top of page

Top 7 advanced tips for Amazon advertising

Updated: Dec 27, 2020

As the third biggest advertising internet platform in the world, Amazon advertising has become increasingly important over the last couple of years.  Amazon is increasingly enhancing its advertising offerings across the platform in a bid to compete with the giants of Google, Facebook, and YouTube, which is why we are seeing constant updates and changes to the platform. 

Last year, many new programs within the advertising platform were introduced, including, new targeting options, enhanced access to display and video ads, and several new data points to report. 

For brands of all sizes, keeping updated, and mastering Amazon advertising is crucial in order to maximize sales, reduce the waste of ad spend, as well as preventing wasting valuable time. Often, we see some common advertising mistakes in new accounts which can cost brands thousands of dollars, if not hundreds of thousands every month. So, in this post, we have gathered up the top 7 advanced tips to help brands sell more and spend less on Amazon and help your brand better optimize its Amazon advertising campaigns.

Tip 1: Have an ACoS goal flexible Generally, Amazon advertisers believe the lower the ACoS, the better.            However, the lowest possible ACoS isn’t always the best way to go for your brand. Rather, it’s best to take into account other critical advertising objectives, such as sales, product visibility, and brand awareness when looking at the profitability of your ACoS.  The goals of your brand are what greatly affect your advertising cost and depend on whether you are launching a new product, trying to sell the extra stock, or simply trying to keep profitability high.

Tip 2: Use Automatic targeting for keyword research While setting up automatic ad campaigns is easy and may be appealing, auto campaigns aren’t always the best option, especially regarding keyword research. Use automatic campaigns to help gather up and test search terms that are actually converting. Then, set up these auto campaigns similarly to your manual campaigns and run them with a minimum budget for a week or two, and once you see the results of the search terms used to retrieve your ads, add them to your manual campaigns

Tip 3: Fine-tune your negative keyword list Amazon works the same way as Google ads, allowing you to exclude keywords to make sure you aren’t ranking for the wrong search term. Make sure your campaigns are optimized as much as possible and use match types with negative keywords to create negative phrase match and negative exact match keywords as well.                For example, if you sell skincare but you don’t sell dry skincare, you can add dry skincare as a negative keyword to prevent ads from showing for searches related to dry skincare. While you should be adding to your negative keyword list continuously over time, before a campaign is launched, add as many negative keywords as you can to make sure you spend less and increase conversions by showing your ads only to the more qualified users. 

Tip 4:Constantly Optimise ad campaigns A common mistake being made by brands is not giving campaigns enough time to see results before optimizing. If you’re worried about overspending in the time it takes to see results,  try to use advertising settings such as budget caps to not overspend money. Once you have the data, constantly check impressions and conversion rates, and continuously adjust your bids. Amazon advertising optimization is an intense task, and your campaigns need to be checked daily to ensure you aren’t losing money or alternatively running out of the budget necessary to generate conversions.

Tip 5: Organise your campaign structure Your Amazon campaign structure is crucial for allowing you to scale up your ads. If your campaigns are not well-structured, you risk wasting money on unqualified clicks from ads that are retrieved by wrong keywords. While there are different ways to organize a campaign, we often see campaigns where large amounts of products have been put together in one ad group not converting as well. In general, it’s best to keep the number of ASINs in any ad group as small and similar as possible. By grouping products by related keywords, you will more easily identify bad and good performing keywords most effectively.

Tip 6: Boost product-level profitability It’s crucial to make sure you understand gross profit margins on all individual ASINs before even starting your advertising campaigns to make sure your products will benefit from ad spend. Distribute your bids strategically according to both the overall performance and the profit margin of individual products. You would be hurting your bottom-line by spending money on advertising on products that won’t be successful. Instead, identify the products with optimal profit margins, preventing yourself from some unnecessary ad spend. 

Tip 7: Controlling inventory levels There is a huge domino effect if you run out of stock on Amazon. Starting from lowering your organic rankings and losing the Buy-Box to freezing your Amazon Sponsored Products ads immediately. This gives your competitors a chance to boost or catch up on sales, market share, and any organic search rankings you may have achieved with advertising. So, to prevent this, simply lower your ad spend to reduce sales if you see that you are running low on inventory. This may seem counterproductive, yet preventing your stock from running out before stock can be replenished is one of the most important aspects of any successful Amazon account.

Amazon advertising profitability The constant growth of Amazon’s ad business means that brands of all sizes can’t any longer ignore this advertising platform. However, Amazon ads aren’t set-up and forget-it platform. Ad campaigns need to be constantly managed, often on a daily basis in order to be aligned between teams and make sure inventory is in stock, and profit-margins are right. Hence, any successful campaign requires a high level of experience and expertise.  As usual, if you like this post, stay tuned for more and leave a comment on the comments section below if you have any questions.

42 views0 comments


bottom of page