Whether you’re just getting started with pay-per-click (PPC) advertising on Amazon or you’ve been using the platform for a while, one thing’s for sure: Amazon Advertising is continually adding new tools and ad layouts to improve advertising. customer experience and give you more ways to interact with your customers.
With these new advertising tools and layouts being rolled out as Amazon Advertising matures, it’s important to make sure you’re using all of the available tools that will help you achieve your advertising goals. It’s especially important to make sure you’re not using outdated Amazon strategies as you progress through your business. We’ll dive into three outdated Amazon Advertising strategies — and what you should be doing instead.
3 Outdated Amazon Advertising Strategies
1. Use and start only with automatic targeting campaigns
When sellers discover Amazon Advertising and are looking to do keyword research for ads, many people start using automatic targeting campaigns. These are Sponsored Products campaigns where you can add the Amazon Standard Identification Number (ASIN) you want to advertise in the campaign, and Amazon will automatically target customers’ search queries to where they think your product is most relevant. .
While this is a good place to start and you can get real-time customer search queries, only using this type can not only lead to your product being placed on irrelevant searches, but you are also missing out. other means of obtaining valuable information and data.
What you should do instead is use a combination of automatic and manual targeting in your Sponsored Products ads. In Seller Central and Vendor Central, you have access to Brand Analytics. While there are some useful keyword research tools out there, like Helium10, Brand Analytics uses first-party data, which is advantageous over what’s available to third-parties.
In Seller Central, log in and select “Brand Analytics” from the drop-down menu:
Once you click on it, you will be able to see a dashboard at the top of the page. Click on “Amazon Search Terms”:
This will open a new page and take you to this interface:
From there, you can search using terms that you find relevant to your products and ASINs. This interface also lets you see which related search terms are ranking highest and which ASINs are being clicked on the most, from highest to lowest.
In addition to setting up your automatic Sponsored Products ads targeting, you can use the search terms found here as keywords to set up manual campaigns and target the most relevant and top-ranking terms for your products. In this example, you would definitely want to use “colored pencils” while including long-tail keywords like “colored pencils for adult coloring”. Using long-tail keywords is also beneficial, as these tend to have lower bid costs and can help with your mid-to-lower funnel tactics and maintain your cost per click ( CPC) within the desired range.
You can also now target your specific product category and even competing brands in Sponsored Products. You should use automatic targeting, manual targeting based on your keyword research, and category targeting at the same time. This allows you to gain valuable insights into your customers’ search behavior, defend your brand, show up in competitor searches, and ensure your products reach your target audience.
2. Have a budget intended to cover all of Amazon’s advertising objectives
Your company’s advertising goals will change over time. Many products are seasonal or sell particularly well during certain holidays. Depending on whether your brand is new or mature, launching new products, or has other internal sales goals, your advertising strategy should adapt to these varying circumstances.
The most likely situation is that a business will have multiple goals at once. For example, you want to increase your brand awareness on Amazon while driving sales and winning conversions from your competitors. All these objectives cannot be achieved with a single strategy and a single budget. Your return on investment (ROI) expectations should also be different depending on your business goals.
Brand awareness efforts aim to increase your presence on Amazon, so consumers know and recognize your brand and products. These campaigns will expand your reach but will not necessarily lead to sales.
Consideration should be given to expecting you to get a lower return on sales than others, especially if you are new to the market or launching new products. If one of your goals is to focus on search visibility and ranking, you should expect a different ad cost of sales (ACoS) for those efforts. Ads on Amazon have a halo effect that can show an increase in your total sales, not just your ad revenue.
Instead, divide your monthly or weekly budget between your different goals based on priority. How you divide this depends on what you determine to be the most important goals. Maybe you want to allocate 40% of your budget to your top sellers, 30% to brand awareness, 20% to brand advocacy, etc. Each of them will have a different ROI and can be managed by organizing your ads into different portfolios. Setting these expectations early in your advertising journey will help you prioritize your business goals as they change.
3. Only use Amazon PPC as an advertising method
Amazon Advertising isn’t the only way to drive traffic to your product listings. Combining your marketing efforts with options on other ad platforms, like Google, can create a positive feedback loop between your own direct-to-consumer (D2C) site and Amazon by running ads in tandem.
Using Amazon Seller Central and your own site, you can create email campaigns to re-engage those customers and potentially turn them into repeat buyers. If you don’t have your own D2C site, you can still use sponsored ads on social media platforms, blogs and influencers to drive traffic to your Amazon listings. Using these tactics with Amazon PPC advertising builds traffic to your listings, brand awareness and customer engagement, and they promote customer loyalty.
Whether you choose to diversify your marketing efforts across multiple platforms or start with Amazon PPC, the key to ensuring your ad dollars reach your goals is to make sure you’re not using an outdated Amazon strategy. Amazon and e-commerce are constantly evolving. Therefore, a dynamic approach to advertising will prevent your business from being left behind!