It’s strategy time!
We present 3 strategies to boost your Amazon sales: more orders, more clicks, more sales. Each strategy has a different marketing objective – you can implement all of them with Amazon Sponsored Ads:
Amazon PPC Campaign Setup - Strategy first
Before you create your first campaign, you need to be clear about what you want to achieve with Amazon Advertising: More visibility for your brand? or for a new product? or would you like to sell more products with your budget?
Define your goals in advance
That helps you to pick the products for each campaign according to your strategy and decide how you would like to structure your campaigns.
Product launch: Boost your sales from the beginning
Especially as an Amazon seller or vendor, you are always on the lookout for new products that could fit into your portfolio. Once you have identified a possible top seller and added it to your catalogue, you first have to build up the product and generate as many orders as possible.
This is because one of the main factors for a good ranking in the Amazon search results is the number of previous sales.
Once the product listing is ready and your product has won the Buy Box – because only then will your ads be shown – you should also push the new product with Amazon Ads. This will direct valuable traffic to your newly added product, which would typically be listed far back in the organic search results. This is where advertising comes into play: Your orders generated through advertising improve your organic ranking. So you can reach one of the front ad placements in a shorter amount of time.
The ACoS you have to expect when boosting a new product depends on the competition for the respective product. Basically, a higher ACoS for a short time might be worthwhile considering the advantages of a quick and easy product launch. The same can apply to short-term promotions of sales and holiday offers.
Tackle the visibility problem on Amazon
There were more than 64.000 registered merchants on amazon.de alone in 2016 – and the numbers have kept increasing since then. with regard to the number of competitors alone–gaining the necessary visibility for oneself and one's products becomes increasingly difficult without paid placements.
More visibility for products and brands
Lack of visibility does not only affect the products themselves. Brands play a more subtle role in the Amazon product search. Amazon Advertising is a good way to stand out as your own brand on Amazon and benefit from branding effects. A good example is Fitbit's Sponsored Brands Ad (formerly Headline Search Ad):
Amazon Advertising Sponsored Brand (formerly Headline Search Ad)
If the brand doesn't seize the opportunity, it may move into the background–even as a top dog in the industry, because these prominent placements above the search results cannot be reached organically, but only with Sponsored Brands ads:
Only selected products
Typically, the core products of the brand are advertised here. A branding campaign is primarily about strengthening the name and image of the brand itself. Limiting the number of products to a relatively small number also helps you to keep costs under control despite the expected higher ACoS.
Visibility with Sponsored Products Ads
Sponsored Products Ads can also contribute to the brand, if you make sure your ads dominate the main keywords for your category. For example, if a user searches for "sun screen", he would ideally always see sun screen of the brand "Nivea". Listerine, for example, does this on the keyword "mouthwash".
As their name - Sponsored Products - suggests, they increase the visibility of the products behind the brand.
For more visibility with Amazon Advertising Campaigns: What should I consider?
If your ads are aimed at more visibility, you may want to skip the ACoS or CPA optimization. Your goal is to generate as many impressions or clicks as possible on a given budget. The resulting number of conversions plays a secondary role in this strategy.
Ok, we have dealt with the special cases "new product" and "branding on Amazon". Let's dig into the topics that really concern us about PPC:
Performance: Amazon Ads at the best price per click
With this strategy you advertise your full range of products (recommended) and pursue the goal of bringing as many products as possible to the user successfully within your set budget.
Your problem with this is that not only do brands often go unnoticed on Amazon - the space on the search results page for products is also limited. Products that are only displayed on page 2, 3 or even further back have a much lower conversion probability than products on page 1. However, page 1 is often reserved for top sellers and can only be reached through high keyword bids. The result: the ACoS for highly competitive products can sometimes exceed what you are willing to pay.
How can you lower the ACoS of your campaigns?
- Through keyword optimization
- Through bid optimization
Broad keyword targeting = visibility for your product
In order to get a decent campaign performance, it is a good idea to invest time in targeting. If you maintain your keyword lists regularly, you exclude unnecessary cost drivers and identify particularly attractive keywords.
Successful keyword management also includes advertising the long-tail. The long-tail is made up of keywords that are rarely searched for and often longer. The traffic is usually much cheaper than on the top keywords. You get where this is going - due to the low click prices you can expect significantly lower advertising costs per sale.
If you advertise your product in an ideal campaign structure, you can provide a good mixture of head-, mid-, and long-tail keywords in your campaign. You can identify relevant long-tail keywords by analyzing the keyword report of your auto campaigns.
Optimize keyword bids
How high should the bids be, for a particular keyword type?
- Either the bids for individual keywords are too high: you generate too many clicks and traffic that does not bring sale as expected.
- Or the bids of your keywords are too low and you generate too few clicks: you leave traffic and thus potential revenue behind.
Amazon Advertising Bid adjustments - the problem with rule based
In the keyword head, we collect a lot of data every day and can adjust the bids according to the above criteria. Better: Calculate your ideal click prices for each keyword.
What happens to the mid- and long-tail? Making a well-founded decision requires a lot of patience – we wait until the data basis is large enough. However, this often never happens. We do not have the possibility to place a bid manually on the basis of the historical performance. This is where the machine learning approaches from smart bidding technologies like ADFERENCE can help you. ADFERENCE aggregates data and can therefore make reliable predictions about keyword performance in the long-tail at a very early stage despite a small database.
Find more quick hacks for a better performance in our blog post: Small Hacks with a Big Impact: How to Achieve the Best Performance in Amazon Advertising Campaigns.