5 big Amazon Advertising mistakes to avoid

Posted by nakshatra on July 18, 2022 | Featured | No Comments

Amazon Ads is now becoming a major advertising platform only second to Google ads. Most of the sellers on Amazon understand that Advertising might incur some costs but can give a significant boost to their business.

This makes lots of first-time sellers interested in advertising on Amazon, but what they miss out on is that Amazon ads need proper understanding to bring positive effects to a business.

Below we have listed down and explained 5 major mistakes Amazon advertisers make.

1) Not putting efforts in Proper Keyword research

It’s important to do proper keyword research for advertising on Amazon. If you select only basic keywords without doing in-depth research about volumes, it’s likely that your ad will not perform well and won’t fetch the desired results.

One of the main benefits of running ads on Amazon is that it provides details reports on which keyword is fetching better results for you in terms of clicks, spending and sales. You should test at least 30-300 keywords for each ad group. This will help in understanding which keyword provides better results and which doesn’t.

Also, one should test multiple match types. It should not be assumed that exact or broad is a “better” match type. Every type of match affects different products differently and it’s important to check all types of matches before you scale your ads.

2) Making Changes in Ad and Budget too quickly

Everyone understands that Google ad campaigns will have a learning phase, but people most of the time forget that when it comes to running ads on Amazon.

Just like most ad platforms, you should give your campaigns at least 7, and ideally 7-14 days of run time before making significant changes.

Understanding this, you should not make changes in your ad in terms of keywords and budgets too quickly, after launching an ad campaign; you should patiently wait for an ad to mature before it gives optimized results.

You should also understand that the reporting for Amazon advertising has a 48-hour delay for most reports. You should take this delay into account as you are adjusting your campaigns. Ideally, manual campaigns in Amazon can take 30 days to age.

3) Treating Google and Amazon Same

A Lot of people believe that the strategy they use for Google can be used on Amazon as well.

While the terminology and overall principles are similar, Amazon ads work in a different way.

One important difference is in match type, broad match works differently on Amazon and Google, consider the following example.

Let’s understand how this would work in practice for “Men’s Purse” as a search query on Google versus on Amazon.

Search Term	Match for Broad Match on Google	Match for Broad Match on Amazon
Boy’s Purse	Yes	No
Men’s Accessories	Yes	No
Men’s Wallet	Yes	No
Purse for Men	Yes	Yes

The above example is just one example of how broad match keywords operate differently on Amazon and Google

We highly recommend that you take the Amazon Advertising education offered in the Amazon Learning Console if you are running your ads.

4) Not Scaling Profitable Campaigns

It’s important to understand that budget matters for advertising on Amazon, if your campaign is well optimized, but runs out of budget, you can miss out on the opportunity of lot more sales.

In technical terms it’s called potential profit loss, i.e. you are losing the profit which was your if you had increased the budget. This also provides an opportunity for your competitors to capitalize on the market.

Whenever any particular campaign of any of our clients is performing well, we always suggest they increase the budget and capitalize on the full potential of a well optimized campaign.

5) Missing on Amazon Resources

At First, Amazon may feel like a complicated site but there are lots of resources available on Amazon Learning Console for learning all aspects of selling and advertising on Amazon.

The Learning Console is a course and test that allows you to be certified by Amazon to run ads. The courses are simple and have a lot of the details and definitions required to run ads on Amazon.

The courses on the Amazon Learning console have valuable information and work as an excellent resource for anyone who wants to understand advertising on Amazon properly.

Amazon Ads Simplified for Beginners

Posted by nakshatra on July 14, 2022 | Featured | No Comments

Why do we need to Advertise on Amazon

One of the fastest ways to make your products reach millions of customers is selling on Amazon, but only listing your products is not enough to compete with products being sold on Amazon.

Advertisers who want to gain more visibility for their products on Amazon can pay for these positions by bidding on specific keywords, which will lead to higher visibility on the Amazon search page. The advertiser will then be charged when a shopper clicks on their ad.

A PPC strategy is your end-to-end master plan for running successful PPC campaigns on Amazon. It starts with defining the right goals and target KPIs and continues with defining a campaign structure, a set of regular optimization activities, and the measurement of success by systematic reporting and benchmarking.

First, let’s understand the different types of ads we have on Amazon.

On Amazon, there are three ways to promote your Products,

Sponsored Products
Display Ads
Brand Ads

Sponsered Products

Lots of advertisers don’t put much effort into sponsored ads, they simply run an Auto campaign and that’s it. The auto campaign does make your job easy, but it also spends lots of money on non-performing keywords also there isn’t much control over the ad.

Spending some additional time thinking about your Amazon Sponsored Products strategy, in particular, your campaign organization, at the outset will pay dividends both in the short term and the long term.

While metrics matter, it’s not enough to just focus on the usual numbers. You could spend all of your time focusing on ACoS or CPC, but there’s more to optimizing your ad campaigns than just these data points. We’ve combined our conversations with industry experts, our knowledge of Amazon’s technology and algorithms, and our experience helping thousands of sellers reach their advertising goals to bring you these tips to help you organize your Amazon Sponsored Products campaigns.

Display Ads

Sponsored Display Ads are a remarketing advertisement product from Amazon which allows you to show your products to the customers who have previously visited your products or similar products, used search terms relevant to your product, or purchased from you earlier.

Contrary to Search ads which are visible only when a user is searching for a particular or similar product, display ads are shown to users who are just surfing Amazon and checking out other products, this increases the reach of your products by multiple folds and increases the chances of sales.

Sponsered Brands

Headline search ads display in the search result pages as headline banner ads always above the result listing, like the example below. These ads are cost-per-click and lead searchers to any specified page on Amazon.

This landing page is typically a customized branded page like the one below that Casper Sleep directed me to when I clicked on their headline ad.

These ads are also keyword targeted and can be used to promote 3 or more products together. Headline search ads also use a cost-per-click method where the minimum bid per keyword is $0.1. There are also only two keyword match-types supported for headline search ads – exact and phrase match. Lastly, the minimum campaign budget for these ads is $100, with a limit of $1 spent per day. Campaigns can be scheduled to run up to four months in advance.

Now we know enough about the types of ads, let’s look at two major parameters for advertising on Amazon.

Keyword
Bid

Key Word Research:

The first question is what is a Keyword?

A keyword is a specific phrase or sentence that customers type into the search engine to look up products, services or information.

The first question is what is a Keyword?

A keyword is a specific phrase or sentence that customers type into the search engine to look up products, services or information.

To select the right keywords for your Ad, you must do proper keyword research and one of our favorite methods for keyword research is RSPN.

RSPN – What is it?

Research – Create an auto-campaign and study it.
Study – Identify High and Very low converting keywords
Positive – Use High converting keywords in a Manual campaign.
Negative – The keywords which are not related to your product, use them as Negative Keywords.

In this method you first run an Automatic campaign and let it mature for at least 15 to 20 days, then you have to analyze the Ad report from Amazon, which will list out all the keywords ad was visible for and their performance. You can now analyze these keywords and finalize high converting and very low converting keywords.

Now, you can create a Manual campaign, use high-performing keywords in the campaign and use very low or irrelevant keywords as Negative keywords.

Optimizing the Bid

While advertising on Amazon, you have to bid separately for every keyword and its type. For example, if your keyword is mobile and you are targeting Exact, phrase and broad type, then you will have to separately bid for each of three combinations, i.e. “Mobile” Exact, “Mobile” Phrase and “Mobile” Broad.

It is important to have the right bidding strategy, as bidding randomly will either increase your advertising cost too much or your ad won’t get the right reach.

There is an equation that calculates the optimal bid for any ad based on Targeted ACOS and conversion rate.

Bid = AOV*Conversion rate/ (1/ACOS)

Where,

AOV is your Average order Value per order

Conversion Rate is the number of sales divided by clicks

ACOS is targeted advertising cost of Sales

Let’s understand this, let’s say your average order value is INR 5000, conversion rate is 0.1 (10%), i.e. of total users clicking your product, 10% are buying. And you do not want to spend more than 25% of your total sales on advertising.

Here your bid will be,

Bid = 5000*0.1/ (1/0.25)

Bid = 125

Here with your given condition your optimal bid is INR 125. If you will increase your bid higher than this value then your ACOS will increase and impact profitability.

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