As the competition on Amazon continues to heat up, it's essential to elevate your advertising game to maximise your results. With the right strategies and tools, you can effectively leverage Amazon's advertising platform to drive brand awareness, increase sales, and outperform your competitors. In this blog post, we'll explore eight actionable tips that will help you optimise your Amazon advertising campaigns and achieve tremendous success.
"In today's highly competitive Amazon marketplace, it's crucial for sellers to adopt advanced advertising tactics to stay ahead. By implementing strategies such as Sponsored Brands, product-level profitability analysis, and leveraging the Flywheel effect, sellers can maximise their advertising ROI and achieve long-term success on Amazon." - Brent Zahradnik, AMZ Pathfinder
- Build brand awareness with Sponsored Brands: Formerly known as headline search ads, Sponsored Brands are a powerful tool for building brand recognition on Amazon. These ads appear above the search results, allowing you to promote multiple products while incorporating a custom headline, logo, and ASINs. Utilise Sponsored Brands to target top-of-the-funnel customers and drive traffic to your storefront and product listing pages.
- Focus on product-level profitability: To maximise your advertising budget, analyse product-level profitability before implementing paid advertising. By understanding the gross profit margins of individual SKUs, you can identify the products that will benefit most from paid advertising while minimising risk and maximising returns.
- Take advantage of the Flywheel effect: The Flywheel effect is a concept that involves using paid advertising to generate earned media, which drives overall growth. You can boost your products' positions in organic search results by driving traffic to your product pages through paid ads. As your products gain visibility and earn positive reviews, the cycle continues, increasing traffic and sales. Measure your success based on total revenue, gross profit, and TACoS (Total Advertising Cost of Sale) rather than focusing solely on ACoS.
- Use category-specific targeting for Sponsored Products: Sponsored Products are a popular advertising option on Amazon, and you can enhance their effectiveness by using category-specific targeting. Product Attribute Targeting (PAT) allows you to showcase your ads alongside complementary products, specific brands, price ranges, or star ratings. By aligning your ads with relevant products, you increase the likelihood of conversion and capitalise on customer interest.
- Reduce wasteful ad spend: Like Google Ads, Amazon allows you to use negative keywords to exclude specific search terms from your ad campaigns. Identify keywords that generate a high traffic volume but few conversions and add them as negative keywords. By doing so, you can prevent your ads from appearing in searches that are unlikely to result in sales, saving your ad budget for more effective targeting.
- Have a flexible Advertising Cost of Sale (ACoS) goal: While aiming for a low ACoS is generally preferred, it's essential to have a flexible goal depending on your campaign objectives. For best-selling products, focus on lowering advertising costs to maximise profitability. However, for product launches, a higher ACoS may be necessary initially to gain traction and generate reviews.
- Use auto campaigns to explore and manual campaigns to exploit: Auto campaigns can be valuable for discovering converting search terms. Use them to identify successful keywords and incorporate them into your manual campaigns for better control and optimisation. Automate keyword optimisation processes, including negative keyword management and keyword match type refinement.
- Optimise your bids: Regularly monitor and adjust them to ensure they align with your conversion rates and budget. Avoid relying on ad group default bids and set your bids at the keyword level. Leverage automation and machine learning technologies to optimise your bidding process efficiently.
Conclusion:
By implementing these tips, you can take your Amazon advertising campaigns to new heights. Building brand awareness, focusing on profitability, leveraging the Flywheel effect, utilising category-specific targeting, employing negative keywords, setting flexible ACoS goals, utilising auto and manual campaigns strategically, and optimising your bids will help you sell more and spend less.
