2 Reasons Why Wayfair Sponsored Products Is The Best Advertising Program For Your Business

Is your ROI decreasing and your Advertising Cost of Spending (ACOS) increasing on Sponsored Product Programs, like Google AdWords and Amazon Advertising?

While both company programs are still viable (and some would argue, necessary) for your business, there is one ad program on the rise that’s worth your investment: Wayfair Sponsored Products (WSP).

Below we talk about the pitfalls of Sponsored Product programs, why WSP is different from other online programs, how WSP will benefit your business and tips on how to create a successful WSP campaign.

Why Did Your ROI Decrease in AdWords and Amazon Advertising?

The start of the 20th century was a pivotal time for advertising. Google launched Google AdWords, which set an ad model precedent for all the Sponsored Product Programs you use today.

For a while, Google AdWords was the cheapest and most effective way to advertise online. Businesses could place low bids and still see high ROI, mainly because the service wasn’t over-saturated with businesses hungry to take advantage of the SEO possibilities the service had to offer.

But bid prices increased over time as more and more companies competed for top keywords—a process that’s ultimately lead to a higher ACOS for your business.

Amazon Marketing Services (AMS) was Amazon’s first attempt at offering an online ad service similar to AdWords. It’s since revamped and re-branded to make the program you use today: Amazon Advertising.

Despite being an early Sponsored Product Program adapter, Amazon is experiencing a similar fallen trajectory as Google. Keyword bidding on Amazon is fierce, especially with the added competition of international sellers on the site.

Amazon is still undoubtedly a key player in any business advertising strategy, but the ROI from Amazon Advertising is not as high as it once was.

Plus, consumers have caught on to sponsored posts. Online shoppers are hyper-aware of the obvious ad sections at the top of Google and Amazon search result pages.

What Makes Wayfair Sponsored Products (WSP) The Better ROI Option?

1. Sponsored products are organically integrated into search results

Organic listing of a Wayfair Sponsored Product
Sponsored products are organically listed in the search results of Wayfair’s eCommerce Platform

Rather than isolate two sponsored products (SP) at the top of search results, WSP integrates an SP into the 2nd search result listing. It then places an SP into every 6th listing after that (i.e. listing #8, #16, etc.). As we noted, consumers are relatively turned off by overt attempts at advertising. By integrating Sponsored Products into organic searchers, WSP is able to offer a better user experience for its customers.

2. The platform isn’t over-saturated with competing businesses

WSP is new to the digital advertising space. This is good for a couple of reasons: 1) Wayfair was able to learn from its competitors, modeling the tactics that worked and improving on the ones that didn’t; 2) Keywords aren’t completely overbid by masses of online vendors. For these reasons, WSP is able to level the playing field and offer cheaper starting bids.

How will WSP Benefit Your Business?

Increase ROAS with Wayfair Sponsored Product Advertising Platform
Increase your organic rank and ROAS with Wayfair Sponsored Products

The main advantage of using WSP is that it naturally increase your organic rank. More consumers are going to come into contact with your product pages, and thus, increase your likelihood of turning a profit in the long run.

WSP also gives your brand the following benefits:

  • Increases brand impressions.
  • Increases sales.
  • Increases conversion rate.

Helpful Tips

Once you decide to use WSP, you will need to figure out how to use the platform. It differs from the other sponsored product programs, so you will want to be mindful of the following tips when learning to use the service effectively:

  • Don’t always go for the highest bid because that does not guarantee you the top paid position.
  • Put all ad spend on a credit card and not on remittance.
  • Adjust your end dates on all your campaigns.
  • Put advertised products in CastleGate to increase your conversion rate.

Conclusion

The Wayfair Platform now offers vendors control of where and how a product shows up in search results. WSP is a new, simple, and low cost. It will take only a couple of months before you see your ranking shoot up in WSP.

But understanding the WSP program to boost your page ranking is only have the online vendor battle.

To ensure you are taking advantage of your true ROI potential, you also need the right strategies behind your product launches, relaunches, and upgrades.

For more information on how to increase sales on Wayfair, listen to Episode 5 of the Page One Podcast.