8 Advanced Tips for Advertising on Amazon

Updated: Dec 27, 2020

According to a survey by Third Door Media, 80% of Amazon advertisers have plans to increase their Amazon advertising spend in 2019. That means the competition is heating up, and it’s time to take your Amazon advertising game to the next level.

Most advertisers start with the basics, learning as they go and adding more advanced tactics to their repertoire over time. The good news is there are several ways to leverage Amazon’s advertising tools and functionality to start getting better results with your advertising dollars.

Here are eight Amazon advertising tips you can put to use right away to get more traction from your ad campaigns:

  1. Build brand awareness with Sponsored Brands

  2. Focus on product-level profitability

  3. Take advantage of the Flywheel effect

  4. Use category-specific targeting for Sponsored Products

  5. Use negative keywords to reduce wasteful ad spend

  6. Have a flexible Advertising Cost of Sale (ACoS) goal

  7. Use auto campaigns to explore and manual campaigns to exploit

  8. Optimize your bids

Let's dig into each tip in more detail...

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1. Build brand awareness with Amazon's Sponsored Brands

Formerly known as headline search ads, Sponsored Brands are purchased by about 18% of buyers, according to a survey by Cowen and Co. Because they appear above the Amazon search results, Sponsored Brands ads help advertisers build brand awareness and are useful for promoting multiple products.

How to use Sponsored Brands in Amazon

Sponsored Brands are ideal for top-of-the-funnel advertising, especially when paired with category keywords or branded searches. Use them to build brand recognition by taking advantage of the opportunity to incorporate a custom headline, your logo, and ASINs. You can also use Sponsored Brands to send clicks to both your storefront and your Products Listing Page.

2. Focus on product-level profitability

You’ll also want to take a look at more granular data by focusing on product-level profitability. Individual SKUs have different profit margins, of course, and it’s essential to understand gross profit on a product level before introducing paid advertising into the mix. This data will show you which products could benefit most from a paid advertising boost, while minimizing your risk.