It seems so simple – set up advertising and sell, but it’s not quite that straightforward. If you want to truly stand out among competitors and take leading positions in your niche, this article is for you.
Very often, Amazon sellers rely heavily on advertising, but such a strategy is doomed even with a perfectly set up ad campaign if your product listings and business processes aren’t fine-tuned.
To achieve success on Amazon, as in any other business, it is critical to start with a deep market analysis and understanding of your target audience, as well as an assessment of the competitive environment. This creates the foundation upon which you build your business and without which no ad campaign will give you good results.
- The ability to stand out among competitors by offering unique products.
- Optimization of product listing and its appeal.
- Properly structured business processes.
These are key in attracting buyer attention, shortening the decision-making time for purchase, and providing fast, quality service.
The main secret is to make the product more attractive than competitors’, study audience requests, and set up listings so they sell. Only then scale sales through Amazon PPC – this gives a great sales boost if the foundation is well-established.
Even in the most competitive niche, you can take first place by simply analyzing audience requests and competitor offers. All you need in the end is to give the buyer all the necessary information on the product listing and optimize the description for your audience’s search queries.
Only after you’ve created a solid foundation can you move on to PPC campaigns, and analyzing competition, product uniqueness, and market positioning provides the basis for an advertising strategy and overall promotion.
Amazon PPC
Amazon PPC (Pay-Per-Click) is an advertising model where advertisers pay Amazon for each click on their ad, regardless of whether it leads to a purchase. This system allows Amazon sellers to quickly set up and launch various ad campaigns, the cost of which is determined by the chosen ad formats, keyword targeting, and level of competition in a particular product category.
Amazon PPC includes types of advertising such as Sponsored Products, Sponsored Brands, and Sponsored Display ads.
Sponsored Products
Sponsored Products campaigns are the initial stage for Amazon sellers in their advertising activities. No brand registration is required for their use, and they are easy to set up. After selecting the appropriate keywords, you can quickly launch Sponsored Products advertising. These ads appear both at the top of the Amazon search results page and among organic results, as well as on competitor product pages, increasing visibility and promoting sales growth.
Sponsored Products advertising is a simple and effective way to attract new customers, as it targets buyers already on Amazon and ready to purchase. It is an excellent option for increasing views, clicks, and sales for new products as well as for items with consistent sales. However, it should be noted that more than half of Amazon sellers use Sponsored Product Ads, which can lead to increased advertising costs in your niche.
Sponsored Brands
Sponsored Brands advertising, formerly known as Amazon Headline Search advertising, is available to sellers registered in the Brand Registry program. This type of advertising aims to increase brand recognition by redirecting traffic to an individual store on Amazon or a specialized brand page. The main advantage is the absence of competitive products, only yours.
There are three formats of Sponsored Brands advertising: product collection, store showcase, and video.
Sponsored Brands advertising is paid per click, similar to Sponsored Products. The cost depends on your daily budget, bids for keywords, and product categories. The competitiveness of the product affects the cost per click. You can use the bid suggested by Amazon or assess costs through tools such as Keyword Scout by Jungle Scout. The minimum daily budget is one dollar.
The main advantage is availability only for registered brands, which reduces competition.
Sponsored Display
Sponsored Display differs from other types of Amazon advertising by the possibility of targeting based on interests, buying behavior, and product page views, not only within Amazon but also on third-party sites and apps. This solution is available to sellers registered in the Brand Registry program and allows you to remind customers of your product and brand even outside of Amazon.
The launch of Sponsored Display advertising on Amazon is based on the PPC (pay-per-click) system, where the cost of each click is determined by your bid, which affects the visibility of your ad to potential buyers. You set the budget per day and bids yourself, based on your financial capabilities and the effectiveness of the advertising.
The advantage of such advertising is access to retargeting outside the Amazon site, which makes it a unique opportunity for sellers registered in the Brand Registry program.
Amazon facilitates the task for sellers by providing key metrics to assess advertising effectiveness. Among them:
- Clicks: the number of clicks on ads, adjusted for invalid clicks, which usually occurs within three days.
- Impressions: the frequency with which ads were visible to buyers on the Amazon platform.
- Spend: the total amount spent on the advertising campaign equals the sum of click costs.
- Sales: sales volume made after clicking on an ad, recorded over a week.
- Advertising Cost of Sales (ACoS): a measure reflecting the share of advertising expenses from sales derived from it.
- Return On Ad Spend (ROAS): a measure opposite to ACoS, showing the ratio of sales revenue to advertising costs.
These metrics allow sellers to form ad campaign goals and adjust them for maximum efficiency. Successful work with the Amazon PPC system may require time for training and practice, but you can always seek help from professional PPC specialists who specialize in optimizing Amazon ad campaigns for the best results.
At Selleriti, we offer to conduct a free audit of your account, after which we will give you personal recommendations and provide services for setting up not only ad campaigns but also optimizing listings and creating content.
Why is Amazon PPC an Integral Part of a Successful Growth Strategy?
Given the increasingly competitive landscape on Amazon, PPC advertising becomes a critically important tool for businesses looking to stand out and boost their sales on the platform. In a saturated market, where the number of sellers and offered products continues to rise, PPC advertising offers an efficient way to attract attention to products and enhance their visibility.
The importance of PPC advertising for business on Amazon is confirmed by a significant increase in the platform’s ad revenue, which grew by 32% over the past year, reaching $31 billion. This growth reflects the increased demand and trust sellers have in Amazon’s advertising tools.
Furthermore, the majority of Private Label Sellers on Amazon are actively implementing PPC strategies into their marketing plans. According to data, about 75% of sellers are already using at least one type of Amazon PPC advertising.
This underscores the significance of PPC advertising as a key strategy for boosting sales and strengthening brand positions on Amazon, regardless of the company’s size.
Many Amazon sellers recognize the significant advantages of the platform as a place for online trading but also express concerns about the potential negative aspects of a rapidly growing market. Specifically, 59% of sellers express worry about intensifying competition, which could lead to price drops, and the same percentage of sellers are concerned about rising Amazon advertising costs.
Despite the increase in advertising expenses, Amazon still offers opportunities for profitable ad placements, requiring an effective strategy.
Advertising campaigns on Amazon are particularly important when launching new products, as they allow for quick attention to your items using keyword or product targeting. Such campaigns can significantly enhance product visibility, promoting it to the first page of search results.
32% of sellers are confident that using the Amazon PPC advertising platform is a key element of success on this marketplace.
However, it’s worth noting that for successful advertising on Amazon, it’s critically important to have a quality product, appealing images, and a well-optimized listing. These factors usually ensure a high conversion rate of ad clicks to sales, which, in turn, contributes to improving the organic ranking for keywords and further sales growth.
Also, remember the importance of analyzing and adapting your strategies in accordance with market changes and consumer behavior.
Tips to Enhance Your Amazon Advertising Strategy
- Regular Performance Analysis: Consistently analyze the performance metrics of your advertising campaigns to identify which ones are most effective and optimize them for increased ROI.
- Testing and Optimization: Utilize A/B testing for different aspects of your advertising campaigns, including ad headlines, keywords, and product images, to determine what best contributes to sales increase.
- Competitor Study: Regularly review your competitors’ strategies to find untapped niches and keywords that can lead to increased visibility of your products.
- Education and Consultation: If you’re new to the world of Amazon PPC or an established seller looking to take your sales and brand growth to the next level, don’t hesitate to seek assistance from experts or use educational resources to enhance your knowledge and skills in Amazon advertising.
Conclusion
Remember, success on Amazon isn’t achieved overnight. It’s the result of continuous effort, creative approach, and willingness to adapt to changing market conditions. By employing these strategies and tips, you can improve the visibility of your products, increase sales, and elevate your business to a new level on the Amazon platform.
If you’re interested in a professional audit of your Amazon account and setting up advertising to promote your products, we at Selleriti are always happy to help with your brand’s growth.