In 2022, entrepreneurs know how competitive Amazon marketing has become. It’s difficult to stand out.
Without a good strategy in place, you can end up making costly mistakes with your Amazon advertising. The good news is that there are ways to optimize your ad spend to save money and see better returns with your efforts.
Here are just a few of the ways to immediately make your ads stand out in the crowded field that is Amazon. Be sure that all your product SKUs are used in your Amazon ads. Maximize the reach and placement of sponsored products. Have a flexible strategy in mind for various Amazon PPC ads. Utilize multiple ad types, and set-up Auto Targeting.
If you want to see better results with your Amazon advertising, keep reading. Our 10 tips will drive your product placement to the top of the page, increase your sales, improve your brand awareness, and save you money on your Amazon marketing.
In this article, we will discuss in further detail each of our top 10 tips for you to get better results with Amazon advertising.
Our top 10 tips:
- Improve Brand Awareness
- Focus On Product Profitability
- Use Negative Keywords and Phrases
- Set Up Automatic Targeting
- Target Categories For Sponsored Products
- Utilize Match Types
- Ensure Your Target Keywords Are Included In Product Descriptions
- Optimize Your Bids
- Take advantage of Sponsored Display Ads
- Cancel Ineffective Campaigns
Before we delve into some of the tips for better results, we need to discuss your advertising strategy.
Too often, advertisers create content and try to fit keywords into the copy or structure it with a keyword and build the product copy around the keyword.
This tactic is just not the best for your product search results. Instead, getting optimal results requires constant evaluation and adaptation to perform well, including what products you promote or discontinue advertising for.
The Top 10 Amazon Advertising Tips You Need For Better Results
As we mentioned earlier, a combined strategy of targeted keywords, sponsored products, and Auto Targeting is all just the beginning of optimizing your Amazon advertising campaign.
If you follow our 10-tips, you’ll position your brand to be successful on Amazon. Along the way you will also increase your brand exposure and ad revenue, as well as decrease your Amazon advertising cost. This will ultimately help you to use your marketing budget in the most effective way.
Improve Brand Awareness
Amazon has quietly become one of the top advertising websites and is the global leader in retail sales.
So why is this such an excellent opportunity for sellers? Because of Amazon’s Sponsored Brands campaign as a form of advertising.
Sponsored Brands is the name for the previous program known as Headline Search Ads.
The power of Sponsored Brands is that when a customer searches Amazon for a product, Sponsored Brands appear in the header’s first column of the search results page.
This prominent placement of this ad type has shown to have a sales conversion rate of 18% for products placed on the search results page regardless of whether it was the intended product or not that customers had searched.
With Sponsored Ads, you have the added benefit that you get much more exposure for your brand by their prominence on the results page than with any other search result ad.
These ads are ideal for top-of-the-funnel brand awareness and product reach, especially when you couple them with keyword phrases and exact match keywords that highlight your product.
An additional benefit is that you can drive customers to your product and sales pages through the use of Sponsored Brand ads.
Focus On Product Profitability
Understanding the margins of your products is critical when you begin to strategize your Amazon ad campaigns.
Every SKU has unique selling data points you can analyze. Using the data, ranging from cost to promote to manufacturing and selling costs, you can determine whether your profit margins are big enough to pour more ad dollars into that particular product.
Analyze which of your products has a higher profit margin before you think about spending anything more on paid ads. The last thing you want to do is waste money on ads for a product that barely makes it worthwhile.
This analysis will help you pivot your product offerings by phasing out those products that aren’t carrying their weight and dedicate the resources you’re using to keep them afloat into more profitable centers.
Use Negative Keywords and Phrases
The ad campaigns that Amazon offers aren’t always specifically related to the intended search terms.
Broad search results can lead to a dizzying array of confusing product matches, so setting up your negative phrases and keywords is crucial for your product not to show up in irrelevant search results.
For example, if you’re selling over-the-ear headphones, you wouldn’t want to target and rank earbuds as a keyword. You may get some clicks and maybe even make a sale or two, but in the end, you’ll spend a lot of advertising dollars just to get in front of customers looking for something very different to what you are offering.
The way to utilize negative keywords effectively is to create your strategy to focus on only targeting those keywords that convert and exclude those that don’t.
You should target specific keywords and phrases with high conversion rates regardless of traffic volume and eliminate broad terms that are high-traffic and low-conversion.
Your Ultimate Goal is to SELL Your Product, Not Gather Clicks!
Remember, your objective is SELLING your product, not getting the most clicks on a keyword. Utilize this strategy to increase your ad dollar return.
Another tactic when utilizing negative keywords is to use these targeted terms to adjust the amount you spend on your bids. Refocus your efforts on the high-volume, converting words with higher bids and lower your bid amount on broad, low-converting terms.
By doing so, your product will appear more relevant to those exact match results while also allowing you to have a smaller presence for any broad terms that may crossover with your keywords.
Last, take the time to fine-tune your PPC ads utilizing the data of keywords that are converting for you. Use the search results that customers find your product with, and build your negative keyword list to exclude those terms that drain your budget without converting any sales.
Set Up Automatic Targeting
With most ad campaigns, the more control you have as the advertiser, the better.
However, there are instances when letting auto-targeting take place makes sense.
Amazon ads allow the advertisers to set-up control for either manual or auto-targeting.
The beauty is you can use Amazon to test critical terms to find ones that your customers are using and exclude irrelevant ones.
Automatic Targeting can help you save you money by experimenting and discovering more relevant search terms that your target audience is already using. This will make it easier for you to fine-tune your PPC ads and optimize your product sales pages.
You should use this research in conjunction with traditional keyword research to complement and define your Amazon ads’ priority terms.
Target Categories For Sponsored Products
Sponsored Products offer added prominence and appear on the right-hand side, (based on their position) above, and below Amazon search results.
With this ad feature, you can target categories specifically to pair your product with similar and complementary types of products. By pairing multiple products that complement each other, the goal is to heighten your sales conversions.
This ad-option is known as Product Attribute Targeting (PAT), which is jargon for a feature that allows advertisers to promote a product based on the type of product, price point, or placed along with related brands.
As a strategy, this process allows you to highlight your product alongside items priced at the same price point and pairing with things that work together.
For example, if you’re selling exercise gear, running sponsored product ads will pair your product on search result pages for all types of crossover products like exercise clothes, shoes, and more.
To run a PAT ad, you need to set up manual targeting in your sponsored product campaign first.
Next, you need to select the products and bids you want to use before choosing the product categories you want to target.
Finally, you target established brands at similar price points or ratings, allowing you to leverage those products’ popularity and position your product with theirs in like search results.
The beauty of this type of strategy is that it will give your product the effective push that happens by appearing in similar type product searches without having to do a lot of costly experimentation with your ad campaigns.
Utilize Match Types
Similar to Google Adwords, Amazon uses the broad, exact, phrase, and negative match types to allow advertisers to refine their targeted keywords. The objective is to use crossover terms and match types to hone-in on your target prospect and their search terms used.
Broad match types are the terms most used and least defined. It’s the widest net possible and is the lowest converting of your terms but can help drive traffic to your product sales pages and increase brand awareness.
You can add broad match terms with keywords in front or after them to add descriptors. For example, if you are selling headphones, you can add terms such as “over-the-ear headphones,” “red headphones,” and more options.
For more specific targeting, phrase match types are the better option. With phrase match, you target terms that customers are using, like “best red over ear headphones” in their search. You can use plural forms, misspelled words, whatever your research is turning up concerning customer search terms. Phrase match is more defined than broad search but is not as specific as an exact match.
Exact match is highly defined, and targeted keyphrases match exactly your keywords used with their search query.
You can use plural words and misspelled words, but the search result will not include your products if the query isn’t 100% identical to the searched terms.
Again, let’s use the headphones as a product example.
If you’re selling headphones and using the exact match as a strategy, you can use a keyphrase like “best red over-the-ear headphones for $100.” Any search that includes all those terms will appear on the results page but will disregard anything different from your keyphrase.
As we’ve seen, negative match terms can optimize your marketing strategy for success. The way you do it is simple; set up your negative match to disregard those terms and key phrases that are irrelevant to your needs and don’t convert for your sales.
This strategy will help you keep your ad budget under control and eliminate wasteful spending by disregarding unnecessary terms.
Ensure Your Target Keywords Are Included In Product Descriptions
Amazon and other advertising platforms are structured to provide the best results for a user’s search query by providing the most relevant answers to their searches.
Your ideal tactic is to use your targeted keywords in the copy of your product description listings. This will help Amazon see your products as relevant to the keyword search results and boost your product traffic, enhancing your product page’s organic traffic.
However, when crafting your copy, you need to be strategic in utilizing this tactic. Your copy must be organic and natural for the reader and not just stuffed with keywords.
Remember, the goal is to convert shoppers into buyers, and your copy needs to be readable and persuasive for the customer, not the algorithm that drives traffic.
Optimize Your Bids
Every couple of weeks, you should be looking at your keywords and analyzing what is most effective.
However, be careful not to take a knee-jerk approach to adjust your keyword strategy too quickly based on the very recent data.
Keywords and phrases may change a little over time. Their popularity and usage could be something in pop culture driving a term positively or negatively, or the market fluctuations for your product may have an ebb and flow.
Suppose you think one phrase or two is an outlier and over-performing.
In that case, you can add it to your campaign but don’t go crazy and change every keyphrase just on one two-week performance.
Instead, use Automatic Targeting to discover the recent terms your customers are using and test the new phrase. If it continues to perform, you can optimize your product content to match suit, iterate your ads to adjust to the new search terms, and discard your underperforming terms.
Again, this step is crucial and needs to be conducted patiently. Set up a test, give it a few days to see if it’s useful, run an iterated (tweaked) version of it and see if it increases or decreases in usage. Using Automatic Targeting will take a lot of the experimentation and risk associated with trial-and-error, so consider this ad function as a best practice.
Take Advantage of Amazon Sponsored Display Ads
Sellers (with Brand Registry) looking to retarget Amazon visitors to their listings should pay attention to this tip.
Amazon Sponsored Display Ads (formerly known as Amazon Product Display Ads) are Amazon’s self-serve display advertising solution. This Amazon advertising strategy allows brands to target and retarget shoppers both on and off of Amazon with auto-generated, product-focused ads.
The biggest difference between Sponsored Display Ads and both Sponsored Product and Sponsored Brand ads is WHAT the ad is actually targeting. Instead of targeting keywords, Sponsored Display Ads targets customers based on their shopping habits.
Use intuitive, retail-centric controls that are tailored to your brand and product’s own requirements. An Amazon display ad can help attract audiences while they’re browsing specific detail pages, on Amazon’s own home page, and across third-party apps and websites.
Amazon says that sellers who used Sponsored Display Ads had an average of twice the impressions and half again as many clicks on their listings.
Cancel Ineffective Campaigns
Now that you’ve looked at the data of your best-performing ad terms, it’s time to shut down those that underperform. Monitoring which keywords seem to be performing well and those that just aren’t pulling their weight is just the first step in your optimizing strategy.
You also need to consider which products aren’t performing at all or have low sales.
When something requires a ton of advertising to get one sale, you need to consider if the product is worth selling.
If the return and profit margin is slim, perhaps you should discontinue the product or consider it a potential upsell rather than a dedicated product with a marketing budget that drains funds away from other better-performing products.
As you optimize your marketing using our top-performing tips, you still need to be engaged with adapting and evolving your campaigns over time.
The worst, most costly mistake is often setting a budget, establishing keywords, and forgetting about making adjustments to your campaign.
This is primarily due to underperforming search terms and not adapting your Amazon marketing to how your customers may be searching for products. The next step you need to take to optimize your marketing is to analyze the data and see what is performing well and what isn’t.
Analyze Your Data And Iterate Your Marketing
To maximize your ad campaign, you must analyze the data.
You want to download the reports of effective and performing keywords so that you can discard ones that cost you but don’t convert as well.
Depending on the length of time you’ve been conducting your marketing campaign, you may need to test-drive and iterate ads to reveal what is better-performing keywords and terms.
As you see specific terms performing better, you can optimize your content and ads to include those more frequently, including long-tail keyword phrases that act similarly to the exact match type ads.
Advertising on Amazon is a great way to improve your brand awareness and increase your sales simultaneously, but there isn’t a magic potion to make it happen.
Like all campaigns, your marketing success will be driven by data, research, and refinement to optimize performance.
As trends evolve and interest ebb and flow, it’s crucial that you continuously tweak what is underperforming and find new keywords and phrases to utilize in your campaigns.
CANOPY Management can help you to build an effective strategy that aligns with your unique business needs. We’ll help you get more from your Amazon advertising so you can do more for your business.