Leadership

The Blended Approach to Advertising on Amazon

February 28, 2019
Marketing on Amazon is one of the most effective ways you can improve brand visibility and increase sales. But you need to have a balanced approach that harnesses the right blend of the best tools available. Which methods are best and when should you be using them? Let’s look at what you need to know.
 

Awareness Phase: Headline Banner Ads

You want to create awareness when potential customers are in their early browsing phase by covering an entire product category. Headline Banner Ads allow you to display your logo and three products on the top of category and search pages. 
 
For example, if you are a retailer selling blenders on Amazon, then you want to make sure that customers using related keywords (food processor, juicer, mixer, kitchen appliance) see your headline banner ads at the end of their search results. Typically, these will include your brand’s logo and three relevant product listings.
 
There are more than 500 million products listed on Amazon, but this method is what keeps your brand in the game. Expect to put 10%-20% of your ad budget here.
 

Consideration Phase: Sponsored Product Ads

Sponsored Product Ads are the most common advertiser tool and the most direct path to a customer’s wallet. Amazon averages hundreds of transactions per second on their site, which adds up to roughly 200 million customers making purchases every month. That’s a lot of searches. Getting your product listings visibility through organic means alone isn’t easy. 
 
Visibility starts by selecting the branded and non-branded keywords that will direct customers to your product listings. Hone in on the high-performing terms to ensure your ads appear at the top of the search results.
 
People are on Amazon with buying intent, so this consideration page has far higher conversion rates than traditional search CPC. This typically represents 70% to 90% of your marketing budget.
 

Bottom-of-the-Funnel: Product Display Ads

Want to snag a sale just before a customer completes an order with one of your competitors? This method lets you place a product display ad near the checkout cart button. It’s a last-ditch effort to steal a sale. But this strategy is doubly beneficial because it allows you to target consumers most directly and your ads show up on a rival’s product page!
 
You’ll have a lower rate of return with these, but you'll have the most specific targeting. Only wholesalers and 1P vendors can use these ads. Expect to use 10% to 20% of your ad budget here when available. 
 

Takeaway

The blended approach to advertising on Amazon means using the right mix of the platform’s tools to maximize the impact across all of your sales funnels and campaigns.
 
There is no one-size-fits-all formula to help you achieve the best results. Trial and error, expert advice, and a culture of testing can all come into play. But it’s critical to get your blended strategy right.