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3 Ways To Optimize Your Amazon Advertising Strategy

Amazon Basics / July 20, 2021
Amazon Advertising Strategy

You need an effective Amazon advertising strategy that will reliably convert prospective buyers and browsers to customers. Your ability to do that depends on many factors:

  • What kind of products do you sell?
  • Do your target buyers care about brand recognition?
  • How well does your competition sell on Amazon?
  • How familiar are you with pay-per-click (PPC) advertising?

Often, what will work for one Amazon seller won’t be the right choice for another. That’s why we’re sharing three customizable ways you can start optimizing your Amazon advertising today.

One-size fits all Amazon advertising doesn’t work

There are many more complex and sophisticated methods you can explore to optimize and automate your PPC Amazon advertising strategy. But starting with a foundational approach first will save you time and money as you look for long-term strategies and tools that will work best for your business.

Using these three simple methods will give you valuable experience for managing your Amazon advertising campaigns strategies and something even more important for your long-term success as an Amazon seller: data.

Successful sellers use data-driven Amazon advertising strategies

While the three approaches we’ve described are relatively simple to implement for your Amazon business, we’ve provided them from quickest to most time-intensive. Let’s get started.

Automatic campaigns: A simple, quick way to set up PPC ads

When shoppers enter a search term on Amazon, sponsored products show up before the organic search results, which is why strategically planned PPC ads are so valuable.

You pay a certain amount each time someone clicks on your ads, depending on how you’ve set up your PPC campaign. If you’ve included detailed product descriptions, automated campaigns can be highly profitable and only take a couple of minutes to set up:

  1. From your seller campaign dashboard, click “Create campaign”.
  2. Select “Sponsored Products”.
  3. Name your campaign.
  4. Keep your campaign set for “Automatic targeting”.
  5. Set a small daily budget to start (e.g., around $15).
  6. Select which of your products you’d like to automate sponsored listing for.
  7. Set the amount you’ll pay per click. The default is $0.75.

With an automatic Sponsored Products campaign, Amazon’s built-in tools deliver your PPC ads for customer searches relevant to your products’ descriptions, categories, and related products.  This method doesn’t allow you to truly fine-tune your PPC advertising, but it’s a quick and simple approach to get you the foundation of data you need to advance your Amazon selling strategy.

It also allows you to designate whether you want to serve ads and how much you want to spend for customer searches that are close matches, loose matches, substitutes, or complements. In the future, you can use the keyword data from automatic campaigns for keyword targeting.

Product targeting: Access people browsing competitor products

Compared to an automatic campaign, product targeting allows some manual customization. Product targeting delivers your PPC ads to people looking at related products as they scroll further down the product page.

You’ll follow the same initial steps as you would for an automatic campaign, but, after setting your daily budget, change the targeting setting to “Manual targeting”. Then, you’ll select the product this campaign is for and, in the “Product Targeting” section, you can select product categories and individual products that you want to target with your ads.

While Amazon will provide suggested products for you to target, you want to be selective here so that your PPC ads aren’t served to customers browsing products that aren’t your true competitors.

Keyword targeting: Maximize the value of your PPC ads

The third method–keyword targeting–requires a little more effort to set up, but it allows you to target customers in a much more customized way. You’ll need a list of keywords that prospective customers would likely use to find your products. You can use free keyword research tools like Google Keyword Planner or Ahrefs Amazon Keyword Tool to identify relevant search terms.

Once again, you’ll set up a Sponsored Product campaign with manual targeting. This time, however, you’ll scroll down to the Keyword Targeting section. This is where you add the keyword phrases your research has helped you find. Amazon also lists suggested keywords for the product you’ve selected for the campaign.

Below the Keyword Targeting section, there’s a very important–but optional–tool that you’re going to want to set up to get the most out of your Amazon PPC advertising strategy: negative keyword targeting.

There will always be certain keyword phrases that either perform worse for your particular products or don’t align with what you’re actually selling. The people searching these keyword phrases are unlikely to convert to buyers. You don’t want unlikely buyers clicking on your ads and lowering the return on your PPC advertising investment.

Let’s say you’re setting up keyword targeting for a protein bar you sell. You obviously want your sponsored product ad to appear when someone is searching “protein bars” on Amazon. But, if someone is specifically looking for “dairy-free protein bars” when your bars are made with milk protein, you would not want your sponsored posts delivered for that customer search.

If that person does click on your sponsored product, you’re paying for a click that’s highly unlikely to convert to a sale. Designating negative keywords lets you avoid that scenario.

Advance your Amazon business with AI-enhanced ad campaign optimization

Done correctly, setting up your keyword targeting campaign with negative keywords, along with product targeting and automatic campaigns, can help make your Amazon PPC ads highly effective and profitable.

But as your business grows on Amazon, you’ll have more products and categories to manage. Tracking data and managing campaigns individually is a hassle that costs you time and money, which is where Sellozo’s PPC automation and advertising solutions for Amazon agencies can help. Schedule a demo and learn how our product can advance your Amazon advertising strategy and performance.

Other Helpful Articles:

Amazon PPC 2021 Strategy

What is Amazon PPC?

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