(6 Simple Steps) How to Make an Amazon Advertising Strategy

Is Amazon Advertising worth your ad budget?

According to studies, the service platform generated $12.77 billion in revenue in the second quarter of 2024, up 20% year over year. So, if you’re still wondering whether Amazon ads are booming or not, the answer is “YES, IT IS.”

But this brings us to the question that every seller asks: how to create an Amazon Advertising strategy?

In this blog, we're breaking down the process into six easy steps to create an effective Amazon advertising strategy that really works. Stay tuned, as we'll cover everything - from understanding your goals and objectives to tracking campaign performance.

TL;DR - Amazon Advertising Strategy

In case you’re running short in time, we’ve discussed these six steps to create an Amazon PPC strategy in this blog:

• Step 1: Align your SMART goals with advertising objectives
• Step 2: Choose the right products to advertise first
• Step 3: Create engaging product detail pages
• Step 4: Place your ads strategically
• Step 5: Use targeting specific to category
• Step 6: Use negative keywords

Continue reading to learn about these key steps in depth and gain insights on Amazon advertising, ad campaign best practices, and more.

Looking to increase visibility along with Amazon PPC strategies? Join Archer Affiliates today to start drawing external traffic to your listings. Our platform provides a streamlined approach to connecting with vetted affiliates, monitoring performance, and increasing ROI.

What is Amazon Advertising?

Amazon Advertising (previously known as AMS) has now become a key resource for sellers aiming to increase traffic to Amazon listings, sell more products, raise market share, etc.

This dynamic platform uses a pay-per-click (PPC) system similar to Google Ads, so you only pay when a buyer clicks on your ad.

But this is where it gets better: Amazon Advertising does far more than just mimic Google Ads. Here's how you can grow exponentially by using Amazon Advertising:

• Target customers by demographics, interests, browsing habits, and even purchase history.
• Position your products directly in front of ready-to-buy customers, reducing the time it takes qualified leads to discover your store and start buying.
• Choose from different ad formats, including Sponsored Brands and Sponsored Display ad types that highlight your brand's story and product portfolio.
• Access the platform’s vast customer behavior data to analyze purchasing behaviors, identify search trends, and gain insights into your target audience.
• Test alternative ad formats, messaging, and targeting strategies to see which ones convert the best and optimize your acquisition strategy.

Amazon Advertising is an all-in-one service that helps sellers reach specific audiences, increase brand awareness, and drive sales.

Amazon Advertising Examples

For a clearer understanding, here are the three most popular examples of advertising strategy on Amazon:

1. Sponsored Brands Ads

These are banner ads appearing at the top of search results and product pages, displaying various products from a brand. Here’s an example for the search result “dresses for women”:

2. Sponsored Products Ads

Sponsored Products ads are the product listings that appear in search results, usually with a "Sponsored" label. Here’s an example for the search result “punching bag”:

3. Sponsored Display Ads

Last but not least, Display ads are image-based advertisements found on Amazon and partner websites. They target specific audiences based on their browsing history.

Here are some examples:

Key Components of an Amazon Advertising Strategy

Here are the five key pillars of an effective Amazon advertising strategy, listed below:

1. Your Goals and Objectives: Always set SMART goals before launching any campaign. Ask yourself: do you want to increase sales, raise brand awareness, or clear out overstock products?
2. Customer Journey: Creating a detailed customer journey map, from initial awareness to conversion (and even beyond), is never in vain. Identify key touchpoints, learn about customers' motivations, and refine your campaign accordingly to engage with them at the best time.
3. Advertising Options: Amazon provides several types of advertising options, like Sponsored Brands (to highlight multiple products and increase brand awareness), Sponsored Products (to increase product visibility and revenue), and Sponsored Display (to reach a larger audience by targeting them based on their interests and browsing patterns).
4. Product Profitability: Although increasing sales is necessary, your end goal should always be gaining profitability. Evaluate your break-even point and set a target to surpass it.
5. Advertising Flywheel: This concept shows that increasing sales leads to higher rankings, which in turn generates more sales. Using Amazon advertising techniques effectively can help build a positive feedback loop that skyrockets your business growth.

Now, onto the main part.

How to Make an Amazon Advertising Strategy

Here are six major steps to follow while creating an effective Amazon advertising strategy yourself:

Step 1: Align your SMART Goals With Advertising Objectives

Understand your objectives first, whether they are to:

• Improve sales of certain products
• Raise brand awareness
• Increase traffic to your listings, etc.

You can select the best advertising tools and KPIs to measure performance. For example, if increasing sales is your primary goal, Amazon ACoS would be a key metric to assess your ROI. But don’t worry - Amazon has made campaign creation easier by grouping its advertising products based on goals.

Step 2: Choose the Right Products to Advertise First

There's a better chance of turning clicks into sales when you advertise your best-selling products. Ensure these best-selling items are well-stocked and reasonably priced. Or, perhaps you want to spread the word about a new product you're launching.

Most importantly, analyze your goals and conduct proper research to decide whether Amazon is the right platform for advertising your products.

Step 3: Create Engaging Product Detail Pages

While Amazon ads can draw a lot of traffic to product listings, it's really the detail pages that drive conversions. Always create engaging pages that entice visitors using clear, descriptive titles, high-quality product images, and proper details.

Step 4: Place Your Ads Strategically

There are so many creative ways to advertise on Amazon, such as voice ads on Alexa devices, video commercials on Fire TV, and Amazon-owned sites like IMDb, to attract buyers to your product store.

Once you've decided on the best format (voice, video, or search), choose between ad alternatives such as sponsored brand ads, sponsored product ads, etc.

Step 5: Use Targeting Specific to Category

You must make the most of Amazon's targeting features to increase ad performance.

Display your products among highly rated or indirectly related products. For example, if you offer Tupperware boxes, target your ad to those who searched for "Tupperware."

With product attribute targeting, you can also show ads to customers interested in similar products in your niche.

Step 6: Use Negative Keywords

By excluding irrelevant keywords and phrases, you can avoid showing ads to customers unlikely to be interested in your products. This can boost your click-through rate, reduce ad waste, and eventually increase your ROI.

Note: Use negative keywords effectively by targeting specific phrases with high conversion rates while avoiding general keywords with loads of traffic but poor conversion rates.

Amazon Ads Best Practices

So, do you feel confident about creating your first advertising strategy by implementing the steps mentioned above? Consider following these best practices while you’re at it:

Write Ad Copy That Converts

Whether you’ll get more clicks and convert visitors depends heavily on one thing: the ad content quality.

When describing your product, be clear and concise and emphasize its special features. Include relevant keywords and a compelling CTA to get customers to click on your ad.

Gather More Positive Reviews

Positive reviews can increase your product's visibility and credibility on the platform.

Offer incentives or personally request satisfied customers to submit reviews. Besides, responding to both positive and negative feedback without fail shows that you care about customer satisfaction.

Continuously Track and Optimize your Campaign

Keep an eye on your Amazon PPC strategies to find areas for improvement. Monitor analytics like clicks, impressions, CTR, conversion rate, and ACoS. Make data-driven adjustments to your bids, targeting, and ad creatives to maximize your campaign's performance.

Advanced Amazon Advertising Techniques

The basics of advertising we've just discussed are a no-brainer; it goes without saying.

However, if you’d like to further boost campaign performance and generate results, applying these four advanced Amazon advertising techniques can help:

1. 1A/B Testing Your Ads: A/B testing is undoubtedly one of the best tools for optimizing Amazon's advertising strategies. By generating two or more variations of your product pages or ad creatives, you can collect data on which parts are most effective with your target demographic.

2. Dynamic Bid Strategies (DBS): By allowing Amazon to dynamically adjust your bids in real-time, DBS increases the likelihood of your ads appearing at the ideal time. Entrusting Amazon with budget management could help you acquire more relevant clicks and boost your conversion rate.

3. Amazon DSP for Programmatic Ads: Using DSP, you can target clients on third-party websites, streaming TV and video platforms, and other platforms. This is especially helpful for firms looking to raise awareness and engage with customers outside Amazon's ecosystem.

4. Amazon Attribution: Use Amazon Attribution to acquire insights into your customer journey. This tool shows how different marketing channels contribute to sales so you can better allocate your advertising budget.

Use Archer and Connect With Affiliates for More Sales

Are you tired of relying entirely on Amazon's internal advertising networks to reach your target audience? Archer Affiliates is here to help. Our one-of-a-kind and highly effective ecosystem can easily increase external traffic to your Amazon listings and sales.

With Archer Affiliates, you have 100% control over your affiliate marketing programs, from commission rates to targeting options and beyond. We also offer advanced tracking and reporting tools to help you measure campaign success and optimize your strategy.

Partner with vetted Amazon influencers who want to promote your products to their audience, reach new customer segments, and increase brand visibility.

Frequently Asked Questions (FAQs)

Before we wrap up, let’s take a look at some frequently asked queries about Amazon advertising:

How Can I Track the Performance of My Amazon Ads?

You can thoroughly track your advertising campaigns' performance with Amazon's powerful reporting tools.

Clicks, impressions, click-through rate (CTR), conversion rate, and advertising cost of sales (ACoS) - are key metrics to consider. You can use these insights to pinpoint areas that need improvement and adjust your strategies for better results.

What Are the Common Mistakes to Avoid in Amazon Advertising?

Some frequent Amazon PPC strategy mistakes to avoid are:

• Using generic ad copy
• Not conducting keyword research
• Not paying attention to negative keywords
• Failing to track and optimize campaign performance

Make sure you’re not doing any of these while running an ad campaign.

How Often Should I Review and Adjust My Amazon Advertising Strategy?

It's best to analyze and adjust your Amazon advertising strategy frequently, preferably weekly or biweekly. It helps you stay on top of market changes, spot trends, and make timely adjustments to maximize ROI.

Conclusion

Ultimately, making a great Amazon advertising strategy is just a matter of careful planning, execution, and continuous optimization. By following the six simple steps outlined in this blog, you'll be well on your way to increasing sales and attracting new customers.

But why stop there? Join Archer Affiliates today and get the tools and resources to collaborate with the right affiliates, track progress, and increase your returns.