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 to achieve their business goals by means of 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”).
If you’re a third-party seller, you’ll have to use sponsored product ads mostly. So, we’ll refer to this specific ad format in this article. 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, let me tell you something 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 there 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 right and top/bottom of the search results. The minimum budget to get started is $1 per day 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 out in case you have 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 that is used to measure the performance of Amazon’s Sponsored Ad campaigns. The ratio of ad spend on targeted sales is indicated through this metric.
You should keep in mind that ACoS doesn’t say anything about profitability individually. It needs to be compared with target profit margins to determine what is 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%). Digital marketing agencies are well-versed with 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 in a short span of time.
Use Automation in Limits
Needless to say, marketing automation is a good thing when it comes to running ad campaigns. However, it should be used in limits. You should exercise maximum control over your campaigns so that they can be tweaked as 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 run test campaigns to find out what search terms people are using to find products and services that are similar to those sold by your company. You can let the campaigns run for a couple of days and come back to check the results. 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 so as 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.
Using a broad match type, you can cast a wider net on the audience. 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 that are relevant to your campaigns. For example, if your keyword is a school bag, then your ads can be shown for searches such as a blue school bag, big bag for children, or 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 be used to completely restrict ads for a specific group of keywords. 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. If your campaigns are messy, you have the risk of 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. You can also 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. Analyze the performance and profit margins of your products before you place a bid for them.
Use Long Tail Keywords
Long tail keywords are longer keyword 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 result in higher conversions.
Bid on the Best-Performing Keywords of Your Competitors
Competitor research plays a key role in your marketing efforts. You should know what keywords your competitors are using to drive the required traffic. If you are well aware of such keywords then it will help you to 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 there are multiple campaigns to be run. On the other hand, the tool approach can provide many comprehensive insights. You should 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. The results will be visible only if you have used the platform in the right way. 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 while he designs result-driven ad campaigns for small and mid-sized businesses around the world. He enjoys web development, e-commerce programming, and plugin development.