Amazon Sponsored Ad Strategies

It is no surprise that dedicated Amazon sellers are increasingly utilizing sponsored ad solutions to rank highly within their Amazon category.

Amazon is becoming a more saturated marketplace, with the increase in competition among sellers increasing, relying solely on organic reach is not going to provide you with your desired success. According to a survey conducted by Third Door Media, in 2019  more than 80% of Amazon sellers allocated a substantial budget to running sponsored ads.

Sponsored ads can be a great strategy to drive more traffic and some sellers are even favoring this strategy over simply increasing their amount of Amazon listings.

We have pulled together a list of the top advertising solutions available to Amazon businesses to help you stand out from your competition.

1. Amazon Sponsored Brands

According to statistics published by Cowen and Co, businesses that use Amazon sponsored brands receive 18% more sales due to their ranking position. Sponsored Brands ads provide exposure and brand awareness without the high price tag.

How to use Sponsored Brands:

Sponsored Brands work best when pairing category keywords or branded searches. Take advantage of your brand’s headline and logo to create awareness among your buyers to promote both brand and product together.

Start preparing a list of category keywords and leverage the opportunity for ranking more keywords and improving brand awareness.

2. Use Negative Keywords Feature

Negative keywords avoid wasting money on incorrect keyword searches. For example, if you are selling pens at $10, then you should rank for “pens” or “cheap pens” and not for opposing keywords such as “expensive pens” or “luxury pens”.

While you prepare a list of negative keywords, also include keywords with a high search volume, but low conversion rate. This will help you optimize the ads in a more effective way.

3. Analyze the product’s profitability:

Every product has its own profit margin and it is important to understand exactly how to optimize this. Running tailored ads for each product will produce the best results and it is important to take into account the different profit margins for each product. For example, if the product’s margin is high, you should aim for higher bids and the same applies for lower-margin products.

4. Automated Repricing and Sponsored Ads:

In order for your ads to display on Amazon, you need to be in the Buy Box. Getting the Buy Box at the highest possible price requires a smart repricing software. A repricing software calculates a product’s optimum price by considering the maximum and minimum selling prices; this ensures profit for sellers.

Seller Snap is the most advanced and trusted repricing tool currently available for Amazon sellers. Based on Game Theory tactics, Seller Snap’s automatic AI repricer knows how to adjust prices in real-time, getting the best balance of Buy Box share and profit margin. Start your free trial today.

Campaign Structure

Campaign structure is about finding the right keywords and setting up the initial catalog campaign.

One thing you need to take care of while creating an optimized campaign structure is to make sure the entire catalog is showcased to the users. After that, you can easily distinguish which keywords or terms the customers are using to search for your products.

Amazon used to provide a search term report to sellers, having the exact product mapped with each search term, and this was a valuable insight for the sellers. Unfortunately, Amazon updated this report and it no longer supports this valuable insight.

One proposed solution is to build your campaign structure with only one SKU per ad group. That way you can attribute the success of the term directly to the SKU purchased or clicked on. By segmenting the campaign, this solution directly impacts the bidding strategy and the overall success of the campaign. The more time you invest, the more information you can find regarding campaign optimization, which will provide you with optimal campaign results.