3 ways to use competitive market intelligence to identify incremental growth opportunities
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4 min

3 ways to use competitive market intelligence to identify incremental growth opportunities

Elliot Gregory, April 22, 2024

With new placements introduced annually to showcase your products to potential customers, Amazon has increasingly become a more expensive "pay to place" market to compete with competitor brands. Furthermore, a new challenge arises from this dynamic - "How do I effectively measure the potential revenue opportunities within my category?" 

Purely looking through the lens of "advertising effectiveness" and judging those metrics centred around this (such as ACOS, ROAS etc) does not give brands the full picture of performance within their category. This lens does not answer questions such as; "What is the potential revenue opportunity in my category?" and "How are my competitors performing and I benchmarked against them?". Market intelligence data can be a game changer for brands looking to have a more holistic view of the market at-large. It is no longer enough to only look at your own performance. To truly compete in your category and identify incremental opportunities for growth, you need to track market dynamics and understand your brand’s position within that market. Market intelligence can help you:  

  • Properly identify the revenue opportunity within a category and how other key competitors are performing within that category 

  • Use competitive market intelligence data to influence and execute advertising strategies

  • Measure the effectiveness of these advertising strategies to help drive growth on Amazon 

Identifying revenue opportunities within a category 

The starting step for understanding "How much of the category does my brand own today" is identifying how much revenue you make within said category and benchmarking this against all other competition. Once you know this, you can then identify where you can push to capture more of that revenue and category ownership for your brand.  

Using these insights, you can more fully understand where you sit within the category. For example, for high volume products it is incredibly important to be able to see if there are key competitors that are selling at higher volumes or new emerging competitors that are growing rapidly that you should be aware of.  

At Perpetua, our latest market intelligence feature “Sales Opportunity Finder”, automatically creates specific category niches taken from your top selling ASINs and related competitor ASINs that have high search term overlap. Within this module advertisers can then benchmark their sales data against overall category sales and gain insights into how they are performing against competitor products. 

This feature also gives quick and easy insights to advertisers to review the gap between their brand and their competition, identify opportunities for growth, assess whether the opportunity is worth investment, and improve ad strategy effectiveness thereafter.   

Using competitive market intelligence data to influence and execute advertising strategies 

After identifying potential revenue opportunities within a category, it’s important to understand exactly what competitors are doing to win and maintain market share, and act upon these insights. 

In Perpetua, brands can see competitor ASINs that have high search term overlap and are key revenue drivers for their competitors. You can apply several filters to understand: 

  • Whether or not you are optimizing specific keywords in a Perpetua goal that competitors are showing up for organically 

  • Search terms you are being outranked on by your competitors organically 

  • Search terms you are outranking your competition on organically 

  • Attributed sales on relevant search terms across the last 7 days 

  • Ad spend on relevant search terms across the last 7 days 

The first piece of the puzzle is access to this data, but the next layer that can help you capitalize on this data is acting on these insights. In one click, you can add keywords to new or existing Perpetua goals. This is particularly important as trends will affect the way customers will search for your products and it is imperative that you stay on top of the way people are searching. Using this data, you can also quickly create Keyword Boosts for specific keywords where competitors are outranking your products organically. The concept of a Keyword Boost in Perpetua is isolating specific keywords into their own campaign with the objective of being more aggressive in a tailored campaign and winning Top of Search. Boosting this specific keyword can help to improve Organic Rank over time.   

Measuring the effectiveness of these advertising strategies to help drive growth on Amazon 

Once you have reviewed opportunities identified as part of Sales Opportunity Finder and implemented the findings in your ad strategy, it is important to review your progress over time. When looking at the success of your campaigns, we recommend tracking metrics like Top-of-Search Impression Share which measure the percentage of total first-page searches your ads could potentially capture. If you’re looking to drive increases in your Share-of-Voice, you can track this in Search Insights alongside metrics like Conversion Rate. For goals that aim to increase Organic Rank, you can track both Conversion Rate and Click-Through Rate as they indicate relevancy to Amazon’s Organic Rank algorithm, and make adjustments to your Keyword Boost and Top-of-Search goals accordingly.   

Final Thoughts  

Remember that Amazon is a dynamic marketplace, with changes coming fast and frequently. Reviewing your overall market share changes with market intelligence insights and reviewing your advertising data as a result of these changes is key in validating the results from these insights - or further pivoting where needed. To learn more about how to get started with Perpetua’s market intelligence tool, email us at hello@perpetua.io.  

To get started or learn more about how Perpetua can help you scale your Amazon Advertising business