Amazon Ads: 8 Advanced Tips for Advertising on Amazon

Amazon Ads

Advertising is a vital part of selling products on Amazon. And though Amazon provides ad solutions that can help you acquire and engage customers in different stages of the sales funnel, it’s up to you to use the given tools for your advantage. Learning the basics of Amazon ads is a necessity and there’s nothing that’s stopping you from learning more. In this article, you will some tricks of the trade that can expand what you can do with Amazon ads and allow you to gain more favorable results for each campaign without increasing the costs in the long run.

Here are 8 advanced tips that you apply to your Amazon ads campaign without any training:

  • Make the most out of Sponsored Brands to increase brand awareness.
Amazon brands Ads
Amazon brands Ads

Sponsored Brands ad type is one of the most effective ways to drive not only traffic but also exposure for your brand and the promotion of a group of products relevant to the search results. This relevance is the reason why 18 percent of Amazon customers purchase products from Sponsored Brands. 

The top of any search results page is a prime spot for advertisers and business owners alike.  By now it’s common knowledge that the top 3 results in the first page of a search results page get the majority of the clicks. Sponsored Brands ads can appear not only on top but also alongside or within the organic search results, increasing your brand’s exposure.

Exploit this advantage by targeting the most relevant keywords (buyer keywords, category-specific keywords, and branded keywords). Catch the attention of potential customers with a custom headline, solid branding (brand logo, colors, and font), product images, and product identifiers (ASINs).

Finally, turn visitors into customers by sending them to your either your storefront or products listing page.

  • Create ads for SKUs that have modest profit margins.

Ads provide a much-needed boost for your Amazon products but how do you decide which product will receive this boost? This is something that needs serious consideration since it will affect your bottom line. It’s easy to just select the most profitable SKUs or products that have the lowest gross profits. Going to these two extreme ends will only increase risks that do not assure the results you desire. Calculate product profitability on an SKU level assess which products will provide a high sales potential in the long run.

  • Apply the flywheel effect to your advertising strategy.

Jeff Bezos modeled Amazon’s business strategy based on the “Flywheel Effect.” In its most basic sense, the flywheel effect leveraging paid media (paid advertising) to generate earned media (word-of-mouth) that will enable your business to gain growth momentum.

The flywheel will only continue to accelerate through the creation of a cycle that is powered by the customers. This begins with driving traffic to a product page through paid ads.  The increase in traffic may result in an increase in the product’s positive reviews or rank in search results. This will eventually result in the product earning “Amazon’s Choice,” which will then result in the product earning more traffic and continuing the cycle of growth.

The cycle that the flywheel effect generated will only continue to accelerate if your paid ads continue to successfully drive traffic. Regularly evaluate your Amazon ad performance metrics (gross profit, overall revenue, and Total Advertising Cost of Sale (TACoS)) to gain insights on how to improve the effectiveness of your advertising campaigns. 

  1. Leverage Product Attribute Targeting (PAT)

Ad placement is an important factor in the success of a campaign. That’s why 29 percent of advertisers prefer Sponsored Products for single-product ad campaigns. Sponsored Products can appear on top, below, and/or alongside the search results, product detail pages, add-to-cart page, check out page, and thank you page. But did you know that there’s a way to make Sponsored Products more effective?

Product Attribute Targeting (PAT) enables you to manually target ad groups by ASIN, specific category, brand, price range, product ratings, and other product features.

Amazon Ads Product Attribute targeting
Amazon Ads Product Attribute Targeting

This targeting strategy is effective in attracting customers that are searching for similar products. It removes the need for keyword targeting. And provides visibility opportunities for your ads.

  • Use negative keyword match types.

You may not realize it at first but you may be wasting a bulk of your advertising budget on keywords that will never convert. This includes keywords with low search volume, keywords that are too broad, or keywords that pertain to a totally different product.

You can add negative keywords during the creation of an ad campaign or through the Campaign Manager. But how will you know what keywords to filter?

Download the Amazon Search Term Report and identify keywords that have high spend but low sales and conversion rate, clicks, CTR, and impressions.

In order to effectively filter negative keywords, use negative keyword match types. The negative phrase match type will prevent your ads from showing in search results that contain the target phrase or close variations of said phrase. The limit is four words (80 characters) per negative keyword. The negative exact match type will prevent your ads from showing in search results that are an exact match to the target long tail keyword or a close variation. The limit is ten words (80 characters) per negative keyword.

  • Determine when a high ACoS is acceptable.

The lower the ACoS, the better or is it? ACoS is a key performance metric, the ratio of ad spends to sales. There is no definite benchmark for ACoS but it is understood that the lower range for ACoS is between 15 to 25 percent.

So of course, you’ll want a low ACoS because it will mean that you are profiting from your ad campaigns but in reality, ACoS doesn’t show the profitability of the product itself. Your ad spend needs to be less than the product’s profit margin in order to truly profit or even breakeven (breakeven ACoS is when your ad spends is equal to the profit margin).

But there are times where you need to have a higher target ACoS (TACoS). Your best-selling products need lower ACoS since you don’t really need to push harder to sell the product. Newly launched products, on the other hand, need higher TACoS because you need to maximize its sales potential by increasing its visibility. This isn’t a long-term strategy, though. It’s only practical in driving momentum for a product. After reaching a specific traffic or conversion goal, you’ll need to slowly lower your spending maintain said momentum.  

Other types of products that need higher ACoS include: products with low sales, product sell out, and brand awareness campaigns in general.

  • Explore a unique way to source keywords with auto campaigns.

There are several downsides to utilizing auto campaigns. First of all, you do not have full control of your campaigns and bids. Auto campaigns aren’t advantageous in the long run but if you are just starting out, auto campaigns can serve as a good source for keyword ideas.

Of course, there are several ways to research for keywords but the advantage of this method is that you have access to keywords that already works for your product. You can gain the same insight from downloading Amazon Search Term Report but you’ll need to aggregate enough raw keyword data for the report to provide relevant results. You can combine the two keyword sourcing/harvesting method and add high-performing keywords to your manual campaigns.

  • Adjust bids according to keyword value and performance.

The capability to bid on a keyword-level is important. Default bids for ad groups will make you lose money in the long run since the performance of individual keywords in the group won’t be uniform. 

Identify products that have high sales potential and bid higher on these products’ associated keywords. Bid lower or according to your TACoS on keywords associated with lower-performing products.

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Mustapha Ajermou

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Hey there , my name is Mustapha Ajermou and I’m a serial entrepreneur from Morocco, since a young age I wanted to make money on my own andi have been pursuing my dreams ever since..
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