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Prabhat Shah — Taking Amazon Advertising to the Next Level


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These slides were presented at the SEMrush webinar "Taking Amazon Advertising to the Next Level". Video replay and transcript are available at

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Prabhat Shah — Taking Amazon Advertising to the Next Level

  1. 1. 29th January, 2020
  2. 2. Agenda: ● Optimising your keywords, ● Optimising your ACoS, ● Structuring your campaigns for success, ● Organising your campaigns into portfolios, ● Getting the best out of Sponsored Brand Ads (SBAs) and Sponsored Display Ads (SDAs)
  3. 3. Just a quick intro….. ✔️ Working with Amazon Sellers since 2007. ✔️ Currently working with various Seller & Vendor Central Amazon Sellers launch, optimise and increase sales via Amazon Advertising. Find out more here
  4. 4. Three key types of Amazon Ads available for Seller Central and Vendor Central
  5. 5. Sponsored Brands Ads (SBAs) Formerly known as headline search ads – these ads are displayed above the search results, at the footer and on product pages
  6. 6. Sponsored Product Ads (SPAs) These are displayed at the top of bottom of a search results page – and on a product pages.
  7. 7. Sponsored Display Ads (SDAs) This ad type targets and is displayed on a set of products based on your targets. This enables you to create cross sell or upsell opportunities on your own product pages, steal sales from a competitor or position your products with complementary items.
  8. 8. How do I optimise Keywords?
  9. 9. “Making sure you’re targeting the right keywords with the right bid is one of the secrets to success on the Amazon platform.”
  10. 10. 1. Use search term report to find customer queries vs conversion
  11. 11. ● Use this search term report to identify irrelevant keywords and add them as negatives. ● Increase bids for the most converting keywords so you get continuous sales.
  12. 12. Non-converting KW
  13. 13. Converting KW with low ACoS
  14. 14. ● Increase bids for keywords with low numbers of impressions – it would suggest the win rate is quite low and therefore the advertiser is only winning a placement quite low down/hardly ever seen.
  15. 15. ● The report also gives you Advertising Cost of Sale ( ACOS) and Return on Ad Spend (ROAS) which help you to determine the profitability of your campaigns. ACoS = Ad Spend / Sales % ROAS = Sales / Spend
  16. 16. ACoS- Our cost of conversion was 1.3% of the sales ROAS - For every dollar we spent, it generates $75 worth of revenue.
  17. 17. ● The report also gives you Advertising Cost of Sale ( ACOS) and Return on Ad Spend (ROAS) which help you to determine the profitability of your campaigns. ● Sales are attributed to any purchase within 7 days from a click in seller central and 14 days from click in vendor central
  18. 18. External keyword tools such as sonar can provide valuable ideas for more keywords, they, however, do not rely on search queries alone for your products. As a secondary source, they’re extremely helpful in expanding the scope of your keyword list.
  19. 19. Groups with 20-30 Keywords are manageable.
  20. 20. 2. Analyse the performance of each keyword to assess their strength
  21. 21. Weak keywords: Keywords with high spend and low conversion are best kept as negative to improve advertising efficiency if the aim is to reduce cost of conversion (ACoS)
  22. 22. Cost-effective keywords: Get a list of low- cost keywords. You can bid on these strongly to generate consistent sales.
  23. 23. 3.Allocate optimum bid
  24. 24. Allocate a higher budget for successful keywords in manual campaigns. A higher budget improves your bid’s win rate giving keywords a better chance to generate impressions and therefore clicks.
  25. 25. Allocate all match types for each keyword into three groups. Exact match is not always a good target and the broad one is not a bad one either. So, your campaign will look like below
  26. 26. 4. Use Negative KW
  27. 27. Use Negative keywords to limit the wastage. Use exact match type just so you don’t stop additional traffic.
  28. 28. How do I optimise my ACoS?
  29. 29. 1. Define target ACoS Get your profit target for your sales on Amazon platforms. Once you have profit % you can target your ACOS lower than this.
  30. 30. An example: If we have 43% profit before advertising, 20% ACoS would give you 23% return.
  31. 31. If the ACoS is higher than 23% you are making a loss on every sale you generate via advertising.
  32. 32. Going beyond 23% cost may be acceptable to get initial sales.
  33. 33. 2. Lower bids on high ACoS keywords
  34. 34. If your keywords are generating high ACOS then reduce CPC bid.
  35. 35. 3. Stop advertising
  36. 36. If any variations is not performing well, it is best to stop advertising. But don’t make early judgement. Usually, it is best practice to allow certain % of the value of the product to be spent without sales.
  37. 37. Sponsored Brand Ads are known to have high ACoS
  38. 38. New to Brand % tells us what the percentage of sales from customers who have bought from the brand in the last 12 months. If this is higher than 80% with higher cost than other ads, that’s acceptable.
  39. 39. How do I structure my campaigns for success?
  40. 40. The structure you give in your campaigns will affect how many ads you can display at one time as well as how easy it is for you to manage your keywords and gain insights into consumer behaviour.
  41. 41. Auto campaigns: You can structure this based on product types, category, top sellers or seasonal campaigns.
  42. 42. Manual campaigns: These are generally the second phase of advertising. By that time you know what keywords are performing well and what is not.
  43. 43. A very granular campaign would have one or a group of similar products, divided into three groups with BROAD, PHRASE and EXACT match. In this case, you have full control over each keyword.
  44. 44. It’s best to keep both auto and manual campaigns working hand in hand. Auto campaigns may initially create some additional cost but when negative keywords are added the wastage is lowered.
  45. 45. Please note that Manual KW campaigns does not appear on product pages but Auto campaigns does.
  46. 46. With advertising, you spend a lot of time researching keywords & auto campaigns eliminates this work. You’ll know the best performing keywords from your search term report.
  47. 47. Organising your campaigns into portfolios
  48. 48. Relatively new feature “Portfolios” offers a way to group or categorise your campaigns. Grouping can be made logical based your campaign goals. We will take a look at some goals.
  49. 49. Example 1: Event Based Valentine’s Day - Budget 5,000 SPA, SBA
  50. 50. Example 2: Keywords Based Brand KW - Budget 5,000 SPA, SBA Example 2a: Keywords Based Generic KW - Budget 5,000 SPA, SBA
  51. 51. Example 3: Defensive Sponsored Display Ads and Sponsored Product Target Ads displaying your own products. These ads are there to mostly keep your product pages clean from competitors but also function as cross-selling and upsell opportunities. Let’s see some examples.
  52. 52. Getting the best out of Sponsored Brand Ads (SBAs)
  53. 53. Amazon Sponsored Brands Ads (formerly Headline Search Ads) allows sellers to engage with customers with a prominent positioned ads. Amazon has now expanded Sponsored Brands targeting options and you can target Keywords, ASINs and categories.
  54. 54. Where does my ad appear?
  55. 55. Advertise your Store
  56. 56. You can choose home or category pages A/ B test with logo and lifestyle image Write a compelling tagline, AB test sounds good idea
  57. 57. You can interchange products Increase brand awareness with this option.
  58. 58. Targeting - Keywords NEW
  59. 59. Amazon may then decrease your bids for other placements (other than top of the search) based on your observed conversion rate for those placements.
  60. 60. Pick a list of best performing keywords from your Sponsored Product Ads. Test all three match types and avoid assuming exact match works better than others.
  61. 61. Advertise specific products. It is good practice to choose products with reviews Advertising a product range
  62. 62. Select minimum 3 products
  63. 63. If you add more than 3 products shoppers are directed to a list of products which is more than 3 increasing choices
  64. 64. Similar process as done previously with store ads
  65. 65. Targeting - Products NEW
  66. 66. Target options: - Suggested category - Search category
  67. 67. Target options: - Suggested products - Search products by ASIN or Keywords - Upload a list of ASINs
  68. 68. Use metrics like ACoS to measure performance and there are other important metrics..
  69. 69. New Sponsored Brand Metrics • % of orders new-to-brand is the percentage of total orders that are new-to-brand orders. • % of sales new-to-brand is the percentage of total sales (in the local currency) that are new-to-brand sales. • New-to-brand orders is the number of first-time orders for products within the brand over a one-year look back window. • New-to-brand sales is the total sales (in the local currency) of new-to- brand orders.
  70. 70. New Sponsored Brand Metrics • If ACoS is higher than SPAs but if NTB sales is above 80% that is still good because your ads are generating additional sales from customers who have bought from you before.
  71. 71. Getting the best out of Sponsored Display Ads
  72. 72. How does this work? • Audiences are automatically created based on relevant Amazon shopping activities to help you achieve your business objectives
  73. 73. How does this work? • Sponsored Display can be helpful to raise product awareness.
  74. 74. Where will my Sponsored Display ads appear?
  75. 75. Engage audiences whose shopping activities on Amazon demonstrate interests in product categories related to your promoted product. Targeting - Audience
  76. 76. • Amazon’s audience targeting functions like Google’s custom intent audiences that are made up of people who have searched for specific things on Google. • With Amazon’s search-based targeting we build an audience of people based on what they searched for on Amazon.
  77. 77. Targeting - Products
  78. 78. •Target as suggested •Target search for your competitor •Enter a list of ASINS •Target Competing, Complimentary or a Very close competitor
  79. 79. •Load your logo, brand and an appealing tagline
  80. 80. Where will my Ads display?
  81. 81. Where will my Ads display?
  82. 82. Targeting - Categories
  83. 83. Amazon allows to target only relevant category by default linked with your product And the rest of the ad copy process is the same as before
  84. 84. * Choose products
  85. 85. Sponsored Display Ads - Reports ● High ACoS but additional sales ● No in-depth data reports Category Target Product Target Audience Target
  86. 86. Let’s conclude with Amazon Strategies
  87. 87. Any questions?
  88. 88. Checkout our full day Amazon Advertising and SEO training on April 2020
  89. 89. Prabhat Shah Amazon Training & Consultancy @daytodayebay