Amazon is primed to take over the world thanks to services like Amazon Prime. You can sell everything from paper towels to print books to 300 million Amazon members, 80 million of whom are regular repeat customers via Amazon Prime. This is why your advertising efforts must include ads on Amazon. However, you can’t afford to waste time and money on ads that no one sees or fail to result in sales. Here is a quick start guide to optimizing your Amazon ads.

What Should Be Advertised on Amazon

If you’re selling a tangible product people can buy online, Amazon ads are worth investing in, assuming you’re selling the product on Amazon. Amazon gives you another way to get more views of your product pages. Furthermore, it promotes the product to people who are very likely to buy. This gives Amazon ads a high return on the investment relative to other advertising methods.

An Overview of Amazon Ads

Amazon ads are ads that will appear only on Amazon. They may take the form of sponsored product ads. These posts appear near the top of the search results, though they’ll have a sponsored or “ad” notification under them.

Amazon Sponsored Product Ads

Advertisers can pay for these positions by bidding on keywords. Then their ad shows up on the top of the Amazon search engine results page. In this regard, Amazon ads are similar to Google Ads. Advertisers are charged when someone clicks on the ad.

Ads may also be shown on individual product pages. The sponsored related products may appear on the sidebar or at the bottom of the product page. This is a great way to promote complementary products.

How to Optimize Amazon Ads

1. Organise Your Campaigns

It’s not enough to advertise on Amazon. You need to optimize the pay per click ads to get the most out of your advertising budget.

The first step to optimizing Amazon ads is to organize your campaign. You could create a campaign for each product category you sell in. It could be organized by product function. Or you could create campaigns focused on keywords or product names.

You can’t ignore the importance of search engine optimization on Amazon product pages. Use the same keywords in the product listings that you’re using in the ad campaigns.

2. Choose the Right Keywords

The value of bid optimization on Amazon cannot be ignored. You don’t want to over-pay for ads. With Amazon paid ads, it is similar to an auction. Whoever pays the most will have their ad displayed. You lose if you underbid, but you lose money if you overbid.

Amazon PPC ads are based on what you pay, too, but the person who bids the most won’t necessarily have the greatest visibility. The ads will be based on organic search and sales history. This makes choosing the right keywords for your ad campaign essential. You may not get them right at first, but you can determine what is right in each case with deliberate trial and error.

3. Monitor Performance

Monitor the ad campaign’s success. Run Amazon search term reports periodically. Look for keywords that don’t generate sales. Use that information to update the negative keywords to exclude irrelevant keywords. Then your ads won’t show up to people who won’t buy your product and you aren’t paying for ads that won’t result in sales.

4. Calculate ACOS

Calculate the ad cost over sales or ACOS for each keyword. Make a list of keywords with the lowest ACOS. Then create a new ad campaign focused on these keywords with a greater budget since these are the optimal keywords for your product.

Eliminate the keywords with the worst ACOS ratio since they obviously aren’t worth it. Review your keywords, too, so that your campaigns aren’t competing against each other, reducing the return on each. The solution here may be setting negative keywords or altering the keywords associated with the ad campaign.

5. Test New Keywords

You can test new keywords periodically. Set higher bids for these searches so that you quickly generate enough data to determine if the keyword is actually profitable. For example, you could use different match types for your keywords or use long-tail keywords.

Conclusion

Advertising on Amazon is essential to maximize sales. However, you need to take steps to maximize the bang for your marketing buck.

Related: 11 Ways to Reduce Your Amazon ACoS (Advertising Cost of Sale)

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