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Game-changing Amazon Advertising Tips


Looking for ways to improve the advertising side of your Amazon business? If done right, Amazon advertising can help your product reach its target audience and drive more sales. Read on to determine the best ways to approach advertising on Amazon.
Let’s get started.

#1 Build brand awareness with Amazon Sponsored Brands

Amazon Sponsored Brands, also referred to as headline search ads, is the key to driving more sales. These ads appear above the search results page on Amazon and help sellers build brand awareness. This is, especially beneficially for sellers who are selling multiple products in the marketplace. If you want to experience top-of-the-funnel Amazon advertising, particularly when paired with branded searches or category keywords, Sponsored Brands are ideal to go with. This gives you the opportunity to build brand recognition by incorporating entities like your ASINs, brand logo, and custom headline.

#2 Have a flexible ACoS goal

When it comes to Advertising Cost of Sale, the lower, the better. However, lower ACoS is not what you should be aiming for. The Advertising Cost of Sale can be explained as the ratio of your ‘ad spend’ to ‘revenue.’ For automatic targeting, Advertising Cost of Sale is at the group level, whereas for manual targeting, you get your Advertising Cost of Sale on a product level. Although low ACoS is preferred, your ad campaign should have an objective depending on whether you are trying to make ongoing profits from the product, liquidating a product, or launching a new product.
For best-selling products, your main objective should be lower advertising costs. If your product is already popular among the buyers, they can easily find your product without the need for an advertisement. However, it totally changes if you are launching a new product. The ACoS should be higher (at least in the short term) for new product launches. It is useful for earning reviews and gaining traction.

#3 Use the best PPC automation tool for better revenue

When it comes to Amazon PPC advertising, it is a bit complex than you might think. Being an Amazon seller, especially the new one, you need additional resources to manage your PPC advertising. Your ad campaigns could be more valuable if you have an external automation tool helping you complete the important tasks rather than trying to manage your PPC ads and Amazon business at the same time. This is where SmartPPC tool comes into play. It is an Amazon PPC ad management tool that can optimize and customize your ad campaign structures. It collects, analyzes, and learns from your previous PPC ad campaign data and performs a comprehensive diagnosis. The best part, it comes with Automatic Keyword Sorting functionality that allows sellers and advertisers only to run profitable keywords and remove those that are irrelevant.

#4 Make use of the Flywheel Effect

While it has not reached its prominence yet, the Flywheel effect could become “the Amazon marketing strategy” for years to come. Created by Jeff Bezos, it has contributed to the success of the Amazon business model. In simple terms, the Flywheel Effect is the idea of using paid ads for generating earned media, which drives the overall growth. Paid media and earned media incorporate orders, detail page views, and reviews. On the other hand, your product content is known as ‘owned media.’ When you are implementing your ad strategy based on the Flywheel Effect, you need to ensure avoiding common mistakes of determining success based on the Advertising Cost of Sale. You need to look at the gross profit and total revenue, as well.

It works in a way that when paid ads drive traffic to your listing, it will boost your product’s position on the organic search results. The increased traffic and a decent position in the Amazon organic search results page will likely increase your product’s chances of earning the “Amazon’s Choice” title. Once your product earns this designation, it will gain more attention from customers that ultimately results in more traffic. This is a continuous cycle, hence, known as the Virtuous Cycle Model.

#5 Emphasize on product-level profitability

Before introducing Amazon PPC into the mix, you need to understand your gross profit on a product level. Individual SKUs (stock keeping unit) boast different profit margins. Thus, it would be vital to look at more granular data. This data will give you insight on which one of your products will benefit most from PPC ads. This not only minimizes your risk but increases your profitability as well.
You need to examine the product-level profitability in order to determine the products with the lowest and highest margins. There is no point in spending money on ads that you don’t know will be beneficial or not. This is a great practice followed by many successful sellers and advertisers. You will save a lot of money doing this.

#6 Exclude negative keywords for reducing wasteful ad spend

In order to make sure that you don’t rank for wrong search terms, you need to exclude irrelevant keywords from a larger keyword search. For example, suppose you sell $20 watches. That means you would want to rank for ‘watches’ and not ‘Tissot watches.’ In this case, ‘Tissot’ is a negative keyword.
It can be a bit overwhelming when deciding what keywords are negative. The best way to start is looking for keywords that get a large volume of traffic but low conversions. If you do not exclude the negative keywords, you will be paying for the clicks that don’t convert into actual sales. In other words, you will be wasting money. However, it is not easy to determine what customers are looking for. But with the help of some Amazon seller tools, you can filter out your specific audience. Excluding negative keywords will prevent your Amazon PPC ads from showing in the searches that don’t drive conversions.

Conclusion

It is all about using the right strategies. Whether you are experienced or not, you need to do proper research and analyze your strategies before implementing them. Always use quality and trusted Amazon seller tools like SellerMotor for performing different tasks. If you want to know more about Amazon advertising, feel free to contact us.
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