7 Tips for a Powerful Amazon Advertising Campaign Strategy

Approximately 119,928,851 products are listed on the Amazon Marketplace, and with Prime Day alone, U.S. consumers bought 100 million of those products. Amazon advertising strategies that are very strategic and well-defined are imperative for retail brands. 

You may not need to read this post if you are an Amazon marketing expert. Here are the key factors you should know about Amazon paid and organic marketing for those of you that want a quick course on these strategies. If you need Amazon PPC management services for managing your Amazon account for daily activities or run PPC ads to boost sales contact us at Urtasker. 

How Does Amazon Advertising Work?

As an Amazon Advertiser, you will be charged a fee for an ad only after a customer clicks on it. This is known as the pay-per-click (PPC) model. In order to purchase an advertisement on Amazon, businesses use the auction method: they name what they are willing to spend for a click, and those businesses winning the "auction" will have their ads displayed.

If you still need more clarity on the working of Amazon advertising, then an best amazon listing optimization service can guide you better. 

How to optimize your Amazon advertising campaign: 7 best practices

• Amazon Sponsored Brands can help you build brand awareness

About 18% of buyers buy Sponsored Brands, formerly known as headline search ads. The Sponsored Brands ads are useful for promoting multiple products as they appear above the Amazon search results. Brand sponsorship is ideally suited to top-of-the-funnel advertising, particularly when coupled with branded searches or category keywords. Utilize them to enhance your brand awareness by incorporating a custom headline, your logo, and ASINs in the listing.

• Profitable products should be the focus.

Taking a closer look at product-level profitability will provide you with even more granular data. Obviously, every SKU has a different profit margin, and before introducing paid advertising, it is crucial to understand gross profit at the product level. The data will help you to determine which products would benefit most from an advertising boost while at the same time minimizing your initial investment. 

Identify which products have the highest and the lowest profit margins within your product line, and only implement paid advertising when your product line has the highest and the lowest revenue margins within it. By identifying the products that will benefit from your advertising, you will be able to save yourself some money on advertising.

• Amazon Sponsored Products should be tailored to specific categories.

Approximately 29% of buyers utilize sponsored products as the most common form of advertising. Similar to Google's product listing ads, these advertisements appear above, below, as well as alongside search results on Amazon.com, as well as on product details pages.

You can use Sponsored Products to target consumers with products that fit into the same category, thus increasing the chances of converting them. Advertisers are able to use this feature, known as Product Attribute Targeting (PAT), to show their products alongside a range of these products based on their price or rating.

With Product Attribute Targeting, you can ensure that your ads appear alongside only the best-rated products. Consider selling products like parts and components, which are typically purchased in conjunction with another product. Through PAT, you can target advertisements to shoppers who might be interested in buying the product you are marketing.

• You can reduce wasted expenditures by using negative keywords.

A negative keyword is a word that is exempt from a larger search term, just like in Google Adwords, so that you are not ranking for the wrong search term. 

Consider also keywords receiving large volumes of traffic but a low number of conversions when selecting negative keywords. This means that you are spending money on clicks that do not lead to sales, which means that your advertising dollars are being wasted. 

Almost no one likes the idea of spending money for nothing. A keyword that is too general and too short can often lead to this sort of issue, such as the one referred to as "top."

A better long-tail keyword would allow shoppers to get a better sense of what they are looking for. Without better, more refined keywords, it is impossible to predict what customers want. You will therefore be wasting money on ads when shoppers are searching for something different from what you are selling on Amazon. The good news is that utilizing negative keywords allows you to eliminate much of the wasteful ad spend.

• Establish advertising cost of sale (ACoS) goals that are flexible.

If possible, it is always better if the ACoS is as low as possible. However, should you be aiming for this as often as possible? Ad cost-to-sales is the ratio of your advertising spend to your revenue. ACoS is at the group level for automatic campaigns but at the product level for manual campaigns. Having a goal for each campaign depends on the type of campaign, such as launching a product, liquidation, or generating ongoing profits.

• Explore ideas via automatic campaigns and exploit them through manual campaigns.

Automatic campaigns are not always the way to go. It might be tempting to set it and forget it. It is difficult to set bids for individual search terms in auto campaigns, and you have limited control over them. Nonetheless, they do serve a useful purpose: you can source keywords with the help of auto campaigns.

Find out which terms are converting by utilizing automated campaigns, and add them as keywords in manual campaigns. Consider automating as many keyword optimization processes as possible, including revising keyword match types and eliminating negative keywords.

• Make your products as optimized as possible.

It is essential that you optimize your product listings before you begin an advertising campaign on Amazon. The additional step enhances your chances of your ideal consumer not only clicking on your ad but also purchasing your product. Take note of the following aspects when reviewing your products:

• Name
• Images
• Description

These three areas should be optimized in order to achieve the best results with your advertising strategy. In addition to boosting your ranking in organic search results on Amazon, you can increase organic sales as well.

Conclusion

There are, of course, other types of ads available on Amazon, such as video advertisements, product display advertisements, and traditional display advertisements. Amazon advertisers who engage in advanced advertising methods can generate substantial profits by combining a variety of ad formats. It is not necessary to spread your advertising dollars thinly and run every available advertisement to achieve your goals. Use these Amazon advertising tactics to make more money selling on Amazon. These strategies will not require you to spend tons of money on ads or take up a lot of your time.