Sales & Marketing

8 Best Amazon Advertising Strategies to Increase Sales in 2022

Amazon Advertising Strategies
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Amazon has not only stepped up as the most growing e-commerce platform, but it has also started with different services such as cloud computing, digital streaming, prime membership, Kindle application, etc. Amazon’s e-commerce platform is the most famous and highly used service due to its good quality products at lesser prices. To achieve this goal, Amazon keeps many strategies in use.

Amazon uses its sellers to gain the trust of customers. Sellers are the ones needed to fulfill and follow strategies planned by Amazon for better service. This planning helps Amazon as well as sellers to increase their sales. One of the best options given by Amazon is to advertise its products.

We will be discussing in-depth the tips one can use for Amazon Advertisement, which will directly have a great impact on sales. We will also be discussing Amazon ACOS, the key matrix in advertisement performance calculation, in the upcoming parts of this article.

Why Should You Invest in Amazon Ads?

We all know that advertisement is the best option for increasing sales. Advertisements are the best option for making the product visible to several customers simultaneously.

Amazon is a vast platform having several sellers registered with it. Each seller hopes to see themselves in the top search of Amazon.

The main aim of selling products with the help of Amazon is to achieve higher sales. These cannot be done easily due to several sellers selling the same product at the same or different rates. Hence, individual sellers use different tactics to attract more customers to their products. One of the best options to attract the customers’ attention is creating advertisements. Many people hire Amazon ads agencies as they have experts for it, and it also saves time. Apart from that, Amazon has simple and better options to offer its customers.


How Many Types of Amazon Ads Are There?

1. Sponsored Products Ads

Sponsored Products Ads are pay-per-click advertising solutions mainly displayed on search results and product detail pages. The best point about this advertisement option is that the customers need to pay for the clicks done on the advertisement.

Another great thing about this advertisement is that it can be altered or directed using Keywords. Sponsored Products Ads are available for all those customers having their account registered under Professional Sellers account, Retail Vendors account, Kindle Direct Publishing (KDP) Authors account.

2. Sponsored Brands Ads

Sponsored Brands is also known as Headline Search Ads. It is not much different from Sponsored Products Ads in its working mechanism. Both are pay-per-click models with their advertisements shown in the search results and product detail. The prime difference between both is their advertisement results.

In sponsored Products Ads, up to 10 products can be displayed together. However, for Sponsored Brands, only a single advertisement will be shown on a single page. Sponsored Brands are available for Professional Sellers and Retail Vendors.

3. Product Display Ads

Product Display Ads are different from the other two types discussed earlier. This is also a pay-per-click model. However, unlike earlier two types using Keywords for their searches, products display ads using similarities between the product and buyers’ interest, product and shopping categories.

The earlier two types needed to pay the fees per click. However, the existing package needs to be taken for product display ads. They are displayed on related product details pages, customer reviews pages, and even outside Amazon. Vendors and authors use them to reach a higher audience.

See Also: How to Get Your Product on the First Page of Amazon


Amazon ACOS

Amazon ACoS (Advertising Cost of Sales) is a matrix that allows the user to know their efficacy and probability. ACOS is a calculated percentage that shows the amount spent on advertising and the sales received from that product.

The formula for Amazon ACOS: 100 ([total ad spend] ÷ [total sale])

The prime need for ACOS is to acknowledge the profit earned from any advertisement campaign. This is essential to plan out advertising strategies and the amount available for investment in Advertisements.

Higher ACOS stands for low profit, while low ACOS stands for earning a higher profit. Each brand can have its own dedicated ACOS limit to define profitability.

ACOS can be affected by many factors such as:

  • Profit margins
  • Click-through rate (CTR)
  • Cost per click (CPR)
  • Conversion Rate

All these factors can be altered to lower ACOS values. It can also be altered depending upon the requirements to achieve better sales. ACoS is a prime factor used for describing Amazon Ads and their revenues. Apart from this, there can be many other options one can select to increase their sales with the help of advertisement.


Best Amazon Advertising Strategies to Increase Sales in 2022:

Best Amazon Advertising Strategies to Increase Sales

1. Set Your Goals and Products

Some brands like to advertise for a single product. At the same time, some like to advertise for the whole line of products. Apart from these two, there can be brand advertising to boost brand awareness.

For the advertisement of a single product, using sponsored Products Ads is a better option, whereas for multiple advertising products of the same brand, using sponsored Brands is a better option. Along with these, selecting the product to advertise is also an important factor.

It is best to advertise the most popular product with competitive pricing to earn good clicks. One should be clear with the choices regarding products and the type of advertisement to select.

You May Like: Amazon Keywords Tips – How to Rank Organically on Amazon

2. Aim Only for Targeted Audiences

Advertisement is not meant for everyone. Even though everyone sees them, they are not meant to attract all. Every decision related to advertisement wholly depends upon the type of audience it is meant for. Learning the psychology behind targeted audiences can help in increasing sales.

For example, the Targeted audience is homemakers, and the best time to display the ad is during the daytime. However, if the advertisement was meant for working women, it is best to display them in the evening. All these decisions are crucial for advertisements as they can increase visibility.

3. Pick the Right Places to Show Your Advertisements

Amazon has several sites dedicated to the advertisement sector. One needs to be choosy enough to select and allot a better place for the advertisement. There can be another alteration by using multiple Amazon services to showcase the ads. One can use images, videos, audio to enhance the advertisement. These advertisements then can be placed on Amazon websites, Alexa devices, and many other similar platforms.

4. Try Using Descriptive (Longtail) Keywords

Amazon ads work by keywords. It is better to assign a descriptive keyword rather than a single word keyword. This will attract only desired and matching customers to the products. Hence, chances of converting the visitor to a customer are much higher with this practice. Anyone searching for leggings will not probably buy the same product.

However, one searching with the words “Yellow leggings with green top” is more inclined towards buying the product. This is because of specific descriptions and limited results. Hence, giving out descriptive keywords can increase sales.

See Also: 10 Amazon PPC Automation and Management Software

5. Have a Clear and Detailed Landing Page

Even though this is not an advertising tip, it is an essential part of the advertisement. The advertisement works until a customer is targeted back to the product page. Having a clear and detailed product page can have the ability to transfer a visitor into a customer.

Hence, this is also considered an advertising tip as it will eventually lead to a better sale. Keeping the landing page clear with words and good details is the best way to make it approved.

6. Stop Bidding on Negative Keywords

Keywords can be an essential component of search patterns. However, no one wants to be associated with negative keywords. This can eventually lead to a wastage of money invested in advertising. Hence, it is more suitable to eliminate all those keywords one does not want to be associated with.

7. Keep a Close Eye on the Trends

Amazon has new trends each week. The trending product for this week will not be repeated for the next few weeks. It will give no benefit to advertising for such products in those weeks. Hence, being active on the platform and getting the trends is crucial for success.

One should be ready to welcome new products as their advertising products and be prepared with all needed keywords to work. This practice can allow one to stay on time and not waste money on advertisements of unrequited products.

8. Look Away from the Barrier of Amazon

Advertisement is a great deal for increasing sales. However, getting confined to a single place will also hinder its success rate. With the availability of social media as a marketing platform, it is best to give out advertisements of desired products at different marketing places. This will ensure greater coverage with the same advertising pattern.

Related: How to Write eCommerce Product Descriptions Effectively That Sell Fast


Conclusion

Amazon is a great platform for introducing a new product in the market. It is always in its improving stage. In the year 2012, they introduced the service of Amazon Advertisement. Many factors and matrices revolve around the advertising strategies of Amazon. Some of them have been described above with a few tips to consider for advertising on Amazon.

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