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July 26, 2019

Significant Untapped Marketing Potential in the Amazon Health and Household Category

Amazon’s Health & Household category is showing a typical Share of Voice pattern among its larger brands.  Brands with the greatest organic share of voice also tend to have maxed out their paid share of voice – they are the dominant brands. But there are a few brands with high organic and low paid share of voice. These are the brands with the most Untapped Marketing Potential who likely can effectively increase their Amazon ad spend.

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Dominant Brands

Energizer (Household Batteries), Always (Feminine Care) and Glade (Air Fresheners) are grouped together as brands that already have high organic and paid share of voice. Each brand’s organic and paid metrics are virtually identical and fall within the band of 19% to 27%, which is quite high for any brand in any Amazon category.

High Untapped Potential

The second grouping, that we’re focused on here, contains brands with a high organic-to-paid share of voice ratio. That is, their organic share of voice greatly exceeds their paid. Here we see four brands emerge, Kimberly Clark (Paper & Plastic), Georgia-Pacific (Paper & Plastic), Post (Protein) and Duracell (Household Batteries). These brands have organic shares of voice between 2.1x to 6.6x their paid. That’s quite a discrepancy. And you can see their organic share of voice is considerably lower than that of the dominant brands. We suspect there may be significant untapped marketing potential available to these brands. Both to capture more paid share of voice and to use that sales volume to drive their organic metrics.

Niche Brands

In the lower left corner of the visual we see a handful of niche brands with low organic and paid share of voice. Typically we assume these brands are perhaps fringe competitors in these particular categories. Having said that, their organic shares of voice are still quite high compared to most brands. It’s just when compared to these top 12 brands in health and household they get categorized as something of a niche brand. So, there may very well be more potential here then their organic-to-paid ratios initially indicate.

Method

We ran an analysis of 180+ brands in nine of Amazon’s L3 categories within the Amazon Grocery & Gourmet Food L1 category:

Across all the categories we gathered over 6 months of daily data on each brand’s share of voice. We then followed these steps:

  1. Sorted the brands by organic share of voice to focus on the more prominent brands;
  2. Selected the 12 with highest share of voice;
  3. Plotted their organic share of voice (vertical axis) against their ratio of organic vs. paid share of voice (horizontal);
  4. If a parent company had multiple brands in the top 12 we included them so long as they were in different categories. If they were in the same category we selected the brand with the highest organic share of voice;

This analysis is of course not exhaustive. We will likely add more L3 categories to the mix in the future. The intent was to give brands a framework within which to visualize and consider their brand’s positioning within their respective category.

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