Amazon Advertising Strategy: 6 Advanced Tips to Increase Sales

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Amazon being the world’s biggest eCommerce retailer has been crowded by thirst party sellers.

Every seller on the Amazon Business platform is fighting to win the competition and increase their product’s sales.

In this blog post, you are going to find 6 advanced tips that will help you to increase your products sale.

Before going into details about marketing strategy tips, we should discuss Amazon sponsored product Ads and advertising cost of sale or ACoS.

Amazon Sponsored Product Ads and ACoS

Amazon sponsored product ads are PPC ads provided by Amazon where you can start advertising your product for the target keywords.

Sponsored product Ads appear at the top and bottom of the Amazon search results and they blend really well with other organic search results.

Sponsored products being at the start have a very high chance of getting clicked by the customers.

These Ads are available for third-party sellers, which they can use to advertise their products by adding manually or automatically target keywords.

With a minimum budget as low as $1 per day you can start advertising your product where you will get paid only when someone clicks your ad.

Advertising Cost of Sale or ACoS

ACoS or Advertising Cost of Sale is an important metric to track and measure the performance of Sponsored Product Ads.

How ACoS is calculated? ACoS = ad Spend / sales

By measuring ad Spend in terms of sales, it gives the result of the profitability of the campaign.

Amazon Advertising Strategy

Manual and Automatic Targeting

What should you prefer, manual or automatic targeting for sponsored Ads?

With manual targeting, you will be able to control many aspects of your advertising campaign. You can make cost-effective decisions by tracking the campaign’s performance.

But Automatic targeting has its own benefits, especially to find out for which target audience your campaign is performing well.

When you are just starting out or are launching a new product, then you should start with automatic targeting to test the strategy.

An automatic campaign will tell you which target keywords are working for you and which not.

After you have successfully tested your advertising strategies with automatic targeting for a couple of days minimum, you will get the search terms or keywords which will give you good sales.

The next step is to start manual targeting using those keywords.

Optimize product listing

Just like Google, Amazon uses its own algorithm to rank products on search results.

It takes into account many factors to provide the best products for each search term, one of which is the optimization of product listing with the target keywords.

Amazon prefers those products for sponsored Ads that are optimized with relevant search terms and according to Amazon SEO.

To make your Amazon sponsored Ads show up on search terms, include relevant search terms or target keywords on the product’s title and description in a natural way.

If you include the keywords forcefully then it will decrease the readability and customer experience that will negatively affect the Ads performance and organic sale as well.

Make sure your Ads don’t appear on irrelevant searches

Amazon provides the option to restrict your sponsored Ads for irrelevant search terms. This feature will allow you to save your money from spending if your Ads appear on irrelevant search results.

Irrelevant search terms which are also known as negative keywords will help you to improve your Ads conversion by showing your Ads only to your potential customers.

How to find negative keywords?

Negative keywords are found over time by checking your Ads performance and results.

Focus on product-level productivity

If you are selling multiple products then focussing on product-level productivity will be most profitable.

Different products have different profit margins and their advertising strategies should depend on these.

Give priority to those products which have higher profit margins to advertise using Sponsored Ads.

Because then these products will give better results and profits for the same money which you would have put on lower profit margin products.

Bid on high-performance keywords

Not all keywords will give you the same profit, so you should be careful as bidding on low performing keywords would waste your money.

‘Competitors’ research will give you a list of keywords that are doing good for them. You can use those keywords at first to create sponsored product Ads.

If you are setting Ads for the first time then make sure to put a high bid on the keywords to collect accurate data and test the performance.

Use long-tail keywords

Long-tail keywords are longer search terms that are used by customers to find the products on Amazon.

For example, if your product is a backpack, the long term product for it can be a “large black laptop backpack”.

Long-tail keywords will show your ads to a more targeted audience who are ready to buy the product just like yours.

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