Learn How to decide on your Amazon Ads Strategy and Tactics

To achieve your advertising objectives and get the best ROI for your budget, it’s important to decide on the strategy for setting up and optimising your Amazon Ads campaigns. As you’re forming your campaign strategy, your goals determine how you’ll set up your campaign and measure its success. Building an Amazon Ads campaign strategy involves selecting from a range of targeting, management and optimisation approaches.

Some examples include:

  • How to identify which ASINs to advertise based on campaign objectives
  • How to differentiate keywords for brand and category
  • How to decide and set bids and budget
  • Consider from a range of methods for campaign management. 

Campaign efficiency/profitability

The most effective ways of measuring campaign efficiency(profitability) are ACoS or/and ROAS.

Advertising cost of sales (ACoS)

ACoS is the amount you’ve spent, divided by total sales during the campaign period. The lower your ACoS, the more efficient your campaign. A low ACoS indicates that your advertising is profitable and successful.  

Return on advertising spend (ROAS)

ROAS is sales divided by advertising spend. ROAS is the inverse of ACoS. The higher your ROAS, the more profitable(efficient) your campaign.

Brand Awareness

Brand awareness is measured by impressions, which are how many times your ad has been shown to shoppers. The more impressions, the higher your reach. 

Identifying the ASINs to advertise

Regardless of your objective, advertising best-selling AND retail-ready ASINs are essential.

Along with best-selling products, review your product catalog for other strong ASINs that are retail-ready. Advertising other retail ready ASINs is useful for increasing brand awareness across your product line, along with new sales.

Choosing ASINs based on objective

Some ASINs work better for different objectives.

Campaign Efficiency for ASIN selection

Avoid advertising products that have low sales or that do not meet the retail-readiness guidelines when the campaign objective is campaign efficiency/profitability. (Measured by ACoS or ROAS), 

Advertiser best sellers to drive sales and continue to boost visibility of flagship products to achieve an efficient ACoS and ROAS.

Brand Awareness

Advertise new products or products that have lower sales for brand awareness (measured by impressions). 

Sponsored Products vs Sponsored Brands

Amazon offers two sponsored ad types, namely: Sponsored Brands and Sponsored Products. Part of the Amazon advertising strategy is to decide which best meets your campaign objective. You may choose one, or run both concurrently. 

Sponsored Products

This ad type placements are on the search results and product detail pages, Your listings are showing to shoppers searching for products like yours,  increasing visibility and sales. Sponsored Products don’t require any images or custom copy, making them easy to set up. Sponsored Products will allow the advertiser to get started quickly and increase product discovery with highly visible placements.

Sponsored Brands

This ad type is more suited to increasing brand awareness and impressions across new products lines or entire catalog by driving traffic to a brand’s Amazon store.

Sponsored ads can use headlines along with an image, while using your brand logo is effective for added brand building. Sponsored Brands will allow the advertiser to promote their brand with ads that display their logo, custom headline, and a selection of products. * Sponsored Brands can only be used  by registered brand owners.

Keyword Types- Brand & Categories

Brand Keywords: Brand keywords reach customers who are aware of your brand, and actively searching for your brand, making it easier for them to find your ad in Amazon search results. Brand keywords help defend digital shelf space from competitors bidding on your brand term. 

Category Keywords: Category keywords reach customers who are making more generic searches, allowing discover of your brand’s version of that product in placements within the search results. 

Summary

Before deciding on your strategy, be sure what your objectives are. Then decide on the tactics to achieve your strategy and how you plan to measure successful advertising on Amazon.

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