your product relevant to the other product, regardless if you’re related to the search.
Another issue with bundling with a specific avocado is that some shoppers might prefer bundling their bananas with a different avocado ASIN. If they click on a different avocado, your banana will be on a different page and it’ll miss the bundling option.
Step 6: Repeat steps 3-5 monthly.
Simple as that! Add this strategy to your monthly task list and you’ll be one your way to growing mountains of revenue.
Once you complete steps one through five, schedule a time once a month to study your Market Basket Analysis.
You can even opt to get this report sent to you on a monthly basis to see if there are new ASINs that people regularly buy with your products.
Do this monthly to build a list of frequently purchased pairs to get as many clicks and conversions for the duo as possible. Do this often enough and eventually your products will appear as a related item.
With sufficient paid traffic, theoretically a product will organically appear on a product page to maximize visibility for the sake of a customer’s lifetime value.
Bundle like a boss.
Just like the flowers and the I Love You, Mom card from the grocery store, soon your Amazon store will cross-sell, up-sell, and bundle galore to shoppers everywhere.
- Market Basket Analysis is the study of bundling.
- The Market Basket Report displays the top three products most frequently purchased at the same time as the Brand Owner’s products.
- Combination percentage is how often your products are bundled.
- Browse your Market Basket Analysis for the ASINs that are frequently purchased with your product.
- Create a manual sponsored product campaign and then a product targeting ad group where you will enter ASINs as product targets.
- Bid low on product targets to reduce search impressions and increase bids on product page targeting in campaign setting.
Market Basket Analysis is Amazon’s equivalence of setting items to eye level for buy level and you can use our strategy of six simple steps to maximize a customer’s lifetime value. There is no shame in the paid traffic game, especially when the goal is to use paid traffic to maximize organic traffic.
If you test our strategy and have questions or feedback, please leave a comment. We are very accessible, and we love sharing ideas! As always, thanks for being our Badger buddies.
Discover Us on our PPC Den Podcast
If you enjoy supplementing your long reads with audio, we cover this topic on our podcast as well.
Listen to it in the episode below or find us on your favorite streaming platform, like Apple, Google, Spotify, and more!
- 02:20 Intro
- 05:14 What is Market Basket Analysis?
- 08:50 What is Market Basket Report?
- 15:14 6 steps to maximize data return from Market Basket Analysis
- 23:50 On Product Targeting campaigns
- 27:10 Farewell, Badger friends!
- CTR 101: Everything You Need to Know About Improving Your Click-Through Rate
- [Badger Bite #4] New Product Targeting Options For Sponsored Brand Ads
- How to Calculate Bid Adjustment by Placement
- PPC Den Podcast Voicemails
- Get to know Michael
- Ad Badger’s Amazon PPC Membership Academy
- Ad Badger’s YouTube channel
- Ad Badger’s Campaign Naming Podcast
- How to Raise Lifetime Value with Market Basket Report
- Search Frequency Rank: How to Identify Most Important Keywords
- Long Tail Search Terms: The Amazon PPC Silent Killer?
- ACoS: Amazon Platform Tax?
- 7 Tips to Get More Clicks on Amazon Ads
- LIVE Amazon PPC Campaign Audit
- Amazon PPC Keyword Research in 2020: RPSB Revisited
- Our Top Predictions for Amazon PPC in 2020
- 7 Bad PPC Habits to Kick in 2020 (And 3 Good Ones to Start)
- The PPC Tasks We Put on Our Project Management Tools
- A Data- Oriented Approach to Advertising in December
- The Wait is Over… Search Term Reports for Sponsored Brand Ads are Here
- What to Do When It’s Time to Sell Your Amazon Business with Coran Woodmass
- Ramping Up for Cyber Monday and Black Friday with Data-Driven PPC Strategies
- Amazon PPC Campaign Structure: 6 Layers of Complexity
- Amazon PPC Today vs. Yesterday: What’s Changed, What Hasn’t
- Make Your Best Keywords Better with Single Keyword Campaigns
- 6 Levels of Amazon PPC Mastery
- How to Advertise Commodity and Unique Products with Lukas Matthews
- Amazon SEO – Bridging the Gap with PPC
- Amazon’s New Sponsored Display Ads (Beta)
- Listener Q&A: Optimizing Placement Settings
- The Problem With Optimizing Low-Converting Products (And How to Solve It)
- 4 Reasons Why Lowering Your Bids Won’t Always Lower your ACOS
- What to Expect From 30 Days of Running Amazon Ads
- Should You Segment Your Branded Keywords in Amazon Ads?
- Promoting your Products with Amazon Coupons
- Three Effective Ways to Optimize Amazon PPC Bids
- 4 Things Amazon Does Better than Google and Facebook
- Amazon DSP with Kiri Masters
- Increase Conversion Rates for Sponsored Brand Ads
- Clickfraud, Who to Hire, and More Common Amazon PPC Questions
- A Data-Driven Approach to Prime Day PPC
- Improving Your Account With Amazon Reports
- The Complete Guide to Self-Auditing Your Campaigns
- A Round-Table Discussion About Placement Settings
- My 5 Predictions for the Future of Amazon PPC
- The Importance of Indexation for Amazon PPC
- Click Through Rate (CTR) Rundown
- An Introduction To Bulk File Operations
- The Latest Sponsored Brand Ad Updates
- Defining Your PPC Goals & Setting ACOS Targets
- Making Sense of New to Brand Metrics
- Should You Bid on Competitors’ Branded Keywords
- Our Gripes About Amazon Sponsored Brand Ads
- Amazon Advertising Launch Strategy for New Products
- The Ultimate Amazon PPC Roadmap
- How to Scale Using PPC – A Case Study
- The Star-Crossed Lovers (Organic & Paid Traffic)
- Cranking Up Conversion Rates
- All Things Negative Keywords
- The Dreaded Amazon Data Reporting Delay
- What We Love About Amazon PPC
- First Look on New Bid Options in Amazon
- Dissenting Thoughts on PPC Budgets
- The Strangest, Most Popular PPC Strategy: The Keyword Dump
- Product Targeting – Into the Great Unknown
- Campaign Naming Systems
- Hitchhiker’s Guide to Sponsored Products (Part 2)
- Hitchhiker’s Guide to Sponsored Products (Part 1)
- Amazon PPC Advertising Stats
- The Advanced Basics of Amazon PPC
- Amazon’s New Product Targeting Features
- The Bid+ Conundrum
- Why We’re Living In The Golden Age of Amazon PPC
Watch Mike & Stephen on YouTube
If you enjoy supplementing your long reads with video, well, hot diggity dog, you’re in luck! We cover this topic on our YouTube channel too.
Watch it below and please don’t forget to ‘like’ and subscribe.