Amazon has proved to be a blessing for retailers who aim to make it big in the field of e-commerce. Apart from being easy to set up, it connects sellers with an ever-expanding customer base. However, exposure takes time, and getting it is difficult as well.
Fortunately, Amazon helps sellers achieve their business goals through Amazon advertising campaigns. These campaigns are offered in three formats – Amazon Sponsored Products Ads, Amazon Headline Search Ads, and Amazon Product Ads (a.k.a. “Product Display Ads”).
Amazon Advertising Tips That Can Boost Your Sales
You’ll mostly have to use sponsored product ads if you’re a third-party seller. So, we’ll refer to this specific ad format in this article. However, you will need technical knowledge and expertise to run your digital marketing plan, especially the Amazon campaigns, at their full potential. In this blog, I will tell you five advertising tips that you can use to optimize your campaigns and save money. Before that, I will tell you about Sponsored Product Ads and Advertising Cost of Sale (ACoS).
Sponsored Product Ads
Sponsored Product Ads can virtually blend in with the rest of the ad listings. This indicates that the product is at the top of the search results because it’s popular and useful instead of just being a paid advertisement.
These ads can be used by third-party sellers and vendors and are triggered by keywords, which can be targeted either manually or automatically. Ads are displayed on the search results right and top/bottom. The minimum budget to get started is $1 daily, and advertisers are charged for every click. So it’s a pay-per-click (PPC) model like Google search ads. You can contact professional PPC campaign management services to help you with any doubts regarding these solutions.
The requirements to become an advertiser on Amazon are low. You must –
- Have a professional seller account.
- Ship to all U.S. addresses.
- Sell new products instead of used ones.
Advertising Cost of Sale (ACoS)
It is a key metric used to measure the performance of Amazon’s Sponsored Ad campaigns. The ratio of ad spend on targeted sales is indicated through this metric.
Remembering that ACoS doesn’t say anything about profitability individually would be best. Instead, it needs to be compared with target profit margins to determine the ideal advertising cost of sale for a target profit. For example, if your break-even margin is 25%, and you want to make a profit of 12% after deducting Amazon advertising costs, then your target ACoS would be 13% (25%-12%). Again, digital marketing agencies are well-versed in these metrics and can calculate them accurately for you.
5 Tips to Advertise & Generate Sales on Amazon
Here are some tips that will help you increase your sales on Amazon quickly.
Use Automation in Limits
Marketing automation is a good thing when it comes to running ad campaigns. However, it should be used in limits. It would be best to exercise maximum control over your campaigns so they can be tweaked per the latest market trends. It will also help in making cost-effective decisions for your business.
Automation is helpful in some instances of marketing. Keyword research is one of them. You can test campaigns to find out what search terms people use to find products and services similar to your company’s. Then, you can let the campaigns run for a few days and return to check the results. In addition, you can now use the popular search terms manually for your ad campaigns.
Use Match Types in Keyword Targeting
Match types are modifications that can be done to an existing keyword to increase its relevance when the ad is triggered.
Here are four classes of match types that Amazon uses to refine targeting:
The key is to use a combination of these match-type options to get good results and reach the buyers who are more likely to purchase the advertised product.
You can cast a wider net on the audience using a broad match type. Words can be added to the front, middle, or after your target keywords. This match type is often useful to jumpstart campaigns and discover new keywords relevant to your campaigns. For example, if your keyword is a school bag, your ads can be shown for searches such as a blue school bag, a big bag for children, or a school bag for children.
Phrase matches will allow you to narrow down the searches that trigger your ads. Words are usually added in front or after your keywords, and they can include misspellings or plurals.
Exact matches are the most restrictive match type of all. It will show your ads if a user misspells your keyword or types in plurals. However, it will not separate your words or add additional ones.
Negative matches can completely restrict ads for a specific group of keywords. Therefore, it mainly helps to avoid showing the ads for irrelevant searches.
Organize Your Campaigns
An organized campaign structure is cost-effective and successful in the longer run. However, if your campaigns are messy, you risk losing money to unqualified clicks from ads retrieved by the wrong keywords. Also, you will end up spending more than necessary on clicks.
The products should be grouped with related keywords. For example, you can organize campaigns by product category, brand, or top sellers. But remember that products within the same group may have different product margins; they can’t have the same bids. So analyze your products’ performance and profit margins before you bid for them.
Use Long Tail Keywords
Long tail keywords are longer phrases that are more specific about search terms. They are usually a chain of three or more keywords put together. For example, if you sell sneakers, a good potential long-tail keyword is designer sneakers for women. Such keywords show your ads in more relevant searches and increase conversions.
Bid on the Best-Performing Keywords of Your Competitors
Competitor research plays a key role in your marketing efforts. First, you should know your competitors’ keywords to drive the required traffic. If you are well aware of such keywords, it will help you uncover a new set of keyword opportunities that can be implemented in the existing campaigns.
You can discover the keywords in two ways: manually or by using the help of an online tool. The manual approach is tedious, especially if multiple campaigns are to be run. On the other hand, the tool approach can provide many comprehensive insights. It would be best to use tools that offer reverse ASIN lookups, such as Keyword Inspector. Such tools use product ASINs to find thousands of keywords in seconds, and each keyword will have an estimated Amazon volume assigned to it. The keywords with the maximum search volume should be chosen for the success of future campaigns.
Amazon Advertising helps you to promote products on a massive scale. You can find, attract, and engage millions of Amazon customers at every stage of their shopping journey. However, the results will be visible only if you have used the platform correctly. So the next time you are planning to launch an ad campaign, make sure that you follow the five advertising tips that you just read in this blog. Best of luck!
Mike is a content strategist at Brainvire Infotech Inc, Digital Marketing Agency based in New York. He is a digital nomad, traveling the world and designing result-driven ad campaigns for small and mid-sized businesses worldwide. In addition, he enjoys web development, e-commerce programming, and plugin development.