Παρασκευή, 15 Μαΐου 2020

How to advertise on Amazon successfully

Μαΐου 15, 2020 Posted by P.Notis


A short introduction

For those of you who haven't thought about advertising your products on Amazon (which also requires you to sell your products on Amazon), it's time to think about it. 76% of Amazon users search for the product they are interested in. It's a shame to miss the opportunity to advertise in the search and not stand out from the competition.
The oligopoly of advertising, which consists of the giants Google and Facebook, now has a third, strong player.
What matters is that people don't just go to Amazon to make a purchase. It also comes in to compare prices (90% of users), to discover new products (72% of users) and to start a product search before all sites (56%). 

What strategy do we follow?

The strategy we follow for advertising on Amazon is no different from the one we follow on other platforms. That is:
  • We set our goals,
  • We choose which products we will advertise,
  • We set up complete, clear and consistent product pages.

What has changed

As far as the Amazon platform is concerned, cheap clicks, little competition and few statistics are a thing of the past and even a distant past. Amazon's advertising tool has evolved a lot and both marketers and retailers are flocking to the platform.
The platform is constantly enriching its capabilities both in terms of campaign and advertising. Many of the features As competition increases, advertisers need to become wiser to ensure the profitability of their ads.
Calculating the cost of sales and sellers' fees are key points for the profitability of an Amazon campaign.
.

What types of advertising are available?

Amazon Sponsored Ads

They work with the logic of pay per click (PPC). They are based on keywords and the correspondence we know from Google (broad, exact, phrase matching) applies.

Sponsored Brand Campaigns (or title ads)

This type of advertising allows you to promote ads targeting keywords for more products, up, down or in parallel with the search results. You can target three types of keywords:
Branded product keywords:  ie a combination of product and brand.
Keywords for complementary products:  that is, a package of two independent products whose demand is interrelated and which can be sold together (for example ketchup and mustard).
itches targeted keywords of the products advertised are search queries that have already experienced success while running automatically targeted product advertising campaigns.
This category of ads (Sponsored Brand Campaigns) allows up to three unique products to appear in the ads, customize the ad as they see fit (image, title, landing page) and test the above.  
.

Image source : Hubspot

Product display ads

They belong to the PPC category and appear in pages with product details, in pages with user reviews, at the top of offer pages and below search results. They can also appear in emails for abandoned baskets, emails for follow-up and emails for recommendations. Its goal is up-sell or cross-sell.
You can target by product (products and categories) or by interest (paves the way for larger audiences).
This type of advertising allows you to select pages within the category you want to advertise and comes with a very good package of exported statistics (clicks, expenses, sales, sales cost [ACoS] of your campaigns, detailed page views, total sales and so on. average cost per click [ACPC]).

Amazon Native Ads

With this ad category, you can place ads on your own site. They are about recommendations, search and custom ads.

Video ads

You can place them on sites like Amazon such as Amazon.com and IMDb, on devices like Fire TV, and elsewhere on the Internet. Regardless of whether you sell products through Amazon you can buy this type of ad so you can put a landing page on Amazon, on your site or anywhere else you want.

Amazon stores

Users can promote their brand or products in their Amazon store. Using templates and drag-and-drop titles you can make your work stand out. Through this process the brands get an Amazon URL and can see the traffic data and where it comes from, monitor sales and advertising campaigns.
Please note that creating a store on Amazon is free!

Profitability calculation

Understanding the hidden rewards and profit margins of each item helps to better manage a campaign.
To calculate the profit margin, do the following: ((Turnover - (cost of goods sold) / turnover)) * 100.
In the table below, you can see examples with the profit margin of each product (ASIN is the number that Amazon returns to each product that enters its platform), after calculating the cost of sales, storage costs and advertising costs.
.

Table source: Search Marketing Expo

Post on the Amazon marketing funnel

You don't have to limit yourself to the bottom line, which is where consumers are willing to buy. On the other hand, there is a loss of competition. You can run campaigns for consumers who are in the process of being investigated. The key is to set goals and monitor them regardless of the stage you are in.
To reach as many Amazon users as possible, make sure you use all possible types of targeting: brand-based, product-based, brand-free.
High on the funnel:  with Amazon post (organic / free) and video in search ads.
How to measure: impressions, click-through and click-through rate (CTR).
In the middle of the funnel:  with branded advertisements and sponsored products (without a brand).
How to measure: appearances, click number, click through rate, new brand revenue, advertising costs per sale.
Low in funnel:  with brand-given and product-oriented products that target the brand's keywords. Also, by retargeting based on ASIN with display ads to "hit" users on and off Amazon. 

How to measure: advertising costs per sale and ROI (return on investment).

Organize campaigns for control and profitability

A well-established account will help make your campaigns profitable. Categorize them based on the brand, without brand, special and campaigns for specific codes.

Dynamic bidding

The bids are automatically adjusted by the smart algorithm, based on the probability of conversion. There are three alternative bidding options: bottom, top & bottom and fixed.
.

Bidding installation

Adjustment of placement offers can be used to increase the supply of page and / or product page up to 900%. Download the installation report to see where your campaigns are displayed and how they perform in each installation. You can then calculate the profit margins based on the position of the ad and evaluate the placement offer strategies.

Seasonality and search trends

Don't limit yourself to the classic "keywords for summer sandals". Keep in mind that you are looking for searches that take place throughout the year
There are users who search on Amazon for e.g. "Gifts for him", so you need to constantly monitor what is happening throughout the year to incorporate the findings into your design.

Readiness at ASIN level

Advertising on Amazon for sale is inevitable unless your products are completely ready.
So it is necessary to optimize the product page with clear titles, many product images, many and complete product information, reviews and sufficient stock (do not put low stock products in your campaigns). Product details, reviews, photos, shipping speed, response speed, stock levels and advertising make up a success scene for more visibility and more profitable sales on Amazon.