Create Your Customized Amazon Advertising Strategy

February 25, 2020
Written by Mark Salvania
Amazon Advertising

With an Amazon PPC advertising strategy in place, you position your products directly in front of potential buyers. It works like posting ads on Google. The difference is you no longer have to fret about placements. Amazon takes charge of positioning your ads strategically on the platform.  

Quick Guide:

To shed light on the benefits of creating a customized strategy with Amazon Advertising PPC, check out the essential information below.

How Does Amazon Advertise?

Studies have shown that 9 out of 10 online shoppers search on Amazon every day. This fact explains why sellers like you will benefit much from taking advantage of Amazon advertising solutions.

All of them fall under the umbrella term PPC (Pay per Click). Despite having different purposes, all four solutions charge on a per-click basis. Thus, you can determine how much you can bid for each click. 

The Dirty Little Secrets of Amazon PPC Ads
  1. Sponsored Products - The ads are positioned on the first page of search results and product pages. Therefore, they are immediately visible to browsers. You can avail of this solution if you are a professional seller, vendor, book vendor, Kindle Direct Publishing author, or Amazon listing optimization services.
  • Advantages - The ads connect with potential buyers directly. They will see them every time they search for similar products. Once they click on your ad, they will be directed to your page immediately.
  1. Sponsored Brands - Advertising on Amazon via Sponsored Brands increases the browsers’ awareness of your brand. It is visible in search results. It lets you creatively craft your copy to convey a strong message depicting the image you want for your brand. You can take advantage of the benefits of this solution if you are a professional seller subscribed to Brand Registry, vendor, book vendor, and agency.
  • Advantages - People browsing through Amazon for something to buy will see your ad at the top of the page just below the header. This strategic placement catches attention,  automatically making your brand known to browsers. Upon clicking your ad, they will be directed to your page right away.

With this solution, browsers can either click on the logo or a product image. For customers who click on the logo, they will be taken to a store or a custom landing page. If they click on the product, they will be directed to the product page. 

  1. Sponsored Display (Beta) - Amazon has recently introduced this new advertising option for professional sellers enrolled in the brand registry. Vendors and agencies with clients who are professional sellers on Amazon can avail of it too. To qualify, you need to ensure that the products have to fall under one or more allowed categories while complying with the restrictions.
  • Advantages - Amazon will determine the best audience for your products based on their activities on the platform. It works for both large and small businesses. It is advantageous, even if you have limited resources. It allows you to meet a variety of marketing goals ranging from promoting brand awareness to consideration and conversion.
  1. Stores - Creating a Store does not require you to advertise on Amazon first. Like the other paid solutions, this option is available to sellers with brand-registered products, vendors, and agencies.
  • Advantages - Of the four solutions, Stores provides you a multi-page store that lets you advertise your product for free. They are designed to familiarize browsers with your brand, allowing them to access your product portfolio. Setting up a store does not necessitate coding expertise. What is more, you can use its insights as a vital reference for optimizing your ads.

How Effective Is Amazon Advertising?

Advertising at Amazon

Traditional advertising outside Amazon involves intensive research and coordination. To find the most lucrative positions for your products, you need to put in a lot of work. Doing so lets you determine top spots that your target market frequents.

With PPC ads of Amazon marketing, you no longer have to concern yourself with these tedious tasks. They open you to receive the following benefits:

  • Improved online visibility - Advertising your products on Amazon automatically improves its visibility online. With this, you also build a stronger influence, as the ads make browsers more familiar with your brands. Overall, being more visible helps draw more customers, hence helping drive more sales.
  • Positions your products in front of potential buyers - Because your ads appear on the platform, they directly connect with potential buyers. Therefore, you no longer have to search far and wide for ideal spots for optimal ad placement. Overall, this advantage buys you more time for focusing on other essential tasks.
  • Control over the amount you spend on the advertising - Regardless of the solution you choose, you will only be obliged to pay for each click. And with that, you even get to decide on how much you want to bid for each click. Thus, you have better control over the amount you spend on your advertisements.
  • Expansive marketing reach - On average, Amazon gets 200 million visitors monthly. For sellers, such a colossal figure translates to a broad range and the opportunity to boost the customer base considerably. On top of that, all of them are concentrated in one place. Therefore, you do not only get your products in front of more people. But you also spare yourself from the hassles of hunting for prime spots for positioning your ads. Amazon does all the hard work for you.

Challenges - Because Amazon positions your ads directly in front of shoppers, the probable returns are considerable. But as flawless as advertising on Amazon seems, like everything else, it has downsides too.

  • Compared to Facebook or Google, making an ad on Amazon can get a little more labor-intensive. If you are pressed for time, you may find this a disadvantage. Nonetheless, planning and keeping a timeline helps resolve the issue.
  • The schedule and download campaign reporting is not as highly detailed as what most advertisers expect. If you want to get comprehensive performance data, you have to go to the dashboard. There, you have to click on each campaign. The process is tedious, particularly if you have several products with several ads running on the platform.
  • Getting placements can prove troublesome if your product does not have many reviews. In addition, the process of setting up the product display ads and headline search ads may be a bit awkward.
  • It is easy to tell the volume of a keyword used in an ad. However, determining the exact percentage or amount of that volume your ad is receiving is improbable. This aspect's lack of data or transparency makes bidding on and optimizing the right campaigns challenging.

Amazon Advertising Tips

Advertising tips on Amazon

A survey conducted by Third Media indicated that 80% of advertisers had plans to boost ad budgets for their amazon advertising strategy 2019. Even if it remains to be seen if they will do the same this 2020, increasing the traction of your ad campaigns with these moves is the best way to go.

  • Study product-level profitability data. Doing so lets you know which products will gain the most benefit from paid ads with minimal risk.
  • Develop brand awareness among customers while having the privilege to advertise several products at once via Amazon’s Sponsored Brands.
  • Grow your brand further by leveraging paid ads to boost ranking in organic search results, hence driving more traffic to your pages.
  • Increase conversion via Sponsored Products ads. These ads utilize category-specific targeting to match your products with complementary items advantageously.
  • Filter out keywords with large traffic volumes but low conversions. This technique helps ensure the beneficial use of your investment.
  • Keep your advertising cost of sale flexible. This way, you use ads to fit varying goals based on specific instances: launching and liquidating products and generating continuous profits.
  • Take advantage of auto campaigns. Look for converting search terms that you can add to your keywords.
  • Monitor your conversion rates closely and adjust your bids accordingly.

Stronger Online Presence = Stronger Influence

Without question, investing in Amazon advertising will strengthen your online presence. Running a strategic campaign using this effective solution will make your brand more influential. But the success of your campaigns and the extent whereby you experience it will depend on the type of ads you use and how you manage them. 

To get the highest possible return, you need to design and apply a robust marketing strategy. Take the time to review the workings of each ad type. Then, analyze how each will benefit the products you intend to promote. 

Once you start running your campaigns, make it a point to perform regular monitoring and analysis. By staying vigilant, observant, and proactive; you can easily adjust any tactic based on the customers' response to your ads.

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