How Best To Use Amazon Sponsored Product Ads

What Are The Advantages Of Using Sponsored Product Ads?

Amazon Sponsored Product Ads is the most effective tool for increasing your sales on Amazon. With Amazon Sponsored Product Ads you can get increase ranking for your products; you can increase sales dramatically; you can increase your Buy Box percentage; and you can get your product found for multiple top buyer searches. Rather than waiting for your product to rank organically in Amazon search, you can buy your way to page one without a big budget.

Sure, Amazon doesn’t just give the coveted Sponsored Product Ad spot away on its pages; you have to bid for it with other sellers – and it can get really competitive. However, this isn’t a case where whoever has the highest bid wins. Amazon also looks at the keywords used in the search, as well as the probability that giving you the ad space will convert into a sale (it’s also worth noting that you only pay if the shopper clicks on your ad). Understanding these intricacies, you can increase your chances of winning that coveted sponsored ad spot on Amazon.

Use Up Your Product Title Characters

The title of your product is the single most important aspect (that you can control) to impact the results of your Sponsored Product search results. Amazon allows you to use up to 120 characters – use it! For example, titling your product as “Bar Stool” means you’ve created 2 extremely common keywords that everyone who sells your product will be bidding on.

If, however, you got specific with your product title (including adding the height and added features – like with Footrest) you’ll increase the number of keywords, which will in turn increase your chances of matching the shoppers’ search.

The Daily Budget

As you set up your Sponsored Product campaign, you’ll have to add a daily budget. Consider starting with something minimal, like $5, just to test the waters.

Check on this daily; if you’re constantly hitting your budget but nothing is selling, then the action that’s taking place is folks are clicking and viewing your product page, but not buying. This might be the result of an incomplete listing, poor quality images, or perhaps even the price. Make adjustments, lower your budget, and try again. We suggest making singular changes so you can know specifically, which factor was negatively impacting conversions. If, however, you keep hitting your daily budget and are making sales, consider yourself in a very good position. Increase your daily budget gradually.

Master The Bidding

When you set up your campaign, you’ll see an option to allow Amazon to automatically select your keywords; you’ll also see an option for you to manually select your own keywords. You’re able to enter different amounts for different keywords, which is important because your strategy should be to bid the most for the most relevant words. In our bar stool example above you’d bid more for “bar stools” and not as much for more specific terms, such as “brown” or “adjustable.”

Keep in mind that when you enter a bid, this isn’t necessarily how much you’ll be charged per click. Rather, your bid is the maximum amount you’re willing to pay. In other words, if you bid $0.90 for a keyword, but the next highest bid from another seller was only $0.55, then you’ll end up paying $0.56. Remember that campaigns gain momentum and preferential treatment over time, so avoid stopping and remaking campaigns constantly – you could be doing these campaigns a disservice.

For your new campaigns, consider starting with higher budget and bids and decrease them over time as the products sell and momentum carries these campaigns further.

The Impact Of Impressions

When monitoring your Sponsored Product performance and spending, you’ll see your impression count (the number of times your product appeared in a search). You might discover that one of your products will have a ton more impressions than a similar product. For example, if you sell blenders, then your black blender might have thousands of more impressions then the same blender that’s red. Amazon will feature the product with the variation that is more likely to sell (usually the one with more impressions). However, keep in mind that when a shopper clicks on the ad, it will take that shopper to the product page where they’ll see all variations of the same product.

Is Sponsored Products The Right Tool For Your Amazon Strategy?

Sponsored Products is a powerful advertising tool, but it’s not necessarily ideal for your unique situation. OperationROI can help you determine if it’s right for your business, and how best to create a strategy that prevents the costs from outweighing the sales. Remember, when you first start out with Sponsored Products, it’s good to have a higher budget. As your campaigns build steam, you can decrease the bids. The goal is to closely monitor your performance and develop a long-term strategy from the onset that is both comprehensive and adaptable. Contact our Amazon specialists today – by calling 1-888-277-5429 or by filling out our contact form – to learn more about how we can help you make the most of Sponsored Product Ads.