Latest Tactics of Amazon Brand Advertising in 2022
Every Amazon seller aims to increase brand awareness, trigger sales, and improve customer retention rates. If you want to achieve these outcomes, you have landed in the right place. We will provide you best Amazon advertising solutions to assist you in achieving your desired goals.
According to CNBC, the Amazon advertising business engendered 31.2 billion US dollars in revenues in 2021. The excessive usage of Amazon ads is associated with unprecedented benefits that Amazon offers to its sellers.
The competition violently exceeds the Amazon marketplace due to the continuous influx of multiple potential Amazon sellers. To compete against competition, using the Amazon advertisement option is necessary for brands to take market share.
Amazon sellers need strategic and valuable advertising plans to pull out the maximum return on investment (ROI). To make things easy and understandable, we will explain all Amazon advertising types, their associated costs, and groundbreaking Amazon brand advertising strategies capable of achieving your desired business ambitions in 2022.
What is Amazon Advertising?
The fundamental concern of Amazon brand advertising is to make your offered products visible to the targeted audience. Advertisers have to bid on specific keywords to get exposure for their products on Amazon. The advertiser has to pay a certain amount every time buyers click their advertisement.
When your products appear in a good position, the chances of originating sales are higher. It leads to higher conversion rates.
As conversions continue to escalate, your Amazon digital brand advertising ranking improves, resulting in more sales. Hence, Amazon advertisements are a lucrative option to grow business financially within no time. But effective implementation of an advertising plan is crucial to extract successful outcomes.
Types of Amazon Advertisements
Amazon sellers have to choose from different advertisement types to run the campaign. These Amazon brand advertising types include Amazon Sponsored Product, Sponsored Brand, and others. Let’s explore their detailed information.
Sponsored Products Ads
Amazon sellers most commonly use sponsored product ads. You can witness the sponsored product ads in the right corner of the above figure. These ads contain the following elements:
- Product Image
- Start Rating
You can use the feature of keyword targeting by using this Amazon online brand advertising type. Through keyword targeting, you can show your ad to the people searching for your product.
To gauge sponsored product ads’ effectiveness, use a tool for reporting that showcases sales, financial expenditures, advertisements clicks, and advertising cost of sales (ACoS). RoAS will provide you with the average value of the rate of return on your sponsored product ad spending.
Benefits of Sponsored product ads
- The sales momentum is increased for newly launched products.
- Advertisers’ products are shown at the top position in search results for specific keywords.
- You can grab your competitor’s customers’ attention.
Sponsored Brands Ads
Sponsored Brands Ads are the second most popular type of Amazon ads. These ads contain the following elements:
- Brand Logo
- Brand Name
- Call to Action (CTA)
There are multiple benefits associated with this ad type, one of which is you can write custom headlines. Additionally, you can showcase different varieties of your product. If someone clicks on your sponsored brand ads, they will land directly on your store page, where they can find an organized set of products for shopping.
Amazon exemplifies that advertisers using combinations of Sponsored brands advertisements have witnessed:
- 5.5 percent increase in return on ad spending.
- 57.8 percent increase in the conversion rates.
- 108.1 percent increase in click-through rate.
Advantages of Sponsored Brands ads
- You can add a video to improve conversion rates.
- Offer customers with an excellent shopping experience.
- Creates a unique level of trust among new and existing customers.
- It helps to attain the attention of the loyal customer base of your competitors.
Sponsored Display Ads
Sponsored Display Ads are basically for vendors. If you are a vendor, this ad type can be best for your business. These ads contain the following elements:
- Brand Logo
- Brand Name
- Product Information
- Custom Headline
These advertisements appear on search result pages, product detail pages, customer review pages, and even in Amazon-generated marketing emails.
According to the Jungle Scout Amazon Advertising report, nearly 29 percent of 3rd party sellers used sponsored display advertisements. Unfortunately, the option of keyword targeting is not available in this ad type. Still, advertisers can target product ASINS, product categories, and interest categories.
Pros of Sponsored Display ads
- Your products are promoted with auto-generated campaigns. These campaigns are optimized to generate maximum conversion rates.
- Sponsored Display advertisements make retargeting easy. Amazon DSP is also beneficial for retargeting, but the process is much easier and quicker in sponsored display ads.
Besides using these three major ad types, advertisers can also use Amazon DSP, video advertisements, audio advertisements, and custom advertising solutions.
Costs Associated with Amazon Advertising
After covering the information of major Amazon Brand advertising types, you might be thinking of costs associated with Amazon advertising.
The answer to this question is linked to your advertising usage. In thinking of the possible aspects that can influence advertising costs on Amazon, the below-listed factors play an imperative role:
- Business desired goals.
- Depends on ad type usage.
- Level of competition regarding the specific market.
- Allocated Budget
Amazon brand advertising is working on the auction-based model, in which the second-highest bid determines the final cost of your advertising. For instance, if you set your bid to 2.00 US dollars per click and the second-highest bidder is ready to pay 1.20 US dollars, you will be the auction winner.
It may sound simple, but the bidding prices can be drastically high depending on the type of advertisement and your desired location.
The minimum budget required for Sponsored product ads in 1$. However, prices can vary depending on selected keywords and competitors’ advertising strategies.
For sponsored brand advertisements, the minimum bid amount is 0.10$, and the higher the bid you offer, the chances of appearing your ads in front of consumers increases.
Sponsored display advertisements are procured based on CPC or CPM. There is no minimum budget required for this ad type, and you can change or pause your Amazon ad campaign anytime you want.
The pricing structure of ads through Amazon DSP varies according to the requirements. Self-service customers have a full hold on their campaigns, and no management fees are included. If you opt for the managed service, it requires a minimum of 50,000 US dollars spending (this can vary for different countries).
Similarly, video and audio advertisements require a minimum budget of 25 – 35 thousand US dollars. Ensure to visit the Amazon Advertising web page to have in-depth information regarding advertising costs.
Ground-breaking Amazon Advertising Tactics
Effective Amazon Brand advertising strategies can help you increase your business sales faster, improve organic ranking, and bring out multiple customers. However, your campaign should be created and managed correctly to achieve these objectives.
Let’s explore groundbreaking amazon advertising strategies that will assist you in making more money.
Diversify your desired goals
In 2022, if your primary motive is to increase sales, you will not succeed. Design and work on multiple goals and apply strategic approaches to achieve all of them. For instance:
- Being at the top list on a particular keyword.
- Gain significant market share.
- Protecting brand.
- Increasing long-term sales.
- Become a market leader on certain products.
- Promote your products to become a bestseller.
The advertising strategy should be aligned with your desired goals and objectives. You can also design your goals based on four stages of engagement: brand awareness, consideration, purchase and post-purchase, and design advertisement strategy accordingly. Afterward, you will need the combination of sponsored product, brand, and display ads to reach the targeted audience.
Are you launching a new brand on Amazon? Here are perfect examples of using Pay Per Click strategies to match your desired goals.
|Increasing long-term sales||Use generic keywords|
|Brand Protection||Use brand keywords|
|Gaining market share||Use competitor keywords|
Analyze performance and afterward set different bids
Every product you offer cannot provide you with the same profit margins. Therefore, avoid bidding the same amount for all keywords. Otherwise, you can lose a significant amount of money on those products providing low-profit margins. Look for the products having the potential to generate the highest financial gain and bid higher on them.
If your campaigns are new, you have to bid higher to gain searches; otherwise, Amazon will prefer your competitors who have achieved significant sales volume. Once there is an influx of visitors and sales growth, you can adjust your bids later.
Establishing a strong campaign structure
If you want to increase your brand visibility and enjoy a high return on investment on Amazon, then using the right keywords is the best method. Amazon accounts that cannot perform up to the mark can be working with low-performing keywords. To establish a solid campaign structure, you can clean up your developed campaigns and replace those low-performing keywords with high-performing ones.
Having a solid campaign structure allows you to
- Leverage new auto campaigns
- Keyword harvesting
- ASIN discoverability
- Negative keyword inclusion.
Inclusion of long-tail keywords
Longer tail keywords are longer phrases related to the specific product’s search terms. For example, if you are selling treadmills, a potential keyword can be “treadmills for home 200lbs weight capacity.” Long-tail keywords are only good to add if you have the availability of products that customer has searched for.
Adding these long-tail keywords can significantly increase your conversion rates. A customer searching for a treadmill will look for multiple options available. However, the customer looking for a treadmill with a specific weight capacity might reach your product listing destination if your results are the best fit for the search.
Restrict advertisements from showing against inappropriate searches
Amazon brand advertising allows you to block ads from showing for irrelevant searches by using negative keywords. For instance, if you are selling heels but not sneakers, you can add sneakers to your Amazon ad campaigns as a negative keyword to avoid being shown for keywords linked with sneakers.
If you are a new seller in the Amazon ecosystem, it will take time to build the negative keywords list through experience. Regularly analyze your advertisement reports and look for the keywords that should exclude.
Remember! Including negative keywords can save money and increase conversions by showing your advertisements to qualified shoppers.
Why Invest in Amazon Advertisements?
After going through in-depth information on Amazon advertising, now we will talk about why investing in Amazon ads?
- Are you thinking that selling products on Facebook or running Google ads comes with more benefits than utilizing Amazon PPC? You’re mistaken. People often scroll on these platforms instead of buying. Amazon customers search for the product with the sole intent of purchasing it. Therefore, the conversions are high using Amazon advertisements.
- High ranking is essential for conversions, and you need conversions to rank high. Are you puzzled? When you start initiating ads, you get a small portion of sales which improves your Amazon seller account’s organic ranking.
- Once your products are ranked on the top page, now you feel that investing in Amazon ads is not necessary. Your rivals are constantly struggling to rank higher in the highly competitive Amazon world. If you halt your Amazon ads investment, you will be replaced by potential competitors.
- Amazon flywheel effect is one of the powerful reasons for investing in Amazon advertisements. It reflects the success circle in the Amazon business. The chronological order of traffic, sales generation, and reviews is the ultimate success factor for any Amazon business. Once you get visitors, you get sales and reviews. Your organic ranking increases once you get good reviews, resulting in more traffic and sales. Amazon sellers need to understand the Flywheel effect for long-term growth.
- As an FBA seller, you should be paying inventory costs for your stored products in Amazon warehouses. When you cannot attract consumers for sales, you have to keep paying storage fees for your products. Using Amazon advertisements triggers sales acceleration, which results in improving our Sell-Through-Rate that helps to save Long-Term-Storage Fees and other costs associated with it.
Words to Settle Discussion
Amazon brand advertising has become increasingly popular among Amazon sellers due to its extraordinary financial returns. Among multiple types of Amazon ads, you can choose any depending on your desired business ambitions.
As mentioned in this article, Amazon advertising is only beneficial if implemented using proper planning and strategic steps. Amazon’s Advertising process requires considerable energy and time to work, but the results are worth the time spent.
How do I advertise my brand on Amazon?
- Set competitive pricing
- Optimize your listings
- Gather product reviews
- Run different types of Amazon campaigns
- Offer different promotions
What is Amazon’s advertising strategy?
Amazon’s advertising strategy is based on the PPC model, which means you will not get charged until a consumer clicks your advertisement. Amazon ads follow the auction method in which you have to bid for certain potential keywords to win the auction.
What is Amazon SEO?
Amazon SEO is linked with optimizing product listings to rank higher on the relevant product searches on Amazon.