Amazon PPC Management: A Definitive Guide to Full-Funnel Strategy

August 7, 2021
Written by Kevin Wong
Amazon PPC management

The key to effective Amazon PPC management is building a well-oiled full-funnel marketing strategy with Amazon Advertising. Sellers, marketers, and advertisers know too well the joys and hardships of creating a full-funnel strategy, which describes your customer's journey. 

The full-funnel marketing strategy helps you decide what type of Amazon Advertising product you should use at each stage, starting from awareness to purchase. This way, you won't have trouble managing paid ads because you know the goal or objective of each Amazon Advertising product. Is it to drive brand awareness, build consideration, or increase purchases? 

This article will discuss the full-funnel marketing strategy, its importance and benefits, and how to create it.

What is a full-funnel marketing strategy, and why is it important?

The word "funnel" pertains to the marketing funnel that has three main parts: top of the funnel, middle of the funnel, and bottom of the funnel. Each stage represents the customer's journey starting from the awareness stage, consideration stage, and purchase stage. However, Amazon uses a different model, as shown below:

The customer's journey isn't strictly linear or straightforward, even though its diagram is funnel-shaped. In reality, most customers don't always start at the initial stage or the awareness stage. Maybe they've known the product all their lives that they have no problems purchasing it again and again. Perhaps they're at the stage where they're still browsing customer reviews to check if the product is worth buying. Therefore, no two customer journeys are the same, and Amazon is aware of this. 

Customers can enter the funnel at any level or skip stages if they want to. Hence, you can't predict the steps buyers take before purchasing a product. So it would be better if you have a full-funnel marketing strategy in place to help you cover all bases.

What are the benefits of a full-funnel marketing strategy?

Amazon recommends a full-funnel approach because it will help you prepare for various customer journey scenarios. You can also fully utilize the different products of Amazon Advertising to have a successful Amazon paid ads management. 

Amazon formed two types of media mix of their advertising products. First is the modified full-funnel strategy that includes Sponsored Products and/or Sponsored Brands, plus Sponsored Display and/or Amazon Demand-Side Platform (DSP). Second is the comprehensive full-funnel approach that consists of paid ads and over-the-top (OTT) ads such as audio and video ads.

Below are benefits based on the media mix of each full-funnel strategy as recommended by Amazon:

  • You can reach new audiences with both media mix types. Based on a 2019 Amazon research, the modified full-funnel strategy has recorded 11% more new-to-brand sales. The comprehensive approach has seen 21% more new-to-brand sales compared to those who use only Sponsored Products and/or Sponsored Brands.
  • Both can increase consideration, the stage where your prospects want to know more about your product. According to an analysis conducted by Amazon, advertisers observed 2x more ad-attributed detail page views and 1.7x more ad-attributed Add to Cart action when using modified full-funnel strategy. On the other hand, those who used a comprehensive full-funnel approach noticed 2.5x more ad-attributed detail page views and 2.1x more ad-attributed Add to Cart actions.
  • The two media mix types can help you drive more sales. The modified approach produced 4% higher month-over-month sales growth. In comparison, the comprehensive approach achieved 8% higher month-over-month sales growth.
  • Although it isn't included in the funnel, one of the media mix types can help build customer loyalty. According to Amazon's analysis of more than 4000 brands, the comprehensive full-funnel approach achieved 1.9x more ad-attributed Subscribe & Save customers. 

Based on the figures above, you can achieve tremendous success with a comprehensive full-funnel approach rather than a modified full-funnel strategy. But if you are still unfamiliar with full-funnel marketing, you may start with a modified full-funnel strategy for the meantime while you work your way up.

How to create a full-funnel strategy with Amazon Advertising

Let us have a detailed view of the full-funnel marketing strategy and determine which Amazon Advertising product is perfect for each stage.

Step no. 1: Make sure your products are ready to buy.

Interestingly, Amazon suggests that you start at the bottom and work your way up as you build a full-funnel marketing strategy. At this stage, you must optimize your product's detail page to meet retail readiness successfully. Make sure that each part, such as titles, bullets, descriptions, images, and A+ content, is engaging to your customers.

Step no. 2: Reach shoppers who are most likely to purchase.

After product listing optimization, your next goal is reaching your target market to drive purchase. Bizfluent describes the target market (or audience) as "a group of consumers identified as likely purchasers of a company's product." 

You may reach your target market by creating Sponsored Product ads using branded search terms or keywords. Do you have customers who viewed your product detail page but didn't convert to sales? Solve this by using Sponsored Display as your remarketing tactic. Display ads can appear on and off of Amazon.

Step no. 3: Stand out in your category.

In other words, you should "own your aisle." This isn't easy considering the thousands of products you will compete with. In this stage, you should be creating Sponsored Products, Sponsored Brands, and Sponsored Displays. Since this is quite tricky, you may seek help from an experienced Amazon PPC agency to help you achieve such a complicated task.

Step no. 4: Build your brand.

If you are sure that you have conquered your aisle, your next assignment is to increase consideration. At this stage, you may try using video and display ads via Amazon DSP and Sponsored Brands. 

Sponsored Brand ads may drive traffic to your Amazon Store to educate potential buyers in the consideration stage. This is the stage where people will be looking for demo videos, product descriptions, how-to posts, and any content that could help them evaluate your products. An Amazon Store could serve this purpose and help shoppers tell more about your brand's story and products.

Step no. 5: Expand your reach.

Man making video ad about headphones

Lastly, build awareness. Now that you've laid the foundation of your Amazon PPC campaign that sits upon a click-worthy and engaging product detail page, you expand your reach on and off of Amazon.

This is possible through Amazon DSP by scaling your reach across various channels like display, audio, and OTT videos. You may also use the Audience Builder under Amazon DSP. It is one of the self-service Amazon PPC management tools that allow you to create audiences based on Amazon's relevant shopping interactions. You can narrow it down based on lifestyle, demographics, streaming preferences, and more.

Conclusion

It might be a bit of a stretch to create a full-funnel marketing strategy considering its complexity and variety. Yes, it is overwhelming, but the results are promising, given the stats above. Amazon PPC management will be a lot easier because you know each Amazon Advertising product's purpose based on the stage where it is assigned. 

Moreover, it is not all about Sponsored Products and Sponsored Brands. You may only reach tremendous success once you utilize all Amazon Advertising products to help you build awareness, increase consideration, and drive purchase across all your products.

Do you want an effective Amazon PPC management strategy? Seller Interactive has a team of experienced Amazon PPC consultants willing to help you. Please email us at [email protected] or [email protected] today.

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