Amazon Advertising Strategy

Allows retail media companies to serve targeted ads to their customers on one of the largest ecommerce marketplaces in the world and is based on the pay-per-click (PPC) model.

What is an Amazon Advertising strategy?

An Amazon Advertising strategy is a plan for how a business builds and manages specific campaigns, using a variety of Amazon Ad types, to market to customers shopping on Amazon’s unique properties and devices. A strong strategy includes setting KPIs for specific campaigns, a plan for executing campaigns to achieve your goals, and regular optimization of your campaigns to ensure you’re seeing results.

How does Amazon Advertising work?

Amazon Advertising is based on the pay-per-click (PPC) model, meaning your business will not be charged for an ad until a customer clicks on it. To buy an ad, Amazon relies on the auction method: businesses name the price they’re willing to pay for a click, and those that win the auction have their ads appear.

Why is an Amazon Advertising strategy important?

Amazon has gone from being an online bookstore to the third-largest digital ad publisher in the U.S., behind only Google and Facebook. As a result, creating a strategic Amazon Advertising strategy is absolutely essential for brands wanting to get in front of the most customers. There are four main types of Amazon ads: Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP. You’ll need to understand each of these to optimize your Amazon Ads program mix. It’s also crucial to have an understanding of SEO, how to choose compelling product images, and how to draft strong ad copy.

What are the keys to an effective Amazon Advertising strategy?

To optimize your Amazon Ad mix, there are five best practices to consider:

  1. Be price conscious: A balance of volume and quality is critical.
  2. Be funnel-focused: Consider what ad formats are best to meet potential customers throughout the sales funnel.
  3. Be target-minded: By understanding the different types of targeting, you can seek out your ideal audience with each ad.
  4. Be competitive: Don’t be afraid to bid higher to go up against a competitor, but also know when to back off.
  5. Be retail ready: Make sure your product detail pages are well-built and give customers the information they need about your product.

How do you measure your Amazon Advertising strategy?

Amazon Advertising is fiercely competitive. You’ll want to establish KPIs for each type of campaign to measure success based on your goals. ROAS won’t always be the answer! A marketing platform like Skai is also a powerful tool for planning, executing, and measuring your digital campaigns across a variety of retailers, including Amazon.

See how Skai can power your campaigns.