Top Five Amazon Advertising Strategy Tips
As e-commerce continues to strengthen and shift amidst the vaccination phase of the global pandemic, Amazon sellers may also have to shift their Amazon advertising strategies to follow suit with the changing dynamics on the Amazon platform.
What worked in early Q1 may not be working in early Q2. Staying on your toes, and having a solid advertising strategy in place, will help you adapt to changing times and remain in a healthy position over the summer and well into the third and fourth quarters.
This article will outline tips to leveraging an Amazon advertising strategy that can help you stay a tune with the changing times on Amazon.
Why is an Amazon Advertising Strategy Important?
Like any business model, advertising and marketing strategies are essential to growth. While Amazon sellers may spend a healthy portion of their budgets on product creation and design, weak advertising strategies can have a direct impact on conversions, as well as brand awareness.
A predominant factor in building out a robust Amazon ad strategy in today’s climate is that more people continue to flock to Amazon than ever before to make purchase decisions marked with deliberate intent.
“Twenty-three percent of Millennials and 22% of Gen Xers plan to shop more online in the future because of the pandemic” (Source: Forrester Analytics Consumer Technographics® COVID-19 Survey)
Planning accordingly and building an Amazon advertising strategy that suits a healthy budget and fits a specific category and niche will be vital to the success of a brand on the platform in the post-pandemic phase.
Tips to Creating a Successful Amazon Advertising Strategy Post Pandemic
#1 Focus Ad Spend On SKUs With Healthy Inventory Levels
Inventory allowances continue to be a primary challenge for Amazon sellers in Q2. While shipping and receiving times may begin to rebound, it’s crucial to monitor inventory levels and understand what SKUs are in demand, and can sustain healthy inventory levels.
Focus your advertising strategy on the SKUs that have healthy inventory levels so that high traffic products get the attention they deserve at critical times throughout the post-pandemic phase.
Evaluating which products can benefit from reliable and cost-effective 3PL services can help your in-stock rates and maintain inventory levels on popular products that require healthy ad spend.
#2 Evaluate Your Margins On An Ongoing Basis
Understandably, during these sensitive times, specific products will be in high demand while others will not. Just like focusing ad strategy and attention on healthy inventory levels, it’s critical to understand your margins and which high-margin products deserve advertising focus during these challenging times.
#3 Continue To Launch Products And Grow Your Portfolio
“Amazon earnings exceeding analysts’ expectations by a whopping 606% (second quarter), 67% (third quarter), and 95% (fourth quarter),” in the last three quarters of 2020 alone.
With that in mind, now is the time to launch new products and dive into specific niches in high demand. Hobbies, arts and crafts, and the baby category are a few on the top of mind to check out in 2021, as well as consumable goods.
Setting the stage for a healthy PPC budget in the launch phase of high-demand products can positively impact ranking, indexing, and conversions. Seize the opportunity and add product launches to your overall advertising strategy while Amazon commerce and advertising continues to boom
#4 Optimize, Optimize, Optimize
You’re not running a successful ad campaign or strategy if optimization isn’t the name of your game. To see the most success in an Amazon advertising strategy, sellers must continuously optimize their amazon listings throughout different phases of their sales experience. This may mean changing out keywords in the backend search terms area or updating images and keywords in your title. Look at optimization as an ongoing role in your advertising strategy and stay ahead of your competition.
Optimization may also mean negative exacting words and phrases with a high click-through rate and flawed conversion metric on the campaign level. It can also mean adjusting bids accordingly.
Sellozo offers one of the most advanced forms of PPC optimization housed in our Sellozo Automated Optimizer tool.
The optimizer allows a user to target the desired ACoS; the algorithm then works to achieve that ACoS. During pandemic times, adjusting bids during lockdown periods can become tasking and time-consuming. Automated tools such as Sellozo are imperative for sellers to mitigate changing advertising trends during vaccination phases in the pandemic and on the Amazon platform.
#5 Dive Into Your PPC Data
It’s vital at this time on Amazon that sellers are analyzing PPC data on a reasonably routine basis. Changing dynamics may mean that specific keywords fall in and out of favor, and now is not the time to let your PPC analysis go to the wayside.
PPC data can be precious to your next steps in your campaigns and help you make the best decisions possible per product.
Sellozo offers the most robust analytics and reporting system out there in terms of Amazon PPC. If sellers are unsure how to navigate PPC information, now is the time they should be leaning on advertising automation software to do so. Without proper analytics, it’s impossible to spot trends quickly or understand where improvements are needed.
Here are a few benefits of Sellozo’s Advertising Analytics:
Product performance analytics and reporting
Granular Analysis of Sales, Costs, Profit, and Profit Margin (down to the SKU-level)
Organic Sales Reporting
Weekly Trend Snapshot
Amazon Fee & Transaction Analysis: Sellozo’s Financial Reporting
Amazon’s audience is only strengthening during the final vaccination phase. There is a strong belief that customer shopping patterns will be forever changed due to the global pandemic.
Taking the time to create an adaptable advertising strategy will be in an Amazon seller’s best interest to grow their brand and their margins in 2021. Changing times require changing strategies across the board; Amazon advertising is no exception.
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