Knowing your competition helps you understand their business, your competitive advantages over them, their movements, and marketing strategies. It also allows you to discover new opportunities for your business. 

In this article, we will be focusing on the advertising part of this research. 

Competitor analysis will be an integral part of your marketing plan. You’ll need to know who your competitors are and what they’re doing to position their business in the marketplace, which is Amazon.

Understanding their advertising strategies is a great way to get ahead of your competitors. To do this, you should conduct thorough research on all brands and their products in the same market as yours. If they are using great marketing, it is essential to have a clear understanding of what makes their campaigns so successful. Once you have compiled your list, you should create an ad campaign with elements of your competitors’ actions and twist them ever so slightly to your advantage. 

For example, if your competitor’s new product is getting a good amount of sales from a long-tail keyword, we can assume that it is a great keyword that is easy to rank. Because, in this case, a new product is already ranking for it. So, it would be best if you also started targeting this keyword with your advertising campaigns.

 

How To Conduct A Competitor & Market Research 

This section will discuss how to conduct competitor and market research. Competition and market research will help us understand how to advertise our product effectively. 

First, you should analyze what products you want to conduct this research for and acknowledge your direct competitor brands and their best-selling products. Once you have all this information ready, we can start the ads part of the research.

We divided the process into eight simple steps to make it easier to follow.

Step 1

Analyzing the BSR history of the top sellers of your competitor brands. This helps us understand how their products performed historically. And it is beneficial for new product launches to set realistic expectations within a realistic time frame.

The BSR history can be accessed by using 3rd party tools.

Step 2

Using the reverse ASIN method to develop a list of top-performing keywords for these competitors’ products. This helps us to understand which keywords those products are ranking for and generating sales from. 

It is a good idea to group these keywords by branded and generic, which can help you understand what percentage of their sales come from branded and what percentage comes from generic search terms.

Step 3 

After identifying the main keyword with the highest search volume, we use 3rd party tools to analyze the data for the niche and keyword. This can also be done via Amazon brand analytics.

Analyzing the niche data using the root keyword will allow us to understand what products are indexed for that keyword and how competitive the market is. Additionally, analyzing monthly sales generated by the main keyword is also helpful in determining the power of the keyword.

 

Step 4

Analyzing the market share of the products/brands that appear on the first page of Amazon search results for the main keyword. We do so by searching for the keyword using the Amazon search bar and analyzing the revenue of the products ranking high using 3rd party tools.

This helps us to see if a group of sellers dominates the market or if the sales are distributed evenly.

Step 6 

Going back to the competitor’s good-performing keywords and adding them into an Amazon advertising campaign to see what we would pay per click on average when advertising for those search terms. 

This helps us to get a rough idea of our future advertising costs if we decide to target these keywords.

Step 7

Analyzing the search volume trends of the competitors’ top-performing generic and branded search terms. This helps understand the competitors’ brand awareness and presence.

Step 8

Using the competitor’s branded term to analyze the brand’s defensive ads strategy. We put their branded term into the Amazon search bar to see if they have any active defensive ads going on for their branded search terms. If not, it might be an excellent opportunity to target their branded terms with your ads at a meager cost.

Step 9

Repeat this process for each product type for which you are doing the competitor analysis.

Step 10 – Final Step

Analyzing your findings deeply and trying to discover new opportunities. Understanding the strengths and weaknesses of your brand compared to your competitors and coming up with an effective marketing strategy based on your findings.

If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to contact the BellaVix Team. 

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