In 2018, Amazon launched its search ad platform to allow sellers to bid on keywords and increase conversions. The platform has grown, and today, you can advertise on different Amazon platforms, such as Alexa, Fire TV, and others. This guideline will explain how you can use Amazon advertising to grow your eCommerce business.
What is Amazon Advertising Management?
Amazon advertising is whereby you sponsor your products on Amazon for better visibility. It uses the PPC principle whereby you pay after someone clicks on your item. Since there are thousands of sellers on Amazon, advertising helps you stay ahead of the competitors by displaying your goods at the top of search results.
Amazon advertising management is the process of setting up campaigns, establishing an advertising budget, finding the best keywords for your bid, bidding, and monitoring the performance of your campaigns.
Advantages of Using Amazon Advertising
High Conversion Probability
People log into their Amazon accounts because they want to buy something. It helps when they can find what they’re looking for fast and be done with the purchase. When you advertise your products on Amazon, the company recommends them to potential buyers at the right time, increasing the probability of a conversion.
Mobile Friendly
Your Amazon Ads are optimized for smartphones because that’s the device most people use to access the internet. Therefore, you are assured that your ads won’t look awkward when someone uses the Amazon app.
Worldwide Audience
Amazon is available everywhere. As long as you have a stable internet connection, you can access Amazon from remote parts of the world. That means your brand gets global reach within seconds of publishing ads using the Amazon PPC platform. You don’t have to spend millions of dollars to go multinational.
Flexible Payment Plan
Amazon has flexible payment options for sellers. Instead of deducting ad charges directly from your credit card, they can deduct the amount after you make a sale. Therefore, when setting the price, include ad charges in the markup.
Analysis Tools
Amazon advertising has an analysis tool you can use to measure the success of your ads. You can see which ads are performing well and which ones aren’t. The analysis helps you adjust your bids for a better return on investment or ROI.
Techniques Used in Amazon Advertising
Competitive Pricing
Before you sell your products on Amazon, you have to research your competitors. Look at companies selling similar brands, how do they price their products? Consider your production or acquisition costs. Do you think you can match their pricing without making a loss?
Keep in mind that some products sell faster than others on Amazon. Therefore, if you want to get the most out of your ad spending, focus on selling products that have a high demand.
Descriptive Titles and Product Details
Customers use keywords to search for products. Therefore, make sure you optimize your product description for those keywords. Write clear descriptions that make sense if you want buyers to find you.
Sponsored Brands
If you want to increase brand awareness, you should pay for sponsored brand advertisements. It works in the following way: when someone clicks on one of your products, Amazon will show them other goods manufactured by your company.
Sponsored Products
This strategy is more direct and focuses on increasing sales. If a customer searches for a specific item, your sponsored product ad will appear next to a competitor’s products.
Negative Keywords
Bidding on keywords doesn’t always guarantee you will make a sale. There are some keywords with a high click-through-rate, but a very low conversion rate. You can only identify these keywords when you analyze the performance of your ads. After you find those words, add them to the negative keywords list so that you don’t waste money on them.
