Leadership

How Effective is Amazon Advertising?

February 13, 2019
Where Google once was the place to see huge returns for digital marketers. Amazon now helps companies realize some of the best returns on advertising spend (ROAS).  This shift is largely due to the fact that Amazon sees as much as 67% of all product searches, consumer or business. 
 
Here are some numbers to help illustrate that point:
 
  • Amazon has one of the highest conversion rates in the industry (Amazon Prime Members convert 74% of the time).
  • Amazon controls almost 50% of total ecommerce sales in the U.S.
  • Amazon ads can show an ROI of $10 to every $1 invested. 
  • Amazon’s 100 million Prime Members are incredibly loyal (and inclined to buy).
  • 43% of teens say Amazon is their favorite site.
  • Amazon’s Prime Members spend an average of $ 1,400 a year on the site.
  • 9 out of 10 digital consumers use the site to compare prices.
 

What Can You Do To Advertise Effectively On Amazon?

There are half-a-billion products listed on Amazon, so you need to do your homework. Here are some proven methods to distinguish your brand, products, and listings.
 
  1. Your entire amazon presence matters. Keyword selection, product displays, and content consistency across different channels may seem like separate issues, but they are really part of one unified ecosystem.

    All of your efforts should relate to and reinforce one another. Amazon measures everything and ranks you accordingly. So, you should assume that the smallest details -- be they user reviews, mobile optimization, and keyword refinement -- can make a meaningful difference.
     
  2. Optimize product content. Amazon provides specific guidelines on how to write product descriptions and bullet points. You should optimize your listings and be in line with A+ content before you start advertising. 
     
  3. Making sure your products are Prime-eligible. This increases organic search rank and the likelihood of purchase for Amazon’s best audience of 100 million people. Remember, at least 64% of American households have Amazon prime. 
     
  4. Campaign Management. The most successful campaigns manage keywords by finding which ones click with customers. A successful campaign requires several stages of iteration and testing. Once you find one keyword that works, you’ll want to expand that niche and create different variations. Become proactive about testing. 

    Ask yourself: What’s driving return? Which search terms and campaigns work? And which don’t? Software and other tools like Teikametrics can assist in this process, but it’s prudent to have expert help. 
 

Takeaway

Advertising on Amazon is both a challenge and an opportunity. To improve your chances of success you need to take advantage of Amazon’s marketing reports. This can help you identify the search terms driving interest, return visits, and conversions. 
 
Look for both positive (those that drive good results) and negative keywords.  Optimized pages will rank higher on Amazon’s organic search results. To harness that virtuous cycle, be sure to use every tool at your disposal to find the high-performance keywords (and content) that click with customers.