Are Amazon Ads ROI: Do They Worth It?

Let’s say you’re looking online for a new pair of headphones or a new guitar tuner. Where would you start your search? Google, right? If so, you probably belong to around 60% of the US eCommerce market. On the other hand, Amazon had nearly 40% of the US eCommerce market in 2018. While Google remains the top search tool for B2B purchases, services, and educational questions resulting in purchases, Amazon is quickly emerging as a dominant frontrunner in eCommerce.

What does this mean for you?

When you’re strategizing about your online advertising, you most likely want to be where the most customers are. If you’re an eCommerce company, that location is emerging to be Amazon. Amazon has several advertising programs to select from when it comes to advertising, but the best one to start with is Amazon Sponsored Products.

The Sponsored Product ads are image advertisements similar to display ads in Google AdWords. However, they appear in search engine results on Amazon searches right next to the searched products. The only noticeable difference between the sponsored and the non-sponsored results is the gray “Sponsored” tag that appears above the product title. Sponsored products also have the added advantage of appearing right on top searches. 

Does Amazon Advertising Work?

As per Ad Badger, the average cost per click for Amazon PPC is $0.97. This is less than comparable advertising on Google and other platforms. This also suggests that the success of Amazon ads is equivalent to that of Google and other platforms. However, this isn’t the question to ask when you’re considering Amazon advertising. Instead, ask yourself, “Will Amazon ads work for me?” Another good question you should be asking is, “Will I make more profits than what I invest in the advertisements?”

Your success on the Amazon platform will depend on a variety of factors, consisting of:

Strategy

Imagine that you have the best product and the best advertisement. These are still pointless if you invest all of your budgets on unimportant keywords; no one will see your ad. There’s also the risk of bidding on keywords that are too broad and competitive when less expensive and better-suited keywords are out there.

If you decide to market on Amazon, you have to optimize your ads for efficiency continually. Use “negative keywords” to omit irrelevant traffic (and minimize wasted spend). You can also try different keyword strategies and produce well-structured campaigns and ad groups within your ad account. Don’t be scared to experiment and find out what works best for you. 

Budget

Pay Per Click is a terrific design since you only pay for those who click on your advertisement. The higher your budget, the more possible clicks you’ll get. When evaluating your goals for Amazon ads, you’ll want to make sure that your budget matches your expectations. Here’s how you can do that:

  • Visit the Amazon Seller Central.
  • Go to the Traffic Reports by Child Item and Detailed Page Sales.
  • Find your conversion rate per product in the Unit Session Percentage column.

Your Unit Session Percentage column shows you the typical percentage of visitors who end up being converted. Using some quick math, you can estimate the number of purchases needed to get the number of clicks you want. This will help you reverse-engineer the number of clicks it will take to convert into sales and, in turn, estimate just how much budget you need to designate to accomplish that objective.

Ad and Product Page Copy

In-person sales can benefit from a sales or customer support representative who can position the product, give a solution, remove roadblocks to buying, and address concerns. However, if you’re selling on Amazon, you don’t get to supply this kind of personalized touchpoints. That job has to be performed by your copy. 

Your ad copy needs to do its best to persuade shoppers that the product fulfills their needs and forces them to click the ad. This improves the advertisement’s performance.

Remember the old marketing expression, “a confused mind says no.” Your copy should also remove roadblocks and answer any awaited questions a buyer might have. If potential customers are confused or unsure, they will not click your advertisement. Your ROI and conversion rate will suffer, and you will not attain your ad goals.

Visuals

Online shoppers aren’t able to hold your item in their hands before buying. Even if you have the most impressive item ever to hit online racks, you won’t move much of your stock if your pictures are unappealing or uncertain — no matter how much you put into advertising. This is why item photography is so essential when it comes to Amazon ads.

Apart from complying with Amazon’s requirements, images on ads and product pages must showcase features, action shots, and various angles — all in an aesthetically pleasing manner that gets the prospect’s attention and compels them to purchase.

Positioning

A click on your ad doesn’t automatically mean that the buyer will purchase from you. Buyers look around; if your positioning in the marketplace does not match your item’s quality or offer competitive prices, you might lose out on sales.

Various positioning aspects will affect your sales, consisting of your sales drive from your Amazon ads. A smart move would be to provide excellent customer care and watch out for the competition to make sure that your brand positioning is helping rather than hurting you.

Will I See Much Better Results on Amazon vs. Google Ads?

A significant distinction between Google Ads and Amazon Sponsored Products is when people acquire process when they search on each platform.

Individuals browsing on Amazon are more likely to be at the end of the buyer’s journey (i.e., closer to a buying choice). On Amazon, they know what items they want to buy. They’re just trying to find the ideal offer and provider.

Google has more of a variety of search inquiries, incorporating all phases of the purchaser’s journey. This indicates that your ad strategy can be far more flexible, targeting earlier stages of the buyer’s journey. That being said, not everybody searching in previous phases of the purchaser’s journey will be ready to purchase in the near future (if at all).

Many product-based companies do not need to target those people, making Amazon ideal for their advertising strategy, especially if the objective is to put an item in front of interested customers.

Getting Started With Amazon Ads

After knowing the variables that make your ad effective, you can get started with your Sponsored Products campaign.

Here are the steps:

  • Register for Seller Central and follow the actions to produce your account.
  • Produce your Sponsored Products campaign.
  • Pick the items you wish to promote with your ads.
  • Choose which keywords you wish to target.
  • Determine your budget.
  • Produce your very first ad.

Unlike other Amazon advertisement types, Sponsored Products are released immediately upon conclusion. For additional information about account and campaign setup, visit the Amazon Advertising page.

Here are a couple of additional ideas for beginning with Amazon Ads:

1. Win the Amazon Buy Box

The Buy Box is a package on an Amazon product detail page where customers can start purchasing by adding items to their shopping carts.

Since numerous sellers might wind up selling the very same product, not all sellers are eligible to win the Buy Box. Amazon only gives it sellers who satisfy their minimum requirements, at a competitive rate and have outstanding seller metrics.

BigCommerce revealed that 82% of Amazon sales go through the Buy Box, so it’s a big plus for your business if you have this. This can be done by performing well in a couple of key areas, including shipping time and cost.

2. Carry Out a Cohesive Structure in Your Ad Account

You can build campaigns within your ad account. Understanding the basics within your Ad Account will help you enhance efficiency. 

Here are the meanings for each element of Amazon’s tiered structure:

  • Account – Your account is the location where you’ll access any of your campaigns and seller tools. Think of it as the biggest bucket.
  • Campaign – It’s a fantastic idea to develop a campaign for each item classification you’re targeting.
  • Ad Group – Each advertisement group will consist of the ad that you have constructed and your targeted keywords. Be as specific with each advertisement group as possible to improve the associated ads’ efficiency.

3. Discover the Strategy Behind Keywords and Bidding

Similar To Google Ads, Amazon Sponsored Products uses keywords to trigger your advertisements. Automatic targeting — enabling Amazon to select your keywords for you — is typically the ideal option for new marketers. If this does not interest you, or you’ve already built up some information from a running campaign, you can pick manual targeting to select your own keywords.

There are three kinds of keyword matching:

Broad Match – The possibility’s question matches your target keyword, including misspellings, synonyms, variations, and different syntactic arrangement. This is the most flexible and non-restrictive.

Phrase Match – The prospect’s inquiry must accurately match or contain the target keyword.

Exact Match – The most restrictive type. The prospect’s query needs to match precisely to the target query. Your advertisement will not show with “comparable” matches, only “precise” matches.

Knowing the advantages and disadvantages of each will help determine what keywords and keyword-matching to choose to improve your advertisement’s performance.

4. Utilize Reporting in Amazon Ads

To make the very best choices for your campaign, you need to utilize a data-driven method and monitor your outcomes.

Amazon supplies advertisers with information about searches for particular keywords. Similar to Google Ads, you need to be a marketer to get access to this valuable data. The data consists of which search terms perform the best, enabling you to add new keywords and improve your campaigns’ performance.

For each keyword, your search terms report will include information on:

  • Campaign
  • Ad group
  • Impressions
  • Clicks
  • Click-through rate
  • Cost per click
  • Conversions
  • Sale SKU
  • …And more.

If you’re thinking of selling a product, now is the time to consider utilizing Amazon Sponsored Products ads. You’ll enjoy a reasonable expense per click and have an opportunity to promote brand-new products at the top of an Amazon search.

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