Navigating Amazon’s Sponsored Ads

In an era where every brand is competing for the attention of consumers worldwide, sponsored ads significantly aid brands in their mission to get discovered. While Sponsored Ads/Products allow sellers to increase their discoverability and sales on Amazon, there are a few basics that retailers should be aware of before investing in advertisements that yield a rewarding ROI.
After about 60 days of monitoring the preliminary stages of your brand’s advertising efforts, you are now ready to create your first campaign!
The first step to start your campaign is to set a daily budget that is high enough to keep your ads live. Amazon recommends a daily budget of at least $10 to warrant that your ad remains online the entire day. Customers looking for products like yours will have a much more difficult time locating your brand if you’re products are only sponsored for a few hours out of the day because your budget was insufficient.
In conjunction to establishing a sufficient budget, brands should take an “always-on’ approach with their campaign by setting a no end date. This approach allows your products to be discovered at any time on Amazon and not just during the busy seasons. Your brand’s sponsored ads are for more than just the average holiday shopper, they are for the customers who find true bliss in obtaining the items you offer and don’t just want them once a year.
The next step is to choose automatic targeting. Automatic targeting is designed to generate more impressions to drive sales and to reach your most likely customers. In this scenario, Amazon matches your ads to customer search terms, which are based on your product information and are updated on a regular basis with changing search trends.
In roughly two weeks, check your search term report in the ‘Reports’ tab to review which search terms are producing in ad clicks and sales. It’s vital that your brand analyzes the successes and failures of the progress you’ve made thus far in order to hone in on what is performing well and ditch what is not in concert with company objectives.
Following this, create a Sponsored Products campaign with manual targeting. With manual targeting, users are able to select keywords and target their top-performing keywords. Manual targeting also allows brands to set keyword-level bids and bid more competitively on keywords that are meeting sales goals.
Next, incorporate a range of keywords in your campaign to boost visibility and sales conversions. Amazon says the more keywords you include, the more customers you are likely to reach. For example, say your company sells bikes and your potential customer is looking for a bike for her 4 year-old daughter who loves her belongings to be girly and glamified. Your manual targeting can now include words like ‘kids bike for girls,’ ‘training wheels,’ ‘streamers,’ ‘handlebar basket,’ and so on to appeal to this shopper and other shoppers with the same needs. At this point, you should also become acquainted with keyword match types in order for your brand to continue reaching the right customers.
Within the first few weeks of your brand’s advertising adventures, Amazon recommends launching at least 5 Sponsored Products campaigns that includes both automatic and manual targeting. This combination will allow your brand to have the best of both worlds and discover new keywords that are generating sales. By doing this, brands will be able to see which products are indefinitely performing well and will have the insight to bid more strategically on key terms. As your brand becomes more comfortable with the nature of Sponsored Products, Amazon advises that retailers begin incorporating a mix of ad types, such as Sponsored Brand Ads and Amazon Stores. Sponsored Products and Ads can greatly serve your business goals and objectives by increasing sales and by reaching consumers who are searching for products like yours. To start implementing sponsored ads into your Amazon strategy, get in touch with one of our experts today.
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