Why Should You Be Advertising on Amazon?

why you should be advertising on amazon

With Amazon’s presence and dominance continuing to rapidly grow, it is hard to ignore how beneficial advertising on amazon can be to your brand, if you were not already aware. Amazon are expanding throughout Europe with their ambition to become the #1 online retailer in every territory that they enter. Ensuring that your brand is available for sale on Amazon is a no-brainer, however many brands are sceptical about advertising on Amazon.

Regardless of your business model, whether that be working with an Amazon partner, or yourself via Seller or Vendor Central, you should be using Amazon’s advertising features to give your brand the edge over your competitors.

Many brands believe that it is becoming too competitive to advertise on Amazon, and the required investment is too much for the potential return. The important thing to note is that competitiveness is often caused by increased demand. Amazon has seen huge YoY increases in sales through its platform (especially with the majority of us ambushing it through lockdown!), and like many, we are expecting this to continue increasing throughout the next few years, especially as it dominates the European online market even further.

What types of advertising do Amazon offer and what should I use?

Amazon offer various advertising solutions, all with different benefits, costs and potential returns. These include:

The advertising that you should use is specific to you and your brand, and it is not a ‘one size fits all’ scenario. Whilst we won’t go into the full detail in this post the specific benefits of each one, if you are new to Amazon, and more specifically the world of Amazon advertising, we recommend that you start with the following:

Sponsored Products

You should always be looking to advertise your products against key search terms, unless you have managed to drive traffic from your listings via other methods, you will find that not many potential customers will ever find you.

Whilst Amazon’s search algorithm is a well-hidden (well, kind of!) secret, the fundamentals are pretty simple – Amazon want to show their customers product results that they are most likely to purchase based on the search term that they have used. How do they know what products are best to display? They use, among probably hundreds of other data points, click-thru (CTR) and conversion rates for each product on each search term. So how do you grow your organic rankings for a search term? You need to make more sales against it, and the quickest way to do that is through Sponsored Products.

Sponsored Brands

Sponsored Brands is a great way to showcase your brand, your storefront (if you have created one) and up to 3 of your products at the top of a search results page. If you have a storefront, you may find that the ACOS is lower than other advertising campaigns – most sellers find the return on investment (ROI) is much better with this type of campaign.

Sponsored Display

Do you ever look at a competitor’s product and know that yours is better value for money? Sponsored Display offers you the ability to advertise against listings and is particularly effective when your product is both priced lower, and is better when it comes to reviews. The way that you should think is why would a customer come off the listing that they’re currently on to come to mine?

How can I be sure that I’m getting the most out of my advertising campaigns?

Depending on the size of your campaigns depends on the time involved in managing them. Finding the balance between optimising too often and not enough can leave Amazon sellers scratching their heads. You need to allow enough time to gather enough data to make a decision on, but also do not want to leave it too long that you end up burning through money.

The best recommendation is to stick to what you know when it comes to advertising campaigns and stay away from Amazon’s automatic Sponsored Products & Brands campaign feature to begin with, at least if you are working with a low budget, or are wanting to see a good return instantly. By not using Amazon’s automatic campaign feature (which, in effect, chooses your keywords for you) and using their manual campaign feature, you are verifying each keyword that is used within your campaign, and more importantly, the relevance of that keyword to your product. Over time you can look to broaden the campaigns further when you are comfortable that your spend is being used effectively.

I want to focus on other areas of my business rather than managing Amazon…

Get in touch, Unified Retail have established themselves as the largest Amazon brand partner in Europe, and boasts one of the largest FBA selling accounts in the continent. We work with brands to take the headaches of either managing their own Amazon account or selling through Amazon Vendor away.

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