Tips for a Powerful Amazon Advertising Campaign Strategy for Small and Midsized Businesses

In the world of retail, Amazon is the world’s top seller. In fact Amazon is responsible for over 40 percent of all sales made online. This is why small to midsized companies (SMBs) count on e-commerce websites to reach out to consumers and make money.

Through Amazon Marketing Services (AMS) Your team is now able to speed up the process in order to boost your profits, brand recognition and so on. The question is what can you do to create an effective strategy for your advertising campaign that will yield the best results and outdo your competition? Start by implementing these seven powerful suggestions for SMBs on the internet:

1. Know your Amazon ads

Before you can begin advertising, study the different kinds of Amazon advertisements offered, which include:

• Sponsored Products: A targeted, keyword-driven ad Sponsored Products are displayed in Amazon results when you search as well as below the fold on the product page and highlight a specific product. They also include reports on the keyword and product level that allows you to see the keywords that drove specific product sales.
• Headline Search Ads: A keyword-targeted advertisement, Headline Search Ads are displayed above search results like banner advertisements which are able to promote three or more products. They are only available with sales reports at the keyword level and you’ll be able to see the keywords that led to a sale for one of three items.
• Products Display ads: A product or an ad that is targeted to your audience or interest-targeted ad, Product Display ads are shown beneath the fold of pages for products and also on review, listing, and other related pages for product details. They also come with report on sales for the entire campaign that lets you assess the overall performance for the entire campaign.

Watch the below video to know about Amazon Advertising Basics — The A-Z of Amazon PPC Explained! | Amazon PPC Tutorial 2022

It’s equally important to comprehend the distinction between interest-based, keyword-based targeted ads and those that target products:

• Keyword-targeted advertisement: A keyword-targeted ad is an advertisement that is activated when a search has a certain group of keywords. For instance, if you’re targeting a phrase like “security camera wireless,” your ad will be displayed when people search for the string of keywords.
• Product-targeted advertisement: A product-targeted ad is an advert that will appear when a customer is on a specific page for a product. It’s helpful when you wish to target competitors’ listings and also products that match yours. If you are selling protective covers designed for cameras that are used in security, for example you can make sure to target pages on products for compatible cameras.
• Ads that are targeted to be interested: An interest-targeted ad is an advertisement that appears when users go to pages on your product that are related the product. This means you could target your ads at people who are looking at security cameras, dashcams hidden cameras for surveillance, and many other cameras.

While every ad and choice has benefits and drawbacks, they all have a function. If you’re trying to promote a set of new products that are from the same company such as, in this case, then you can make use of headline search ads. If you’re cleaning out inventory left over and want to sell it, you can make use of sponsored Products advertisements for each product.

All ads follow the pay-per-click (PPC), auction-based model. They all also require the minimum daily budget of $1. This helps you ensure that your advertising budget is in check that is essential for small-sized businesses.

2. Make your goals S.M.A.R.T.

If you’re planning to build an advertisement campaign that revolves around Sponsored products or Headline Search Ads and Product Display Ads It is important to set objectives with a focus that is S.M.A.R.T. — Specific, Measurable, Achievable, Realistic, and Timely.

A couple of instances of S.M.A.R.T. objectives that can be utilized in an Amazon campaign are:

• Achieving 30 reviews on the same product over the course of six months
• A product’s sales can increase by 15 percent within a 3-month period
• The reduction of inventory for a product by 100 percent prior to launch of a brand new product

In most cases, your objectives determine the ads you decide to show on Amazon. It’s important to remember that your products may contribute to the advertising strategy you choose to run since you are able to only promote items that have won their Buy Box. What is the Buy Box on Amazon?

It’s a box located on the right part of the page listing the product. When buyers want to buy the product, they go to Buy Box. Buy Box, which contains the following information about the product:

• Pricing
• Shipping
• Stock
• Seller

On Amazon when you win the Buy Box, your product is the preferred choice for customers who click “Add to Cart.” To be a winner of the Buy Box, you must provide a reasonable price in addition to a good customer experience. Amazon assesses through a variety of variables such as shipping time.

3. Calculate your advertising cost of sale

It’s crucial to establish the Advertising Cost of Sale (ACoS) before you begin creating your campaigns. This will affect the cost-per-click (CPC) bid and budget for your campaign. With a precise ACoS you can design an appropriate, performance-driven, budget.

To calculate your ACoS you should consider the following aspects for each item:

• Price of sale
• Cost of selling goods
• Fulfillment through Amazon (FBA) costs
• Miscellaneous costs

After you’ve figured out the numbers, take all of your expenses — including the cost of items, FBA fees, and other costs from the price you’re selling. The final number is the amount you’ll need to turn the possibility of making a profit. If you’re looking to clear your inventory, you might want to figure out your break-even level.

In this calculation, you’ll calculate your maximum expenditure to divide that by the product’s price of sale. This is the break-even threshold. Once you begin advertising on Amazon it is possible to check every keyword’s ACoS on the AMS dashboard in the section titled “Advertising.” This feature will let you know which keywords are suitable to market for and which ones won’t generate the business.

4. Research your keywords

If you’re a start-up with a small budget or a well-established medium-sized company, Amazon recommends you begin advertising using automatic targeting, that is available for sponsored Products or Headline Ads If you’re using Products Display Ads, Amazon recommends targeted targeting based on product.

This is because you’ll get valuable keywords within two weeks. Then, you can use the data to create Headline Search and Sponsored Products ads with manual targeting, or Product Display Ads that have interest-based targeting.

It is essential to conduct some keyword research by yourself however. It can help you identify new keywords to use in your marketing campaigns, as well in determining downward or upward trending keywords.

To locate keywords, you can utilize tools for keyword research, which is a useful tool for locating the keywords you want to find in Amazon, Google, YouTube and many other sites.

Take a look at the listings of your competition and also. Based on their experience with advertising on Amazon They may have their product titles or descriptions optimized to searches that will reveal the keywords they’re using to increase sales. Don’t copy directly of your competitors’ advertising strategies however.

5. Optimize your products

When you begin your campaign for advertising on Amazon It is crucial that you improve the product listing. By doing this increase the chances that the ideal customer will not just click on your advertisement, but will also buy the product. If you’re reviewing your products take a look at these characteristics:

• Title
• Images
• Description

To achieve the best results from your marketing strategy, Amazon recommends that you enhance these three areas. This will also aid in your positioning in organic results for search results on Amazon and can increase the number of organic sales. To enhance how you present your titles descriptions, images, and title follow these steps:

• Make your product titles descriptive, yet accurate
• Make sure your listing is complete with high-quality photographs
• Change your product description to include at minimum five bullet points
• Make sure that your description of the product is updated to include useful and relevant information about the product

While you review your descriptions and titles of your products you might want to consider adding keywords from your initial study. Once you’ve launched your campaign, you’ll have the option to utilize the information taken from the ads you’ve created to enhance your listing even more. The process of optimizing your product listings on amazon can be time-consuming, particularly for small businesses however, it’s well worth the effort.

It can benefit your marketing campaign as well as your business plan. When your campaign has ended it is possible to boost sales by improving the organic listings of your product by optimizing your keywords. Remember that Amazon is not a fan of keyword stuffing. So do not use it.

6. Invite your shoppers to leave reviews

Reviews are a powerful source of information. Indeed, more than 60% of buyers go through reviews prior to making a purchase. That is why they can boost the sales of 18. In addition, Amazon uses reviews as an element of ranking for organic results.

It is crucial to review your marketing strategy. One method to solicit feedback is through automated emails, for instance when you confirm the customer’s purchase. Make an email to send following the delivery date you anticipate and this time, asking for feedback from the consumer.

Be sure to invite customers to reach out directly to let you know if they’re not satisfied with their purchase. Another option is to include an insert for your product for example, brochures on the benefits of your product in the package of your customer. Inserts in products are great to not only build brand recognition, but also for stimulating reviews, sharing on social shares and much more.

It’s important to remember that Amazon is not a place for solicited reviews. However, they do provide the Early Reviewer Program, which also includes a cost for products. Its Early Reviewer Program is a possibility if you own an item that has no more than five reviews and an estimated price of more than $15.

On behalf of you, Amazon will solicit reviews for one year , or until you’ve earned five reviews. When the SMB is a wholesaler to Amazon it is possible to make use of Amazon’s Vine Reviewer Program. This is a different paid service, however it connects you to some of the most prominent reviews on Amazon.

If you give the product sample The person will then write an honest review.

7. Review your search terms report

When you start your marketing campaign It’s easy to concentrate on revenue and sales however it’s crucial to be aware of what is driving these purchases — the key words.

That’s why it’s important to take the time to go through the report on search terms. The report on search terms is available in the AMS dashboard, under “Advertising.” It’s a important source of information to use for Sponsored Products or Headline Search Ads because it shows the keywords that drive sales and clicks.

This can help inform your current and future campaigns.

For instance, suppose you observe that a keyword is getting lots of clicks however, it’s not bringing any sales. If you look into it further, you find that even though the keyword is describing the product you sell however, it isn’t in line with the intended purpose of the customer A good example is “saturn,” which can be a reference to a car, or the world.

In just 30 minutes in the morning, you’ll be able to save your advertising costs and work on your plan which is worth the investment.