Amazon now has 9.7 million sellers in virtually every category you can think of. This means that driving sales with just your product is hard. You need to make sure you get discovered first.
Enter Amazon advertising. In our experience serving hundreds of Amazon sellers, virtually all top brands use ads to drive sales on the platform. When used right, they offer incredible ROI that translates into both instant sales and long-term brand recognition.
To help you build a winning Amazon advertising strategy, we’ve compiled the most effective and powerful tips on the subject below. Read on to learn how Amazon ads can drive growth and profits for your brand!
What is an Amazon Advertising Strategy?
Amazon gives you the ability to display paid ads on its platform. An Amazon advertising strategy is an approach that maximizes the visibility and revenue you get from your ad spend.
Effective Amazon ad strategies have a few common elements. One is a deep understanding of your target audience. You need to understand who you’re targeting and how they make purchases. This will influence how you engage with your audience.
It’s also important to set a clear budget for your Amazon advertising efforts. Your budget should align with your margins as well as your sales forecasts for it to make financial sense.
Selecting the right ad types is another critical decision. Your choice will affect where, when, and how users see your ads. It’s important that the ad types you choose contribute to your bottom-line goals.
Keywords and bidding are other factors to consider. It's not just about choosing relevant keywords but also deciding on the right bid for each click. This can be a lot of work (although a quality optimizer can automate most of your work here).
The final element is continuous performance analysis. Regularly evaluating your campaign's results sheds light on successes and areas for improvement, allowing for informed adjustments.
Why are Amazon Advertising Strategies Important?
Amazon advertising strategies are indispensable for several key reasons.
Firstly, they provide improved visibility in a crowded market with millions of products, ensuring your items don't get lost.
Secondly, they offer a strong return on investment (ROI) as a targeted approach allows for the effective use of every dollar spent.
Additionally, the data insights offered by Amazon can be invaluable; they enable the refinement of advertising strategies, enhancement of product listings, and a better understanding of customer behavior.
Fourth, effective advertising fosters brand credibility, positioning your brand as trustworthy and reliable in the eyes of consumers.
Finally, given Amazon's status as one of the largest online marketplaces, maintaining a competitive edge is imperative. A dynamic advertising strategy is what keeps a brand visible in Search and present in customers’ shopping carts.
In the absence of a well-defined advertising strategy on Amazon, brands risk fading into obscurity, misallocating resources, and foregoing potential sales.
Top 14 Amazon Advertising Tips for 2023
Let's delve into the top tactics for 2023 that industry experts swear by.
1. Increase Brand Awareness
Don’t always seek to drive an immediate sale. Choose brand awareness as one of your ad campaign goals, e.g. using sponsored brand ads. Your goal should be to leave a lasting impression and build customer trust.
- Sponsored Brand Videos. Utilize video content in your sponsored ads. Videos are engaging and can effectively showcase your product's features and benefits, leaving a lasting impression on viewers.
- Content-Rich A+ Pages. A+ content allows brands to add rich content to product detail pages. HD images and comparison charts are some examples. This content is not only informative but reinforces your brand's identity and values too.
- Amazon Posts. Amazon Posts lets brands share content that appears on product detail pages, in search results, and on their Amazon profile page. It's a chance to showcase your brand’s personality and connect with your audience.
- Amazon Brand Stores. Create a dedicated space for your products with an Amazon Brand Store. This provides a unique brand-centric shopping experience for users, allowing them to engage directly with your brand. Having a brand store maximizes the value of your ads, giving people more places to explore your offers once they discover you.
2. Focus on Product Profitability
Ensuring each sale is as profitable as possible gives you a lot more ad budget to play with. This is why driving profits and not just sales is key to any advertising strategy.
- Dynamic repricing with AI. Use tools like Profasee's dynamic repricer which leverages AI to constantly adjust prices. This ensures you're neither underpricing nor overpricing, and dissuading potential buyers.
- Optimize your ad spend. Ensure you're not overspending on products with slim margins. Allocate more ad budget to high-margin products to increase overall profitability.
- Analyze Advertising Cost of Sale (ACoS). Regularly review your ACoS. If it's too high for certain products, it may indicate those ads are not profitable. Rather adjust strategies or focus on more profitable products.
- Bundle products. Offering products in bundles can increase the perceived value, allowing for higher pricing models while also selling more inventory.
- Make seasonal adjustments. Some products may have higher profitability during specific seasons. Adjust your advertising strategy to capitalize on these trends.
3. Implement Negative Keywords
A successful Amazon advertising campaign requires a detailed understanding of keywords.
Continuously reviewing search term reports is essential to weed out the non-performing keywords that generate traffic but fail to convert. Adding these terms to your negative keyword list ensures that your ads reach a more precise audience.
The strategic use of negative keywords can help you avoid spending money on irrelevant traffic. By defining these unwanted terms, you not only conserve your ad budget but also enhance the relevance of your ads.
There's an art to exclusion, though. Leveraging broad, phrase, and exact match types for negative keywords lets you filter out unwanted traffic with greater control. This isn't just about avoiding the wrong audience; it's about ensuring every dollar is well spent.
The result is an improved click-through rate (CTR). This heightened relevance isn't just good for metrics; it often leads to better ad placements and could even lower your overall costs.
Regular updates and reviews of your negative keywords list lets you consistently allocate advertising budget to search terms that drive the best results.
4. Employ Automatic Targeting
Automatic targeting is Amazon's way of using shopping behavior data to place your ads in front of the right audience. It sometimes gets a bad rap for driving up ad costs - but it is a powerful tool when used selectively. Here's why:
- Discover new keywords. Automatic targeting can uncover valuable keywords you might have overlooked. Over time, these can be added to manual campaigns for greater control.
- Optimize ad placement. Amazon uses its algorithms to place your ads where they're likely to perform best.
- Ideal for beginners. Automatic targeting offers a simpler entry point without the intricacies of keyword research to new sellers.
- Analyze performance insights. By analyzing the performance of automatic campaigns, you can gain insights into which keywords or ASINs are driving sales. This data is crucial for refining future strategies.
- Flexibility in ad spend. Amazon adjusts your spend in real time based on the best opportunities for your ad to succeed.
While automatic targeting is impactful, it's essential to balance it with manual campaigns for a well-rounded advertising approach.
5. Sponsored Products Category Targeting
Sponsored products category targeting offers a strategic advantage. This approach widens your reach to include customers who are browsing particular areas of Amazon, enhancing your product’s exposure.
This feature is not just about broadening your reach; it’s about strategic positioning. By targeting categories that include your direct competitors, you can introduce your product as a compelling alternative.
To further enhance your targeting, you can hone in on specific product attributes like brand, price range, and star ratings. This aligns your product’s strengths with customer search behavior.
However, it’s still crucial to monitor your campaign's performance. If a category isn’t performing, rethink your bid or pivot to a more suitable category.
6. Harness Different Match Types
Different match types can assist in creating a diverse and effective keyword strategy. Each match type serves a unique purpose.
- Broad Match. This captures searches containing your keyword, variations, and other related terms. It's excellent for reaching a wider audience and discovering new keywords.
- Phrase Match. Your ad only displays when the exact phrase is in a search. It will also display if the search contains additional words before or after the phrase. This narrows down targeting while maintaining some flexibility.
- Exact Match. The ad only appears when the exact term or close variations are searched. Exact match offers precise targeting and ensures your ad is highly relevant to the searcher's intent.
- Negative Match. This excludes your ad from particular search terms. It's essential for filtering out irrelevant traffic, and preserving your ad spend.
Here are some best practices you can apply:
- Start broad, then refine. Begin with a broad match to capture a wider range of search terms. Once you analyze performance and identify top-performing keywords, you can transition them to phrase or exact match for more control.
- Monitor search term reports. Regularly review this report to see which terms triggered your ads. Add irrelevant terms to your negative match list and consider adding high-performing terms to your manual campaigns.
- Optimize bids based on match type. Exact match keywords might have a higher bid since they're more targeted, while broad match keywords have lower bids due to their broader reach.
Utilizing different match types provides a balanced approach to advertising on Amazon.
7. Bid Optimization
Bid optimization is about striking the right balance between visibility and profitability.
- Dynamic bidding. Amazon’s dynamic bids will automatically adjust your bid in real time. If the likelihood of a sale is high, it might increase the bid, and vice versa. This ensures a better ROI.
- Set bid caps. Determine the maximum amount you're willing to pay per ad click. This can help control costs while staying competitive.
- Adjust bids by placement. Amazon allows bid adjustments for top-of-search and product pages. If a particular placement is performing well, consider increasing your bid for that spot.
- Monitor ACoS. Your Advertising Cost of Sale highlights the efficiency of your campaigns. If ACoS is too high, consider reducing your bids. If it's low and you're not getting enough visibility, consider increasing them.
- Leverage AI-powered tools. Utilize Profasee's dynamic repricer and all-in-one optimizer to ensure your bids are not just driving revenue but are also profitable.
Bid optimization isn't a once-off task. It requires consistent monitoring and adjustment to align with market dynamics and your campaign goals.
8. Capitalize on Amazon Sponsored Display Ads
Sponsored Display Ads make it possible to engage with customers outside of Amazon.
With the power of retargeting, these ads remind shoppers of the products they’ve seen but haven’t yet purchased. The scope of these ads extends beyond Amazon. Your ads will be displayed on external websites and apps, which amplifies your brand’s presence.
The customization of ad creatives is another useful feature. You can craft your ads to resonate with your brand’s unique voice and aesthetic. Striking visuals and sharp copy can also help capture the attention of your audience.
Targeting flexibility is another benefit of Sponsored Display Ads. Product and interest targeting adds a layer of precision to your strategy.
Amazon’s performance metrics will provide you with insights into impressions, clicks, and conversions. Use this data to keep optimizing your advertising strategy.
9. Craft Effective Product Detail Pages
Your product detail page is where conversions happen. Ensuring this page is optimized and compelling can significantly impact your ad campaign ROI.
- High-quality images. Use clear, high-quality images that showcase your product from various angles. Consider adding infographics or images that demonstrate the product in use.
- Engaging title. Your title should be clear, concise, and include essential keywords. It's the first thing customers see, so make it count.
- Bullet points & description. Highlight the key features and benefits of your product using bullet points. In the description, provide more detailed information and address potential customer queries.
- A+ content. Engaging content enhances your product detail page. It aids in storytelling, elevating the overall shopping experience.
- Reviews & ratings. Encourage satisfied customers to leave positive reviews. Don’t forget to respond to queries or issues in the reviews section. This showcases your commitment to customer service.
- Clear call-to-action (CTA). Whether it's prompting reviews, viewing more images, or watching a video, ensure your CTAs are clear and compelling.
An optimized product detail page not only boosts ad conversions but improves organic rankings too.
10. Terminate Underperforming Campaigns
Efficient resource allocation is directly linked to profitability. Not all campaigns will perform well, so you need to know when to end them.
- Regular monitoring. Periodically review all your campaigns. Look at metrics like click-through rates, conversion rates, and Advertising Cost of Sale (ACoS).
- Set benchmarks. Before launching a campaign, set clear performance benchmarks. These could be based on previous campaigns or industry standards.
- Analyze the ‘why’. If a campaign is underperforming, make a point to understand why. Is it the targeting, the ad creative, or external factors?
- Adjust before terminating. Before ending a campaign, consider tweaking certain aspects. Maybe it's the bid, the targeting, or the ad creative. Minor adjustments can often turn things around.
- Reallocate resources. Once you decide to terminate an underperforming campaign, reallocate its budget to campaigns showing promise or test new strategies.
Remember, every failed campaign is an opportunity to learn. Analyze them, understand what went wrong, and ensure those mistakes are not repeated.
11. Make Strategic Ad Placement Choices
The location of your ad is key to its success. Strategic placements can lead to increased visibility and higher conversion rates.
Ads at the top of search results grab the spotlight, providing unparalleled visibility. A higher bid is always worth it for products with excellent reviews or a standout feature.
Alternatively, position your ad on product detail pages that include related items. This captures the attention of shoppers who are already considering a purchase.
Beyond Amazon, Sponsored Display Ads are a great way to reach potential customers on other sites. Identify which locations bring in more conversions to place your bids more effectively.
Regular analysis of placement reports is invaluable. This data can guide your decisions on where to place your ads for maximum impact.
13. Consider a Pricing Optimizer
A dynamic pricing strategy can mean the difference between average and exceptional sales. A pricing optimizer tool adjusts product prices in real time based on various factors. Here’s why you should consider using one:
- Maximize profits. A pricing optimizer, like Profasee's dynamic repricer, uses AI to adjust prices. This ensures you’re achieving the highest possible profit margin without deterring potential buyers.
- Stay competitive. By analyzing competitor prices, stock levels, and sales ranks, the optimizer adjusts your prices to ensure you remain competitive.
- React to market changes. Whether it's seasonal spikes, stock clearances, or economic shifts, a pricing optimizer adapts swiftly. It ensures your prices are always related to the current market.
- Safeguard your position. Tools like Profasee keep your pricing compliant with Amazon's competitive pricing norms, which keeps your products in the Buy Box.
- Efficiency. Manual price adjustments can be time-consuming and you may not be able to react quickly enough to market fluctuations. An optimizer automates this process, ensuring real-time responsiveness.
Investing in a pricing optimizer not only eases manual work but also ensures your products are priced for maximum profitability.
14. Explore the Potential of Amazon DSP
Amazon's Demand Side Platform (DSP) enables brands to programmatically purchase display and video ads.
With Amazon DSP, your advertising can reach audiences outside of Amazon. DSP uses shopping behavior and user interests to enhance your targeting.
The platform's retargeting capabilities offer a strategic advantage. It enables you to reconnect with shoppers who have previously interacted with your products but have not made a purchase. The goal is to guide them back to your offering.
Amazon DSP also places a premium on brand safety. This means your ads will only appear in appropriate contexts that reflect your brand's image.
Sellers will have access to rich data insights, making it easier to track audience engagement patterns. These analytics should be used to refine and optimize your advertising approach over time.
Improve Your Amazon Advertising with Profasee
With the help of the right tools, you can navigate Amazon’s advertising features more easily. Here's how Profasee amplifies your Amazon advertising efforts:
- AI-Powered Repricer. Profasee's dynamic repricer adjusts product prices in real time. This way, you can strike a balance between competitiveness and profitability. Its neural network constantly learns and refines, ensuring your pricing strategy remains agile.
- All-in-One Optimizer. Beyond pricing, Profasee's optimizer can adjust ad bids to increase the profitability of every sale.
- Data-Driven Insights. Harness the power of real-time data. Our platform allows brands to make informed decisions. Profasee data can help you better understand the competitor landscape and refine your Amazon listings.
- Increased Profitability. We have improved profits for 85% of our brands by 10-15% on average. Profasee offers tangible results, ensuring your investment yields substantial returns.
Incorporating Profasee into your Amazon advertising strategy means you're equipped with advanced tools and in-depth insights.
The Bottom Line
To stay ahead on Amazon you need a combination of strategy, insights, and the right tools.
Every tactic mentioned in this article plays a vital role in maximizing visibility and profitability. However, tools like Profasee can further enhance your efforts. Our AI-powered solutions are highly effective and designed to boost ad campaign performance.
Ready to experience the impact of Profasee firsthand? Sign up for a demo today and watch your brand reach new heights on Amazon.