Digital MarketingAmazon Marketing Services: Ad Campaign Tips For SMBs

OodlesmarketingOctober 7, 20203210 min

Amazon is the leader of the retail industry. It is responsible for more than forty percent of all online sales. That’s why small and midsize businesses prefer the e-commerce giant to connect with customers and generate revenues.  Reaching the target audience and converting them into paying customers is a difficult task. However, with Amazon marketing services, sellers can now easily target prospective customers and expedite sales to increase revenue, brand visibility, and more. Amazon ad campaigns play a vital role in driving traffic to the store. It increases the brand’s visibility and directs visitors to your way to convert them into paying customers. It levels the playing field, to give SMBs a chance to compete with the big brands and perform better.  In this article, we’ve enlisted four powerful tips to create a competitive advertising campaign strategy that produces the best results.

Understand the Different Types of Amazon Ads

Before creating an ad campaign, sellers should understand the different types of Amazon ads:

Sponsored Product Ad

It is a keyword-targeted ad and it promotes a single product. Sponsored products are displayed in the Amazon search results and below the fold on product pages. It provides sellers with a complete product and keyword analytics report, that enables them to find out which keywords drove specific product sales.

Headline Search Ads

Headline search ads appear above the search results in the form of banner ads and promote up to three products. They only provide a keyword-level sales report that informs which keywords prompted product sales.

Product Display Ad

It appears below the fold on product pages, as well as on listings, review, and related product detail pages. Unlike Headline and sponsored ads, Product Display ads target shopper’s interests or specific products. The main objective of these ads is to target- interests of different shoppers and complementary products. It offers a robust dashboard that assists in gauging clicks, impressions, sales, and tracks the overall performance of ad campaigns.   Every ad type serves a different purpose. For instance, when promoting a series of new products from the same line, sellers should employ Headline Search Ads. On the other hand, if the seller wants to clear out the leftover inventory, they should use a Sponsored Products ad for each item.

Calculate the Advertising Cost of Sale

Sellers need to determine the Advertising Cost of Sales(ACoS) before designing an Amazon ad Campaign. ACoS influences the cost-per-click bid and campaign budget. An accurate ACoS facilitates creating a realistic, performance-driven budget.   To calculate the ACoS, consider the following factors for each product:

  • Selling price
  • Cost of goods sold
  • Fulfillment by Amazon cost(FBA)
  • Miscellaneous cost

Sellers who want to clear out the inventory should calculate their break-even point. For this, divide the total expenditure on a product by its selling price. The result is the break-even point.  When creating an advertising campaign, look at each keyword’s ACoS in the Amazon Marketing Services dashboard, under Advertising. It informs sellers which keywords are feasible to advertise for, and which wouldn’t drive profit.

Encourage Shoppers to Post Reviews

According to a survey conducted, more than 60 percent of shoppers read reviews before making a purchase. Also, Amazon uses reviews as a ranking factor for organic search results. Therefore, it is important to include customer reviews in the advertising campaign strategy.  One of the most common ways to encourage feedback is through automated emails. Create an email asking for customers’ feedback and send it after confirming their orders or expected delivery date. Make sure to invite consumers to contact you directly, in case they’re unhappy with the order.  Another strategy is to include a product insert explaining the product and its uses, in the delivery package.  It is an excellent way to not only encourage reviews but also assist in building brand awareness, social shares, and more.  It is essential to note that soliciting reviews is against Amazon’s guidelines. However, it offers an Early Reviewer Program, which includes a product fee. In this program, Amazon solicits reviews on sellers’ behalf for one year or until they earn five reviews. Amazon wholesalers can also utilize its Vine Reviewer Program. It is also a paid program, but it connects businesses with the top Amazon reviewers. To gain reviews through this program, merchants need to provide product samples to these individuals to try and post honest feedback about it.

Review the Search Term Reports

After launching an advertising campaign, sellers tend to focus on sales and revenue, without paying attention to what’s driving those purchases- keywords. Therefore, it is necessary to take some time and review the search terms report. The report appears in the Amazon marketing services dashboard under advertising. It’s a valuable source of data for the Sponsored Products and Headline Search Ads because it reveals which keywords are driving clicks and revenue. It can also assist sellers in designing future ad campaigns.

Final Thoughts

As you work with different aspects of your Amazon ad campaign, it’s necessary to pay equal attention to the products and services that go with it. Remember, the ad campaign is just one part of the equation. Reaching the target audience is not enough, you’ve to convert them into paying customers to gain profit and grow your business exponentially.  It is better to hire Amazon marketing services experts for creating an ad campaign. At oodles, we’ll provide your business with the boost it needs. Our Amazon experts will ensure you rank higher in Amazon search results through original content and right SEO. Just drop your requirements ere.


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