With such a scrutable and accountable relationship between ad spend in and sales revenue out, E-commerce is an extremely competitive sector, in which every marketeer is eager to find and leverage the latest source of high-quality, low-cost traffic. It’s inevitable that in our role we often hear things like “I’ve all heard all about Google Ads, Shopping, Bing, Target ROAS, what’s next?”; “that’s going well but we need more volume”, or even “we tried that ourselves, it didn’t work”.
Maybe you’ve got it covered, possibly tried using every type of PPC advertising for your business and it hasn’t worked out for you. Maybe you knew about the small player in the online advertising market grossing $2 billion in ad revenue last year. That very same company is in some cases seeing 50% of client’s advertising budgets move from Google Search over to them, such is the ROI that can be achieved. Yep, that one.
Amazon: A new major contender for online advertising
Amazon Advertising (formerly Amazon Marketing Services) is experiencing incredible adoption from advertisers in the retail sector who are seeking out new channels to advertise their products. We all know that Amazon sells everything from A to Z, but now sellers can promote their own products through this platform using a choice of Headline Search, Sponsored Products or Display Ads. It’s no wonder that Amazon is now the third-biggest ad seller in the US.
Campaigns are simple to set up and manage. Let’s take Sponsored Products, for example. As with standard search campaigns, the advertiser can choose a keyword list and create ads, and then set a budget. The main difference is ads are linked directly from products in the advertiser’s Amazon Store, rather than a text or image ad that is created individually. Stores can be customised according to how the advertiser wants to brand itself, creating an opportunity to advertise in a similar way to the current Google Display Network offering.
Skills to pay the bills
Let’s look at our top ten learnings from the Amazon campaigns we have managed for our clients:
- Five figure ROI results can be achieved by using this platform.
- There is no location targeting – approach with caution!
- There is no device targeting. Again, approach with caution.
- Ads are not bespoke in terms of imagery, price and product information – this is pulled in from the advertiser’s store and product information.
- To overcome this, we create campaigns for each type or category of product.
- CTR is low when compared to other shopping options: typically below 1%.
- Split out brand terms into individual campaigns for optimum performance.
- Keep an eye on the average cost per sale as even though keywords or campaigns may not get a lot of traffic, they may still be converting very efficiently and deserve exposure.
- Move these keywords/products out into their own campaigns.
- Don’t be limited to just one type of Amazon campaign. Leverage Headline Search Ads, Sponsored Products and Product Display Ads to drive more interactions and sales across all disciplines.
Don’t get left behind
It is clear that Amazon Advertising is going to continue to grow globally in the next few years as more and more retailers seek to add another string to their bow and reach more potential customers for a very favourable return on investment.
Space and Time’s PPC Specialists provide expert knowledge and deliver fantastic results. For more information on how we can help you achieve and surpass your online advertising objectives, contact our friendly team today. We’d love to hear from you.
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