Start your first campaign in Amazon Ads

Today, Amazon has become the largest Marketplace in the world. 

If your business is based on e-commerce, Amazon may be a very important strategic and sales channel for you.

The competition within it is increasing, have you thought about using campaigns from Amazon ads to increase your sales opportunities?

Throughout the following post I will explain how to create your first campaign on the Amazon advertising platform and what is the most effective way to start getting results.

Types of campaigns

The first step is to choose the type of campaign you want to create. As in other online advertising platforms, this choice will depend on the business objective you have.

Campañas en Amazon Ads

  • Campaigns Sponsoredproducts or sponsoredproducts are intended to cover searches related to the products you offer within Amazon. These campaigns are therefore focused on users with a greater intention to acquire the desired product and cover an objective sales.
  • Campaigns Sponsoredbrand or sponsoredbrand are focused on increasing our brand awareness without neglecting the sales target. As Amazon is still a marketplace in which users can already be in a mature phase of the conversion funnel. In these campaigns, according to the keywords or keywords for which you bid, your ad will appear above the first product result in banner format in which you can combine the brand logo and three products from your product portfolio.
  • Campaigns Display ads show a featured ad for your product in banner format at a location other than search results. These campaigns are interesting to attack a specific audience, since here segmentation is not used by keywords or keywords but by product categories, interest categories of buyers, and the ASIN (Amazon Standard Identification Number), also called »SKU», which is the identification number that Amazon gives to the products.

Campaign configuration

Once the type of campaign has been chosen, we must take into account two dimensions key: the budget and the type of segmentation.

As for the budget, you can assign a daily budget for each campaign or, conversely, establish a total budget for a period in which you should know that you can only increase it progressively but not decrease it. 

There is the option to add your new campaign to a “portfolio”. The portfolio is an option to group your campaigns by type and objectives internally.

In this way, at a glance you can filter the performance of each portfolio group and be able to draw more conclusive data.

As for segmentation, you must choose between segmentation manual or automatic.

In the segmentation manual, there are in turn two possibilities of segmentation:

  • Keyword Segmentation
  • Product Segmentation 

Keyword segmentation consists of adding those words for which you want your ad to appear when a user searches. Here you decide how much to bid on each keyword at all times.

There are four types of concordance: broad, phrase, exact and negative.

On the contrary, in terms of product segmentation, you can choose between appearing on the product sheet of a competitor or similar products that are related to yours.

Segmentación de productos en Amazon Ads

In automatic segmentation it is the platform itself that establishes for which searches it is more relevant to appear. 

There is the possibility of defining bids by segmentation group: close match, weak match, substitutes and complements.

Segmentación automática en Amazon Ads

Reports

Within the Amazon Ads platform there is the possibility of extracting reports on the results obtained in the different campaigns for a period of time that at most is always three months.

To do this, you must go to the “advertising reports” tab and choose between campaign reports sponsored brand or Sponsored product.

Informes de publicidad en Amazon Ads

In this way you can draw conclusions regarding performance, objectives, search terms that have activated your ads or even analyze in which locations the results have been better.

Optimization actions

One of the key KPIs for your business within Amazon Ads and that helps you measure the effectiveness of your campaigns is going to be ACOS.

This metric represents the percentage of advertising cost attributed to your sales. 

Unlike the metric ROAS, which indicates the return for each euro invested, ACOS represents the total investment divided by the total value of sales.

Therefore, thanks to this KPI’s, you will be able to optimize and make the appropriate changes in your campaigns always trying to meet your profitability objective in relation to your product margins and market price.

From a more detailed level, another key aspect for the optimization of your campaigns and their success, is the bid strategy you set.

There are three possibilities for bid strategy

  • Fixed bids
  • Dynamic bids: only reduce
  • Dynamic bids: increase or decrease

The fixed bid is one that respects the amount you have manually defined for each segmentation and the platform will not make any upper or lower adjustment.

This bid strategy is linked to an objective of ensuring greater control over the investment made and the bids established for each segmentation.

Dynamic bids only reduce,is one strategy that reduces your bid when the platform interprets a particular user is less likely to end up buying your product.

This strategy is linked to an objective of maintaining profitability in a more strict way.

Dynamic bids increase or decrease,modify your bids up to 100% in case there more likelihood that a user ended up buying or conversely, when less likely.

This strategy is linked to an objective of maximizing sales while maintaining a certain profitability control.

Estrategia de pujas de Amazon Ads

Bid adjustments by position

Following the optimization objective, the Amazon ads platform gives the possibility to make adjustments for the specific position of our ads.

Ajustes de puja por posición en Amazon Ads

The first search results refers to appear at the top of the results after any user makes a search.

The product pages, refers to a less relevant position and that normally appears at the end of a product sheet.

In short, Amazon Ads represents a very powerful platform to increase your sales within the Amazon marketplace.

To be able to launch your first campaign you have to take into account, above all, the main objective, the type of segmentation and the profitability indexes represented by the ACOS and that will mark the success or not of your campaign.

It is also important the optimization tasks based on performance and advertising reports that the platform gives you. In this way, campaigns can be adjusted to achieve your sales objectives.

And you, do you think you are ready to launch your first campaign in Amazon Ads? 

If you have not launched it yet and you think you could use some help to implement an effective strategy in Amazon Ads, contact us!

Written by

Jorge Sanchez

SEM · 13 / 02 / 2020

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