5 Must-Know Marketing Tips for Advertising on Amazon

The "Amazon effect" sums up Amazon's massive success and disruption of the ecommerce industry. As of 2018, the online giant amassed around 50 percent of the total e-commerce sales in the country and earned a 250 percent increase in third-quarter advertising revenue. But there's still good news for companies concerned with remaining competitive: You can utilize the Amazon site to market your products and gain brand recognition.

In the past few years, brands have moved toward advertising on Amazon. Recent studies suggest more than half of the brands surveyed plan to increase their Amazon ad spend while shifting their ad budgets away from Google and Facebook. Here are five essential tips for marketers who want to stand out from competitors while leveraging "the Amazon effect" for their businesses.

Choose the Right Advertising Format

There are several formats you can choose. To be successful, select the one that best meets your marketing goals. If you're unsure, experiment to find the best format. Options include:

 ●       Amazon Sponsored: Best for promoting a specific item and sending traffic to a product page for fast results, these ads are typically displayed at the top, middle, or bottom of search results and on individual product pages.

●       Sponsored Brands: These pay-per-click ads are best for increasing customer loyalty and brand recognition. They appear in the headline banner on the search results page to direct consumers to your preferred landing page.

●       Amazon Product Display: Effective in increasing product visibility during the last step of a consumer's buying process, these ads are interest- or product-targeted to help consumers choose between similar products offered by multiple sellers.

●       Video Ads: Best for reaching a large audience and building brand recognition, video ads appear on various sites and devices owned by Amazon, including the website, Fire TV, and IMDb.

 Create Clear, Succinct, Persuasive Product Pages

The purpose of your Amazon ads is to get consumers to visit your product pages. Those pages are what move people down the funnel, transforming browsers into customers. Choose your most popular products and those that are competitively priced and in stock. Make sure you have accurate, descriptive titles that contain your keywords whenever possible and include useful product information and high-quality images to entice buyers.

Use the Right Mix of Keywords

Most of Amazon's PPC advertising formats use keywords to help with targeting. Use match types to create a combination of broad, exact, and phrase keywords to extend your reach and get your ads in front of buyers most likely to make a purchase.

●       Broad keywords cast a wide net. For example, if your keyword is "handbag," your ads could appear in a variety of searches, including "leather handbag," "black handbag," and "formal handbag."

●       Keyword phrases can change the context of consumer searches. For example, "copper salad bowl" indicates you sell salad bowls. "Salad copper bowl" indicates you sell copper bowls, not just copper salad bowls.

●       Exact keywords are restrictive and require consumers to search for that exact keyword, with no words before or after.

Tip: Use automatic keyword targeting so the system targets the most relevant keywords for your ads. Also, use the reporting tool to keep an eye on ad performance.

Flag Keywords That Aren't Producing Results

Much like how marketers could block negative keywords with Google's AdWords, you can also flag keywords that don't lead to conversions as well as negative keywords that prevent your ads from showing up in front of the wrong people. For example, if you sell handbags but not luggage, you could add "luggage" as a negative keyword so only users looking for handbags will see your ads.

You can download search term reports to find out which keyword searches led to consumers seeing your ads. That also gives you valuable information about the keywords that aren't working, allowing you to flag them and move on with optimized keywords.

Get Familiar with Amazon's A9

Amazon uses complex algorithms to decide when and where products show up in search results. A9 is the powerhouse behind the search box. It decides the product recommendations to make, based on data from previous queries made by shoppers. A9 looks at everything from product titles and descriptions to listing conversion rates to seller feedback. Around 70 percent of shoppers never move beyond the first page of results, which is why you need to understand how it works to optimize accordingly.