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Ways to Optimize your Advertising on Amazon

In this seller meetup Session, Seller Ambassador Zhang Ruihong shares about the different types of ads you can run, some of the ways we find keywords, and strategies on how you can optimize your ad costs. Interested in becoming an expert in Amazon advertising? Read on to find out.
What are the types of advertisements available?
If you look into your advertising console, you'll actually see three main types of advertisements available for you to utilise.
1. Sponsored Product
For the first one you'll get your Sponsored Product ads, personally i think this is like the foundations of sales on Amazon. This is keyword search ads and appear within shopping results pages and on product detail pages. Sponsored Products can help you reach high-intent shoppers who are actively looking for products related to theirs.
Tip: This is one of the most important ads to have because Sponsored Product ads show up alongside other products. When customers go onto Amazon, they already have a strong buying intent when searching for a particular keyword. When it comes to your product, the higher you rank in a keyword, the more organic sales you're going to get. Because Sponsored Product ads show your product right at the top with the products that rank high, it is really powerful as these customers who see it have a high likelihood of buying your particular product. Once you have your Sponsored ad running, the next step is to convert. For this, you want to make sure that your image and product listing is attractive enough to capture clicks and show the selling point of your products.
2. Sponsored Brands
The second one is Sponsored Brands that help to showcase your brand and product portfolio. Featuring your brand logo, a custom headline, and a selection of your products, these ads appear in shopping results pages, helping drive sales and product visibility. They can take the form ofProduct Collection ads, store spotlight ads and video ads.
Tip: My personal experience with Product Collection ads is that they can be pretty pricey as they are displaced right at the top of the page, just below the search bar, so they get a lot of views, but do not always guarantee a conversion. So it depends on the objective of your ad campaign and you will have to decide which one best suits your needs.
The other one I saw quite a good traction with is actually video ads. The video ads can be shown during a search, some of them are placed within pages of competitor products. Video ads are quite popular because more and more customers are using mobile to purchase products. When they scroll down on their phones, the videos ads will automatically play so that catches people's attention. What I have noticed is video ads will be the trend going forward as most contents will be video based and attracts more attention than a static image.
3. Sponsored Display
Lastly there's a Sponsored Display, which helps to reach relevant audiences across the shopper journey, with ad placements that appear both on and off Amazon. There are general display ads that show up anywhere such as in emails on other websites as well as product targeting ads which are more specific in nature.
Tip: Personally, I find that Sponsored Display works because you are riding on your competitor’s clicks volume. If I were competing in a space where my competitors already have pretty high click volumes, instead of competing with them at keyword search, I can actually directly target their product with Sponsored Display ads to show consumers that there are alternative products available.
What Keywords to Target?
Now we've seen the different ads that are available, one key question to ask is “what keywords should I target?” One way I go about finding keywords is to run Auto Campaigns. Amazon has a keyword index and the auto campaign will search the various terms that customers are looking for and the algorithm will help you to generate as much sales as possible. Because the ultimate goal is to get the consumers to convert on each of the advertisements, if your listing is not performing well in terms of conversion, they will not show up on the auto ads. This way auto campaign actually helps you to decipher what are some of the keywords that you might not have known of.
One other tool that I have also been using is Amazon brand analytics. It's always good to have multiple data sources to triangulate all your data points. So, a third party service provider can tell you one thing, but you can also utilise Amazon brand analytics to double check if what you are seeing on that platform is indeed accurate and verify.
Want to know how Ruihong runs his ad campaigns? Check out the rest of his seller meetup here as he shares his tips and tricks of setting up a successful ad campaign. Sign up for the next Seller meetup session to learn more from our Amazon Seller Ambassadors.
Disclaimer: Whilst Amazon Asia-Pacific Holdings Private Limited ("Amazon") has used reasonable endeavours in compiling the information provided, Amazon provides no assurance as to its accuracy, completeness or usefulness or that such information is error-free. In certain cases, the blog is provided by a third-party seller and is made available on an "as-is" basis. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated at any time, without any prior notice. You agree to use the information, at your own risk and expressly waive any and all claims, rights of action and/or remedies (under law or otherwise) that you may have against Amazon arising out of or in connection with the use of such information. Any copying, redistribution or republication of the information, or any portion thereof, without prior written consent of Amazon is strictly prohibited.
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