Everything You Need to Know About Amazon Sponsored Brands Ads
This article is divided into two sections: part one and part two. Part one is an introduction to Amazon Sponsored Brand Ads and their relevance in the competitive landscape. The first part also discusses four primary benefits of using Amazon Sponsored Brand Ads. Section two offers tips on how eCommerce merchants can optimize their Amazon Sponsored Brand Ad campaigns to rise above the competition.
One of the main reasons Amazon is so popular among sellers is that it offers many Sponsored Ad opportunities and encourages campaign customization. Amazon Sponsored Brand Ad campaigns recognize the importance of product discoverability and have the utmost potential to increase sales and boost brand awareness.
- What Are Amazon Sponsored Brand Ads?
- Benefits of Amazon Sponsored Brand Ads
- How to Optimize Your Amazon Sponsored Brand Ads Appropriately
- Seven Strategies to Optimize Your Amazon Sponsored Brand Ad Campaigns
- Conclusion and Final Remarks
What Are Amazon Sponsored Brand Ads?
Once known as headline search ads, Amazon Sponsored Brand Ads are PPC ads that increase and facilitate product and brand discovery. These types of ads focus on boosting traffic and building brand awareness by targeting customers with high purchasing intent. The advertising space reserved at the top of search results for such ads is considered prime real estate on Amazon. Advertisers using Amazon sponsored brand ads can:
- Customize the position of the ad within a limited area
- Add a featured image
- Add a video
- Write their own ad copy
- Choose to advertise three different products belonging to the same brand
When shoppers click the featured image, they arrive at the designated URL address, Amazon store, or landing page. If shoppers click on the product, they are redirected to the product detail page.
Benefits of Amazon Sponsored Brand Ads
Amazon has 15 marketplaces, with roughly eight million sellers worldwide. The name of the game is simple, the more sellers on Amazon, the fiercer the competition. Amazon Sponsored Brand Ads allow sellers to distinguish their product from the competition by making their brand more conspicuous.
Amazon Sponsored Brand Ads can be the difference between a win or a loss in modern businesses where the competitive landscape is far from scarce. Amazon recognizes this aspect of its platform and therefore affords vendors the possibility to build and increase brand awareness..
Four Benefits of Amazon Sponsored Brand Ads
- Enhanced Product Visibility – Products with Sponsored Brand Ads are allocated a special spot at the top of search results, detail pages, and headers. These areas are recognized for having excellent visibility and yielding significant results.
- Multiple Products Display – Another benefit of having Amazon Sponsored Brand Ads is that it allows you to display three products simultaneously. Displaying several products at once can boost your sales exponentially while diversifying your offer and showing variety. This is especially powerful when it comes to introducing shoppers to products they are unfamiliar with.
- Increase Store Traffic – Similar to PPC ads, Sponsored Brand Ads are an easy way to increase traffic to your store. These types of sponsored campaigns directly drive traffic to product descriptions and their ASINs in store. At the same time, you can generally look to connect more people with your brand by driving them to your store directly.
- Boost Sales – Ultimately, sales are all that matters in the world of eCommerce. As discussed, Amazon Sponsored Brand Ads provide better visibility, offer multiple displays, and increase traffic, but that is not all that they do. They also increase sales and improve your chances of converting a lead into a customer.
How to Optimize Your Amazon Sponsored Brand Ads Appropriately
Of course, every advertising strategy can yield great results. However, the approach needs to be strategic to achieve success. You cannot just invest money without optimizing your advertising campaign. The goal is to make the most out of the money you invested.
Luckily, with a bit of effort and understanding, you can quickly learn to optimize your Amazon ads to increase conversion rates. This next section offers a detailed overview of seven fundamental strategies to optimize your Amazon Sponsored Brand Ads campaigns.
Seven Strategies to Optimize Your Amazon Sponsored Brand Ad Campaigns
1. Proper Keyword Targeting Is Key
To have a lucrative Sponsored Brand Ads strategy, it is essential to conduct Amazon keyword tracking and Amazon keyword research. The ad you create will be displayed to users in their searches only if one or more of the keywords you use is part of their search query.
This means that your keywords need to be relevant to what customers are looking for and the products you plan on advertising. Still, not all keywords are the same. Your keywords will be different depending on what you want to focus your campaign on.
- Building Brand Awareness With Keywords: If you want to build brand awareness with your campaign, you need to find common short-tail keywords relevant to your products and search queries. These keywords need to be unbranded and refer to general product descriptions. Simply put, you need to match the intent of the shopper. For example, if someone searches for “organic makeup,” they know what kind of product they want but may not necessarily know which brand to buy it from. In this situation, you will include the keyword “organic makeup” and display your best products so that shoppers can learn about them and your store.
- Branded Keyword for Retaining Your Market: Branding is not only about expanding your influence but preserving your current market, as well. You can do this with the right keywords. In a situation where you already have a group of customers that shop from your competitors, you can use branded keywords to put your products in front. This is how you can compete with the current competition and new upcoming companies. Branded keywords can include your store’s name, the name of your brand, some abbreviation of your products, and so on.
- Use the Manual Campaign to Find High-Converting Keywords: Manual campaigns allow Amazon sellers to select which keywords they want to bid on. By manually bidding on keywords, you have more precise targeting, which can, in turn, lead to more sales. In sum, if you have potential keyword ideas, use manual campaigns to help you find the most effective one for your Amazon Sponsored Brand Ad campaign.
2. Know Your KPIs and Advertising Goals
You need to know what you want to achieve before starting an ad campaign. Once you have a determined goal in mind, you need to decide which metrics are best suited to help you measure the success and efficacy of your campaign.
For example, impressions are crucial if you want to build brand awareness. Impressions equate to awareness, and they can also help you understand which campaigns had the most success. However, if you want to increase sales, conversion rates are the most logical metric to benchmark.
Do Not Neglect “New-to-Brand” Metrics:
Advertising campaigns should always strive to attract new customers. If this is the goal of your campaign, the “new-to-brand” metric can be used to track who is buying products through the Sponsored Brand Ads. In other words, the metric determines whether existing or new customer purchases can be attributed to your sponsored ad. All other “new-to” metrics could also help assess the efficacy of your ad campaign.
3. Test Out Different Placements
Custom Bid Adjustments: With custom bid adjustments, advertisers can adjust the volume of bids with a percentage modifier and manage all placement bids. They work to either decrease or increase your bid throughout different placements. If your other placements are not working well, this option allows you to lower the bid percentage and focus your efforts elsewhere. Custom bidding for Amazon Sponsored Brand Ads requires constant manual work.
Automated Bidding: Using automated bidding for your Amazon Sponsored Brand Ad campaign will automatically work to maximize your advertising cost of sales (ACOS) across placements. Essentially, this type of bidding gives Amazon the power, through data-driven insights, to place a bid on a keyword. It will set placements on the expected conversion statistics while looking at the top of search placement numbers.
4. Align Search Intent and Advertising Copy
Typically, advertisers do not pay much attention to the copy of their ads. Advertising copy is a sort of branded content that seeks to persuade potential leads into becoming customers. Advertising copy has undeniable potential when it comes to making the most out of your Amazon Sponsored Brand Ads.
Content has power, and incorporating keywords in your headline can connect a product to a potential customer. Rule of thumb: advertising copy should be short and sweet and should only include relevant information to ensure consumers click on your products. Additionally, when it comes to Amazon Sponsored Brand Ads, you should aspire to add more character to your copy. For instance, you can incorporate your unique selling line or your brand tagline and use words that best describe your brand or products.
5. Perform A/B Testing
While it may seem like tedious work, A/B testing Amazon Sponsored Brand Ads can save advertisers and brands in the future. This type of testing allows brands to see what consumers looked for and what made them most likely to convert.
Since Amazon Sponsored Brand Ads have several customizable features, A/B testing allows you to test several variables. Moreover, testing Sponsored Brand Ads have the utmost potential to increase campaign efficacy, diminish the possibility of a disconnect with the market, and decrease the chance of a loss in sales.
Suggestions for A/B testing Amazon Sponsored Brands campaigns:
- Avoid changing multiple variables to get better conclusions.
- Run multiple campaigns at the same time.
- Perform testing for at least ten days to spot trends, changes, and the effects of your actions.
- Look for the criteria that align with your test results and business goals.
6. Custom Landing Page or Store?
This is a very important question that needs answering. However, the answer is not always straightforward as it depends on several factors. For example, if you want to boost brand awareness with Amazon Sponsored Brand Ads, you should send traffic to your store page.
This is where you can make a good impression on new customers and connect them to your brand. However, if the primary goal of your advertisement is to drive sales, sending customers to a custom landing page allows you to display your ASINs without additional visual distractions.
Nevertheless, it is always beneficial to compare the performance of your custom landing page and store to see which one performs better with sales. To increase sales, look at your ASIN selection conversion rate to determine which products to feature in your ad. It is also effective to emphasize products that have positive reviews as the star rating will also be present in your ad.
7. Determining Your Budget
It is also important to consider what course of action you would like to take to budget for your ad campaign. After all, you want to make the most out of the money you invest. When choosing your budget, there are two options:
Daily budget – the price you are willing to spend every day on your Amazon Sponsored Brand Ad. For example, if your daily budget is $20, you will never pay over that. Remember, you will not always reach your daily budget if your campaign is unsuccessful.
Lifetime budget – the total price you are willing to spend on the ad campaign for as long as it runs. The lifetime budget can be a good option during particular seasons or holidays. For instance, if you are expecting a surge of customers, you can use a lifetime budget to get as many customers as possible in a short period.
Conclusion and Final Remarks
Amazon Sponsored Brand Ads are a good option for sellers looking to promote their brand and increase sales. To develop an effective advertising strategy, be sure to use an Amazon keyword research tool to optimize your campaign among other Amazon advertising analytics tools. It all comes down to being relevant and satisfying a customer’s needs.
Tricking shoppers into clicking your product based on misleading keywords and descriptions will only increase the bounce rate of your page. This is not how you establish yourself as a prominent brand or build customer loyalty. Instead, start slowly; make sure to test your campaigns to determine what optimize for your products and brand.