The Fundamentals of Amazon Advertising

Amazon Advertising Consultants

Amazon offers 3 primary types of advertising: Sponsored Products, Sponsored Brands, and Sponsored Display Ads. In this article, we will share the Amazon advertising strategy and metrics should consider in order to maximize your advertising campaigns.

 

DEFINE YOUR AMAZON ADVERTISING STRATEGY

When considering the type of Amazon advertising that will meet your brand objectives, it’s helpful to visualize a purchase funnel or the customer journey.  Awareness is at the top of the funnel. To drive awareness, you need to target a wider customer base, and your goal is to cast as wide of a net as is practical.  Sponsored Brands and Sponsored Display Ads are ad types that are designed to help drive customer awareness.  On the other hand, to drive product purchase or conversion, the customer target is narrower and specifically defined. Here, Sponsored Product campaigns are best suited for targeting customers who are already aware of your brand and close to making a purchase.

Amazon Advertising Strategy

 

HOW TO DEFEND YOUR BRAND AND GROW SALES

If your Amazon advertising strategy is to drive market share or awareness, then your ads may be higher in the sales funnel.  This means that your target audience will be broader.  As a result, your marketing costs may be higher, and your click-through rates may be lower. On the other hand, if your Amazon advertising goal is to maximize Return on Investment (ROI), then your Amazon advertising strategy may lean towards the bottom of the funnel.  In this instance, your click-through rates may be higher and your Advertising Cost of Sales (ACoS) may be lower, but you may also not reach as many people.

Because of these pros and cons, the best practice is to have advertising executions on all of the different types of Amazon advertising formats – spanning Sponsored Product ads, Sponsored Brand ads, and Sponsored Display ads.  However, the amount of budget that is allocated across these different types will change depending on your business lifecycle and the degree of competition in your category.  Having each type of advertising campaign gives you the ability to defend your brand and grow your market share at the same time.

HINGE GLOBAL is a certified Amazon Advertising Agency.  We have the eCommerce expertise, specialized tools, and technology to help get the most out of your advertising budget.  Please contact us if we can help you grow your brand and optimize your advertising performance.

 

Watch this video featuring our Senior Advertising Manager to learn more.