Welcome to the 1655 new marketers and founders who joined last week!
This week we're covering rhyming in copywriting, tiered pricing, and Amazon PPC ads.
Improve your B2B Marketing skills with Asana and Carta alum
Do you work in early or growth stage B2B marketing?
Emily Kramer, former Head of Marketing at Asana and Carta, is hosting a 4-week B2B Marketing training program on Maven.
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You’ll leave her 4-week program with a better understanding of setting strategy and hiring across marketing, a guide on how to position your startup, and frameworks to plan, prioritize, and execute initiatives. See the program here.
What to budget for Amazon PPC ads
Insight from Ad Badger.
If you’re running PPC ads on Amazon, it’s not always clear how much you should be spending on them.
Here are some numbers that can serve as benchmarks:
- A useful framework from Ad Badger: Your Amazon ad budget should be about 10% of your total Amazon revenue. So if you’re doing $100,000 a month in Amazon sales, you would budget around $10,000/month for ads.
- The average daily spend for Amazon sellers is $268.21. That’s high for new advertisers.
- Aim to spend enough to get at least 100 clicks a month on each of your keywords. A common issue with Amazon ad campaigns is having too many keywords for what’s budgeted. The result is that most keywords—sometimes around 90%—don’t get enough clicks, which means insufficient data for the bidding process.
To optimize bids, use the Inch Up Method: Keep initial bids low while you’re gathering information about how keywords perform, then gradually increase bids as you learn which keywords get clicks and conversions. So you might bid 10¢ on Day 1, 20¢ on Day 2, etc.
You can also use the target bid formula:
Target bid = (average order value x conversion rate) / (1/target ACOS).
If your average order value is $12, your conversion rate is 10%, and your target ACOS is 30% (about the average for sponsored product ads on Amazon), your target bid would be (12 x .1) / (1 / .3): 36¢.
Ad Badger has created a bid calculator you can use to find your target bid.
How to make your higher-tier package more attractive
Insight from Marketing Examples.
Do you use tiered pricing?
Here are 3 steps you can take to make your higher-tier package more appealing:
- Create a clear hierarchy between tiers. Customers subconsciously want a recommendation. You can use design choices to suggest a tier for them.
- Make your higher-tier incentive more valuable—if possible, consider using a larger discount for your higher-tier offer.
- Use descriptive tier names to set expectations and communicate the value on offer. “The complete package” feels more enticing and comprehensive than “the essentials.”
Pair this with “four pricing psychology tactics to increase conversion” from newsletter #070.
Use rhyming copy to trigger action
Insight from Ann Handley.
People naturally prefer rhymes.
In multiple studies, we rate rhymes as likable, memorable, and trustworthy. Researchers hypothesize that because rhymes are easier to process, we’re more likely to remember and believe them.
That’s why rhyming has historically been so successful in advertising.
Think Bounty’s “quicker picker upper” or Liberty Mutual’s mascot, the LiMu emu.
But rhyming’s not just for creating catchy slogans. You can use rhyming to trigger action in your ads, subject lines, CTAs, headlines, and landing page copy.
Some examples:
- Zapier makes you happier (from Zapier's homepage and social media)
- Integrate, Automate, Innovate (also from Zapier)
- Be kind to your mind (from Headspace's homepage)
- No skimpin' on the chicken! (from HelloFresh's homepage)
- CrapWrap (the name of Firebox's gift-wrapping service)
If you see an opportunity to get creative and rhyming fits your brand voice, consider testing it out.
News and links
News you can use:
- Amazon is rolling out email marketing to US brands and sellers in early 2023, which will let you to target repeat, high-spend, and recent customers.
- LinkedIn Sales Navigator added a new account dashboard that lets you monitor individual accounts and their level of interest (based on machine learning).
- Meta announced a number of platform updates, including a new Advantage custom audience, which will deliver ads beyond your custom audience to improve performance.
- Google is integrating ad extensions and assets with campaign setup to further streamline your ad management workflow.
What we’re reading*: Vidico’s state of video marketing report.
Vidico is the production company that helps you acquire more customers through video. They make the production process ridiculously easy, and you get effective videos to communicate your product’s value props. That’s why companies like Airtable, Square and Digital Ocean choose Vidico. Vidico is giving away a report of top insights from 200+ of the best minds in marketing. Learn how much companies spend per month on video, what channels deliver the best results, and which metrics you should track—it's a rare peek into what's working in video in 2022. Get the full report & insights here.
Something fun
From @artmemescentral
