Amazon is undoubtedly the biggest online marketplace on the planet. The US marketplace alone has 3 million products on Amazon. It grows every day, and so is the competition among the sellers.
So how do you reach relevant customers and make better sales? This question bothers every seller who wants to grow on Amazon.
Most customers search on Amazon with the intent to purchase. That means the probability of conversion is higher on Amazon than on any other e-commerce site. Since the customer is more likely to purchase on Amazon, you should advertise and rank higher so your customers find your products right away.
Amazon offers you various advertising solutions to promote your products and brand, not only on Amazon but also on other partner websites. The Amazon PPC ads can help you increase product awareness, brand loyalty, and ultimately sales. Amazon offers various advertising models, all working in a pay-per-click format.
In this article, we’ll cover different PPC strategies to increase your sales on Amazon.
Different types of advertising options on Amazon
Amazon ads are generally called sponsored ads. There are:
- Sponsored Product Ads
- Sponsored Brand Ads
- Sponsored Display Ads
Apart from these three, Amazon also offers additional advertisement solutions such as Demand Side Platform Ads (DSP), video ads, and audio ads. Amazon storefront also allows you to showcase your brand story and product portfolio.
With the right strategies, these advertising solutions help sellers to grow their sales incrementally.
How can Amazon ads help you reach more customers?
Amazon ads help you reach relevant audiences in the marketplace. You should optimize bids so your products can be visible to your target audience in the right placements.
You have three different options to choose from:
- Sponsored Product ad: It majorly appears in the search pages and listing pages and can boost your overall product sales.
- Sponsored Brand ad: These ads can help you increase brand awareness by showcasing your products in an engaging way.
- Sponsored Display ad: These ads mainly increase your products’ reach among your target audience. They mainly act as remarketing ads that you can see within the listings page on Amazon. These ads also appear outside Amazon.
When it comes to setting up a campaign, Amazon does not charge you for the setup. You only need to pay when a customer clicks on it. With the help of smart bidding and optimization, you can make sure that your ads show up to the most relevant customers. You can fix a daily budget and the amount you want to spend on each click on your ad so your campaigns spend accordingly to generate sales.
As an advertiser, monitoring and measuring your campaign plays a key role in its success of the campaigns. You should monitor metrics such as impressions, clicks, click-through rate (CTR), ACoS, RoAS, new-to-brand orders, ad spend, and traffic to your Store, etc. This will give you crucial insights to optimize your PPC campaigns for success.
Why sellers should advertise on Amazon
One important benefit of using Amazon ads is that they help drive more conversions, but that’s not the whole story. Today, sellers on Amazon embark on ads with various other purposes in mind. They include brand building, product awareness, etc. Here are some benefits of using Amazon ads.
Easy to set up and run:
Amazon ads are very easy to set up. The prerequisite is that you own a Seller Central account.
Reach the most relevant audiences:
Just setting up the campaign will take you nowhere. You need to ensure that your ad reaches the most relevant audiences. With Amazon, it is easy to reach those audiences who are more likely to convert. You can achieve this either by analyzing search terms on keywords or by looking at different customer cohorts.
Helps in brand building and product awareness:
As mentioned, Amazon ads help you build a brand in the marketplace. You can use Sponsored Display ads, Sponsored Brand ads, Video ads, or Amazon Store for this purpose.
Great control over your budget:
With Amazon, it is easy for you to control your ad spend. You can set your daily budget for your campaigns through simple steps. Besides, you can track the keywords, clicks, conversions, etc., periodically so you can optimize your campaign to get the desired results within the budget.
Drive more sales:
When you target relevant audiences with an ad copy that converts, you have a high chance of converting them, resulting in sales.
For instance, you can target a category using Sponsored Display ads so that your ad will show up for a vast number of audiences who searched for similar or different products within the category.
Top 10 Strategies to grow sales using Amazon PPC ads
Your Amazon advertising strategy should depend on your purpose. Your chance of winning on the Amazon marketplace increases as you play with multiple campaigns. But if you are a beginner, start your ad journey with your top-selling ASIN and one campaign and once you start gaining more traction, add more products and multiple campaigns.
Besides, you need winning ad strategies to earn higher sales from Amazon.
Here are a few tips to make more sales from Amazon ads.
Set a clear goal:
Advertising on Amazon requires your time and money. Besides, Amazon ads are not just serving the purpose of boosting sales. It also drives brand building, product awareness, and traffic to your listing. If you do not set a clear goal, chances are high for your campaign to produce a different result.
If you want to boost your sales, you need to set up your campaign in a way that reaches the customers who are more likely to convert. Start with an outline in mind, and decide what you want to achieve with the specific campaign.
Choose the right campaign type:
Once you set your goal, navigate to Amazon ad manager. You will see different ad types there. Choose the right one that helps you achieve your goal. If your aim is to drive brand awareness, you can choose one of the Amazon Store, Video ads, or audio ads. Let’s say you wish to drive more sales, you need to embark on Sponsored Product, Brand, or Display ads.
Choose the right products to advertise:
Find your top-selling products on Amazon and analyze their traffic and conversions. Include these products within your campaigns, and further optimize based on ACoS and sales.
Understand audience intent:
If your ads result in higher clicks and lower sales, then your campaigns result in wasted spend. On the other hand, if your campaigns are not generating any clicks, then you wouldn’t get sales from ads.
In both cases, you should revisit your keywords and analyze if they match customers’ search intent. If the keywords are not similar to the customer’s search intent, it’s time to audit them and find relevant keywords to target the customer’s purchase intent.
Decide on your budget:
Setting an ad budget is as important as setting a clear goal for your campaign.A prefixed budget will keep your ad spending under control, especially when you run multiple campaigns on Amazon.
Automatic campaigns:
You can start with an automatic campaign. You will get enough insights on keywords and conversions if you run it automatically for some time. These insights will be helpful in optimizing your campaign when you run a manual campaign.
Enrich your campaigns with quality images and information:
When you sell on Amazon or any other e-commerce site, your customers can not physically experience your product. To get past this drawback, you need to provide them with all the relevant product details and images. This will impact your sales positively.
Use negative keywords:
This will limit the chances for your campaign to receive irrelevant clicks and lose money.
Optimize your campaign:
You need to regularly monitor your campaign parameters, such as clicks, impressions, conversions, ACoS, new-to-brand orders, etc., and change your strategies accordingly. Optimize regularly to boost sales.
Precise and engaging copy:
Advertisement is all about communication. The better the communication, the higher the chances of conversion. For example, you can customize a headline copy for your Sponsored Display ad and Brand ad. Make it as clear as possible so that customers better understand your product. You can also incorporate compelling creatives in the video ads to further increase conversions.
Amazon is an online behemoth that capitalizes on a purchase-ready audience. Besides, advertising is a potential leverage to reach your business goals and optimize for maximum benefits and sales.
Author’s Bio:
Arishekar N is the Senior Director of Marketing and Growth at SellerApp, an e-commerce data analytics solution. He is responsible for overseeing the development and implementation of marketing strategies, as well as increasing process efficiency by executing cutting-edge Search Engine Optimization strategies at SellerApp.
Arishekar has over 10 years of experience in marketing analytics and SEO. He has worked as a Digital Specialist for the tech giant IBM and most recently as the Senior Marketing Specialist for ZioTive Technologies where he enhanced their site structure by increasing website and mobile usability. Previously, he worked as a Senior SEO Analyst for Star Group where he was responsible for managing SEO Audits and analytics.