How Your Brand Can Grow with Amazon Advertising
Nils Knäpper8/23/2023
Amazon Advertising: A Fast Growing Business Area
Table of contents
- As a seller on Amazon, of course, you try to place your products as well as possible and follow best practices to get played on the right search queries and rank as high as possible. Factors such as the BuyBox or the number and quality of reviews play an important role in this.
- The formula for growth on Amazon is, although not publicly communicated, simple: Amazon's most important metric is clicks on a product. This leads to a high rate of purchases, which in turn leads to reviews. If ultimately the overall package of
- Automated campaigns, in particular, have a very large influence on Amazon, which is why there are a lot of smart
- If you want to stay competitive on Amazon in 2021, you should not miss out on Amazon Advertising! After all, Google's development in recent years has also shown that it will become increasingly difficult for brands to be successful on Amazon without advertising. While you may still succeed with niche products for a short time, as competition grows and therefore the space in the search results becomes ever more contested, you should consider buying visibility to tap into your full sales potential.
Amazon Advertising is the fastest growing business segment of the online marketplace. In Germany, sales in 2020 amounted to $21.84 billion, which represents an increase of 51.6% compared to the previous year. While the Corona pandemic and the e-commerce boom are not entirely innocent of this success, it also shows the increased importance of advertising and Amazon PPC tools in the Amazon universe.But why is Amazon Advertising so important for traders and vendors? And why can this be helpful for your overall Amazon growth?
The reason is simple: Large platforms - like Google and Facebook - eventually want to monetize their vast reach. So, if you want guaranteed visibility, sooner or later you will have to put some money on the table.
After all, Amazon wants a piece of the "advertising budget cake" and offers a handful of arguments for brands and advertisers to do so. According to a survey by
CivicScience in the United States, 47% of users used Amazon for product searches during the Corona pandemic. Google, meanwhile, only ranked second with 24%. Among Prime members, the percentage of those who searched on Amazon even rose to 74%.Organic search results are pushed back and even the product detail pages are no longer safe from numerous ad placements.
The basics: Advertising opportunities for sellers and vendors
As a seller on Amazon, of course, you try to place your products as well as possible and follow best practices to get played on the right search queries and rank as high as possible. Factors such as the BuyBox or the number and quality of reviews play an important role in this.
The whole thing works almost exactly like with Google: When you search for the term "vacuum cleaner", Google shows you the right websites in the results list using an algorithm. Amazon is therefore faced with the challenge: what is displayed for which search query?
As a seller on Google and Amazon, the same principle applies: You want to drive as much and as good traffic as possible to your products or your store. You can promote the whole thing with organic measures – or simply with advertising.
Amazon Advertising is therefore the answer to Google Ads: As advertisers you can simply buy visibility and thus traffic.
Amazon PPC tools tie in exactly there and help you in implementing campaigns.Sponsored Products
Sponsored Products are
Like Sponsored Products, Sponsored Brands are CPC ads. However, the ads are additionally supplemented with a brand logo, a custom headline, and multiple products. This way, potential customers can become aware of your brand when shopping. This can have a positive effect on brand awareness and eventually lead customers to your products.
Sponsored Display
Sponsored Display is a so-called self-service display advertising solution from Amazon. This allows you to address buyers throughout the entire customer journey on Amazon and even off-site. The ads then appear, for example, on the Amazon homepage, product detail pages, shopping results pages and on third-party websites and apps.
Danger and opportunity: Long-term growth of a brand through Amazon Advertising!
The formula for growth on Amazon is, although not publicly communicated, simple: Amazon's most important metric is clicks on a product. This leads to a high rate of purchases, which in turn leads to reviews. If ultimately the overall package of
click rate, conversion rate, positive reviews and quick shipping is right, the purchases and thus the so-called bestseller rank of your product increase.Exactly this formula you can manipulate as an advertiser by forcing clicks on a product through advertising. In short, the use of advertising leads to an increased organic ranking.
Best sellers of a certain category are clearly marked in the search results and usually have the highest
click-through rate.The bestseller list can be viewed on Amazon by you. But how can brands like ONLY, Urban Classics or Levi's now oust the current bestseller, Fruit of the Loom?
The Parent ASIN
Levi's chooses an interesting approach to push its women's shirts:
Although the shirts listed here differ in color, fit and print, all variants contain a so-called Parent ASIN. With each order of one of the many T-shirts, the common Parent ASIN climbs up the ranking. As can be seen from the screenshot, user-friendliness suffers from this trick, as a huge list appears. On the other hand, it is possible to deceive the algorithm and make the product appear better in the ranking.
Sponsored Products
Also on the ranking list: Urban Classics. In addition to Amazon SEO, the label follows the advertising approach to generate clicks and purchases to claim the fourth place.
In the search results, the brand appears as a "sponsored brand". In addition to products marked as "sponsored", Urban Classics also presents sponsored video ads.
Automations and Amazon Advertising
Automated campaigns, in particular, have a very large influence on Amazon, which is why there are a lot of smart
Amazon PPC tools.While Google as an ad platform is largely played out and growth levers thus usually lie outside the platform in feeds or on websites, Amazon Ads is still a proverbially green field! Here there is far less competition and there are sometimes free or at least cheap ad placements. A still rather sparse Advertising Console also complicates manual management.
Those who now want to efficiently bundle their resources for Amazon Ads and rely on automations, will gain significant competitive advantages due to the above-mentioned circumstances. A
case study published on Amazon.de shows what this looks like in practice.In which challenges do automations contribute to growth on Amazon?
Automations can help you overcome the following challenges for growth:
They provide reliable control of the target ACoS of each campaign
- Bid adjustments can be automated depending on the goal
- They allow you to manage bids for particularly large product portfolios - manual management becomes inaccurate from 50 products onwards
- Automations can make keyword expansions
- They can automatically execute different targetings like keyword, products, categories and competitor ASINs
- Strategy & Technology - Two success factors for your Amazon advertising business
If you want to stay competitive on Amazon in 2021, you should not miss out on Amazon Advertising! After all, Google's development in recent years has also shown that it will become increasingly difficult for brands to be successful on Amazon without advertising. While you may still succeed with niche products for a short time, as competition grows and therefore the space in the search results becomes ever more contested, you should consider buying visibility to tap into your full sales potential.
Without Amazon Ads, you might end up giving away sales. To ensure that you can control and optimize your advertising activities as efficiently as possible, automations can help.
However, it is not enough to just press a button and wait for a miracle. As always, those who want to be successful should have a detailed plan. This means conducting precise analyses, defining your goals, selecting ad formats, and finally planning and launching campaigns. Only then can you successfully bring automations into play that will help you fine-tune.
Since Amazon holds one or the other special feature, it is advisable to develop a sound strategy with experienced experts.
advocates the opinion: The automation of Amazon Ads without strategy makes as little sense as a strategy without automation in 2021. You would like to exchange ideas without obligation? Then you will find Finchmore information on the provider's website Finch.mehr Infos auf der Website des Anbieters Finch.
Author
Nils Knäpper
Nils ist Senior SEO-Texter bei OMR Reviews und im Content-Team die erste Adresse für KI-Themen. Er testet, wo sich Recherche, Analyse und Textproduktion automatisieren lassen, und baut die Workflows dafür selbst. Programmieren hat er nie gelernt. Das hält ihn nicht davon ab: Dank Vibe-Coding entsteht das meiste in Eigenbau. Abschalten geht trotzdem ohne KI, dann produziert er nämlich in Ableton Live Techno.
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