If you’re selling anything on Amazon, whether it’s your own product or someone else’s, you might as well be taking advantage of Amazon advertising! Unlike other advertising platforms, Amazon offers the unique opportunity to test and optimize your ads over time and see how much money you can really make from them. And because you only pay when someone buys your product, there’s nothing to lose but money and time by trying out these top 12 Amazon advertising tips! Let’s get started!
1. What is Amazon Advertising?
Amazon advertising is a self-service platform for PPC and targeted ads. Amazon advertising is a pay-per-click (PPC) advertising platform designed to help sellers reach new audiences and increase revenue. Unlike other forms of PPC, like Google AdWords, Amazon allows sellers to take control of their own campaigns and customer acquisition strategy.
Using Amazon advertising, you can display your ad based on specific keywords and find potential customers who have already visited your product page.
2. Type of Amazon advertising
In order to use Amazon advertising effectively, first, you need to understand some types of its ads. It includes sponsored products, sponsored brands, and sponsored displays.
2.1 Sponsored products
These can be a great way to get your products in front of potential customers. With a paid listing, you pay for each click on your product ad. The amount you’ll pay depends on how much other advertisers are willing to bid on your product keywords, so it’s possible to get clicks for $0.25 or $2.00 if no one else is bidding on those terms.
There are two major things to keep in mind when setting up sponsored product ads: your ad title should be 50 characters or less and only include the keyword that triggers your ad (you don’t want someone searching for microwave landing on an ad for microwave pizza). For more information about sponsored products ads, check out Amazon’s help page.
2.2 Sponsored brands
When a customer searches for a product, they will see sponsored brands on their search results page. The goal of these ads is to help customers make informed decisions about products by displaying reviews and ratings as well as additional information such as number of reviews and star rating.
A consumer can click on a Sponsored Brands ad and land directly on your product detail page. You may be charged when someone clicks on or views your Sponsored Brands ad. If you don’t want to pay for clicks, you can set up an advertising campaign where you only pay for impressions, and therefore only charge when people see your brand name rather than click it.
These Sponsored Brand ads are unique because they include Prime badges that indicate whether or not an item qualifies for free shipping through Amazon Prime membership.
2.3 Sponsored display
The most common type of Amazon ad is a sponsored display ad, which can be shown at either a desktop or mobile level. The advantage of sponsored display ads is that you only pay when people click on your ad and visit your product detail page. You can also use sponsored display ads to generate organic sales from your target audience.
3. Amazon advertising tips
Here are some Amazon advertising tips for you to get started. It will be better if you can apply as many tips as possible.
3.1 Have a flexible Advertising Cost of Sale (ACoS) goal
Amazon advertising should cost no more than 20 percent of your sale price. If you set your ACoS goal too high, you could lose money on every sale. With Amazon, there are other expenses that can eat into your profits, like variable purchase costs (what it costs to buy products in bulk) and subscription fees (for example, Amazon FBA). Don’t focus only on ACoS; think about overall profit margins when setting goals.
For example, if you sell an item for $20 with an ACoS of $3 and additional variable costs of $2 (for example shipping), then you should plan to make at least $5 profit on each sale to hit your target ROI.
Learn how to calculate ACoS through this link.
3.2 Use the Advanced Amazon Ad Placement Report
The Advanced Amazon Ad Placement Report is extremely useful when it comes to tracking which ad placements are performing best for your campaign. This report allows you to track performance in terms of conversion rate, cost per sale, sales volume, and many other metrics that will allow you to further fine-tune your campaign over time.
Knowing where to invest more of your advertising budget in order to yield higher returns on investment (ROI) is key in making sure that every penny counts towards meeting your goals. Investing in advertising on Amazon can be a game-changer for many businesses. But it’s important not only to understand what types of ad placements work best for driving revenue but also where they perform best within each category.
3.3 Create targeting campaigns
Creating targeted campaigns makes it easy to split-test your ads and figure out which copy, images, and keywords work best. It’s also important because it will help you improve conversion rates in your existing campaigns.
For example, in your next campaign, create one targeting campaign for people who have previously purchased seo products (i.e., search engine optimization tools) on Amazon and another targeting campaign for people who have previously purchased child safety kits. Then create ads specifically geared toward each audience. Remember: Different audiences want different things; give them what they want!
3.4 Optimize your bids
Like any advertising platform, if you don’t optimize your bids, you won’t get good results. We do not recommend targeting keywords because they are usually too broad to be effective and if your product is new or very niche, then no one might be searching for it yet. You want to target products that buyers are actively looking for on Amazon – and bid accordingly!
Just because an item has 5 sales per day doesn’t mean that people aren’t actively searching for it. The trick is getting your ad in front of their eyeballs when they are actively searching for something like what you have to offer. Like any advertising platform, if you don’t optimize your bids, you won’t get good results.
Here are some other tips regarding optimizing Amazon advertising bids that you might find interested.
3.5 Create Well-Structured Campaigns by Product Category
Creating campaigns that are organized by product category is one of the best ways to optimize your Amazon advertising campaign. For example, if you are selling multiple products in multiple categories, you want to make sure that your entire campaign focuses on only one or two categories at a time.
If you scatter your ads across multiple categories, it’s easy for an ad to receive click fraud because buyers aren’t necessarily purchasing all of their items from within one category at once. Optimizing your campaigns by category instead of using CPA bidding strategies will ensure that people looking for specific products find them when they land on Amazon.
3.6 Set up ad groups
Setting up ad groups is one of those things that sounds incredibly tedious, but it is an important step for anyone running Amazon advertising. Ad groups are one of those features that you don’t think about until you have a problem – then you have a ton of problems! So we highly recommend going through and setting up your ad groups as soon as possible.
The sooner you set them up, the less likely you will run into issues later on. If there are specific products within a brand that aren’t performing well or have low CPCs, feel free to create separate campaigns for each product or bundle them together in one campaign if they complement each other well.
3.7 Create Compelling & Urgent Ad Copy
The next thing you need to do when setting up your ad is create compelling and urgent ad copy. Urgency will help boost conversions because it makes people feel like they should buy right now, while urgency helps convince them to take action. Write an ad that informs customers how long they have to use your promotion, tells them what’s at stake if they don’t act now, and includes a discount code that closes in on an expiration date.
You can also include urgency-building language like a limited time offer or get 20% off only through X/X/19! By writing strong ad copy with special offers and discounts, you can make more sales quickly.
Moreover, Amazon’s algorithms don’t just look at sales data, they also consider how compelling your ad copy is when deciding where to place your product in search results. From Amazon’s perspective, well-written ads mean happier customers who make more money for Amazon. Make it clear what’s in it for people to buy your product instead of someone else’s, and keep it fresh by changing up the copy every few months.
3.8 Use negative keywords
When setting up your Amazon advertising campaigns, it’s important to include negative keywords. You can do that in two ways: You can add negative keywords to your existing campaigns and you can create new campaigns and add only positive keywords. The idea behind using negative keywords is to let Google know what kinds of things you don’t want your ads to show up for.
If someone searches for chocolate AND peanut butter AND nuts, there’s a good chance they’re looking for a Chocolate Peanut Butter Crunch bar from Protein Plus. But if someone searches for sugar-free chocolate peanut butter, there’s a good chance that they might end up at your listing because they haven’t made up their mind yet—and won’t buy from you.
3.9 Experiment ads format
All advertising is a guessing game, but with paid ads on Amazon advertising, it’s a guessing game that costs you nothing. That means you can experiment a lot. For example, experiment with different ad formats – product link ads, headline search ads, sponsored products – to see which performs best for your business.
You can also try all sorts of targeting variables – from audience size to demographics to keywords – and determine what works best for your product . In addition, it’s worth testing different schedules and budgets too! That way you can figure out which setup works best for your business needs over time.
3.10 Get ultra-targeted with long-tail keywords
An easy way to get traffic from Amazon advertising is to choose long-tail keywords for your campaign. There are two reasons why you should target long-tail keywords: The competition will be much lower. Longer keywords are also much easier to target specifically. With shorter keyword phrases, it can be difficult to find people searching specifically for your product or service.
But with longer keyword phrases, you’ll have a better chance of targeting customers who are really interested in what you have to offer. For example, how to get rid of pimples overnight has a much higher conversion rate than acne cream. When you use longer keywords in your ads, they look less spammy and users click through at a higher rate.
3.11 Use ad extensions for Amazon advertising
Similar to remarketing, ads extensions provide an extra opportunity to drive traffic to your product listings. Ads extensions allow you to customize your campaign beyond keywords and bids. An advertising extension is a specific type of message that can be shown with your ad (e.g., product display).
These appear at both the top and bottom of search results on Google, usually as a box with quick summary information from your listing. In addition, Google will show product images from your most relevant products in these ads extensions.
3.12 Continue updating your approach
As mentioned above, Amazon’s algorithm changes on a constant basis. So, regardless of your current results, you can expect things to change over time. What worked three months ago may not be working now and it might not work six months from now. It’s important to continue your research and stay abreast of new developments so that you are continually improving your approach.
Ultimately, what matters is that your ads are converting well for you right now. How they will convert in six months or one year isn’t important as long as they are getting you results now . Therefore, it doesn’t matter if one strategy is superior to another—all that matters is if it’s working for you.
4. Wrapping Up
The most profitable products on Amazon are often the ones that have been advertised on the platform most effectively. In order to maximize your advertising results, you need to know which strategies work best and how to apply them most effectively. Hopefully with our 12 of the top Amazon advertising tips from seasoned sellers with years of experience in this area, your business can thrive. Wish you and your business all the best!