Amazon advertising is a Prime spot for increasing sales and visibility with a wide and active customer base. 93% of all Amazon Prime members will continue with the service after one year, despite the recent cost increases, leaving competitors like Walmart far behind in the race.
With such transparent statistics, there is no need to signify the sheer potential of Amazon advertising when it comes to the number of daily users it attracts, the trust consumers have, and the sales advertisers can witness.
But why should your brand bother spending a good chunk of its advertising budget on Amazon marketing services?
The straightforward answer is that it’s still far from saturated. Consumers always want more—more options, more deals, more discounts, and more products. All they need to see is a sense of differentiation between what you offer vs the competition.
In this blog, you’ll learn about the Amazon ad types that brands across the world love, why the Amazon advertising platform has never been easier, and how you can utilize Amazon automation to optimize every element of your strategy.
3 Amazon Ad Types That Brands Love
Amazon offers a plethora of ways for brands to showcase their products in front of millions of global customers who visit the website and mobile app every day. According to a Statista survey of 1,000 retail business decision-makers, there are three types of advertisements that have become a staple in every advertiser’s budget.
61% of respondents love this form of Amazon advertising the most, and for good reason. Sponsored Products have historically shown the highest ROAS, making it a great option for advertisers looking to highlight best-selling products on a cost-per-click model.
During relevant sales periods and important launch dates, many advertisers prefer to have potential consumers discover their entire brand. With creative headlines, images, and videos, these ads best use storytelling to engage the audience with your business.
These are shoppable images and videos that take customers directly to your brand or product details page in one click. Amazon lets you customize at what point in the customer’s journey you want to be visible and analyzes your campaign data to optimize for your goals.
Amazon Advertising Has Never Been Easier
Amazon advertising management has introduced a ton of features to help brands advertise their product efficiently, so you never have to go in blind. From creating an account to setting up campaigns, everything is optimized down to a few clicks.
Based on your eligibility, budget, and goals, you can choose between different plans when creating a seller or vendor account. Amazon’s seller center hosts all your information, shares regular updates, and ensures complete transparency when it comes to sales opportunities. Here are some stats that show the true potential of Amazon advertising services:
- 76% of sellers are profitable this year, despite supply chain issues caused due to the pandemic.
- 89% of sellers use Amazon FBA (Fulfillment by Amazon) as their selling method to ensure timely delivery and overall customer satisfaction.
- 51% of third-party brands experience ROAS of 7x or more.
This way, Amazon ads help advertisers:
- Drive brand awareness, by improving brand visibility
- Acquire new customers, with smart recommendations for ad placements
- Increase sales, by giving you access to rich data to metrics you prioritize
- Grow market share in the industry, using competitor conquest advertising
- Improve your profit margins, by minimizing costs wherever possible
Brands are always exploring new ways to ensure continued growth on Amazon and managing so many elements manually can be overwhelming. The scope for mistakes is getting narrower every day, and automation is a one-stop shop for mitigating risks and regaining control of your business.
Amazon Advertising Software Improves Automation
Amazon launches new features and advertising options every quarter, and the easiest way to keep up with every available opportunity for you is automation. Tools and software can make unified management of omnichannel advertising seamless and take away from the stress of falling behind.
There are 5 ways that you should employ management automation when advertising on Amazon:
1. Collect & organize precious first-party data. Amazon gives you access to a lot of seemingly incomprehensible data about your sales metrics, profits, and shopper demographics. The only way to turn it into something useful is to sort and condense everything based on your unique goals.
2. Analyze all your campaigns’ performances to understand and rewire your advertising strategy. Every campaign is a learning opportunity for you to experiment on Amazon. Automation tools piece together reports and dashboards to help you visualize consumers’ shopping intents.
3. Leverage dayparting on Amazon to its full extent. Your ad dollars are valuable, and this is an automatic way to allocate budget during times of day when your consumers are shopping. This can help you save a lot of money on campaigns while boosting sales revenue during events throughout the year.
4. Let AI suggest keywords based on not just your data, but also your competitors. Behavior studies for online shopping are a complex puzzle, but you can use automation to help you accelerate growth.
5. Project your long-term goals on Amazon so you can always plan ahead of time, tweak your approach based on observations in real time, and become immune to common challenges like budget or inventory constraints.
Amazon advertising, despite its challenges, poses an incredible opportunity for brands to create a legacy. Your goal with Amazon ads is to build recall value, create “brand awareness” and always listen to your consumers so you can meet and exceed their expectations.
Of course, nothing beats first-hand experience. To see what you can achieve by optimizing Amazon advertising, you can book a demo with Pacvue today.