Amazon advertising is becoming increasingly competitive. Making it even crucial for you to know about Amazon’s advertising tactics.
Starting from the basics, you can keep adding increasingly advanced advertising tactics to your repertoire. Several Amazon tools and functions are available to leverage and thus increase returns on your Amazon advertising budget.
Here are Amazon advertising tips and tricks that you should put into practice today.
1. Know Available Amazon Ads
To make the most of Amazon advertising, you should know about different available ads and how they can help your campaign. Here they are.
Sponsored Products are keyword-targeted ads that show up in Amazon search results. They promote just one product. With these ads, you can see keyword-level and product reports to assess how each keyword is performing.
Headline Search Ads
These appear as banner ads on top of search results. They can promote up to 3 products. Only keyword-level sales reporting is available for these ads. So you will know about keywords that generated sales for any one of your three products advertised thus.
Product Display Ads
These are interest-targeted ads. You can find them under the fold on product pages. They can also be seen on product detail pages, reviews, and listings. Campaign-level sales reporting is available with this ad type from which you can learn about the overall performance of your campaign.
such ads appear when users search using specific keywords. For example, if you have targeted the keyword “wireless security camera:, the ad will appear when shoppers search using this keyword.
This ad type is seen when shoppers visit a specified product page. Product targeted ads are useful for targeting competitor listings. These ads can also target relevant product pages that your item is compatible with. For example, if you are promoting security camera covers, you can target product pages with compatible cameras.
Here, you make an ad that shows when shoppers go to product pages related to your product. So if you are selling camera covers, you can arrange ads targeting all sorts of security and surveillance cameras.
2. Use the Flywheel Effect
The Flywheel effect refers to the use of paid advertising for gaining earned media with which you can drive overall growth. Paid media and earned media consist of orders, detailed page views, and reviews. Product content, on the other hand, is owned media.
Here is how the Flywheel effect works. Using paid ads, you can direct more traffic to your product pages. As a result, your products will rank higher in search results. Increased traffic plus a higher search rank will increase your chances of winning the “Amazon’s Choice” designation. With the “Amazon’s Choice” label all yours, there will be more traffic, which will boost search results. It becomes a continuous cycle.
To take advantage of the Flywheel effect, you should measure business metrics for quantifying performance. Don’t simply measure success based on advertising cost of sale. Keep tabs on other key advertising performance factors as well, like total advertising cost of sales, gross profit, and total revenue.
3. Set Measurable Targets
No matter what kind of Amazon ad you are deploying for your promotion, make sure you set measurable targets. Here are some examples.
Earn at least 30 product reviews during a six-month time frame.
Boost product sales by 20% in 3 months.
Clear the older product inventory before the new product launch date.
Bearing such quantifiable goals in mind, you can choose ad types that best serve these targets.
4. Find Out the Advertising Cost of Sale
Understanding the advertising cost of sale or ACOS before creating ad campaigns is vital since this will impact the campaign budget and the cost-per-click bid. Using accurate ACOS values, you can set pragmatic budgets.
For determining the ACOS, take note of these factors.
- Cost of goods sold
- Selling price
- FBA cost
- Miscellaneous costs
Once you get all these numbers, add up the miscellaneous costs, FBA cost, and the cost of goods sold. Deduct this from the selling price. The resultant number shows how much you may spend to earn a sale with profit.
While clearing inventory, it is necessary to determine the break-even point. Simply divide the maximum spend by the selling price of the product. You will get the break-even point.
When you begin Amazon advertising, find the ACOS for each keyword in the AMS dashboard below ‘advertising.’ Using this feature, you can find out which keywords are worth targeting with ads and which ones are not.
5. Research Keywords
You can use automatic targeting when you start advertising. This option is available for Headline Search ads and Sponsored Products Ads. With Product Display Ads, you can leverage product-based targeting.
Useful keyword data will be available in two weeks. You can use this data to make Headline Search Ads and Sponsored Products Ads with manual targeting. Likewise, you can make Product Display Ads using interest-based targeting.
However, you will still need to do your own keyword research. This approach will enable you to uncover new keywords that can boost your campaign. You can also find out about keyword trends.
For finding keywords, you could try keyword.io – this is a nifty tool for discovering valuable keywords that work for Amazon as well as YouTube, Google and more.
Follow your competitor listings too. If they are doing well, then they certainly know about Amazon advertising. Consequently, they will have optimized product descriptions and titles that will appear higher up search results. You should take a close look at descriptions and titles to find keywords that are working well for your rivals.
6. Optimize All Products
Before commencing an Amazon ad campaign, make sure that all product listings are optimized. This will increase the number of shoppers clicking on your ads, and it will also improve the chances of a sale once buyers visit product pages.
Make sure that you give due regard to the description, images, and title while reviewing product pages.
By optimizing product pages, you can rank higher on search results and thus enjoy more sales.
Here are the best practices to follow.
- Product titles should be descriptive and accurate
- Place high-resolution images covering your product from all angles
- The product description should have five bullet points at a minimum
- Include updated and relevant information in the product description.
While editing descriptions and titles for your products, you can include keywords that you found through research. After starting the campaign, you should analyze data from ads to fine-tune listings further.
Thus, you will have to keep looking at campaign results, analyze the data and refine your pages accordingly. This requires time and effort. But it is worth it.
An advantage of this approach is that you will gain benefits even after the ad campaign is over. Keyword optimization will help your pages to rank high on search results. Due to page optimization, you will convert more prospects into paying customers who buy from you.
Just make sure that you avoid keyword stuffing. This is sure to turn away increasingly skeptical buyers.
7. Inviting Buyers to Write Reviews
Reviews are a powerful way of winning trust, confidence, and customer goodwill.
The vast majority of shoppers make it a point to go through multiple reviews before finalizing their purchase decision. Reviews matter to prospective buyers since it gives them an accurate idea of product performance from the experience of fellow buyers who tried the product.
Unsurprisingly, reviews are a key ranking factor at Amazon.
Thus, you should take advantage of reviews to get the most out of your ad spend.
Set up automated emails for customer purchases. When you confirm the order, you can remind your customer to write a review after receiving and using the product. Set up another automated email that should reach the customer the next day following item delivery.
Also, mention that customers are more than welcome to contact you in case of dissatisfaction with the product.
Another good idea is to add a product insert. This could be, for instance, a brochure on how to use the product in different ways for full benefit. Here, you can smartly encourage reviews as well as social media shares.
You should note, though, that Amazon does not allow sellers to solicit reviews.
However, Amazon offers the Early Reviewer Program. You can use this program if you have under five reviews for a product that costs over $15. Amazon will ask for reviews on your behalf for a full year or till you have five reviews.
The Vine Reviewer Program can also work well for you if you are a wholesale provider for Amazon. Using this paid program, you can link up with top reviewers. After receiving a product sample from you, the reviewer can post an unbiased review.
8. Check the Search Terms Report
After launching an Amazon ad campaign, make sure that you focus on keywords that are performing well. You should also know about keywords that are not bringing good results. This is another important factor to look into besides sales.
You should check up on the search terms report.
The search terms report is available in the AMS dashboard under “Advertising”. The report shows valuable information pertaining to Headline Search Ads and Sponsored Products by indicating keywords that are boosting clicks and sales. You can make use of these keywords in future campaigns and optimize your product pages with them.
There is a lot more valuable information that you can gain, even for keywords that are not performing well. For instance, suppose you find a keyword is generating clicks but not sales. That is, the conversion rate is too low. From this, you can discern immediately that the product page is not up to par. So make sure that you go over your product page once more to find flaws and shortcomings that are turning prospects away. Fine-tune, hone, and refine your product pages accordingly.
9. Amazon Sponsored Brands
As the name implies, Sponsored Brands are a good way of building up your brand. These ads are valuable since they appear at the top of search results. You can leverage these ads for creating brand awareness and promoting various items.
Sponsored brands can help you with top-of-the-funnel advertising. They can work exceptionally well for brand and category keyword searches.
You can incorporate your logo as well as a customized headline to improve brand recognition. Sponsored Brands can drive traffic both to the product listing page as well as the storefront.
10. Use Negative Keywords Smartly
Negative keywords can be of as much use as normal keywords. Negative keywords are user queries from which your product should be excluded. This can stop your ad spend from going to waste on the wrong traffic.
For example, suppose you sell low-cost budget headphones. You will certainly not want clicks from shoppers interested in Bose headsets. Hence, you can include “Bose” as a negative keyword.
Besides irrelevant products, you should use negative keywords to avoid queries that receive lots of traffic but few sales. The problem with these queries is that they consume the ad budget without any sales in return. So you can block these useless queries via negative keywords.
You can identify unprofitable keywords and queries by looking up the customer search term report. Search for keywords that bring in no sales. Phase them out via negative keywords for better returns on your precious ad spend.
Using the Amazon advertising tactics above can help you increase returns on your Amazon advertising budget.
With consistent focus and improvements to your ad plan, you can realize greater sales on Amazon.