Amazon Ads or Amazon advertising can be a powerful tool, helping you capture up to a 300% return on advertising. This ROI is much higher than on social media, yet, so many people continue to over-invest in Facebook, Instagram, and TikTok. They think the more visibility they have, the better; however, that’s not always the right strategy, especially now that iOS updates have made it hard to track your ROI.
Here’s all you need to know about why Amazon Ads are the better choice and how to get started.
Demand-to-creation vs. Demand Capture platforms
There are two types of approaches that you can take when it comes to advertising: demand-to-creation and demand capture.
- Demand-to-creation platforms require you to create demand out of nothing, often on social media. In some cases, you may be able to target your ads to general interests, geographic locations, or social attributes. Customers are browsing consumable content, and then they’re interrupted by an ad.
- For demand capture platforms, the demand is already there. The customer is already browsing for something, and you’re able to capitalize on some of the existing demand by showcasing your products.
Amazon and other eCommerce websites get the highest return when they’re working with demand capture. The customer is already looking for a similar item, so they have a stronger intent to buy. Suppose you’re able to target an ad that helps them along their buying journey even better. The customer gets what they want, and you get a better ROA. It’s a win-win.
Your Amazon Ad Campaigns & What To Do
Now that you know to focus on demand capture, how do you do it? There are two types of Amazon ads you should be running: sponsored product ads and sponsored brand ads. Each shows up in the search results but in different places. If you run both, you’ll capture a lot of search volume and take up more of the page.
The most important thing you want to do is find the right keywords. Perhaps you already know some of them based on existing campaigns. Others, you may be able to guess. Consider using a tool like Helium 10 on your listings and your competitors to get ideas for high-converting keywords.
From there, you’re going to create both exact and phrase-match keywords as part of your sponsored ads. Do not run broad match ads, as they can lead to a lot of wasted ad spend. If you focus on the right keywords and the right targeted campaigns, you’re 90 percent of the way there!
Sponsored Product Automatic Campaign
To help capture some of the keywords you may not have thought of, you can also run a sponsored product automatic campaign. Throw all your keywords into that campaign, including any negative keywords you don’t want to show up for. There’s no downside to running both types of campaigns.
Not only will it allow you to close the gaps and hit some of those longer tail keywords, but it will also adapt automatically as the market and search approaches change.
Manage your Bids
Once your campaign is set up, it’s time to manage your bids. You can use software like Sellics, Teikametrics, or Helium 10 to adjust the bid amounts and keywords for you automatically. Advertisers move so quickly, so you want to be agile with your campaigns.
This software will allow you to adjust your bid amounts automatically in line with your targets and goals, so you don’t run out of spending.
It’s best to run a campaign for a full 15 days and then half a day for 30 days to get a full picture of how well your campaigns are performing. Trends may vary for products. For example, if you have a product that lends itself to people searching in the evening time, you don’t just want to focus in the morning. Clicks are more competitive and expensive then, so you may run out of funds before people even start searching for your product.
Adjust Campaigns as Needed
Use your data to adjust your campaigns. Trim keywords that aren’t working while adding more focus in areas that are. If you’re using software, make sure it’s doing its job properly. Once you get into a consistent routine, start comparing the return on ad spend you’re getting from Amazon and your other channels. If you’re doing it right, you’ll start to see you’re getting a higher return on Amazon than on other platforms.
As your ads start to mature, you get to a point where you can’t tweak or invest anymore on Amazon. That’s when you should start to diversify your platforms and start considering a demand-to-creation platform.
Supporting your Facebook advertising will help influence your Amazon advertising and vice versa. You’ll start to win on other platforms when you focus on honing your Amazon advertising first. You’ll get the biggest bang for your buck, and we can help you do all that and more.