Need Help Scaling your Amazon Advertising, Profitably?
Amazon has three primary advertising programs available to vendors and sellers. They are:
- Sponsored Products: appear in the search results as image/text ads. 100% sales-focused.
- Headline Search Ads: appear as banner ads above the search results. Can drive sales but also useful for increasing brand awareness.
- Product Display Ads: appear on the product listing pages of other products. Can drive sales, build awareness and are particularly useful for targeting competing or complementary products.
In many ways, Amazon’s paid advertising platform is a dream for digital marketers – especially in that it offers closed-loop metrics. Unlike running ads on other platforms such as Google AdWords, Amazon’s closed-loop system provides 100% accurate conversion data. They tell you exactly how many sales you made for each dollar spent with their ACoS metric (Ad Spend as a Cost of Sales). And you don’t even have to configure it!
But naturally if you have access to your ACOS metrics, so too does your competitor. Years ago this platform was wide open, but it has now quickly gotten competitive and ACOS rates have increased as more and more advertisers increase their bids and are willing to make sales on razor-thin margins. And iff you’ve used Google AdWords, you’ll also notice that Amazon’s ad platforms are much more simplistic and even a bit cranky or buggy. So its not all sunshine and roses!
If you need help managing your Amazon advertising programs – scaling them to increase sales while also lowering your cost-per-conversion and running ads more profitably – then contact us. We can help.