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8 Advanced Tips for Advertising on Amazon

According to a survey by Third Door Media, 80% of Amazon advertisers have plans to increase their Amazon advertising spend in 2019. That means the competition is heating up, and it’s time to take your Amazon advertising game to the next level.

Most advertisers start with the basics, learning as they go and adding more advanced tactics to their repertoire over time. The good news is there are several ways to leverage Amazon’s advertising tools and functionality to start getting better results with your advertising dollars.

Here are eight Amazon advertising tips you can put to use right away to get more traction from your ad campaigns:

1. Build brand awareness with Sponsored Brands

Formerly known as headline search ads, Sponsored Brands are purchased by about 18% of buyers, according to a survey by Cowen and Co. Because they appear above the Amazon search results, Sponsored Brands ads help advertisers build brand awareness and are useful for promoting multiple products.

2. Focus on product-level profitability

You’ll also want to take a look at more granular data by focusing on product-level profitability. Individual SKUs have different profit margins, of course, and it’s essential to understand gross profit on a product level before introducing paid advertising into the mix. This data will show you which products could benefit most from a paid advertising boost while minimizing your risk.

3. Take advantage of the Flywheel effect

The Flywheel effect is the concept of using paid advertising to generate earned media to drive overall growth. Earned media and paid media are comprised of reviews, detailed page views, and orders, while your product content is owned media.

Here’s how it works: Paid ads drive traffic to your product pages, boosting the product’s position in the organic search results. Traffic and a favorable position in the organic results increase the likelihood that the product will earn the “Amazon’s Choice” designation. In turn, the “Amazon’s Choice” label earns your product more attention from shoppers, resulting in more traffic, and so on. It’s a continuous cycle.

4. Use category-specific targeting for Sponsored Products

Sponsored Products are the most popular advertising option, used by about 29% of buyers, according to Cowen and Co.’s research. These ads appear above, below, and alongside the Amazon search results, as well as on product detail pages, and are similar to Google’s product listing ads.

Sponsored Products allow you to use category-specific targeting, which pairs your company’s products with complementary products, thus increasing the odds of converting shoppers. Known as Product Attribute Targeting (PAT), this feature makes it possible for advertisers to showcase their products in ads next to a specific set of brands or products or alongside items within a specified price or rating range.

So, if you only want your ads to show up alongside top-rated products, you can do that thanks to Product Attribute Targeting. If you sell products such as parts or components that consumers typically purchase to go along with a different product, you can use PAT to show your ads to shoppers who are considering buying that product. Even if they don’t spring for your add-ons right away, you’ll benefit from brand recognition if they decide to buy later. You can even showcase your ads alongside competing products or brands if you choose.

5. Use negative keywords to reduce wasteful ad spend

Just like in Google Ads, Amazon negative keywords are keywords that you exclude from a larger keyword search, to make sure you don’t rank for the wrong search terms. For example, if you sell $10 headphones, you will want to rank for searches of “headphones” but not searches of “bose headphones.” In this instance, “bose” should be added as a negative keyword.

When trying to decide what negative keywords to filter out, also look for keywords receiving a large volume of traffic but few conversions. In other words, you’re paying for clicks that don’t convert to actual sales, meaning your valuable ad dollars are going to waste. No one likes to waste money, particularly advertisers. This can often happen with keywords that are too general and too short, such as “top.” Ideal shoppers are likely looking for something much more specific that can be targeted with a better long-tail keyword (such as a “blue button-down shirt for men”).

Plus, what if most of those customers aren’t looking for a shirt at all, but for those old-school spinning toys once loved by kids?

There’s no way to predict what those customers are looking for without better, more refined keywords, so your ads will go to waste when shoppers are looking for something other than what you’re selling on Amazon. Fortunately, you can eliminate a great deal of wasteful ads spend by leveraging negative keywords, which prevents your ads from showing in the searches that don’t produce sales.

6. Have a flexible Advertising Cost of Sale (ACoS) goal

Obviously, the lower the ACoS, the better. But is that always what you should be aiming for? ACoS is a ratio of your ad spend to revenue. For automatic campaigns, ACoS is at the group level, but for manual campaigns, you get your ACoS on a product level. Low is preferred, of course, but every campaign should have a goal depending on whether you’re launching a product, liquidating a product, or trying to generate ongoing profits from that product.

7. Use auto campaigns to explore and manual campaigns to exploit

While the idea of setting it and forgetting it might be appealing, automatic campaigns aren’t always your friend. Auto campaigns give you only limited control, and you can’t set bids on individual search queries. Auto campaigns are useful for another function, though - sourcing keywords.

8. Optimize your bids

We’ve already touched on the dangers of set-it-and-forget-it, and that’s true for the keyword bidding process, too. Ad group default bids can hurt you because your bid won’t be successful for every keyword. Instead, set your default bid at the keyword level at what you can afford to pay per click. You should keep a close eye on your conversion rates and continuously adjust your bids. If your conversion rate goes down, for instance, and you don’t adjust your bid, you’re going to lose money.

We specialize in touching all these key points while we are working on your account. Our AI system helps leverage Amazon’s Algorithm to push our product as and when required.

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