5 Advanced Tips for Advertising on Amazon

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Amazon is increasingly biting into Google’s advertising market share – thanks in part to one major advantage; billions of shoppers who treat the platform as a shopping search engine and means of product discovery.

This combination of customer intent, coupled with the vast wealth of data which Amazon has stored on its customers, ensures that Amazon is several steps ahead of most online advertising portals.

It also means that advertisers can build targeted campaigns with relative ease. However, to make them truly successful, these campaigns must also make use of Amazon’s increasingly vast arsenal of tools and ad formats.

On such a vast platform as Amazon, it is always going to be a little more difficult to stand out from the crowd. Greater interest leads to greater competition, and only advertisers and brands who take this seriously can stand to benefit. Thankfully, there are ways to boost campaign effectiveness by being strategic and switched on to Amazon ad formats and campaign options.

No matter what the goals of an upcoming campaign are, knowing exactly how to use Amazon to the optimum advantage puts brands in the best position for greater successes both now and in the years ahead.

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Here are a few of our top tips for more advanced Amazon advertisers…

1. Don’t neglect negative keywords

Negative keywords are often misunderstood by online advertisers, but they can be surprisingly effective when used in the correct way. Using a similar model to the one found in Google Ads, Amazon’s own negative keywords option allows advertisers to specifically those words and phrases which simply don’t yield positive results. Specifying them means ads won’t show when those search terms are used, ensuring optimal use of budget and reducing wasted spend.

Discovering which keywords could prove detrimental is a vital part of managing your online selling activity, so it is certainly worth investing some time into getting it right. When you are filtering your keywords, think carefully about the keywords which do not serve you yet could still possibly appear in searches for your product. Key areas to think about include:

Keywords which mention other brands

For some products, your own brand may often appear in searches for specific other brands due to the product type. However, this doesn’t necessarily mean that your product should be there. An example of this is of luxury brands when you are selling a lower price item – for mid-level brands, appearing alongside these brand names could prove potentially profitable and beneficial, but if you’re at the lower end of the market, it is best to avoid appearing in too many searches which won’t lead to a purchase.

Keywords which produce traffic without conversions

Some keywords generate a huge number of clicks, but don’t end up converting. While this might seem a positive thing from the standpoint of driving traffic to your brand, it doesn’t actually assist in aiding your profit margins. Ultimately, relying too heavily on keywords which don’t generate income for the brand via conversions can be wasteful, and should be avoided.

How do I find my negative keywords?

To locate your negative keywords quickly, use your Search Term Report and look for the search terms which haven’t yielded any sales. Once you’ve added them to your list of negative keywords, you’ll soon see the reduction in your ad spend. You can’t really know what your customers are searching for without paying close and careful attention to your keywords. Pinpointing your negative keywords will stop you wasting your ad spend on adverts which don’t produce positive results.

2. Target based on category in Sponsored Products

Amazon Sponsored Products has become the most popular part of Amazon Advertising, and this is perhaps in part due to the favourable locations the ads appear in during search results. They can be found either above, alongside or below Amazon’s search results, but they are also found on individual product pages.

This type of advertising will give you the chance to get more specific with your ads, selecting a category and pairing it to the company products. These can be almost as specific as you like, including complementary products which could supplement the item displayed in search. Using this tactic gives you a very useful tool in encouraging sales, and allows advertisers to get their products listed beside products or brands in the same genre or price range.

There are ways to further segment categories, using Product Attribute Targeting. This will ensure that ads only appear beside top-rated products.

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How do I target by category in Sponsored Products?

To target your ads by category, use manual targeting at the outset of your campaign. Next, choose the products you want to advertise and organise your bidding strategy.  Choosing product categories is the next step, alongside your price range, target customer and a number of other variables. For new product launches, we recommend you take a particularly stringent approach.

3. Make your Advertising Cost of Sale more flexible

You’ll likely want to keep your ACoS as low as possible, but it is also important to know your aims at the outset. Each campaign will have an individual aim, which will provide greater clarity, whether you’re in the midst of a new product launch, want to keep the same momentum going as before, or are pursuing any number of different goals.

There are a few ways to ensure you achieve your aims, so let’s take a quick look at your options:

Setting better ACoS goals

Lowering the cost of your advertising will likely be high on your list of priorities, particularly for products which are already amongst your best-sellers. There are many reasons why this is so important, but pivotally you should remember that as best-selling goods, shoppers are evidently already finding them with relative ease. It is therefore reasonable to limit your costs as much as possible to help improve overall profits from these products.

Other rules may apply in the case of a new product launch, where setting a higher ACoS, particularly during the early stages of selling, may allow you to help establish a stronger presence than is required with pre-established items. This is a seemingly simplistic yet tremendously effective way to improve the efficiency of your Amazon advertising.

4. Utilise Amazon Sponsored Brands to help build awareness

Woman holding a bank card

Sponsored Brands is another of Amazon’s most appealing tools, and one of the most popular. These ads allow advertisers to get their brands seen above Amazon’s own search results, and ultimately have a very positive effect on promotion and brand awareness.

In particular, they are very helpful for promoting more than one product, and give users the chance to dramatically impact their profits without spending vast sums of money.

How do I use Amazon Sponsored Brands effectively?

We highly recommend advertisers use Sponsored Brands for advertising campaigns which focus on the top of the sales funnel. The tool will be particularly useful when it is used in conjunction with appropriate keywords and search terms, so focus on this area whilst refining. Use keywords to develop stronger recognition of the brand, and also look for ways of adding even greater value.

Brand recognition is within grasp by adding additional features such as a headline and logo, so use all of these aspects to heighten your brand recall. It is also worth noting that Sponsored Brands is an effective tool which helps to generate clicks to both the Product Listing pages, where prospective customers can get to know more about the product for sale, and the brand store-front, where users have the chance to introduce customers to their brand.

This is an opportunity to therefore show both the products and the brand itself in the best possible light.

5. Make your products more profitable

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This will likely sound obvious to both seasoned and newbie sellers, but there is a lot to be said about focusing on this simple yet effective method of boosting your overall profitability. Amazon users will have a wide variety of data at their fingertips, and it can be helpful to focus on this at the most basic of levels before you begin planning more complex strategies.

Improving the profitability of your products isn’t just about pricing things at a higher rate – far from it. Instead, we suggest looking for opportunities to understand the overall gross profit of each sale before even beginning to make adjustments to advertising campaigns. There are many key benefits to adopting this approach, but chief amongst them is the fact that unless you know what products are likely to make you the most money, it can be tricky to devise adequate campaigns.

How do I make the most of my product profitability?

We recommend first analysing the products you have for sale, in order to establish which ones offer the most favourable profit margins. This is a crucial step before you begin setting up paid advertising campaigns, because you will otherwise risk wasting your ad spend on products instead of saving ad spend by selecting products which would stand to benefit significantly more from your investment.

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