How to Use Amazon Paid Ads to Drive Sales
February 13, 2020
It is said that 80% of advertisers on Amazon come armed with strategies to enhance their advertising spend. The time has come to amp-up your Amazon Advertising game as the competition is going to get stiffer by the day.
What is Amazon PPC?
The Amazon Pay Per Click is known to be the best advertising platform to help sellers intensify their product sales online. The advertisers will have to pay only when a buyer clicks on their ads.
Amazon Advertising includes three different advertising formats for sellers: Product Display Ads, Sponsored Brands, and Sponsored Products.
- Product Display Ads (PDAs) send shoppers to Amazon product detail pages. PDAs use the product to deliver relevant ads to shoppers with certain interests.
- Sponsored Brands are ads that enable businesses to promote their brand logo, headline, and a minimum of three products in the advertisement, with the potential to redirect buyers to their landing page on Amazon.
- Sponsored Products are Pay Per Click ads based on keyword-targeted ads that let advertisers promote their product on Amazon.
Where does Amazon PPC Ad Display?
Product Display Ads (PDAs) usually displays below the “Add to Cart” button on Amazon product detail pages. These ads also appear on the right of the search results and at the bottom of search results.
Sponsored Brand ads appear in the search result pages. These ads can be placed in four places: one ad appears above the fold and three positions beneath the fold in search results.
Sponsored Product ads appear in two locations on the Amazon website: Amazon product detail page and the search results pages. These ads can also be displayed on external websites using the Extended Ad Network Beta, and retarget visitors who visited your product pages but didn’t buy.
Here are a few tips you can use right away for Amazon Paid Ads to Drive Sales
Sponsored Brands Campaign for Increase Brand Awareness
Sponsored Brands, also known as headline search ads, appear on the top of the search results on an Amazon page and help advertisers building brand awareness. It is also beneficial for promoting more than one product.
It is best for top-of-the-funnel advertising. Use them to create brand recognition by taking the edge of the opportunity to engulf a custom headline, brand logo, and Amazon Standard Identification Numbers (ASINs).
Work on Product-Level Profitability
You must look at the detailed data while concentrating on product-level profitability. It is important to understand your returns on investment on the product before bringing paid advertising into the use. This data could tell you which product is benefiting from a paid ad while reducing the risk. Leverage the data to identify the products with the potential to bring you the maximum RoI.
Apply the Flywheel Effect
Also known as the Virtuous Cycle, Flywheel leverages client experience to drive traffic to the platform and third-party sellers. It drives more third-party sellers, which in turn attracts greater selection and lower costs. It is a continuous cycle.
Use Negative Keywords Smartly
Using negative keywords strategically keep out your product from a larger keyword search so that your product doesn’t rank in wrong searches. When used correctly, negative keywords can also help you achieve lower ACoS.
When choosing suitable keywords, also look for the volume of traffic and conversion rate. That is because you will be paying for clicks, not for the conversions and will eventually waste your money. This usually happens with generic keywords. Thankfully, you can remove a lot of wasteful ads spend by utilizing negative keywords, which removes your ads from showing in the searches that don’t help in sales.
Optimize your bids
Default bids in ad groups can harm you as your bids won’t be useful for every keyword. Rather, you should set a default bid at the keyword level. Observe your conversion rates closely and keep adjusting the bids from time to time. It is hard to know the right bid without analyzing the numbers of data constantly. Instead of wasting your time on your data, regulate the bidding process with technology that uses machine learning to increase your profits.
Aim for Flexible ACoS
Having a lower ACoS (Advertising Cost of Sale) is always better. To grow your Aamazon business, you need to step back and have a bigger picture. ACoS is a ratio of your ad spends to revenue. In automatic campaigns, ACoS is at the group level but for manual campaigns, it is on the product level. Less is enough, but with every campaign, you should have a clear idea that what kind of results you want in the end.
Here is a pro tip: For best-selling products, aim for lower advertising costs as buyers could easily find those products. For newly launched products, a higher ACoS is worthwhile for gaining traction and earning reviews.
If you want to take your Amazon business to the next level in 2020 but don’t know how to do it? We can help. A team of experts at Wisitech can help you get started Amazon with a data-backed strategy ensuring a successful business ahead.