MARKETING

What is Employee Engagement? [+11 Data-Backed Benefits and Strategies]

Published

1 year ago

June 29, 2022

What is Employee Engagement? [+11 Data-Backed Benefits and Strategies]

If you’re playing along with buzzword bingo, you’ve heard the term “employee engagement.” But it would be a mistake to dismiss it as just a buzzword. Ignoring engagement costs the global economy 8.1 trillion dollars each year, according to a study by Gallup.

Thankfully, the opposite is also true. Improving employee engagement can boost profitability, improve customer satisfaction, and even make for a safer workplace.

Read on to learn what employee engagement is and what factors affect it. Then discover 11 strategies for improving employee engagement at your workplace.

What is employee engagement?

Employee engagement is the measure of a person’s commitment, involvement, and enthusiasm for their job and workplace. An engaged employee knows how they fit into the company’s plans, and works toward achieving company goals. Put simply, it’s the difference between showing up for work and showing up for a paycheck.

Engagement means that employees:

Know what they contribute toward their team’s success.
Work toward their company’s goals and values.
Are connected to and supported in their role.
Look for ways to learn and grow in their role.

Employee engagement isn’t the same as job satisfaction or employee happiness. Although those ideas are a part of the equation, employee engagement speaks to motivation. An engaged employee invests time, energy, and talent to benefit their team and company.

As Kayla Marchetti – engagement manager for Seismic – puts it, “I want any individual who joins us to feel passionate about our mission and work, to feel a sense of belonging, and to know they have opportunities to grow and develop their career here.”

On the inside, engagement embodies feelings like purpose, trust, and autonomy. On the outside, it looks like a collection of behaviors and attitudes. Let’s take a look at some examples to better understand what these behaviors look like.

Examples of different levels of employee engagement

Employee Engagement Examples

Employee engagement isn’t a switch that gets turned on or off. It exists on a spectrum from highly engaged, to non-engaged, to actively disengaged. Most employees will fall somewhere in between, and their level of engagement can change over time.

Here are some examples of how engagement can show up. For each example, we’ll also highlight a stat showing how many employees fall within that engagement group, as per the Gallup study we noted in the introduction:

Highly Engaged [36% of U.S. workers in 2021]

Enthusiastic about their work
Helps out co-workers
Gives extra effort when needed
Seeks out new responsibilities and learning opportunities

Non-Engaged [49% of U.S. workers in 2021]

Relatively satisfied with their job, but not committed
Will do what they need to, but not more
May have a 9-to-5 attitude
Could be at risk of accepting a new job opportunity

Disengaged [15% of U.S. workers in 2021]

Complains to co-workers (and possibly customers, too)
May damage company culture and office morale
Unwilling to join in social activities
Likely looking for a new job

It may be tempting to think of these behaviors as personality traits, but they may say more about your company culture instead. Even star employees can become disengaged if they don’t have clear expectations and the resources to do their job well.

Why does employee engagement matter?

Studies show that employee engagement leads to an increase in productivity, profitability, and customer satisfaction. Engaged employees are happier, healthier, and more likely to stay in their job. High levels of employee engagement have also been linked to lower absenteeism and fewer workplace accidents.

Why is employee engagement important?

“You can have the best services and best team, but if you don’t have engaged and enthused employees it won’t matter,” says Maryanne McWhirter, Sr. Inbound Marketing and Sales Consultant for LeadG2.

There’s no aspect of your business that isn’t affected by employee engagement. Your employees are the engine that makes your business function. And when those employees feel invested and respected, that engine performs at its best.

“The experience an employee has at your company soon translates to employee sentiment, which drives company culture over time. Company culture impacts your employer and consumer brand in a big way, so if we want happy, engaged customers who stay loyal, we have to implement that same strategy with our employees first.” ~ Leanne Poirier, Manager of Internal Communications at ZoomInfo

That’s why decades of data from Gallup show the following benefits of employee engagement:

Why is employee engagement important?

1. 10% Higher Customer Loyalty

From sales to service, highly-engaged employees deliver a great customer experience.

Again, Kayla from Seismic tells us “When we do [employee engagement] well, we can attract, develop, and retain the best talent, which means our customers are more likely to be well-served.”

2. 23% Higher Profitability

It makes sense that higher customer loyalty would lead to increased sales and reduced service costs. But highly-engaged employees also reduce costs associated with turnover, absenteeism, and injury.

3. 18% Boost in Productivity

When employees feel connected to their work, they work harder. They’re also more likely to go above and beyond their daily tasks. Engaged employees are more likely to suggest new ideas and innovate new processes.

4. Up to 43% Less Turnover

Highly-engaged employees feel recognized and rewarded. They understand their growth potential and see development opportunities ahead.

On the flip side, the Gallup study also shows that 74% of disengaged employees were actively looking for new employment.

5. 64% Fewer Workplace Accidents

It’s easy to get complacent about routine tasks, which can lead to carelessness. But when employees are engaged they focus on the work they’re doing. They’re also more aware of their surroundings, and more likely to follow safety rules.

6. 81% Lower Absenteeism

Whether because of increased drive or decreased burnout, engaged employees are more likely to show up.

This doesn’t mean normal sick-days or personal time. Absenteeism refers to habitual and intentional unscheduled absences. The kind that, according to the Society for Human Resource Management (SHRM), reduces productivity by 36.6% as co-workers take on added work.

How to Measure Employee Engagement

Measuring employee engagement can be difficult because it’s a subjective experience. To get a full picture, you need to pay attention to both the quantitative and qualitative signs.

Seek ongoing feedback. Individual conversations are one of the most powerful ways to discover engagement levels. Ask if your employees feel valued. If they understand their growth potential. If they have the resources they need to do their job.

Find your Employee Net Promoter Score (eNPS). Your eNPS is a great way to get a snapshot of employee sentiment. This is especially helpful when you also give your employees a chance to say why they gave the score they did.

Watch your rates of absenteeism and turnover. Spikes in these metrics are common symptoms of low engagement, and a sure sign something has gone wrong.

Do exit interviews/stay interviews. Exit interviews can be a good source of candid and honest feedback. Just be sure these interviews aren’t the first time you’re asking these kinds of questions.

How to Improve Employee Engagement

Employee engagement should be thought of as an ongoing process, like developing your company culture. Engagement isn’t about ping-pong tables and casual Fridays. There are no quick fixes, so think about the full picture instead.

Marchetti of Seismic, tells us, “Our goal is to create an environment that supports and encourages our people to do their best work every day.”

With that in mind, here are some strategies to consider for improving employee engagement:

1. Start with a plan.

Poirier from Zoominfo suggests, “Taking the time to ask questions like ‘Who is our typical employee? What does their work-life balance look like? What challenges do they face? What do they need and what do they want?’ We know good marketing strategies lead to increased revenue; employee experience works the same way. When companies treat their employees with the same thought and care they do with customers, everybody wins.”

2. Communicate clear expectations.

Engaged employees understand their tasks, responsibilities, and goals. More than that, they understand how those things fit into the wider company goals. That understanding can only come from leadership.

This means holding goal-setting meetings, performance reviews, one-on-ones, and regular, ongoing feedback.

3. Provide the knowledge and tools they need to do their job.

This may seem like common sense to some, but many times employees are only given enough information or resources to do the next task. Sharing knowledge and access empowers employees to contribute beyond their to-do list.

4. Give them trust and autonomy.

Trust and autonomy go hand-in-hand. When employees feel trusted enough to work autonomously, they feel like their skills and contributions are valued. This fosters a sense of responsibility and satisfaction toward their work.

5. Offer ongoing training and development opportunities.

Developing new skills encourages employees to think of their role in terms of a career. Investing in new skill training encourages them to think of that career within your organization.

Workplace training programs help to engage and retain employees. This can take the form of an education stipend, internal training programs, peer-to-peer training, lunch-and-learns, and more.

6. Provide a clear growth path.

Having a roadmap for career growth helps create a sense of purpose at work. Managers should have regular discussions about career goals and development with their employees.

This is especially true for younger generations. A study published in the Journal of Leadership in Organizations found that 91% of Millennials valued discussion about career progression as early as during recruitment.

7. Be transparent about compensation.

According to PayScale’s survey of over 500,000 employees, pay fairness and transparency were more important than market value.

Put another way: believing their pay was determined fairly had a greater impact on employee engagement than being paid more.

8. Start employee recognition programs.

Everyone wants to be recognized when they do good work. Whether it’s a few kind words or a small perk, public recognition can go a long way toward boosting engagement.

Design a program that highlights behaviors that align with your company values. This not only encourages those behaviors but helps to show that your values aren’t just a slogan.

Pro Tip: Rewards can be difficult to coordinate with remote employees. Third-party vendors make it easier to distribute incentives. We like personalized swag from companies like Reachdesk that give a human touch to your gifting. Or virtual gift cards from services like Rybbon, because cash is always a welcome bonus.

9. Start peer recognition programs.

Peer recognition programs are a great way to create a sense of community and collaboration. They also help to celebrate successes that may otherwise go unseen by management.

One lightweight solution is to make an outlet for public kudos. Matthew Stibbe, CEO of Articulate Marketing suggests, “Set up a ‘validation channel’ in Slack or Teams and encourage your colleagues to use it to recognise great work across the business. Peer and manager recognition can be very motivating.”

You can also give your employees the power of perks. At HubSpot, each employee has a quarterly opportunity to nominate a teammate that’s helped them in some way. The nominated employee gets a monetary bonus and the knowledge that their help was valued.

10. Create social outlets.

62% of employees with one to five work friends would reject an outside offer, according to SHRM’s Workforce study. Creating a sense of community and belonging is a powerful driver of engagement.

It’s even more important for remote employees who may not have daily positive interactions with co-workers.

“In the remote world we’re living in, a great way to create the employee experience is through building a virtual community and destination for the employee base. Company intranets are often outdated and overlooked, but when given the right resources, they’re an exceptional tool for employee connection and helping your employee engagement program reach its potential,” adds Leane Poirier from ZoomInfo.

Here are a few ideas for virtual socialization to get you started:

Shared virtual activities. Think wine-and-design, book clubs, or even Dungeons and Dragons.
Optional drop-in “water cooler” meetings. No talking about work allowed.
Slack channels dedicated to shared interests. HubSpot has hundreds of Slack channels, for everything from pet pictures to true crime podcasts.

Just be sure to make these activities optional. Nothing ruins the mood like mandatory fun.

11. Seek ongoing feedback.

Communication should be a two-way street. Listening to your employees– and then acting on that feedback– makes them more likely to contribute.

Upward reviews, employee surveys, and feedback discussions should be regular features. Be receptive to, and transparent about, the feedback you receive.

Again, be sure to act on it. Few things destroy employee engagement faster than making them feel ignored.

12. Prove It.

Any company can say they live their values, but can they prove it? Outside frameworks like B corp certification or ‘Investors in People’ accreditation show where your priorities are.

Stibbe from Articulate Marketing points out, “The best people want to work in companies that reflect their own values and priorities. If you want to engage employees, you need to show them what you believe in. Words matter. Commitment is important. But in our experience, externally-audited standards such as B Corp and Investors in People are essential to set objective standards and demonstrate our progress towards them. It’s not just words. It’s proof.”

Getting Engaged.

There’s a lot to consider here, but you don’t have to do it all on day one. Choose a few strategies and commit to taking action. Be upfront with your employees about your engagement goals, and then share the progress you’re making.

Editor’s note: This post was originally published in October 2019 and has been updated for comprehensiveness.

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MARKETING

AI driving an exponential increase in marketing technology solutions

Published

1 day ago

December 6, 2023

Entireweb News Bot

AI driving an exponential increase in marketing technology solutions

The martech landscape is expanding and AI is the prime driving force. That’s the topline news from the “Martech 2024” report released today. And, while that will get the headline, the report contains much more.

Since the release of the most recent Martech Landscape in May 2023, 2,042 new marketing technology tools have surfaced, bringing the total to 13,080 — an 18.5% increase. Of those, 1,498 (73%) were AI-based.

“But where did it land?” said Frans Riemersma of Martech Tribe during a joint video conference call with Scott Brinker of ChiefMartec and HubSpot. “And the usual suspect, of course, is content. But the truth is you can build an empire with all the genAI that has been surfacing — and by an empire, I mean, of course, a business.”

Content tools accounted for 34% of all the new AI tools, far ahead of video, the second-place category, which had only 4.85%. U.S. companies were responsible for 61% of these tools — not surprising given that most of the generative AI dynamos, like OpenAI, are based here. Next up was the U.K. at 5.7%, but third place was a big surprise: Iceland — with a population of 373,000 — launched 4.6% of all AI martech tools. That’s significantly ahead of fourth place India (3.5%), whose population is 1.4 billion and which has a significant tech industry.

Dig deeper: 3 ways email marketers should actually use AI

The global development of these tools shows the desire for solutions that natively understand the place they are being used.

“These regional products in their particular country…they’re fantastic,” said Brinker. “They’re loved, and part of it is because they understand the culture, they’ve got the right thing in the language, the support is in that language.”

Now that we’ve looked at the headline stuff, let’s take a deep dive into the fascinating body of the report.

The report: A deeper dive

Marketing technology “is a study in contradictions,” according to Brinker and Riemersma.

In the new report they embrace these contradictions, telling readers that, while they support “discipline and fiscal responsibility” in martech management, failure to innovate might mean “missing out on opportunities for competitive advantage.” By all means, edit your stack meticulously to ensure it meets business value use cases — but sure, spend 5-10% of your time playing with “cool” new tools that don’t yet have a use case. That seems like a lot of time.

Similarly, while you mustn’t be “carried away” by new technology hype cycles, you mustn’t ignore them either. You need to make “deliberate choices” in the realm of technological change, but be agile about implementing them. Be excited by martech innovation, in other words, but be sensible about it.

The growing landscape

Consolidation for the martech space is not in sight, Brinker and Riemersma say. Despite many mergers and acquisitions, and a steadily increasing number of bankruptcies and dissolutions, the exponentially increasing launch of new start-ups powers continuing growth.

It should be observed, of course, that this is almost entirely a cloud-based, subscription-based commercial space. To launch a martech start-up doesn’t require manufacturing, storage and distribution capabilities, or necessarily a workforce; it just requires uploading an app to the cloud. That is surely one reason new start-ups appear at such a startling rate.

Dig deeper: AI ad spending has skyrocketed this year

As the authors admit, “(i)f we measure by revenue and/or install base, the graph of all martech companies is a ‘long tail’ distribution.” What’s more, focus on the 200 or so leading companies in the space and consolidation can certainly be seen.

Long-tail tools are certainly not under-utilized, however. Based on a survey of over 1,000 real-world stacks, the report finds long-tail tools constitute about half of the solutions portfolios — a proportion that has remained fairly consistent since 2017. The authors see long-tail adoption where users perceive feature gaps — or subpar feature performance — in their core solutions.

Composability and aggregation

The other two trends covered in detail in the report are composability and aggregation. In brief, a composable view of a martech stack means seeing it as a collection of features and functions rather than a collection of software products. A composable “architecture” is one where apps, workflows, customer experiences, etc., are developed using features of multiple products to serve a specific use case.

Indeed, some martech vendors are now describing their own offerings as composable, meaning that their proprietary features are designed to be used in tandem with third-party solutions that integrate with them. This is an evolution of the core-suite-plus-app-marketplace framework.

That framework is what Brinker and Riemersma refer to as “vertical aggregation.” “Horizontal aggregation,” they write, is “a newer model” where aggregation of software is seen not around certain business functions (marketing, sales, etc.) but around a layer of the tech stack. An obvious example is the data layer, fed from numerous sources and consumed by a range of applications. They correctly observe that this has been an important trend over the past year.

Build it yourself

Finally, and consistent with Brinker’s long-time advocacy for the citizen developer, the report detects a nascent trend towards teams creating their own software — a trend that will doubtless be accelerated by support from AI.

So far, the apps that are being created internally may be no more than “simple workflows and automations.” But come the day that app development is so democratized that it will be available to a wide range of users, the software will be a “reflection of the way they want their company to operate and the experiences they want to deliver to customers. This will be a powerful dimension for competitive advantage.”

Constantine von Hoffman contributed to this report.

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MARKETING

Mastering The Laws of Marketing in Madness

Published

2 days ago

December 5, 2023

Entireweb News Bot

Mastering The Laws of Marketing in Madness

Navigating through the world of business can be chaotic. At the time of this publication in November 2023, global economic growth is expected to remain weak for an undefined amount of time.

However, certain rules of marketing remain steadfast to guide businesses towards success in any environment. These universal laws are the anchors that keep a business steady, helping it thrive amidst uncertainty and change.

In this guide, we’ll explore three laws that have proven to be the cornerstones of successful marketing. These are practical, tried-and-tested approaches that have empowered businesses to overcome challenges and flourish, regardless of external conditions. By mastering these principles, businesses can turn adversities into opportunities, ensuring growth and resilience in any market landscape. Let’s uncover these essential laws that pave the way to success in the unpredictable world of business marketing. Oh yeah, and don’t forget to integrate these insights into your career. Follow the implementation steps!

Law 1: Success in Marketing is a Marathon, Not a Sprint

Navigating the tumultuous seas of digital marketing necessitates a steadfast ship, fortified by a strategic long-term vision. It’s a marathon, not a sprint.

Take Apple, for instance. The late ’90s saw them on the brink of bankruptcy. Instead of grasping at quick, temporary fixes, Apple anchored themselves in a long-term vision. A vision that didn’t just stop at survival, but aimed for revolutionary contributions, resulting in groundbreaking products like the iPod, iPhone, and iPad.

In a landscape where immediate gains often allure businesses, it’s essential to remember that these are transient. A focus merely on the immediate returns leaves businesses scurrying on a hamster wheel, chasing after fleeting successes, but never really moving forward.

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A long-term vision, however, acts as the north star, guiding businesses through immediate challenges while ensuring sustainable success and consistent growth over time.

Consider This Analogy:

Building a business is like growing a tree. Initially, it requires nurturing, patience, and consistent care. But with time, the tree grows, becoming strong and robust, offering shade and fruits—transforming the landscape. The same goes for business. A vision, perseverance, and a long-term strategy are the nutrients that allow it to flourish, creating a sustainable presence in the market.

Implementation Steps:

Begin by planning a content calendar focused on delivering consistent value over the next six months.
Ensure regular reviews and necessary adjustments to your long-term goals, keeping pace with evolving market trends and demands.
And don’t forget the foundation—invest in robust systems and ongoing training, laying down strong roots for sustainable success in the ever-changing digital marketing landscape.

Law 2: Survey, Listen, and Serve

Effective marketing hinges on understanding and responding to the customer’s needs and preferences. A robust, customer-centric approach helps in shaping products and services that resonate with the audience, enhancing overall satisfaction and loyalty.

Take Netflix, for instance. Netflix’s evolution from a DVD rental company to a streaming giant is a compelling illustration of a customer-centric approach.

Their transition wasn’t just a technological upgrade; it was a strategic shift informed by attentively listening to customer preferences and viewing habits. Netflix succeeded, while competitors such a Blockbuster haid their blinders on.

Here are some keystone insights when considering how to Survey, Listen, and Serve…

Customer Satisfaction & Loyalty:

Surveying customers is essential for gauging their satisfaction. When customers feel heard and valued, it fosters loyalty, turning one-time buyers into repeat customers. Through customer surveys, businesses can receive direct feedback, helping to identify areas of improvement, enhancing overall customer satisfaction.

Engagement:

Engaging customers through surveys not only garners essential feedback but also makes customers feel valued and involved. It cultivates a relationship where customers feel that their opinions are appreciated and considered, enhancing their connection and engagement with the brand.

Product & Service Enhancement:

Surveys can unveil insightful customer feedback regarding products and services. This information is crucial for making necessary adjustments and innovations, ensuring that offerings remain aligned with customer needs and expectations.

Data Collection:

Surveys are instrumental in collecting demographic information. Understanding the demographic composition of a customer base is crucial for tailoring marketing strategies, ensuring they resonate well with the target audience.

Operational Efficiency:

Customer feedback can also shed light on a company’s operational aspects, such as customer service and website usability. Such insights are invaluable for making necessary enhancements, improving the overall customer experience.

Benchmarking:

Consistent surveying allows for effective benchmarking, enabling businesses to track performance over time, assess the impact of implemented changes, and make data-driven strategic decisions.

Implementation Steps:

Regularly incorporate customer feedback mechanisms like surveys and direct interactions to remain attuned to customer needs and preferences.
Continuously refine and adjust offerings based on customer feedback, ensuring products and services evolve in alignment with customer expectations.
In conclusion, adopting a customer-centric approach, symbolized by surveying, listening, and serving, is indispensable for nurturing customer relationships, driving loyalty, and ensuring sustained business success.

Law 3: Build Trust in Every Interaction

In a world cluttered with countless competitors vying for your prospects attention, standing out is about more than just having a great product or service. It’s about connecting authentically, building relationships rooted in trust and understanding. It’s this foundational trust that transforms casual customers into loyal advocates, ensuring that your business isn’t just seen, but it truly resonates and remains memorable.

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For instance, let’s talk about Oprah! Through vulnerability and honest connections, Oprah Winfrey didn’t just build an audience; she cultivated a community. Sharing, listening, and interacting genuinely, she created a media landscape where trust and respect flourished. Oprah was known to make her audience and even guests cry for the first time live. She had a natural ability to build instant trust.

Here are some keystone insights when considering how to develop and maintain trust…

The Unseen Fast-Track

Trust is an unseen accelerator. It simplifies decisions, clears doubts, and fast-forwards the customer journey, turning curiosity into conviction and interest into investment.

The Emotional Guardrail

Trust is like a safety net or a warm embrace, making customers feel valued, understood, and cared for. It nurtures a positive environment, encouraging customers to return, not out of necessity, but a genuine affinity towards the brand.

Implementation Steps:

Real Stories: Share testimonials and experiences, both shiny and shaded, to build credibility and show authenticity.
Open Conversation: Encourage and welcome customer feedback and discussions, facilitating a two-way conversation that fosters understanding and improvement.
Community Engagement: Actively participate and engage in community or industry events, align your brand with genuine causes and values, promoting real connections and trust.

Navigating through this law involves cultivating a space where authenticity leads, trust blossoms, and genuine relationships flourish, engraving a memorable brand story in the hearts and minds of the customers.

Guarantee Your Success With These Foundational Laws

Navigating through the world of business is a demanding odyssey that calls for more than just adaptability and innovation—it requires a solid foundation built on timeless principles. In our exploration, we have just unraveled three indispensable laws that stand as pillars supporting the edifice of sustained marketing success, enabling businesses to sail confidently through the ever-shifting seas of the marketplace.

Law 1: “Success in Marketing is a Marathon, Not a Sprint,” advocates for the cultivation of a long-term vision. It is about nurturing a resilient mindset focused on enduring success rather than transient achievements. Like a marathon runner who paces themselves for the long haul, businesses must strategize, persevere, and adapt, ensuring sustained growth and innovation. The embodiment of this law is seen in enterprises like Apple, whose evolutionary journey is a testament to the power of persistent vision and continual reinvention.

Law 2: “Survey, Listen, and Serve,” delineates the roadmap to a business model deeply intertwined with customer insights and responsiveness. This law emphasizes the essence of customer-centricity, urging businesses to align their strategies and offerings with the preferences and expectations of their audiences. It’s a call to attentively listen, actively engage, and meticulously tailor offerings to resonate with customer needs, forging paths to enhanced satisfaction and loyalty.

Law 3: “Build Trust in Every Interaction,” underscores the significance of building genuine, trust-laden relationships with customers. It champions the cultivation of a brand personality that resonates with authenticity, fostering connections marked by trust and mutual respect. This law navigates businesses towards establishing themselves as reliable entities that customers can resonate with, rely on, and return to, enriching the customer journey with consistency and sincerity.

These pivotal laws form the cornerstone upon which businesses can build strategies that withstand the tests of market volatility, competition, and evolution. They stand as unwavering beacons guiding enterprises towards avenues marked by not just profitability, but also a legacy of value, integrity, and impactful contributions to the marketplace. Armed with these foundational laws, businesses are empowered to navigate the multifaceted realms of the business landscape with confidence, clarity, and a strategic vision poised for lasting success and remarkable achievements.

Oh yeah! And do you know Newton’s Law?The law of inertia, also known as Newton’s first law of motion, states that an object at rest will stay at rest, and an object in motion will stay in motion… The choice is yours. Take action and integrate these laws. Get in motion!

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MARKETING

Intro to Amazon Non-endemic Advertising: Benefits & Examples

Published

3 days ago

December 4, 2023

Entireweb News Bot

Intro to Amazon Non-endemic Advertising: Benefits & Examples

Amazon has rewritten the rules of advertising with its move into non-endemic retail media advertising. Advertising on Amazon has traditionally focused on brands and products directly sold on the platform. However, a new trend is emerging – the rise of non-endemic advertising on this booming marketplace. In this article, we’ll dive into the concept of non-endemic ads, their significance, and the benefits they offer to advertisers. This strategic shift is opening the floodgates for advertisers in previously overlooked industries.

While endemic brands are those with direct competitors on the platform, non-endemic advertisers bring a diverse range of services to Amazon’s vast audience. The move toward non-endemic advertising signifies Amazon’s intention to leverage its extensive data and audience segments to benefit a broader spectrum of advertisers.

Endemic vs. Non-Endemic Advertising

Let’s start by breaking down the major differences between endemic advertising and non-endemic advertising…

Endemic Advertising

Endemic advertising revolves around promoting products available on the Amazon platform. With this type of promotion, advertisers use retail media data to promote products that are sold at the retailer.

Non-Endemic Advertising

In contrast, non-endemic advertising ventures beyond the confines of products sold on Amazon. It encompasses industries such as insurance, finance, and services like lawn care. If a brand is offering a product or service that doesn’t fit under one of the categories that Amazon sells, it’s considered non-endemic. Advertisers selling products and services outside of Amazon and linking directly to their own site are utilizing Amazon’s DSP and their data/audience segments to target new and relevant customers.

7 Benefits of Running Non-Endemic Ad Campaigns

Running non-endemic ad campaigns on Amazon provides a wide variety of benefits like:

Access to Amazon’s Proprietary Data: Harnessing Amazon’s robust first-party data provides advertisers with valuable insights into consumer behavior and purchasing patterns. This data-driven approach enables more targeted and effective campaigns.

Increased Brand Awareness and Revenue Streams: Non-endemic advertising allows brands to extend their reach beyond their typical audience. By leveraging Amazon’s platform and data, advertisers can build brand awareness among users who may not have been exposed to their products or services otherwise. For non-endemic brands that meet specific criteria, there’s an opportunity to serve ads directly on the Amazon platform. This can lead to exposure to the millions of users shopping on Amazon daily, potentially opening up new revenue streams for these brands.

No Minimum Spend for Non-DSP Campaigns: Non-endemic advertisers can kickstart their advertising journey on Amazon without the burden of a minimum spend requirement, ensuring accessibility for a diverse range of brands.

Amazon DSP Capabilities: Leveraging the Amazon DSP (Demand-Side Platform) enhances campaign capabilities. It enables programmatic media buys, advanced audience targeting, and access to a variety of ad formats.

Connect with Primed-to-Purchase Customers: Amazon’s extensive customer base offers a unique opportunity for non-endemic advertisers to connect with customers actively seeking relevant products or services.

Enhanced Targeting and Audience Segmentation: Utilizing Amazon’s vast dataset, advertisers can create highly specific audience segments. This enhanced targeting helps advertisers reach relevant customers, resulting in increased website traffic, lead generation, and improved conversion rates.

Brand Defense – By utilizing these data segments and inventory, some brands are able to bid for placements where their possible competitors would otherwise be. This also gives brands a chance to be present when competitor brands may be on the same page helping conquest for competitors’ customers.

How to Start Running Non-Endemic Ads on Amazon

Ready to start running non-endemic ads on Amazon? Start with these essential steps:

Familiarize Yourself with Amazon Ads and DSP: Understand the capabilities of Amazon Ads and DSP, exploring their benefits and limitations to make informed decisions.

Look Into Amazon Performance Plus: Amazon Performance Plus is the ability to model your audiences based on user behavior from the Amazon Ad Tag. The process will then find lookalike amazon shoppers with a higher propensity for conversion.

“Amazon Performance Plus has the ability to be Amazon’s top performing ad product. With the machine learning behind the audience cohorts we are seeing incremental audiences converting on D2C websites and beating CPA goals by as much as 50%.”

– Robert Avellino, VP of Retail Media Partnerships at Tinuiti

Understand Targeting Capabilities: Gain insights into the various targeting options available for Amazon ads, including behavioral, contextual, and demographic targeting.

Command Amazon’s Data: Utilize granular data to test and learn from campaign outcomes, optimizing strategies based on real-time insights for maximum effectiveness.

Work with an Agency: For those new to non-endemic advertising on Amazon, it’s essential to define clear goals and identify target audiences. Working with an agency can provide valuable guidance in navigating the nuances of non-endemic advertising. Understanding both the audience to be reached and the core audience for the brand sets the stage for a successful non-endemic advertising campaign.

Conclusion

Amazon’s venture into non-endemic advertising reshapes the advertising landscape, providing new opportunities for brands beyond the traditional ecommerce sphere. The blend of non-endemic campaigns with Amazon’s extensive audience and data creates a cohesive option for advertisers seeking to diversify strategies and explore new revenue streams. As this trend evolves, staying informed about the latest features and possibilities within Amazon’s non-endemic advertising ecosystem is crucial for brands looking to stay ahead in the dynamic world of digital advertising.

We’ll continue to keep you updated on all things Amazon, but if you’re looking to learn more about advertising on the platform, check out our Amazon Services page or contact us today for more information.

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