When sellers first start advertising on Amazon, They tend to get stuck on metrics like “What is the best ACoS” and ” What should my budget be” “What keywords should I spend the most money on”. While yes these are important aspects and are all needed for a successful campaign. This shouldn’t be the only thing you are thinking about when creating an advertising campaign.
Every business works differently, something might be successful for others, might not work for you. which is why it is important to sit down and start to formulate a plan on how you want to advertise on Amazon. First, we need to start with a goal, then we come up with a strategy that will help achieve that goal we set out.
So instead of saying “what is the best ACoS”, we need to set a goal of achieving an ACoS of 20%. Then we come up with a strategy on how we can achieve that. We don’t want to ask others who want to ask others the best ACoS or What your budget should be. This is down to your own business, profit margins, and budget. We want to set goals and come up with an appropriate strategy on how to obtain them
When creating a advertising campaign on Amazon. We are going to need to set out our goal and the strategy that we will use in order to obtain the desired results.
Goal : Is the end result we hope to achieve.
Strategy: Our plan / Method that we will use to obtain our goal.
There are a few different strategys that we can use, that will give us our desired goal. This will just be a overview on the differnt types of strategies and the goals that are accosiated with each one.
Strategy: Brand Awareness
A brand awareness campaign’s effectiveness and profitability aren’t always instantly apparent. Building brand awareness should be a long term goal of all businesses on Amazon. A goal for any successful business is to be known within the niche that you are selling in.
The strategy behind a brand awareness campaign is to build a large number of impressions for your target audience. These impressions might not lead to conversion right away, but you want to be putting your brand name, product out there in front of your potential customers. So when they do decide to make purchasing decisions they already have your brand or product in mind.
To build brand awareness on Amazon we could use sponsored brand ads to achieve this. Bidding on generic terms that are within your niche. For example “Pillow” “Coffee Maker” or “T-shirt”. These terms are very generic but these terms are generally where customers begin the product search. Meaning you would want your customer to be able to see your product.
Goal: To increase the total amount of impressions for your target audience. Gaining familiarity with your brand’s niche.
The conquest strategy involves bidding on your competitor’s main keywords with high bids. This will drive up the cost of each keyword that you are using. In the short term, it will be very costly for you and your competition. But you are trying to drive your competition away from this keyword with the high bids in the hope they will no longer find it viable to keep up. In the long run, you will win out this keyword and build a higher organic ranking. Reducing your average CPC in the long run while decreasing the market share of your competition.
Now with this type of campaign there is a lot of risk involved from picking out the right keyword to use. To relying on you to win out. It comes down to who has the bigger pockets. Or finding the right keyword your competition can do without but will boost your sales.
Goal : Overall goal of this type of campaign is the lower the market share of your competition in the long run. Resulting in lower PPC cost once they keywords has been won.
Strategy: Keyword Domination
Keyword domination involves choosing two to three keywords and advertising heavily on them. To win those keywords and gain organic ranking. Your listing should always be at the top of the search results gaining those crucial impressions. The Key to this strategy is to use keywords that are strong converters. With the end goal being gaining organic ranking on that search term
Goal Metric: To rank at the top of the search for select search terms. Gainign impressions, clicks and sales.
Strategy: Brand Loyalty
Building brand awareness, winning customers, and lowering the market share of your competition is one thing. But once you carved out a segment within your niche the competition will start to advertise on your branded keywords. Trying to lower the market share of your amazon listings.
This strategy is defensive in nature. Once you start to gain ranking and popularity on the platform chances are someone else will take notice. By bidding on your own branded terms and top keywords that you rank organically. Will help you maintain your competitive edge and not lose out to your competition who are trying to steal sales from you.
Remember that people who are searching for your branded terms are most likely repeat buyers. Brand loyal customers are what you want to keep.
Goal: To Maintain top ranking in branded / main keywords. Making sure not to lose conversions on these terms as this is a clear sign someone else is trying to steal your market share.
Strategy: Optimal Time
Sales are not equally distributed throughout the day. There are peak times when your customers will be shopping for your product. Generally throughout the day. If your campaigns are running out of budget or are wasting ad spend in the evening. Then you can set your campaigns to run certain hours throughout the day. This will allow you to increase ad spend through these hours without increasing your overall budget. It will also allow you to save a good part of your budget if your campaigns are running out before the end of the day.
Goal Metric: Conversions. To Focus on the optimal shopping times of your customers. Increasing sale during peak hours or lowing your advertising spend.