No matter what your current sales strategy involves, there are always more ways to sell on Amazon. Now more than ever, sellers have an expansive selection of advertising tools available to them, from Amazon Marketing Services for first-party vendors to the suite of tools for third-party merchants. With so many options, it’s easy to get a little overwhelmed and know where to start.
To help Amazon sellers gather their bearing and get some direction in the advertising journey, we held a webinar hosted by Internet Retailer outlining key focus points that all retailers and brands need to know before setting their Amazon Advertising strategies in concrete. Read on for three actionable takeaways from our presentation that all retailers and brands should be focusing on — especially as the busy holiday months get closer and closer.
As always, be sure to watch the full webinar on-demand for more in-depth strategy tips and examples of top-performing ad formats on Amazon, best practices and more.
Start with a Winning Account Structure
Build campaigns that align with your product categories instead of grouping unrelated products together. This will help ensure you are always advertising the most relevant product to each shopper’s search.
Also, set up two campaigns for each product type so that you can direct brand queries and non-brand queries to different campaigns to maximize intent-targeting capability. Don’t forget about using competitor branded keywords in their own dedicated campaigns to capture shoppers considering similar products.
Report and Review Often
You should make sure the budget you allocate to advertising on Amazon is being used effectively. This means regular review of every campaign, keyword and product. We suggest bi-weekly review for small programs (<$10k / month in spend), weekly review for medium programs ($10k-$30k / month in spend) and daily review for large programs (>$30k / month in spend).
Processing the reporting for a robust program with many campaigns takes time and diligence, but this effort pays off by making sure you act on any opportunities for optimization in a timely manner.
Get Ready for the Holidays
The 2017 Holiday shopping season is fast approaching. Now is the time to develop and test your strategies to win the maximum exposure and sales for your products. The first-party only Amazon Marketing Services saw a 30%-80% lift in ad impressions in Q4 2016 compared to Q3 2016. Data for third-party retailers is a little harder to come by, but in 2015 3P Sponsored products had a +38% increase in ROAS during the Holiday shopping season. Make sure to adjust those budgets accordingly; 150-350% higher than other times of year. (data source: Amazon)
All those extra consumer eyeballs lead to sales too. Amazon Marketing Services saw a 75%-125% lift in ad attributed sales in Q4 2016 compared to Q3 2016, making it an important period to ensure your campaigns are tracking toward success. (data source: Amazon)
When starting any meaningful program you’ll want time to test and iterate, typically at least two weeks prior to key dates like Black Friday or Cyber Monday. Don’t waste any time and get started sooner so that you’re not scrambling at the last minute!
Have more questions about advertising on Amazon? Contact us today and an e-commerce consultant will be happy to help you get started!