Everybody is looking at TikTok as the new big thing in online advertising.
Yet, the hottest buyers aren’t on TikTok… They’re on Amazon with a credit card already in their hands.
Investing advertising dollars on Amazon can bring a big ROAS, and we have some tips and best practices to optimize your Amazon marketing campaigns.
Table of Contents
Use Sponsored Brands for top-of-the-funnel campaigns
Maybe you’re familiar with Amazon Sponsored Products campaigns to promote your products on Amazon.
Sponsored Brands ads, on the other hand, let you showcase your entire brand at the top of the search results, not just your products.
Sponsored brands rank within product categories or category keywords.
Use automatic targeting for keyword harvesting
Automatic targeting allows you to discover high-performing keywords that you can implement in your manual ads.
Advertising on Amazon has a flywheel effect
After you start ranking high thanks to paid campaigns, Amazon eventually gives you the “Amazon’s Choice” designation.
This label will give you more visibility and traffic, hence more sales.
It’s an upward spiral, but you have to keep optimizing your campaigns to generate the best results.
Use negative keywords to reduce ad spend
This practice prevents your products from ranking alongside products, brands, or categories that are not relevant to you.
Not only will you save your budget, but you’ll also protect your brand.
Have an agile strategy to manage your advertising cost of sale (ACoS)
When you’re just starting, it’s okay to have a higher cost per sale.
But once it gains traction and positive reviews, you must set the ACoS bar low because sales are easier to get.
Moreover, consider that every category, type, and product should have unique ACoS goals.
Amazon has a bigger ads business than YouTube
Amazon disclosed for the first time the revenue from its advertising business in Q4 2021.
What was the revenue? $9.7 billion.
That makes Amazon’s advertising business the same size or larger than:
- YouTube (which generated $28.8 billion in ad revenue in 2021. In comparison, Amazon made $31 billion.)
- The same size as the entire global newspaper industry.
Who’s bigger than Amazon Ads?
Online, it’s Google and Facebook (generating $61.2 billion and $32.6 billion in ad revenue in Q4 2021, respectively).
When comparing Amazon to the entire advertising industry, this diagram by Benedict Evans should give you a good idea of where they stand.
Why we care
If marketers spend billions of dollars on a marketing channel, there’s a good chance the channel is working (at least for some of them).
We’ve always suspected that Amazon Ads was big, and this statistic confirms that they’re one of the “top 3” online advertising networks.
