Amazon Product Ads – Diving Into Best Practices For Product Ads on Amazon

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Selling products on Amazon can be difficult, which is why the most successful stores use Amazon product ads. With so many vendors selling products, many feel as if their product, while superior, is often overlooked. Amazon product ads help your product stand out and reach your audience. These ads will direct consumers to your product, getting your business and product the attention they deserve! This article will give you the information you need to get started, or improve, your Amazon ads.

Amazon Product Ads

So, what are Amazon product ads? These ads are PPC (pay per click) which means you won’t spend money if the ad doesn’t work! Pay-per-click ads are exactly what they sound like, you only pay when someone clicks on your ad. Experienced internet marketers will recognize this payment model from Google Ad Words (now called Google Ads).

Amazon offers product ads, store ads, and brand ads. This article focuses on product ads, but store and brand ads are another great way to drive traffic and increase sales. If you are already selling on Amazon, you will need to pay the $39.99 to get your store set up. This a reasonable price to sell your products on the internet’s largest e-commerce platform.

Top Related Article: Amazon PPC Tips

Sponsored Product Ads

amazon product adsThese ads will appear at the top and bottom of the search results. They will also arise naturally in the details carousal under products your future customers click on. These ads will have a small ‘sponsored’ tag. Most consumers will click on the first item they see, making these ads very advantageous for Amazon store owners.

These are the most critical ads for selling on Amazon. The majority of this article will be based on this type of ad.

Product Display Ads

Display ads are another pay-per-click option. Unlike sponsored product ads, product display ads are not keyword targeted. These ads work by targeting the interests or products you have set as relevant. Unlike sponsored product ads, you can only choose one interest to target. The ads will appear on the review page, bottom of search results, and possibly on Amazon’s emails.

While useful, display ads are not the best nor the most used tool. They lack the precision that sponsored product ads provide.

Getting Started

amazon product adsWhat are you selling? There are a variety of ways to sell on Amazon. You need to decide if you are starting your own private label, retailing original goods, reselling products, or selling e-books. What you sell will influence a lot of your strategy going forward.

Related: Amazon Ads

Private Label

A private label store sells products that have many competitors. These are products that you did not invent but intend to market and sell. Just like Walmart and Amazon have their own products that are not manufactured by them, private label stores outsource manufacturing of their products.

Finding success in a private label store will require you to target brands. Brand targeting will help your ad appear when someone is on a competitor’s product page. If your product is cheaper or has better reviews, it is possible to steal sales from the big brands.

Original Goods

If you have invented, developed, or handcrafted a product, you are selling original goods. You may have a manufacturer making the product, but your product is not just a cheaper alternative. This may include clothing, shoes, or even electronics if they are original in design.

Marketing original products can be more challenging than private labels. If your product is entirely new, you will want to target the right categories and eventually find the best keywords. Targeting similar products or even related products is an excellent strategy to use. For example, if you have a revolutionary new office tool, you may want to target related items like staplers, copiers, and so on.

Reselling

Resellers work with companies to push their products on Amazon. Most resellers will want to be the exclusive distributor for the company they work with. Other resellers buy new or limited goods and then sell them for a higher price on Amazon. The best strategy for resellers is to target brands and choose keywords that complement the products they are reselling.

E-books

amazon product adsE-book writers are raking in remarkable profits. Most successful writers will use Amazon product ads to market their book. Product display ads are especially suitable for advertising e-books. These ads show up on related product pages, so readers interested in your book’s topic are likely to see your ad.

There are many more store strategies, but these are the most prominent going into the next year.

Keywords

Every kind of online marketing uses keywords. Whether you are trying to rank on Google, run browser ads or social media ads, you will need to find your keywords. Keywords are often the same across platforms, making it easy to target your audience. If you are short on cash, you will need to pick keywords that cost less.

Keyword research has become a big business. Many paid services will identify the words you need to reach your niche. A free option is Sonar, which will help you find your own keywords. Sonar also helps you find the keywords your competitors are using. There are two main kinds of keywords: fathead and longtail. Knowing how to use both can help you sell more.

Fathead Keywords

These words are searched more often than others. Their high search volume makes them ideal for reaching people that are searching for a product. For example, if you are selling a pre-workout supplement, then “pre-workout” would be a fathead keyword. If your store sells smart watches, your fathead keyword would be “watches” or “wearables”.

These keywords will help you capture consumers attention but at a higher price per click. Every major company will be bidding on these keywords. For small businesses, it’s best to develop a strategy around longtail keywords. This will make your product stand out from the rest.

Longtail Keywords

Longtail keywords are more likely to sell. Their high conversion also comes at a lower cost per click compared to fathead keywords. These words are not as general as fathead words. For the store selling pre-workout, an example of a longtail keyword would be “caffeine supplement”. For a smartwatch seller, an example is “blue and silver wearable”.

These example keywords will have a lower cost. Instead of targeting the consumer at the beginning of their search journey, your ad will catch them as they develop a better idea of what they want. A search for “smartwatch” will overwhelm customers with hundreds of watches. When they narrow their search, they will find your product.

If your product meets customer specifications, then they will be happy to see your ad. Make sure to use proper longtail keywords for the best results. You don’t want to include “caffeine free supplement” if your product is loaded with caffeine. You want your product ads to help your customer find what they are looking for and not annoy them with unrelated products.

Bidding

amazon product adsAfter you have your keywords, it’s time to bid. Amazon uses a bidding structure to determine who will be exposed to your product. These bids are the highest price you are willing to pay per click. A store with a five-cent bid on a fathead keyword won’t show up as much as a similar product with a 10-cent bid.

New stores will want to focus their resources on longtail keywords. It will be hard to outbid the competition on fathead keywords since they are the most common words. This doesn’t mean you should neglect your fathead words, just realize competing with bigger companies will cost more per click.

How much should you bid?

When setting up a pay-per-click ad, you will set your bid and daily advertising limit. Your bid is how much you are willing to pay every time someone clicks your ad, and your daily limit is what it sounds like, a cap on your ad spending.

You don’t want to have super high bid cost and burn through your daily budget. You also don’t want a super low bid cost that doesn’t compete with competitors’ products. So how do you figure out the best zone for advertising your product?

One way to do this is setting a meager bid amount of one cent. More than likely this bid amount will not bring in a lot of buyers. So, a few times a day you should check your campaign. Check and see how your ad is performing and then adapt. Based on the number of clicks, sales, and ACoS you will want to raise your bid amount by two or three cents.

Another way to determine how much to bid is to multiply your average order value by your conversion rate. Then, you take this number and divide it by one over your target ACoS to get your cost per click. The formula can also be understood as (AOS * CR)/(1/TACoS)=CPC. Following this formula will give you the ideal bid amount!

ACoS

ACoS stands for Advertising Cost of Sale. ACoS is the amount you have spent on ads divided by the number of sales you have made. The formula for ACoS is Ads/Sales=ACoS. This is a vital statistic to measure when running Amazon product ads.

If your ACoS is too high, then you will need to adapt your strategy. You will need to take the cost of advertising into account when setting the price for your product. If you fail to account for advertising, you could end up losing money on your product sales, and no one wants that.

A recommended strategy to keep ACoS down for automatic campaigns is setting your bid at five cents and daily allowance at 20 dollars. This strategy works by keeping your advertising price low and letting Amazon do the legwork. This is an excellent strategy for beginners or those short on cash.

Related: The ACoS formula

Should you use Bid+?

Amazon has included a feature called Bid+. This allows you to remain competitive by automatically raising your bid by 50 percent. This feature is only available for manually targeted campaigns and not automatically targeted campaigns; both will be covered in the next section.

Bid+ is an excellent tool for keeping a product at the top of search results. It will raise your price per click, so make sure you consider this when making a marketing budget. Bid+ is mostly used by stores selling high-traffic items. It’s best to use this feature when you have already identified and tested keywords that sell.

So, be sure to account for the increased cost per click and only use established keywords. Using keywords that haven’t been tested in other campaigns will burn into your budget. There is no reason to waste money on clicks that aren’t converting. Remember, selling on Amazon is a marathon, not a sprint.

How do you target the right customers?

amazon product adsThere are two types of Amazon product campaigns: automatically targeted and manually targeted. This article has already covered using keywords, but what other ways can you reach your audience? Amazon has added the ability to target categories, brands, and even ASINs. This creates more opportunities for sellers on Amazon to reach buyers.

ASIN is short for Amazon Standard Identification Number. This is a code Amazon uses to distinguish products from one another. Using ASINs can help you attract people that are looking at a competitor’s product.

Category targeting is another easy way to target. If your product is fitness related, you will select all fitness related categories. Choosing the appropriate categories will help your ad reach people that are ready to buy.

Brand targeting is like ASIN targeting, except you are explicitly targeting a competing brand. This option lets you set the price range and the number of positive reviews the targeted brands have. If you are selling a pre-workout, you would want to target brands in a similar price range. Targeting brands that are similar but have less five-star reviews is an excellent way to attract customers.

Targeting Campaigns: Automatic or Manual?

amazon product adsThere are two kinds of campaigns you can run on Amazon. The main difference is the kind of targeting each type uses. Automatic campaigns focus your ad automatically, and manual campaigns are more hands-on. Amazon will routinely target customers with the automated campaigns, and this is great for those who want to set a campaign and then leave it. Manual campaigns have more of a learning curve but are often worth the extra effort.

Automatic Campaigns: Pros and Cons

Pros:

  •  Easy to use.
  •  Beginner friendly.
  •  No research needed for a successful campaign.
  •  Set up a budget, end date, and let the ad run.
  •  Discovery mode enables you to find new longtail keywords.

Cons:

  •  Not as customizable.
  •  Fixed-priced bidding means you will pay the same for keywords regardless of their conversion rate.
  •  Amazon doesn’t know your product as you do, so they may advertise in inefficient ways.

Automatic campaigns are a great way to get your feet wet. They will provide you with longtail keywords that you can use in future manual campaigns. If you have experience with Google Ads or Facebook and Instagram Ads, you may want to use a manual campaign.

Manual Campaigns: Pros and Cons

Pros:

  •  The ability to target the exact audience you know loves your product.
  •  Manual keywords let you utilize previous words that are proven to sell.
  •  Previous pay-per-click ad experience will be easily transferred to Amazon product ads.
  •  Variable bid rate for keywords, so you don’t pay the same price for low-converting and high-converting words.

Cons:

  •  Inexperienced users may make some costly errors.
  •  Lots of research will be needed to find the correct keywords.
  •  Relentless monitoring of your campaign.

Manual campaigns are great for those that know their product and the right keywords to sell their product. Customizing the campaign to run precise ads will help you convert more. You don’t want to pay a fixed cost for high-converting and low-converting words.

The extra effort a manual campaign requires can save money and help advertise to the right patrons. However, new stores with little to no experience using keywords will want to start with an automatic campaign and find the longtail keywords Amazon uses.

Set up an automatic campaign and then research manual campaigns. Since many keyword-finding sites have a monthly fee, using some of the keywords Amazon provides will save your business money. When your first automatic campaign is over, start building a manual campaign.

Tips for Running a Manual Campaign

Running a manual campaign will be difficult at first, but once you get the hang of it, your Amazon product will be flying off the virtual shelves! As stated before, a manual campaign requires some tinkering, but that tinkering can save and earn you heaps of money.

Keywords and Where to Find Them

Automatic campaigns, while not an ideal long-term solution, will help you discover some keywords. Other options are to search for the keywords manually on free sites, reverse engineer competitor ads, or pay for a service. Paying for a service may not be an option for your business and that’s OK! The following are a few tools and methods for finding keywords for free.

To manually find keywords you will want to use freemium tools like Sonar, Keywordtool.io, and the Google Chrome extension Keywordseverywhere. These tools have their limits but offer enough to get started with manual campaigns. Google Trends also provides a roundabout way to finding Amazon keywords.

Tips and Tricks for Free Keywords

amazon product adsRunning a manual campaign will be difficult at first, but once you get the hang of it, your Amazon product will be flying off the virtual shelves! As stated before, a manual campaign requires some tinkering, but that tinkering can save and earn you heaps of money.

The first two websites will give you some keywords for free, and of course, they will provide more if you pay. Using the keywords they offer, you can start building your campaign. They will only give high-ranking words, so you will need to do more research to find longtail words.

Keywordseverywhere is an excellent option for finding new words and reverse engineering competitors ads. This chrome extension will analyze a page and give you the keywords, word density, and other statistics. Using this tool, your product ads will be competitive in the Amazon arena.

Another trick for finding keywords for free is to use Google Trends. By typing in “Amazon” followed by whatever your site sells, you will discover common searches. Google also provides suggested terms and related search queries. This tool only searches Google, but many people use Google to find products on Amazon. The comparison feature is also great for seeing which keyword to use.

By combining these methods, you will find a plethora of keywords to use. Use the free words from Sonar and Keywordtool, and input them into Google Trends. You can also come up with your own keywords and see how they perform in Google Trends; just be sure to write “Amazon” before your keyword.

Other Strategies

So, you have your free keywords, now what? Now you set your bid amount and budget for these words. Since this is a manual campaign, you will want to keep an eye on the performance of your ad. Keywords don’t always work out the way you plan, or you may have words that are just too expensive to be feasible. Here are some strategies for adapting.

Multiple Products

If you are running numerous product ads, try and use different keywords on each product. Ideally, you will set your main product to have all the terms you believe will be successful, then you will set other products using keywords that you are less sure about. In science, this called a control group and experimental group.

By measuring the performance of each product, you will be able to identify high-converting keywords. Use these keywords and eliminate the low-converting words. Amazon provides a thorough breakdown of your ads performance, including the return you are getting from your keywords.

Once you have found the words that work, you can use them as a template for future product ads.

Combine Campaigns

amazon product adsWhile a fine-tuned manual campaign will produce great results, never put all your eggs in one basket. Instead, use automatic campaigns alongside your narrower, but accurate manual campaigns. By using this combination, you will reach more people.

Automatic campaigns will help you find new words and target people you wouldn’t have thought to target. These campaigns use a broad brush to attract customers. Using 25 to 35 percent of your daily ad budget on automatic targeting is a good rule.

Manual campaigns will find precisely the buyer you want. Don’t know who that buyer is? Just use the results from your automatic campaign to hone your manual campaign. Using this strategy will help you develop a manual campaign that converts. Consider using most of your ad budget on the manual campaign you crafted.

Product Display Ads

These ads are a secondary weapon in your quest for Amazon dominance. When used in unison with promoted product ads, you will sell more products faster. As mentioned previously, these ads do not rely on keywords. Instead, you use these ads on product pages and at the bottom of search pages.

With display ads, you will generate awareness of your brand and products. You can advertise sales and direct more traffic to your already promoted products. When writing your ad copy, make sure to write in a tone of urgency. Alert buyers of sales, deals, or even the price difference between you and a competitor.

Going Forward

Amazon is the new land of opportunity. With their extensive reach and cheap advertising, anyone with enough drive can make money. No matter what you are selling, Amazon has members ready to click and buy. Take advantage of their platform and utilize product ads to grow your business.

Your strategy going forward will depend on the product you are selling. An e-book writer will market differently than a reseller or private label. Pick what your store sells and then create a strategy. Don’t be overwhelmed by the opportunities Amazon provides; with enough initiative anyone can succeed!

Remember, automatic campaigns and manual campaigns are both great tools. Like all tools, they serve their own purpose. Learning to use both in harmony will help you succeed on Amazon. Display ads are another PPC option at your disposal.

This article has provided a ton of information. So, to refresh a little here are a few take away points:

  •  Keywords are essential for manual campaigns.
  •  Keywords can be found for free.
  •  Manual campaigns are better for targeting and converting.
  •  Automatic campaigns are more accessible to set up.
  •  Automatic targeting is great for building brand awareness.
  •  A combined approach using automated and manual campaigns will help your store grow.
  •  Display ads can also be utilized to develop brand awareness and support promoted products.
  •  Fathead and longtail keywords should be used to convert more.
  •  Fathead keywords are broad.
  •  Longtail keywords are specific.

Many more tips and strategies are spread throughout this article!

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