The Ultimate Advertising Strategy for Amazon in 2021 [Guide]
March 18, 2021
What Is The Most Effective Amazon Advertising Strategy?
The best advertising strategy for Amazon depends on your goals, budget, and many other factors.
Amazon is the de-facto platform for eCommerce brands looking to develop their business, with product advertising proving a powerful strategy for reaching this goal.
With the Amazon marketplace boasting more than 2 million sellers globally and more than 12 million products, it makes sense for sellers to utilize a range of advertising programs to stand out. The competition is very stiff on Amazon and for a brand to stand out amongst the competition, it’s important to leverage the best advertising options to stay ahead. Amazon offers various advertising options to allow sellers on the marketplace to drive demand for their products.
With around 300 million daily active users, Amazon offers huge potential for sellers. But with stiff competition in the marketplace, sellers who are not using the best advertising programs are losing out. A study by BloomReach demonstrated that around 55% of internet users use Amazon to find the products they need. This means that using the best advertising strategy for Amazon in 2021 is more important than ever.
In this section, we’ll look at some of the best Amazon advertising strategies you should use in 2021.
Amazon has its own rules when it comes to advertising but—just like any other advertising channel—you need a strategy for it to deliver satisfactory results.
Advertising on Amazon is very competitive because there are many buyers competing to have their ads appear. Amazon sells ads based on a pay-per-click (PPC) model and businesses bid based on the price they’re willing to pay.
Those that win the “auction” have their ads appear. Generally, sellers on Amazon are competing to have their ads displayed on the marketplace.
Therefore, you have to leverage the best advertising strategies to gain a competitive edge. Some of the best advertising options you can consider include, PPC advertising, DSP, and SEO advertising.
Other Amazon Advertising Options Include:
Custom Advertising Solutions
Sponsored Brands Ads
Sponsored Display Ads
Sponsored Products Ads
The Amazon Advertising Strategy You Should Use in 2021
The “Sponsored” boxes may look like an afterthought on Amazon product pages, but they can drive significant results. Remember, Amazon has tons of traffic.
To get the desired results from your Amazon advertising strategy, you must use the right products and categories for targeting. First, you’ll need to determine your goals when choosing an Amazon advertising strategy.
Whether you want to boost brand awareness or drive demand for your products, Amazon allows you to choose products and categories that align with your goals. It’s advisable to have a narrow focus to target interest.
Generally, the narrower you target, the more the likelihood that more people will see your ads.
Conduct A/B Testing
A/B testing is the practice of changing various variables to determine which advertising strategy performs best and improve future campaigns. This practice allows you to determine the effectiveness of your Amazon advertising campaign and lets you know the changes to makes to achieve better outcomes.
Best A/B Testing Practices For Amazon Advertising In 2021:
Test the right items that make a difference to your conversion rate. Be sure to test the headline, image, call to action (CTA), landing page forms, and blog page.
Ensure you test one variable at a time to avoid confusion
Use a reliable A/B testing tool—some of the recommended A/B testing tools include Optimizely, VWO, AB Tasty, Evolv, Qubit, and SiteSpect.
Do not make mid-test changes
Keep various variations under control
Pay attention to the data
There are various advertising campaign types you can leverage on Amazon. Read on to learn more about these campaign types.
4 Advertising Campaign Types to Leverage on Amazon
With its wide playing field, Amazon allows different types of advertising campaigns both within and outside of its platform:
Campaign Type 1: Optimize Product Listings
If you want to stand out on Amazon and bring in more customers, your product listing must be exceptional. This means your product listing must be informative, relevant, and keyword-optimized so that you can earn more conversions for your business.
The product title, bullet points, and description must follow the requirements laid out by Amazon. The product title must not exceed 200 characters (though this may vary depending on the category), should not contain promotional terms, and should tell the buyer what the product is in plain simple words.
The bullet points should highlight your product’s features and benefits in a short and concise manner. Each bullet point should not exceed 500 characters including spaces. Ensure the bullet points clearly communicate how your products will solve the buyer’s pain points.
The description part should elaborate further on the points highlighted in the bullet points section.
You can also use Amazon A+ content to make your product listing enticing and attract your target audience. Be sure to integrate your focus keywords in the product title, bullet points, and description to drive traffic to your product page.
If you need help with optimizing your product listings, our experts at Sunken Stone can help. Our experts will help you integrate keywords and optimize your product listing to get your target audience interested in your products.
Campaign Type 2: Minimize Your ACOS
When you run your Amazon ad campaign, it is important that you regularly check the analytics to see how your ads are performing. There’s no point in spending money on an advertising strategy that isn’t bringing the desired results.
If you’re using paid ads on Amazon, know that your competitors are also making efforts to stay ahead. Therefore, it’s in your best interest to bid efficiently to minimize your ACOS rate. The best thing to do is to find the best search terms to target and avoid falling into the keyword trap.
Be sure to monitor important metrics such as click-through rate and conversion rate to see if your campaign is working. At Sunken Stone, our experts can help you monitor your Amazon campaign’s performance to ensure you’re driving the best results.
Campaign Type 3: SEO Advertising
Whether you’re advertising on or off Amazon, optimizing your product listing and ad copies for search engines will help drive traffic to your Amazon product page. When advertising your Amazon products on social media platforms and blogs, SEO will help buyers to find your products.
Campaign Type 4: PPC Ads
Amazon offers several PPC advertising options for Amazon sellers. These options include:
Sponsored products ads- These ads usually appear at the top of your Amazon product page. They increase product visibility and improve conversion rate.
Sponsored brands ads- These ads are designed to enable advertisers to promote three or more products in a single ad in headline banners.
Premium ads – Made for bigger brands with high ad spend.
DSP advertising – This advertising option allows you to buy display, video, and audio ads both on and off Amazon.
Best Practices To Scale Your Amazon Advertising Strategy
It’s one thing to launch an ad on Amazon and cross your fingers, it’s another to create campaigns that consistently deliver high return on Ad Spend (ROAS). That’s why it’s important to set SMART goals when it comes to Amazon advertising.
SMART goals set you up for success by making your advertising goals specific, measurable, achievable, realistic, and time-bound. This gives you a sense of direction as you scale your Amazon advertising strategy.
Use smart filters to find the best keywords
Do A/B testing
Monitor the performance of your campaign
Speak to a strategist if you’re stuck
Don’t continue spending money on a campaign that is not bringing the desired results
Do not make mid-test changes when A/B testing
Advertising “success” comes in the form of increased impressions and click through rates and improved conversions.
As a seller, you can use Amazon’s advertising tools to significantly grow your bottom line. Without them, reaching people at scale would be much harder.
Your Advertising Strategy Should Reflect Your Brand
When advertising, it’s easy to forget about your brand story. Don’t. Every time that you reach a new person with your ad, you’re making a connection. That’s why it’s important to incorporate your brand in every aspect of your advertising strategy. This will help you to establish brand identity and credibility.
Keep in mind that branding and storytelling can change the perception of your ads from the typical annoying ads to delightful and relevant ads. Ensure you choose the right color scheme, an eye-catching logo, and the right style of the video so that your brand stands out.
Also, using compelling content for your ads can ensure they resonate with your target audience.
Frequently Asked Questions
What Is Amazon’s Advertising Strategy?
Amazon uses a pay-per-click (PPC) advertising model.
What Are The Strategies Of Advertising?
They include emotional appeal, promotional advertising, endorsements, bandwagon advertising, and many more.
What Is The Most Effective Advertising Strategy?
The best advertising strategy for Amazon depends on your goals, budget, and many other factors.
What Are The Ten Advertising Strategies?
Paid advertising (PPC), social media advertising, print advertising, outdoor advertising, broadcast advertising, display advertising, DSP advertising, etc.