As e-commerce is growing gradually and its growth has increased more since the Covid-19 pandemic, it’s very crucial to start, grow and become the market leader in the amazon marketplace for your items. As the Amazon marketplace is becoming more competitive, it’s essential to run PPC advertising or sponsored advertising. But before starting sponsored advertising, you need to set up your basic principles or approach. Choosing the wrong Approach will cost you valuable money, time, and effort. Now I am going to share with you the 5 principles that You need to follow before setting & implementing any Amazon advertising strategy.
#1. Know Your Business Goal
A business goal can vary from business to business. This also varies based on the product’s item, size, price, inventory, time, and place. So, before you start and set up your Amazon advertising strategy, you need to ask yourself the following questions.
What is the category, size, and capital of your business? What is the stage of your product? Is it – Startup, Mature, or Liquidate?
- Do I want more visibility, Branding, and market share?
- Do I want to liquidate or stock out your old inventory?
- Do I want long-term profitability that gradually increases?
- Do I want to reach out to new customers or focus more on the existing customers?
After answering these questions to yourself, you will find your objective based on which you can set up your business strategy.
#2. Understand Your Customers
After making sure all listing is fully optimized, you need to start sponsored advertising. But before that; along with understanding every aspect of the product, competitors, and Amazon marketplace, you need to understand the Customer and their buying behavior. In the Amazon marketplace, placing and timing is everything. You need to know –
- Where and on which pages do your possible customers normally go?
- What criteria are they normally looking for?
- At which time do they normally order items?
- What are the ways your potential customers can learn about your item?
- What were the core value and thinking that worked behind their buying items?
Answering these questions will help you to answer the following Amazon advertising questions that you need to find for setting up an advertising strategy.
- What type of sponsored advertising should I use?
- What kind of targeting type do I want to try?
- What should be the message behind the branding?
- What metrics should I use for overviewing advertising performance?
- Is it important for me to use new-to-brand metrics?
So, if you can discover and understand every answer and solution to the above questions, you can judge the necessity and efficiency of every aspect of your advertising strategy.
#3. Choosing the Right Advertising Type
If you have found out all the questions above then it’s very easy to choose the right advertising type. There are three types of Amazon advertising. You should pick the right advertising type which are:
- Sponsored products: If you want profitability, sales growth, boost BSR, and also rank your keywords, then sponsored ads are the right choice.
- Sponsored brand ads: If you want to promote your brand, gain the trust of your customers, grow your market share, increase your brand presence and share your brand story then This is the type of advertising you are looking for.
- Sponsored display ads: If you want to retarget, market, and advertise your items outside of the Amazon marketplace then Sponsored display ads are for you.
- Refine and Choose the Right Target: Refining the target competitors and keywords will not only ensure the presence of your ads in the right places but also improve your profitability as well as ROI. Suppose, Automatic campaign is good for harvesting profitable keywords and competitor targets. On the other hand, a manual campaign is a must-campaign type if you want maximum sales with good ROI. Finally, for a brand campaign, you need to add those types of search terms that include brand and category type search terms.
#4. Profitability
Lowering ACOS is not always what you should look for. If your sales/revenue is not good enough to cover up the break-even point of your profit margin, then doing an advertisement is worthless. You need to set the target TACOS and target profit margin before starting sponsored advertising. Also, you need to track overall and specific items’ sales and performance. Also, If your target is to increase brand image and visibility rather than profitability, then ACOS will not be a major issue. Brand campaigns can help you improve visibility.
#5. Capitalize Sales Momentum
You need to build sales momentum and as a result, your selling items will have a better organic ranking for specific keywords. Also increasing sales and building sales momentum will strongly influence your ranking on Amazon.
Selling items with timely delivery, and good customer service can give you the optimum sales that you are looking for. With Sponsored advertising, you can target more keywords, improve your item’s BSR, and increase sales. This sales momentum will in return increase your overall revenue & profitability.
Finally, there are many factors that need to consider before and after setting an advertising plan strategy such as listing quality, pricing, inventory, review rating, timely delivery, offer, competitors’ status, etc. After starting advertising, you also need to consider various metrics such as Click Through Rate (CTR), Cost Per Click (CPC), Traffic volume, conversion rate, etc. Considering all factors can only help you set up a perfect advertising strategy and achieve your goal.
