When you start selling on Amazon, you become part of a retail store that can reach hundreds of millions of customers who browse and shop for their next purchase.
Examples of marketing tactics include case studies, paid marketing, or other categories for your brand’s products or content. Amazon should be a part of your e-commerce marketing strategy.
I developed five core components of an effective Amazon PPC strategy to avoid such consequences and get the right approach.
Let’s dive right in.
Pillar #1: Clear business goals
You must have clarity on your business goals. Most advertisers or agencies talk about increasing sales. However, it would be best to look into the fundamental aspects before creating campaigns.
What stage is your product in – Launch, Profit, Mature, Liquidate
Are you looking to increase your market share?
Align your business goals with your campaign objectives so you can make the most of your ad spend. For example, you want to build sales momentum during the new product launch. On the other hand, if you’re going to increase your market share, you will need to target competitors’ listings.
Gaining clarity on your goals may take a while, but it saves money, time, and effort in the long run.
Pillar #2: Understand the buyer’s journey – ‘Plug and Pray’ to ‘Plug and Play’
In marketing, timing is everything, wouldn’t you agree? Engaging your buyers with ads and messaging at the right time of their buying journey is the key to landing a sale.
Why do you need to understand their buying journey?
What touch points are involved when buying your product or a similar one?
What happens after the sale?
Asking questions like these would allow you to answer the most essential Amazon advertising questions that you cannot otherwise answer, like:
What kind of sponsored ads should you use?
How to craft the right brand message
What is the most critical metric you should consider for a specific campaign?
It helps to convert your ‘Plug and Pray’ approach to ‘Plug and Play.’ If you’re an advertiser on Amazon, I know you can relate to what I am saying.
Understand buyers, form a strategy, influence them, and sell the result.
Pillar #3: The suitable advertising options for you
If you understood the above point, this would be as easy as pie.
Amazon offers comprehensive advertising solutions and targeting options for everyone.
Sponsored products, brands, and display ads – All these three play a unique role in optimizing your ad spend.
However, you should choose the proper advertising based on your funnel and optimize your PPC campaigns.
Sponsored products: These ads appear in search results within the listings, allowing you to drive keyword and product-specific campaigns. They are apt for growing sales, boosting rankings, and more.
Sponsored brand ads: These Amazon sponsored brand ads are great if you want to increase your brand presence and engage customers with your brand story, and are also valuable if you want to target generic search terms.
Sponsored display ads: These ads are great if you want to retarget or remarket your product and reach new audiences. This advertising type is more of a programmatic solution that allows you to target customers based on their shopping behavior.
Refine targeting
The more you refine targeting, the better your ads work. When your ads appear in the right places, your ROI improves significantly. Within each ad type, you will have different targeting types.
For instance, automatic campaigns are suitable for harvesting potential keywords, and manual campaigns are essential to control your ad spending.
When creating a sponsored brand ad, you need to include category-level and branded search terms to generate awareness among the target audience.
Pillar #4: Profitability
Lowering ACoS is only sometimes the right way to increase overall profitability. Ideally, your campaigns are profitable if the profit you generate is higher than the ad spend. So you should know breakeven ACoS to ensure your ads are suitable.
You should also know that not all revenue is created equal. So, if you want to increase a specific product’s CLV (customer lifetime value), you can change the breakeven point accordingly. You can, therefore, increase your ad spend and still create long-term profits.
Pillar #5: The Advertising Flywheel
Build momentum and run on autopilot. This is the advertising flywheel.
Your sales velocity strongly influences your ranking on Amazon.
Put, More Sales = Better Rankings.
Higher rankings combined with good customer service result in better product visibility, which increases your sales. To accelerate your growth and profitability, you need to introduce Amazon advertising to the mix.
With PPC, you can target more keywords, rank higher, and grow sales. This momentum will, in turn, increase your overall profitability.
Remember that PPC is not about winning bids and sales but should be a part of your overall strategy.
Transparent;”>Limpact your game plan on Amazon. However, other factors influencing rankings, conversion, and brand impression on Amazon, such as inventory, pricing, and reputation, must also be considered.
Enhanced product description. These features help customers make buying decisions by proactively answering their questions and helping them learn if this product is right for them, which can potentially lead to more sales and help build shoppers’ trust in your brand:
Custom paragraph headers and images Unique image and text layouts Product comparison charts Bulleted feature lists This content type appears in the Product Description section of the detail page.
Brand story.* Build emotional connections with shoppers by telling your unique brand story. It includes the following features:
Carousel display with full-screen background on desktop and mobile devices Image and text cards Brand Q&A card Links to other products and your brand’s Store This content type appears in the From the Brand section of the detail page.
Determine your goals.
Whether you want to drive more sales or boost brand awareness, Amazon allows you to align your targets with your goals. For instance, you can deem your Advertising Cost of Sales (ACoS) as your success metric if you focus on driving more sales.
Alternatively, you can deem impressions as your success metric if you focus on boosting brand awareness.
Fortunately, Amazon divides its product page into “Objectives” if it’s easiest for you to figure out which Amazon ad product works best depending on your goals. For instance, video ads, display ads, audio ads, and custom advertising solutions are recommended if your goal is to grow brand awareness.
By working backward from your goals, you’ll ensure the strategy you implement on Amazon is best suited for your business needs.
- Choose the right products to advertise.
Advertising your most popular products gives you the best chance to convert clicks into purchases. Ensuring these products are in stock and priced competitively would be best.
Alternatively, you may have a new product or service for which you’d like to increase awareness. When choosing the right products or services to advertise, you’ll want to keep your goals in mind and also ensure you’ve researched to determine whether Amazon is the right platform to showcase your products in the first place.
If you have any further questions or need assistance with your Amazon journey, please get in touch with the BellaVix Team. We’re here to help you every step of the way on your path to success on Amazon. Don’t hesitate to get in touch with us today!
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