The Keys to Success With Amazon Advertising

With millions of active customers, Amazon is the perfect place to grow your business. However, it’s not as simple as putting up products and waiting for sales to come in.

Amazon certainly isn’t the only ad platform you should consider (Google and the social media networks are also very valuable), so you’ve got to find the balance that works for you.

There’s no point in increasing your Amazon ads budget if your product pages aren’t persuasive enough to make sales.

However, the element that will ultimately decide your Amazon advertising costs is your conversion rate.

The only way to do this is if your Amazon ads are showing to the right people.

On the scale of a business like Lenovo, those are huge numbers, so how did it achieve them? They:

1. Used Amazon’s ad manager to identify relevant audiences.
2. Targeted specific groups (such as lifestyle tech enthusiasts, people in-market for laptops, and audiences with high purchase propensity.)
3. Reached six million people.

If customers can inspect your products in a similar way to how they would in a real-life store, then it’s going to result in more sales.

The format you choose will largely be dictated by your goals.

Remember, people who write down their goals are around 50 percent more likely to achieve them, so this is an important step.

2. Choose the Right Amazon Advertising Campaign

First, you need to set your budget. What should you expect to spend?

PPC is very efficient because you only have to pay when you know you’ve reached your target audience. It’s still up to you to get the conversion and sell your product, but Amazon advertising gives you the opportunity to do this.

You’ve got to make use of all the organic tools you have available to you. That means offering top-quality images, writing great copy, and utilizing elements like fantastic content.

Lenovo Increased Brand Awareness by 19 Points

You’ll often see two extremes when it comes to copy on Amazon product pages: those who neglect it, and those who stuff keywords everywhere to try and gain an SEO benefit.

As with any investment, you should have a clear understanding of what you want to spend on your Amazon ads before you begin.

This is a tricky question to answer because it varies greatly depending on your industry.

If you’re going to invest money in advertising, then your product pages have to be fully optimized, and you need to learn from your analytics.

The key takeaway from this is targeting.

One of the first steps in any form of marketing is to clearly outline your goals.

Amazon offers some great tools to help you target the correct audience and manage your budget, however, you’ve got to go a step further than this.

If you’re not learning from the data you collect, then it’s difficult to move forward. What data allows you to do is run split tests. This is where you change an element of your Amazon advertising strategy and see how it performs compared to the control version.

One of the first things you will have to decide with your Amazon advertising is which campaign type you want to run.

Do you want to be more successful with Amazon advertising?

Start to figure out which ones are the best fit for your Amazon ads. Thankfully, the answers are going to be in your analytics.

1. First, go to your Amazon Seller Central dashboard.
2. Second, identify how much traffic each of your products is already receiving.
3. Assess which has the highest conversion rate.
4. Look at the cost of the keywords you’d want to use.
5. Work out your ideal profit margin.

Rather than paying upfront for your advertising, pay-per-click ads mean you only pay when someone clicks to view your product.

Otherwise, you could be losing money.

9. Test + Optimize Your Ads

You have to overcome this by giving them the next best thing—high-quality images.

The last thing you want to do is go over budget and hurt your bottom line. Amazon advertising should be increasing your profit margin, not shrinking it.

If you’re spending $1 for every click and converting 1 percent of those clicks, then you spend $100 to sell one product. On the other hand, you might pay $2 per click, but if your conversion rate is 5 percent, then $100 of ad spend is going to get you five sales.

It followed a simple strategy that brought in impressive results. They:

1. Set up a “sponsored product campaign” on Amazon’s ad console.
2. Used the campaign-builder to identify new keywords.
3. Executed an aggressive bidding strategy to increase search impressions by 80 percent.
4. Created A+ content for each product.
5. Optimized product images and copy on the product page.
6. Ran sponsored display ads to complement the sponsored product campaign.
7. Expanded their reach and made more sales.

The proof is in the return on investment.

One of the drawbacks of e-commerce is that shoppers can’t see the products in person before buying them.

There are some great benefits to Amazon advertising, and, to make the most of your money, the key is choosing the best strategy and slowly fine-tuning your approach through trial and error.

By individually testing different elements of your Amazon ads and product pages, you can isolate which tactics work and which don’t.

Frequently Asked Questions About Amazon Advertising

What is the difference between self-service and managed amazon ads?

These Amazon advertising strategies don’t just work for smaller brands; they’re also effective for large, global businesses like Lenovo computers.

This information is going to be crucial in helping decide which products you should start promoting.

See How My Agency Can Drive Massive Amounts of Traffic to Your Website

• SEO – unlock massive amounts of SEO traffic. See real results.
• Content Marketing – our team creates epic content that will get shared, get links, and attract traffic.
• Paid Media – effective paid strategies with clear ROI.

Many people will focus on sales with Amazon, but its advertising options are much more diverse than this.

360-degree rotating images are a great tool for this, and they’ve been shown to increase e-commerce conversion rates by as much as 27 percent. Humans are visual creatures, and we need good images to understand the finer details of products.

6. Write Clear, Engaging Copy

Run some A/B tests to find out what works, and make sure your copy is helping you to get the most out of your Amazon ads.

7. Target the Right Audience

According to the Brand Lift study, this ad campaign coincided with a 19-point lift in brand awareness, a 5-point increase in perception as a premium brand, and a 9-point increase in purchase intention.

Selling products online is all about optimization.

Amazon respects the fact that people’s time is valuable, and that’s one of the reasons it’s been so successful. It’s also a key reason why Amazon ads are so beneficial for businesses.

I’ve talked about some of the benefits of Amazon ads, but how do they apply to real-world scenarios? As you’ll see from these examples, getting your Amazon advertising strategy right can have a huge impact.

Alexandra Workwear Increased Sales by 300+ percent

For example, you might be advertising for keywords related to tennis, and Amazon decides that Pickleball and tennis are closely related. If you get clicks for Pickleball related queries, then you’d want to add them to your negative keywords.

Digital ad spend is worth over $560 billion, so it’s clearly an important marketing tool. In order for it to work for you, your Amazon advertising strategy has got to work within your monetary constraints.

4. Choose the Right Products to Promote

When you go into your Amazon Ads Manager, you’ll be presented with different campaign types:

• Sponsored Products: Feature your products at the top of search results.
• Sponsored Brands: Feature your brand in shopping results.
• Sponsored Display Ads: Display ads across relevant Amazon pages.
• Stores: Feature your brand story and portfolio of products.
• Audio Ads: Play on the free tier of Amazon Music.
• Video Ads: Play on connected TVs and publisher channels and networks.

People lead busy lives. One of the reasons Amazon has become so popular is that it’s convenient.

• It gives people instant access to a huge array of products.
• It makes checkout incredibly simple.
• It offers fast delivery so people get their hands on their purchases quickly.
• People don’t have to leave their houses to buy products.

Alexandra Workwear, a manufacturer of work uniforms, grew their chef workwear sales by 372 percent year on year using Amazon advertising, achieving a 500 percent return on advertising spend (ROAS).

Book a Call