- Caroline Powell
- On March 10, 2020
It’s a running commentary around the Seller Labs offices that most questions are answered with, “It depends,” especially when it comes to Amazon Advertising strategies.
“What should my ACoS be?” “How many clicks without conversion mean that the keyword isn’t working?” “How much should I be spending on Amazon Advertising?”
The reason that we use “It depends” so frequently is because every business is different. The advertising goals that work for one business likely won’t work for another. Even within one company, the goals of separate campaigns will vary.
Now, what’s the difference between a goal and a strategy, especially as it comes to Amazon Advertising?
Goal (n): the result or achievement toward which effort is directed
Strategy (n): a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result
Thus, a goal is what you want, and your strategy is how you get there. When it comes to Amazon Advertising, your goals should all be attached to measurable metrics. There are a plethora of metrics to choose from as well: Cost Per Click, Cost Per Sale, Conversion Percentage, Ad Revenue, Impressions… It’s overwhelming.
Catch up on what metrics you should be monitoring in our TACoS Tuesday webinar replay.
Strategy: Brand Awareness
This strategy’s profitability and effectiveness may not be immediately apparent, but the long-term returns have the potential to be astronomical. You can think of it like those sign spinners on the side of the road. They’re less likely to drive sales than a direct marketing campaign, but you’re getting your name out there. Those spinners are letting the people in their cars know that your store is there.
Sponsored Brand Ads are great examples of “brand awareness” advertising campaigns. A customer comes to Amazon and looks for something like “coffee” or “slippers.” They’re not searching for any specific brand, but you know you want to get your brand out there for those general keywords. Additionally, Sponsored Brand Ads offer New to Brand Metrics, which will illustrate how many purchases have come from shoppers who have not purchased from you within the last year.
Goal Metric: Impressions. Gaining brand awareness is all about impressions. You want to increase the number of eyes on your products. If you see impressions increase, you’re doing well for your goal. You could also use the New to Brand Metric as well.
Strategy: Competitive Attack or Offense
Yet another term for this strategy is “Conquest.” This is another strategy that’s going to be a bit expensive since you’ll likely be bidding against brands trying to own their keywords. Really, you’re trying to steal market share from your competitors. The keywords you’re targeting here are, indeed, brand names.
Additionally, you could target top keywords your competitors are ranking for, beyond their brand name. With a little bit of research in Scope, see what keywords or ASINs are top performers for your competition, and estimate the cost for usurping their rank.
Goal Metric: This will be a longer term goal of reducing your average CPC over time for these particular keywords. If you’re able to bid lower and still gain that traffic, you’re conquering those keywords.
Strategy: Brand Loyalty or Defense
This is the opposite side of Competitive Attack goals. An advertising campaign aimed at Brand Loyalty targets customers who know and love your brand. It’s likely these campaigns will be a bit more expensive, but are likely to have a higher conversion percentage.
Chances are, competitors are trying to target your branded and popular keywords, just like you are to them. No matter if you’re Adidas or someone new, you need to remain in control of your branded keywords. Would you let someone steal your product blueprints just because you made the actual product first?
This is also a great opportunity to utilize a feature like “Repeat Buyers” within Feedback Genius. Take note of a customer’s loyalty over time by acknowledging and celebrating it.
Goal Metric: Conversion Maintenance. You’re trying to maintain your top keywords and branded terms, so you don’t want to see any sort of decline in conversions. Chances are, that means your competitors are stealing your sales.
Strategy: Conquer a keyword.
When our Managed Services team starts working with a client, they try and figure out what top keywords can and will perform for a brand. Focus on 3-5 keywords and really OWN them. Which keywords you select will depend on a competitive analysis. There are keywords that may be financially impossible to own at certain points, but there are always other ways.
Goal Metric: Top of Search Impressions & Clicks. Yes, impressions and clicks anywhere are helpful, but conquering a keyword means being at the top all the time.
Did you know that Seller Labs Pro can help you do this? Check keywords for search volume and position changes to see if it’s worth your effort, without too much trial and error.
Strategy: Optimal shopping time.
If you’ve been utilizing our Ad Scheduling feature, you know when your ads convert the most shoppers. Once you’ve done the research, dedicate a campaign or group of campaigns specifically to when your buyers are most likely to convert. Since they’re shopping and likely to buy, toss more money into these budgets.
Goal Metric: Conversions. Focusing on when customers actually buy will help boost your conversions.
Treating campaigns or campaign groups as separate entities (like you can do with Ignite for Amazon Advertising) really helps you dial in your advertising goals. Some campaigns may be designed to help with brand awareness while others function solely to steal traffic from your competitors. While this list is not all of the goals you could have with your advertising campaigns, it’s a good place to start to find some new strategies.
If you need help determining your goals and what Amazon Advertising strategies you need to reach them, reach out to our Seller Labs Managed Services team. We’ve worked with hundreds of sellers over thousands of campaigns with millions in ad spend. We can help build a strategy unique to your business, aimed at reaching your goals.