Why you should be advertising on Amazon

For sellers, the idea of running ads for your products can be scary- the ad world can be overwhelming and time-consuming. Although Sponsored Product Ads are intimidating at first, it’s a necessary step for any successful Amazon private label seller. Here are some reasons you should consider becoming involved in the Amazon ad world.

1.Amazon has some distinct advantages over other ad platforms

Advertising on Amazon has its benefits compared to other ad platforms. Consumers on Amazon are further along in the sales funnel- which makes a huge difference of conversion rates. Compared to Google Ads, conversion rates for Amazon PPC can see up to 5 times more in conversions.

Not just in conversion rates, Amazon has the advantage in terms of price. Since Google AdWords is more established, the cost per click is around 38% higher than Amazon, since Google has more advertisers. Sellers who are just starting to run on ads should consider each advertising platform’s benefits.

2. Find Amazon search query data

For search data alone, Amazon Sponsored Products are worth it. Before, sellers were able to access data about search terms through the Amazon Search Terms Report. But since Amazon’s updated their reporting system, you can only access this data through Amazon Sponsored Products.

In the Sponsored Products search term report, you’ll be able to view data regarding what users are actually searching for when they find your product. Not only will you learn what customers buy, but you’ll learn how customers browse, which will help with enhancing your advertising campaigns and product listings.

3. Help with product launch

If you’re planning on launching a product, Amazon advertising is a powerful tool you can use to your advantage starting from day one. Although this will cost you money, the initial investment will teach you a lot about your product’s potential.

Like we said in a previous blog post, for a new product launch, profitability shouldn’t be your main goal. With a new product, you want to focus on gaining knowledge- like if your pricing is competitive in the Amazon market. You’ll want to keep track of your click through and conversion rates, then compare it to your organic rates. Remember that patience is key since it takes time to grow sales momentum.

4. Reach new customers

Even if you have an established product, Amazon ads can always help you reach new customers. By boosting your product automatically to page one, Amazon ads increase product awareness by exposing your product to more people. Even your product is established and already has sales, they still may benefit from advertising, especially during a slow sales period.

When it comes to creating new campaigns for your products, we have a few tips. Don’t be afraid to gain knowledge by testing different search terms and keywords. You should always be identifying under advertised search terms and optimizing your keywords, no matter where your product lies in its lifecycle. Although maintaining successful ad campaigns aren’t easy, seeing the resulting sales will be well worth it.

5. To be a successful seller, it’s no longer just an option

On Page 1 of an Amazon search, organic search results are occupying less space than ever. Sponsored Products continue to dominate Page 1, taking up valuable page real estate. For the sellers who want their product to be seen, Sponsored Products is a must at this point. Just take a look at an example of how Sponsored Products dominates Page 1 below:

Source: Recode.net

Efficient Era's Automated Ad Management Solution

Above are just a few of the reasons to advertise on Amazon. If you're already advertising on Amazon and are at the point where manual campaign management with Excel or Google sheets just doesn't cut it, you may find our automated solution a great way to not only save you precious time, but also boost sales and maximize the ROI on your advertising spend. Our automation engine generates bid adjustment recommendations by constantly analyzing your campaign data over time. We also help you identify negative keywords and inform you when you don't have campaigns associated with every product.

To try out Efficient Era's Sponsored Products Automation tool, sign up for our 30-day free trial!

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PPC Ninja offers PPC Tools and Consulting Services to Amazon Sellers. Visit us at https://www.ppcninja.com
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