RSS feed Get our RSS feed

News by Topic

BizReport : Advertising : June 11, 2021

Top 3 tips to optimize Amazon ad spend

Amazon continues to draw a bulk of online shoppers, and that has many merchants moving some - if not all - of their merchandise under Amazon's umbrella. To be seen, they're turning to ads within Amazon, but they aren't alone. Here are three tips to optimize ad spending within Amazon so that merchants can drive more revenue.

by Kristina Knight

First, choose strong search terms and keywords

"Start by putting yourself in your customer's shoes. The search terms they use will depend on how familiar they are with the product, where they are in the buyer's journey, the product category, whether they've purchased from your or competitor brands before and many other factors. For example, when shoppers go to Amazon to buy a board game, they either know exactly which game they are looking for and use very specific search terms, such as "Cards Against Humanity," or they have a very broad interest and use broad search terms, like "trivia games." Amazon sellers can utilize Amazon advertising software to select the keywords with the most opportunity by search volume," said Kunal Chopra, CEO, Kaspien. "The search terms shoppers use will change over time, which means that search term optimization is an ongoing process. Advertisers should review high converting and low converting search terms at least several times per week."

To get started, Chopra suggests leveraging Amazon's Seller Central reports and other third party keyword search tools. For organic keywords, ask yourself the following questions:

• How would you search for a similar product as a customer?
• What keywords are you noticing your competitors using in their listings?
• How do your customers describe your product in their reviews?

Second, make bid optimization a priority

"Sellers can optimize their bids by paying close attention to Amazon's dynamic marketplace, seeking to strike a balance between marketing budget and frequency of ad placement. If sellers place an ad too frequently, it will drain their budgets quickly. On the other hand, if the ads are placed too infrequently, products will go unseen and sales may fall, ultimately limiting a seller's market share," said Chopra. "Amazon's marketplace exists in a constant state of change - with new competitors constantly emerging, existing competitors continually shifting their ad strategies, consumer demands shifting and peak seasons coming and going month-to-month."

Third, be smart about campaign architecture

"As a general rule of thumb, create four campaigns - one for each manual match type and one automatic campaign. Use only one product per ad group for optimal visibility of your ad performance:

• Broad Match Campaign
• Phrase Match Campaign
• Exact Match Campaign
• Automatic Campaign

This architecture allows advertisers to see ad performance at a product-level, providing the depth of insight needed to make the most impactful future bid and search term optimizations," said Chopra. "Amazon's ad business will only continue to grow as the platform expands, which means it will only get increasingly more difficult for sellers to stand out in the marketplace. With a diligent, dynamic approach to Amazon advertising, sellers can better connect with their customers and eventually have the opportunity to lend more of their attention to retaining and building relationships with the new customers they've gained through targeted advertising efforts."

Tags: advertising, advertising tips, Amazon ad tips, Amazon ads, Amazon seller tips, ecommerce advertising tips, ecommerce tips, Kaspien

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.