Amazon Advertising - What is it and How to Optimize it

Posted on 11 October, 2017

Being a seller or a vendor on Amazon, you obviously wish that you attract more customers impacting the sales of your products. To fulfil this desire, it is essential that your products get more visibility on Amazon and reaches to your targeted customers. Your product can be best in the market, but without right kind of advertising, it won't reach the right people.

Advertising is the key element to reach to your customers. The aim of advertising is ROI- return on investment. Digital advertisements leave no stone unturned to reach out to customers. But an advertisement should be planned in such a way that it is displayed at perfect places on the web and at the perfect time.

The need of advertisement arises when you carry out your business on eCommerce giant like Amazon due to below-given reasons:

1. Increase in Sales

Shoppers come ready to buy from Amazon. Your item can be the right one for them to add to their cart even though they might not be searching for your product.

2. Showing customers what they are looking for

Shoppers search terms for products’ search should be analyzed and then your ads should match what shoppers are looking for.

3. Getting your products discovered

As you design your ads with a motto to promote your products, it will get displayed on top pages or products details pages and can get instant visibility boost.

4. Control your costs

A product has a budget fixed by you from its manufacturing costs till it gets sold. And digital advertisements have a concept of PPC - pay per click because of which you will be able to maintain a record of a number of clicks received on your products and reports which get generated for your ads performance, ROI can be measured and budget can be decided for future campaigns.

Amazon provides some creative ways to advertise your products. Intuitive ads will obviously attract customers enhancing more sales for you. Let us see the advertising strategies which are provided by Amazon:

Amazon Sponsored Products

This is a technique in which your product’s ad means your product listing. The best part about this advertisement function is if you are out of stock of a particular product, the ad created for that product will not be running/displayed.

In this strategy, promotion of your listed products on Amazon takes place. The advertisement which pops up will be resized and first 35 characters of the title will be displayed in the advertisement. Selecting the products which you want to advertise for, you need to assign the keywords to it and then enter the cost-per-click bid. Whenever a user searches for the keywords which you have entered in your Advertisement, your ad is eligible to get displayed along the search results and you only pay when it gets clicked. The shopper is then redirected to the detailed page of the product. This strategy can drive excellent ROI. The strength of this ad lies in the choice of automatic targeting or manual targeting. Automatic targeting is carried by the content of your products and Amazon matches it with what it considers as relevant search terms with your ad.  Manual targeting allows you to upload a list of keywords which you feel should be targeted in your product ads.

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Advantages of Sponsored Ads

The benefits which these ads serve are - These ads appear on relevant product details page so the chances of getting your ad clicked increases. As the relevant product information appears according to the targeted search on these ads, you will reach your customers and not just viewers.

Optimizing Sponsored Products ads

1. Campaign structure

Include full catalog of your products initially so that you can figure out which terms the potential customers or shoppers use for searching the products. The more granular you get with campaigns, the more idea you will have regarding the keywords. You should make a set of products and then you should correspondingly decide a set of keywords. All the products then should be contextually fitting with that keyword group which you created. Then create an ad group for all those products which matches with the keywords.

2. Keyword Harvesting

Select the best keywords for your products as these ads display some fixed number of characters from the title. Bid on correct keywords which will increase your sales and organic listing. Larger your collection of products, larger the selection of keywords. For example, You are selling shoes, then: For all shoes, the keyword ‘shoe’ is relevant. But for specific shoes, it should be like ‘black running shoes’. These ads are effective when a customer is in the buying/purchasing phase. If you choose same keywords ‘men’s shoes’ then analyzing a record of a specific product becomes difficult.

There are some tools which can be helpful to you in keyword suggestions and expansion. They are, Sonar, Merchantwords, Keyword inspector, scientific seller, Keyword Keg, Asinkey, Scientific seller and many more. Some of them are free and some are paid. I would like to recommend you the Sonar tool as it is easy to use and gives relevant information regarding keywords.

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3. Refined targeting

This means identifying negative keywords ensuring your ad doesn’t get displayed at irrelevant places as it is pay per click and you obviously don’t want that it just gets clicked without any conversion. This concept gives you to target a specific audience and ultimately increase your ROI.

 Headline Search Ads

These ads are displayed as a banner above the search results. These ads are best for general searches as it is an effective tool to reach out to your customer before they narrow the choices and search specifically. For instance, if a user searches like 'stainless steel cookware' which is a general term search and you don’t know whether you should display pots, pans etc. So your headline ad will be a generalized one and variety of products related to shopper’s search will be shown which will facilitate him/her to click on your ad.

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Advantages of Headline Search Ads

As the name itself explains that these ads get displayed in the top section - above the search results on any device. So the buyers will find these ads relevant and they will click on it. This is especially true for first-time buyers. As these ads display the generalized category of relevant products, so If a visitor/shopper is searching for some products, initially, he/she doesn’t know which products to buy. At that time whenever your ad comes up, it will help a shopper to make a choice which can eventually lead to purchase

Optimizing the headline search ads affecting your sales

1. Targeting correct keywords

You should always go for strategic keywords which increases the opportunity for your ads to be shown. As we discussed above, by using the tools or by doing proper research, you can fulfil this requirement to get your ad optimized.

2. Research traffic volume

While you enter keywords for this campaign, you will get a list of suggested keywords indicating the level of traffic for each of them received, based on expected impression volume and ASINs relevance in your campaign. The ad uses auction-based model, so you must bid competitively to win high traffic keywords. Going for a too low bid will not display your ad and you will not get any impressions.

3. Selecting keywords

If the budget of your bids is affecting the impressions you receive on popular, high-traffic keywords. So go for an appropriate budget and select low traffic keywords as they won’t have more competition making it easier to win an auction. You don’t need high traffic to make a sale, but you need right shoppers whose searches match your products.

4. Always be on

Don’t wait for any events or festival time to run your campaigns. Show your brand round the year in these ads to boost your visibility and customers. Your brand’s name should be the first one to come to customer’s mind when they decide to buy.

5. Enjoy benefits of reporting tools

Your campaign metrics with a number of clicks your ad gets, your investment for ads and generation in sales, all will be displayed in the reporting tool. Valuable insights for your business are given by this report. Have an analysis of it and then you can decide your future actions.

6. Testing

Carry on with testing of different types of components and altering them in every test. As this ad is customizable you can change any of the parameters.

Advertising is an important aspect - the easiest way to reach to your customers and increasing the goodwill of your business. Amazon has the best advertising solutions to benefit your business. Conducting research about launching and optimizing your campaign will make your business have more sales and will increase the reachability among your customers.

Virag Kamdar , Assistant Digital Marketing Executive

Magento Blog

About Emipro

Being an emerging leader in IT market since 2011, Emipro Technologies Pvt. Ltd. has been providing a wide range of business solutions in Odoo & Magento. We are pleased to have a large pool of contented customers with our meticulous work in the domain of ERP & e-Commerce. Our customers are companies of all sizes ranging from startups to large enterprises who realize that they need a professional internet solution to generate revenue streams, establish proper communication channels, to achieve desired goals and streamline business operations. [....] Read More

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