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You’ve probably already considered selling on Amazon but its way easier than you think.
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With millions of products sold on the Amazon marketplace, sellers need a competitive edge to stand out and ultimately increase sales on Amazon. This is where Amazon PPC (Pay-per-click) advertising comes in.
Amazon sellers need to get their advertising strategy in place to minimize costs and maximize results.
If you are new to Amazon advertising, you need to understand the basics of Amazon’s advertising solutions to create effective advertising campaigns and optimize every penny spent.
In this guide, we will look at how to increase conversion rate on Amazon using Amazon advertising. Here’s what we’ll cover:
Amazon PPC (Pay Per Click) Ads, also known as Amazon Sponsored Ads, is an Amazon advertising platform that allows sellers to increase their products’ visibility and amplify Amazon sales. With Amazon PPC, you pay only when a customer clicks on your Amazon advert.
The Amazon advertising platform is easy to use and allows sellers to set up different types of advertising campaigns in just a few minutes.
Amazon PPC ads are for professional sellers and brand-registered sellers who want to reach new audiences and customers.
Amazon PPC ads include Sponsored Products, Sponsored Brands, and Sponsored Display ads. Also, sellers who are under the Amazon Brand Registry have access to Amazon Live, Amazon Attribution, and Amazon Stores, which fall under Amazon Advertising.
Advertising your products on Amazon is important if you want to expand your business and rake in significant sales. Let’s highlight a few benefits of leveraging Amazon advertising solutions:
Perhaps one of the most obvious benefits of running PPC ads is to increase product sales. This is the major objective (whether short-term or long-term) for any Amazon seller. Running ad campaigns provides wider audience reach and specific targeting, which ultimately increases your conversion rate and product sales.
Leveraging Amazon Advertising exposes your product and brand to millions of potential customers. This exposure increases your customer and sales ratio. It also increases views, impressions, and conversion rates within a short time.
We all know that products that have the most sales are at the top of search results. If you have a new product, the chances of ranking high for major keywords are very slim. Running PPC campaigns is a great way to improve product organic ranking and sales potential.
Running Amazon ads can significantly improve your organic rankings on search results. With more clicks and purchases from your ads, Amazon‘s algorithm recognizes your product as significant. Ultimately, this can improve your product’s organic search placement.
With Amazon advertising, you can reach a wider audience and get your product in front of interested customers. The more people get to know about your product through Amazon ads, the easier it is to find your product and ultimately increase your conversion rate.
Online retailers selling on Amazon can reach potential customers and increase sales using these types of Amazon PPC Ads:
Sponsored Product ads are one of the most common ads used by almost every seller. With Sponsored Products, you don't need to be brand-registered. They appear at the top of search results and on organic search results.
You can use Sponsored Products to target product ASINS and specific keywords.
You can do two types of targeting with Sponsored Products: Automatic targeting ads and Manual targeting ads.
With automatic targeting, Amazon decides on the keywords to target based on your product. This is especially helpful if you are new to Amazon advertising and don't know which keywords to target. On the other hand, Manual targeting ads give you full control. You can decide which keywords to target and bid on.
To use Sponsored Product ads, you only need to have a Professional Seller Account. Unfortunately, sellers with an Individual Seller Account do not have access to Sponsored Product ads. Also, to use Sponsored Products, your product needs to be Buy-Box eligible.
Sponsored Brands ads, formerly known as Amazon Headline Search Ads, help you promote your brand and advertise your products.
Sponsored Brands are banner ads that feature your brand logo, thumbnails of three of your products, and a tagline. It is more advanced and only available to sellers enrolled in the Amazon Brand Registry.
This ad helps to increase brand awareness, allowing sellers to advertise up to three products at once. They usually appear on Amazon search results above the Sponsored Products ads.
Sponsored Brand ads can appear in three different formats:
Amazon Display ads are a powerful advertising tool that can reach customers both on and off Amazon. This means you can advertise to customers on apps and third-party websites.
With Display ads, you target customers based on factors like shopping behavior and interests, instead of keywords or competitor products.
With Amazon Display ads, you can reach customers no matter where they are on their buying journey.
For example, you can use Display ads to retarget customers who viewed your listing but couldn't make it to the checkout section.
There are three types of targeting with Amazon Display ads:
To start advertising your products on Amazon, you only need to go through three simple steps:
To navigate the competitive Amazon landscape effectively, you want to employ best practices that help optimize your ad spend and increase your product’s visibility. Here are some best practices for successful Amazon advertising:
To establish a strong brand presence and stay ahead of your competitors, you want to utilize all types of Amazon ads. Integrating Sponsored Products, Sponsored Brands, and Sponsored Display ads,
can significantly increase brand awareness and maximize your ROI.
Effective keyword usage is the crux of running a successful Amazon advertising campaign.
Start with broad research and refine. Use a mix of broad phrases and more specific keywords to see what performs best, then narrow down to the most effective keywords.
You can use Amazon's auto-targeting feature initially to discover relevant keywords. Then, refine your strategy based on performance data.
You can also identify keywords your competitors rank for using tools like Helium 10, Jungle Scout, or Ahrefs. This can provide insights into potential opportunities that you may be missing.
Negative keywords prevent your ads from showing up in irrelevant searches, saving your ad budget. You want to use search term reports to identify keywords that are not converting and add them as negative keywords. Regularly review and update your negative keyword list to ensure you are creating relevant ads.
A well-optimized product listing can improve the effectiveness of your ad.
Check to make sure your product titles are clear and keyword-rich without being spammy. In the bullet point section, highlight the key features and benefits of your product briefly.
In the product description part of your listing, provide detailed information about your product to help potential customers make an informed decision.
Use high-quality images and include multiple angles and lifestyle shots.
In addition, gather positive reviews and ratings, as these can significantly address customer objections and improve your conversion rates.
The quality of your product copy is paramount. Ensure correct grammar, sentence construction, and relevance in your titles and descriptions. Highlighting the benefits of your product and focusing on what makes it unique can attract more attention. Reviewing top-ranking competitors' product pages for inspiration and structuring your descriptions for Amazon's A9 algorithm can enhance your copy's effectiveness.
Properly allocating your Amazon advertising budget is key to ensuring your campaigns are cost-effective.
You want to start with a modest budget to test the waters and scale up once you identify high-performing ads. You can set daily budget caps to control your spending and avoid overspending.
Keep an eye on your Advertising Cost of Sales (ACoS) and go for an ACoS that aligns with your profitability goals.
One way to improve your Amazon advertising is to carry out regular audits. Regularly auditing your campaign's sales performance also ensures that your marketing budget is distributed strategically based on your goals and sales targets. This will help you maintain the right balance and run successful ads.
Amazon provides robust reporting tools that offer insights into your campaign performance. You can access these performance reports and analyze them to understand which ads, keywords, and products are performing best.
You can then use the insights from these reports to adjust your bids, keywords, and overall Amazon advertising strategy.
Amazon frequently updates its advertising platform, so you want to stay informed about new features, policy changes, and best practices by following Amazon’s latest announcements and industry news.
There are important metrics to help Amazon sellers measure their results and optimize advertising campaigns. Here are a few advertising metrics to look out for:
Amazon continues to provide tools and solutions to help sellers grow their business and increase sales and revenue.
With Amazon Advertising, you can get your products in front of targeted customers and increase brand awareness and sales. There are different advertising types you can choose from.
When registered under Amazon Brand Registry, you can access Sponsored Brand ads and Display ads, which allow you to create video ads and retarget customers off Amazon. You can still leverage Sponsored Product ads to reach potential customers if you are not brand-registered.
Amazon offers sellers three main types of advertising:
Amazon advertising works on a pay-per-click model, where advertisers bid on keywords or audience segments to display their ads to shoppers. Here is a breakdown of how Amazon Advertising works:
The cost to advertise on Amazon varies depending on the type of ad, among several factors. The average cost per click for Amazon ads falls within the range of $0.71 to $1.20, depending on the product category.
Other factors that can affect advertising on Amazon include keywords, ad relevance, keyword competition, and your daily campaign budget, among other factors.
To attract buyers on Amazon:
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now