Are you looking to become more successful in Amazon advertising?
Amazon has millions of customers and is the ideal place to grow your company. It's not as easy as just putting up products and hoping for sales.
Ads can be a great help sometimes. Let's look at the best ways to use them.
What is Amazon Advertising?
Amazon advertising is paid advertising, which runs on a pay per click model. You can have your product listing featured at the top of Amazon's search results based on selected keywords.
Pay-per-click advertising is a way to pay only when someone clicks on your product.
PPC is extremely efficient as you only need to pay when your target audience has been reached. Amazon advertising allows you to convert and sell your product.
Amazon is a search engine. As with many search engines, click-through rates drop significantly if you aren't in the first few results. It takes time to build this kind of presence, so an Amazon advertising strategy can be a great way for you to get exposure quickly.
Amazon sells over 2.5 million products in the U.S. You can avoid this by mastering Amazon ads manager.
People live busy lives. Amazon's convenience is one of the main reasons it has grown in popularity.
- You have instant access to a wide range of products.
- It makes it easy to pay for your order.
- It delivers quickly so that customers can get their orders promptly.
- To buy products, people don't need to leave their homes.
Amazon values the value of people's time and is one reason it has been so successful. This is also why Amazon ads can be so profitable for businesses.
People don't have time to look through pages three, four, and five of Amazon's results. People expect to see the most relevant results on page one. If your product isn’t there, your sales will suffer.
It's difficult to differentiate your brand from other sellers on Amazon. While you have complete control over your brand when you sell products through your own ecommerce store, Amazon requires you to follow its regulations.
You have very little control over the way you build your brand. This means that you are dependent on being at the top of search results.
The return on investment is the proof.
Amazon ads can be a great way to get immediate results. Empire Case, a seller of accessories and mobile phones, has seen a regular ROI of 200+ percent.
Amazon Advertising Examples
While I have discussed some of the benefits of Amazon Ads, how does this apply in real-world situations? These examples will show you that a well-crafted Amazon advertising strategy can make a big difference.
Alexandra Workwear Sales Increased by 300+%
Alexandra Workwear, a manufacturer and distributor of work uniforms, saw their sales grow by 372 percent over the past year through Amazon advertising. They also achieved a 500 percent return-on-investment (ROAS)
They used a simple strategy to achieve impressive results. They:
- Create a “sponsored products campaign” using Amazon's ad platform.
- To find new keywords, used the campaign-builder.
- To increase search impressions by 80 per cent, we used aggressive bidding strategies.
- Each product was given A+ content.
- Product page copy and optimized product images
- Sponsored display ads were run to complement the sponsored product promotion.
- They grew their reach and increased sales.
This case study not only reinforces the notion that being at the top of search results is important but also highlights how crucial it is to optimize product pages.
If your product pages don't convince enough customers to sell, it's not worth increasing your Amazon ads budget.
You must make the most of all organic tools available to you. This means creating high-quality images and great copy, as well as using elements such fantastic content.
Lenovo Improved Brand Awareness by 19 points
These Amazon advertising strategies are not only effective for small brands, but also for global companies like Lenovo.
Lenovo created a YouTube video of 15 seconds to promote its Yoga laptop.
According to Brand Lift, the ad campaign resulted in a 19-point rise in brand awareness, an increase of perception as a premium brand by 5-points, and a 9 percent increase in purchase intent.
These numbers are enormous for a company like Lenovo. So how does it manage them? They:
- To identify the right audiences, I used Amazon's Ad Manager.
- Specific groups targeted (e.g., lifestyle tech enthusiasts, people who are in the market for laptops and audiences with high purchasing propensity.
- Reached six million people.
This is the key takeaway: Targeting.
Do not assume you know who your audience is or what they want. Make sure that your Amazon ads reach the right people.
Amazon Advertising Prices
Are you ready to get started with Amazon advertising?
You must first establish your budget. How much should you budget?
This is a difficult question to answer as it depends on the industry.
Amazon ads CPC average in the U.S. was $1.20 per click. However, this guideline is only a guide. CPC algorithms sell each impression to the highest bidder. Other factors play a part, but the price of the bid is a major factor. The more competition you have, the more you will pay.
Your conversion rate is the most important factor in determining your Amazon advertising costs.
You can sell 100 products if you spend $1 per click and convert 1 percent. You might be paying $2 per click but if you convert 5 percent of those clicks, $100 is going to make you five sales.
It is important to search for keywords that are most relevant to buyer intent. Although they might be more expensive, higher conversion rates will result in a greater return over the long-term.
Amazon Advertising Strategies – 9 Tips to Drive Revenue
Let's look at the Amazon advertising strategies that will help you increase sales.
1. Identify Your Goals
Clearly defining your goals is an important step in any type of marketing.
What are you looking to accomplish with your Amazon advertising?
It's not about how many sales you want, or what ROAS. This starts with asking questions such as:
- Do you want to increase brand awareness like Lenovo?
- Are you looking to increase the traffic to your product?
- Are you looking to increase conversions and sales?
While many people focus on Amazon's sales, there are so many other advertising options.
It is important to note that people who write down their goals are approximately 50 percent more likely than others to achieve them.
2. Select the right Amazon Advertising Campaign
You will need to choose which campaign type to run for your Amazon advertising.
You'll see different campaign types when you log into your Amazon Ads Manager.
- Sponsored Product: Display your products at search results' top.
- Sponsored brands: Feature your brand in the shopping results.
- Sponsored Ad Display Ads:Display advertisements across relevant Amazon pages.
- Stores Showcase your brand and showcase products.
- Audio AdsWatch the free tier on Amazon Music.
- Video Ads Play on connected TVs, publisher channels, and networks.
Your goals will dictate the format you choose.
If you want to increase brand awareness, you could choose to run an audio, video, or store campaign. Sponsored products, brands or display ads may be the best choice if your goal is to increase sales.
Amazon advertising has a lot to offer. They make it easy to set up your campaign and manage it, regardless of what format you choose.
3. Establish a budget
Before you start to invest in Amazon ads, it is important that you have a clear understanding about the amount you are willing to spend.
You don't want to go over budget or cause financial problems. Amazon advertising should increase your profit margin and not decrease it.
Amazon's ad manager may make suggestions and let you know if you should increase your budget. However, ultimately you must decide.
Amazon isn't your only option for advertising. Google and other social media platforms are equally valuable.
You can set a budget you are comfortable with, and then let it run for a while to see what happens. When you have data, you can make an informed decision about increasing or decreasing your budget.
The digital ad market is an essential tool for marketing. It's worth more than $560 billion. Your Amazon advertising strategy must be within your financial constraints in order to make it work.
4. Select the right products to promote
Amazon advertising should have maximum impact. You need to select the right products to promote.
There are millions of products available on Amazon, and lots of competition. You may also have products that sell for less than what you would spend per click. Your products will perform better than others.
Find the right ones for your Amazon ads. Your analytics will provide the answers.
- Go to Amazon Seller Central.
- Second, determine how much traffic each product is receiving.
- Compare which conversion rate is the best.
- Consider the cost of keywords that you would like to use.
- Calculate your ideal profit margin.
This information will be vital in helping you decide on the products that you should promote.
Choose ones that have high conversion rates and aren't too crowded with traffic, as this is where there is the most potential.
5. Select the right visual assets
E-commerce has one drawback: Customers can't physically see the products before they buy them.
This can be overcome by providing high-quality images.
Customers will be able to inspect your products the same way they would in a store. This will result in increased sales.
360-degree rotating images can be a powerful tool in this regard. They have been shown to increase ecommerce conversion rates by up to 27 percent. Good images are essential for understanding the finer details of products. Humans are visual creatures.
6. Write clear, engaging copy
When it comes to Amazon product pages, you'll often see both the neglecting and the overstuffed keywords.
The copy you write has a direct effect on conversion rates, so it should be an integral part of your Amazon advertising strategy.
While keywords are important, it's also important to be specific and informative.
- Your business story is important.
- Highlight the benefits of your products, not just their features.
- Create your brand identity.
You can also optimize this area.
To find out which ads work best, run some A/B testing. Make sure that your copy is helping you get the most from your Amazon ads.
7. The Right Audience
We saw this in the Lenovo case study. Amazon advertising is all about targeting the right audience.
It can be tempting to sell your product to everyone. You need to be focused on your sales to maximize your profits. There is no need to pray and spray.
This can only be achieved if you have Amazon ads that are reaching the right people.
It's possible to find a new audience that seems to be a good fit for your site and drive a lot of traffic to it, but it's not worth the effort. Clicks without sales can eat into your budget. This is what happens when your targeting isn’t right.
8. Negative Keywords can be added
Negative keywords are another thing that can eat into your budget.
Amazon's algorithms can be quite smart. They can understand the relationships between keywords and determine which ones may be relevant to your product. They don't always get it right.
If you run an automated campaign, you will see that you get clicks for keywords that aren't related to your product. These keywords are important to add to your list of negative keywords so that you don't appear for the query again.
You might advertise for keywords related to Pickleball, and Amazon determines that Pickleball is closely related. If Pickleball-related queries get clicked, you might want to include them in your negative keywords.
You could lose your money otherwise
9. Optimize and Test Your Ads
Optimizing your products for online sales is key.
It's hard to learn from the data that you collect if you don't. Split tests are a way to use the data you have. You can change one element in your Amazon advertising strategy to see how it performs against the control.
You can determine which strategies work by testing each element of your Amazon ads or product pages.
Commonly Asked Questions about Amazon Advertising
What's the difference between managed and self-service amazon ads?
Amazon self-service ads allow sellers to control their campaigns while managed Amazon ads can be controlled for them. Managed Amazon advertising typically requires a minimum of $50,000.
Can I schedule ads in Amazon advertising?
Yes! Yes, Amazon ads can be programmed. Log into your Amazon ads console to select the campaign that you wish to edit. The drop-down menu will show you a table called more. You'll see a drop-down tab titled more. This allows you to select when your ad will be shown.
What are the various types of Amazon ads available?
Amazon offers six types of ads: display ads, sponsored brands and sponsored products. Each type has its benefits so it is worth looking into them all to determine which one best suits your brand.
What are the advantages of Amazon Advertising?
Amazon advertising allows you to reach large audiences with high purchasing intent. You can also target your ads with the tools of Amazon, so you reach people most likely to benefit from your brand.
Conclusion: How to Make Amazon Advertising Success
Amazon advertising has many great benefits. To get the most out of your money, you need to choose the right strategy and then fine-tune your approach by trial and error.
Amazon has many great tools that can help you target the right audience and manage your finances, but you need to go further.
Advertising money requires that your product pages are fully optimized. You also need to use your analytics to help you learn from your data.
You can master the art of Amazon Advertising through A/B testing and incremental improvements. This will make a huge difference in your business.
Are you currently using Amazon ads? Are you using Amazon ads?
By: Neil Patel
Title: The Keys to Success With Amazon Advertising
Sourced From: neilpatel.com/blog/success-with-amazon-advertising/
Published Date: Sat, 02 Jul 2022 19:00:00 +0000