Top 7 advanced tips for Amazon advertising
As the third-largest advertising platform in the world, Amazon advertising has become increasingly important over the last few years. Amazon is increasingly ramping up its advertising offerings across the platform in a bid to compete with the likes of Google, Facebook, and YouTube. Because of this we are seeing constant updates and changes to the platform. For example, in 2019 we saw many new programs within the advertising platform introduced including, new targeting options, increased access to display and video ads and several new data points to report.
What does this mean for brands? Staying up-to-date and mastering Amazon advertising is essential for brands of all sizes to maximise sales, reduce misuse of ad spend and preventing wasting valuable time. Our Amazon advertising experts often see common advertising mistakes when auditing new accounts which can cost brands thousands, if not hundreds of thousands, in erroneous ad spend monthly. To help brands better optimise their Amazon advertising campaigns, we have put together our top 7 advanced tips to help brands sell more and spend less on Amazon.
Tip 1: Use automatic targeting for keyword research
While the ease of setting up automatic ad campaigns may be appealing, auto campaigns aren’t always the best option, especially when it comes to keyword research. Use automatic campaigns to help discover and test search terms that are converting. Set up these auto campaigns similarly to your manual campaigns and run with a minimum budget for a couple of days or more. Amazon also suggests running auto-campaigns for two weeks. Once you see the results of the search terms used to retrieve your ads, add them to your manual campaigns.
Tip 2: Keep your ACoS goal flexible
Typically, Amazon advertisers believe the lower the ACoS, the better. However, the lowest possible ACoS isn’t always what your brand should be aiming for. Instead, our experience has taught us it’s best to consider other critical advertising objectives, such as sales, product visibility and brand awareness when determining the profitability of your ACoS. Are you launching a new product? Trying to sell surplus stock? Or just trying to keep profitability high? These are all different objectives that affect your advertising costs differently.
Tip 3: Optimise ad campaigns over time
A common mistake is not giving campaigns enough time to see results before optimising. If you’re worried abut overspending in the time it takes to see results, use advertising settings such as budget caps to stay within your budget. Once you have the data, keep a close eye on impressions and conversion rates and continuously adjust your bids. Amazon advertising optimisation is labour intensive, and your campaigns need to be checked daily to ensure you aren’t losing money or alternatively running out of the budget necessary to generate conversions.
Tip 4: Refine your negative keyword list
Amazon works the same way as Google ads, allowing you to exclude keywords to ensure you aren’t ranking for the wrong search term. Ensure your campaigns are refined as much as possible and use match types with negative keywords to create negative phrase match and negative exact match keywords as well. For example, if you sell shampoo but you don’t sell dry shampoo, you can add dry shampoo as a negative keyword to prevent ads from showing for searches related to dry shampoo. While you should be adding to your negative keyword list continuously overtime, before a campaign is launched, add as many negative keywords as you can to ensure you save money and increase conversions by showing your ads only to the more qualified users.
Tip 5: Leverage product-level profitability
It’s vital to ensure you understand gross profit margins on all individual ASINs before even starting your advertising campaigns to ensure your products will benefit from ad spend. Allocate your bids strategically according to not just the overall performance, but the profit margin of individual products. You would be hurting your bottom-line by spending money on advertising on products that won’t benefit. Instead, identify the products with optimal profit margins, saving yourself some valuable ad spend.
Tip 6: Organise your campaign structure
Your Amazon campaign structure is crucial for allowing you to scale up your ads. If your campaigns are messy, you risk losing money on unqualified clicks from ads which are retrieved by wrong keywords. While there are different ways to organise a campaign, we often see campaigns where large amounts of products have been grouped in one ad group not converting as well. In general, it’s best to keep the number of ASINs in any ad group as small and similar as possible. By grouping products by related keywords, you are more easily able to identify high and low performing keywords most effectively.
Tip 7: Managing your inventory levels
There is a serious knock on effect if you run out of stock on Amazon. From reducing your organic rankings and loss of the Buy-Box to stopping your Amazon Sponsored Products ads immediately. This gives your competitors a chance to take back sales, market share and any organic search rankings you may have achieved with advertising. If you see that you are running low on inventory, lower your ad spend to reduce sales. This may seem counterproductive, but trust us, preventing your stock from running out before stock can be replenished is one of the most important aspects of any successful Amazon account! If you find you need help with inventory management, get in touch with an Amazon expert today.
How is your Amazon advertising profitability?
The continued growth of Amazon’s ad business means that brands of all sizes can’t ignore this advertising platform. However, Amazon ads isn’t a set-up and forget-it platform. Ad campaigns need to be constantly monitored, often daily with alignment between teams to ensure inventory is in stock, and profit-margins are right. Successful campaigns require a high level of experience and expertise as well as valuable time.
If you find you don’t have the time, resources or expertise to make your Amazon advertising work, get in touch with an expert Amazon advertising agency. At Molzi, our experienced Amazon advertising team can work with you to ensure profitability, inventory, content, and imagery is top-notch so you can see sales grow. Launching a new product? Testing a new Amazon market? These require even more expertise! Don’t leave it to chance, get in touch with our team today to learn how we can help you win on Amazon.