Sales on Amazon rose by a remarkable 51% last year. But keeping apace with the increased shopping habits, there has also been an influx of sellers and brands on Amazon, meaning competition on Amazon is steep. Product visibility on Amazon is becoming progressively difficult, with millions of sellers battling for prime position on increasingly limited screen space. Advertising on Amazon has become a key strategy for brands and retailers to stand out from the crowd.
In this ‘Insights from the Experts’ video, we sat down with Sunny Sura, digital marketing specialist at ChannelAdvisor, to talk through Amazon Advertising, and the tactics brands and retailers can use to stand out from the crowd.
What strategies can I use?
In this video, Sunny shares that there are three overarching strategies you need to use to drive success with Amazon advertising. These are:
- New customer acquisition
- Competitor conquesting
- Brand protection
Certain tactics underpin these strategies and they primarily cover the discovery and transaction phase of a consumer’s buying journey.
What are the tactics?
Sunny also highlighted five key tactics you should be employing to help improve your campaigns:
- Category targeting — this is how you drive awareness of your products and discovery of your brand and key product portfolio within key categories.
- Competitor product targeting — you can strategically position your products and capture the sales share from your competitors.
- Complementary product targeting — this helps you to capture incremental products from shoppers searching for non-direct products, for instance, they might search for a specific hairdryer and related make-up products may appear.
- Efficient keyword bidding — making sure that you’re targeting the right keywords with an efficient strategy that includes negative keywords is crucial to your success with Amazon advertising. This is essential so when a consumer is searching for a product they’re getting the right listings for their search term.
- Own brand bidding — to capture all the market share that’s available you need to cover all of your brand terms. It’s likely that your competitors will be bidding on these too.
When you’re using all of these tactics efficiently and in full you’ll see the overarching strategies will be achieved.
What metrics do I need to track?
Sunny shares that the two most significant metrics you’ll want to track are advertising cost to sell (ACoS) and your return on ad spend (ROAS). You’ll also need to look at lower-level metrics to make changes and optimise your campaigns. The day-to-day metrics you should be tracking are:
- Cost per click
- Click-through rates
- Conversion rates
Monitoring these will ensure that efficiencies are being met against your ACoS and ROAS goals.
Want to get the most from your Amazon Advertising campaigns? Watch the 1o minute video to learn more.