Amazon is the first place people go to when they shop online. According to Statista , over 197 million people around the world shop on Amazon each month.
In fact, from 2015 to 2018, Amazon rapidly outpaced Google as the #1 search destination for products and now owns 54% of all product searches and over 80% of all e-commerce market share.But buyers aren’t the only ones taking advantage of this retail giant’s platform – sellers are also experiencing amazing financial success on this platform. Feedvisor reported that nearly 20% of all professional Amazon merchants make over $1 million in sales annually.
With numbers like these, we wanted to share concrete tips to help you increase your sales on Amazon, specifically through Amazon Ads.
Who Should Advertise on Amazon?
Brands that focus on selling niche but popular products get the most traction because of framing — the consumers who see sponsored ads on Amazon are already in a shopping mindset (because they’re on Amazon in the first place).
This is reflected in Amazon’s Sponsored Products Program — any seller on Amazon Seller Central, Vendor Central or Kindle Direct Publishing can participate in the Sponsored Products Program and advertise their products as sponsored ads on Amazon’s SERPs.
Types of Amazon Ads
Sponsored Products Ads
Amazon Sponsored Products are advertisements which are like the ads you see running in Google's Shopping Network together with the objective of promoting one particular item.The Sponsored Product Ads utilize the PPC (pay-per-click ) method, helping you to publicize your merchandise in the research results and push Amazon clients right to the particular products you are promoting on this stage.If clients check out your sponsored merchandise, they will be brought to the advertisement's product detail page. According to PPC advertisements in general, you are only charged to your advertisement when someone clicks it
Sponsored Product Ads appear on the first page of search results (top, beside or within) or on product pages:
Ad kinds are keyword based and provide entrepreneurs the ability to pick between broad, phrase or exact match that they need for their effort. Then entrepreneurs can set a daily budget that is employed for the duration of the effort. If necessary, you really do have the capability to stop or pause a Sponsored Product Ad if you desire, but it has to be active for 24 hours.
Sponsored Product Ad Cost:
As previously mentioned, these advertisements are billed a price per click, which means that you only pay when someone clicks on your advertisement. Amazon takes a minimum daily budget of $1, but you determine how much you would like to invest by placing your budget and how much to bid per click.
Optimizing Your Sponsored Product Ad
Step1: Automatic targeting is the very best bet when you are beginning, as it empowers Amazon's search algorithms to urge potential keywords for your market solutions. You are going to need to pick out a level default bid on most of the keywords, however, the concept is to find the information you want to discover how the various keywords function. Continue testing your results and try different bid amounts.
Step2: When a few weeks' worth of keyword information is at your fingertips, begin looking at your automatic targeting campaigns to determine which keywords done the best. You will want to bring those particular keyword phrases to your guide effort and dismiss the remaining results. This is vital as a manual effort allows you to correct bids from keywords.
Step3: Add negative keywords to your Sponsored Product Ad to make sure that Amazon doesn’t display your ads for those low-value keywords.
Sponsored Brands
Amazon’s Sponsored Brands, which used to be called Headline Search Ads, are also PPC-based keyword-targeted ads that are shown at the top or bottom of a search results page or on the left-hand column.This ad type is meant to showcase between 1-3 products in a headline at one time as well as help grow brand awareness (hence the name). Clicking on your brand logo takes people to a custom landing page.
While Sponsored Products are usually for bottom-of-funnel (BOFU) conversions, Sponsored Brands is a better way to drive more top-of-funnel (TOFU) customers.
Sponsored Brand Cost
Much like Sponsored Products, Sponsored Brand Ads are billed a price per click, which means that you only pay when someone clicks on your advertisement.For all these, Amazon also takes a minimal daily charge of $1, but you determine how much to invest by placing your budget and how much to bid per click. The more aggressive your bidding, the more probable your advertisement is to be exhibited if it matches with an Amazon shopper's hunt.
Optimizing Your Sponsored Brand
Step 1: Determine what your distinctive selling proposition is and the way to communicate effectively to your audience. Your advertisement copy is simply as great as this USP and the way it best addresses your client's needs. Utilize a formula when possible and do not neglect to utilize the words your customers are typing in search to locate your organization or products.
Step2: Goal 30-40 key words. Sponsored Brand Ads appear on the record of this item your clients are actively looking for. Although the place is excellent, double check that you're receiving the best keywords in your specialty. Amazon Search Term Report is a Fantastic source That Will Help You have to know the words Your clients are using so Which You Can use them for your benefit:
Step 3: Your conversions rely on creating particular ad classes with compelling headlines. Again, your distinctive selling proposition can allow you to establish what exactly makes you different from the competition. Do not presume that since folks on Amazon are all set to purchase they will just buy whatever. You still will need to provide them a fantastic reason to purchase from you.
Product Display Ads
These pay-per-click advertisements drive clients to the item's detail page and also are compensated for by price per click.Setting a Product Display Advertisement starts with picking from a slew of goods which are like your own products. This permits your advertisement to target clients that are interested in your kind of merchandise, though every campaign can just have one targeted client type at one time.These ads appear in the base or the right of Amazon search results, the cover of the list page, email sequences or a client review page. They also appear on websites and programs not owned by Amazon.
Product Display Ads Cost
You don’t need to sell your products on Amazon in order to be able to buy display ads. There are two options:
Self-service Amazon DSP (“demand-side platform”) users can buy and manage their own display campaigns
Sellers wanting a managed-service option can work with Amazon’s ad consultants (which requires a minimum spend of $35,000)
Display ads are sold on a CPM (cost-per-thousand impressions) basis, and prices can vary depending on the format and the placement. Amazon requires a minimum daily budget of $1 for Product Display Ads.
Optimizing Your Sponsored Brand
Amazon advocates running Product Display Ads consistently since"more than half of Amazon's U.S. shoppers earn numerous buys per month and 80 percent make purchases at least one time every month. Utilize Product Display Ads to convert these customers automatically, instantly, year round."
Create advertising campaigns which focus on both curiosity - and - product-based targeting to improve the range of your Merchandise Display Ads. Amazon recommends that manufacturers utilize both targeting techniques.
Product Display Advertisements are at their finest when you realize your product will readily sell. You're able to upsell and cross-sell your goods with highly relevant advertisements on merchandise pages of comparable things and widen your reach.
Video Ads
Finally, there are Amazon Video Ads, which typically show up in the same position as Display Ads. While not as common as video ads on other advertising platforms like Facebook, video ads on Amazon can be particularly powerful for brands looking to demo a niche or more complicated product or use cases that may not be obvious from a still image.
Amazon Video Ads are a great way to tell your brand story on Amazon or on other, trusted sites like IMDb, devices like Fire TV, and across the web.By default, all Amazon Video Ads include the brand’s logo, a 50-character maximum headline, and a call-to-action button outside the body of the video. CTA buttons are limited.
Video Ads Cost
Businesses can buy video ads whether or not they sell products on Amazon. Self-service Amazon DSP users can buy and manage their own video campaigns, while those seeking a managed-service option can work with Amazon’s ad consultants (which usually requires a minimum spend of $35,000).
Optimizing Your Sponsored Brand Video Ads
Video Advertising autoplay on mute once 50 percent of the advertising appears above the fold also becomes more visible to the customer. Clicking on the movie part of the advertisement unmutes it and plays/pauses it, and that's why Amazon frees advertisers out of embedding clickable buttons in their videos, because these won't operate as planned. Make sure you design your movie to be understandable even with no audio.
You should use short video clips that get to the core of your brand message and deliver the product’s value proposition within the first 5 seconds of the video.
Advanced Conversion Tactics
Given the fierce competition on Amazon, you must find ways to separate yourself from the crowded marketplace. A great way to do that is to optimize your Amazon ads.
Know thy customer:
What keywords they’re using – If you sell backpacks, you may find that customers search for “North Face backpacks” and “Eddie Bauer backpacks”. Even if you don’t sell these, you can place your backpacks in those search results to get more exposure in your target market.
What customers are saying about them – Amazon has plenty of reviews. Read the good ones, but also make a point to read the bad ones. Where does your product offer more value? And how can you convey that in your ad?
How they are putting together their ads – What sort of language and design do they use? What are the price points?
Captivate with Your Copy
Your advertisements should have clarity and emphasize the item's value. This requires clarity on which your client base needs . Produce data backup that speaks to client requirements. This can make them more inclined to see your ad and click.
For example, on Amazon, good ad copy gets specific. If your product is a tripod, you should highlight height, weight, all camera types it is compatible with and other important product features.
Create a sense of urgency
Amazon sold over 175 million things on Prime Day in 2019. What's Prime Day so Profitable? It generates urgency. Clients know that particular deals will not last long, and so that they do it.It is possible to find out something here. Along with composing value-oriented replicate, using just a little comedy and imagination, give the speech a sense of immediacy. It'll drive additional conversions.
Target Product Categories with Campaigns
Since Amazon notes, class targeting allows you to easily reach customers looking for goods within related classes:"Category targeting is a subset of merchandise targeting. Rather than choosing individual products to goal, type targeting allows advertisers to achieve goods within related classes easily."Category targeting has jumped to Google Advertising campaigns. The point is to get a campaign for all your primary product groups then put together more particular advertisement collections.
For each campaign, make a list of 15-30 relevant keywords for each product category and then write relevant ad copy with the keywords. This process will not only keep your ads relevant but also increase your ROI and prevent you from wasting money.
Let the Data Show You the Way
Data must induce your advertisement creation. That requires experimentation, so test different copy and graphics.Try out all four Kinds of Amazon text advertisements: Sponsored Products, Sponsored Brands, Product Display Advertisements and Video Ads. Find out what sort of ad works best, and funding accordingly.So you can isolate specific ad qualities to see what functions, use A/B testing. In this manner, it is possible to view if picture one or image two works , or if a specific description converts further shoppers.
Use Keywords for Popular Brands
Search for your products on Amazon and note which brands dominate the search results. If you want to compete with them more effectively, bid on competitor brands’ keywords
As an instance, if you sell water filters, then you likely know that Brita and PUR possess a huge market share, therefore bidding on keywords like"Brita water filters" and"Pur water filters" as those are prolific brand-name goods in your marketplace. You will then develop searches for those goods, providing your goods a much better overall advantage.
Get Going!
According to CNBC, nearly 50% of Internet spending occurs on Amazon, and around $854 million was spent on Amazon every day in one year alone (2017). That number has probably eclipsed $1 billion per day by now.
Therefore, if you are dedicated to fostering your e-commerce business's bottom line, you should certainly think about using Amazon's very own marketing tools to aid in improving your own Amazon ads and increase revenue.