Amazon Demand Side Platform (DSP) Advertising

As Amazon becomes more crowded and traditional Amazon advertising becomes more expensive, leading brands are seeking ways to distinguish themselves. One such method is programmatic advertising. In Amazon’s case, this is the Amazon Demand Side Platform or Amazon DSP. 

What is Programmatic Advertising? 

Programmatic advertising simply means using automation – a program, if you will – to buy and sell ads. 

What is Amazon Demand Side Platform (DSP) Advertising? 

Amazon DSP is a platform that allows brands to programmatically buy display, video, and audio ads that appear across Amazon’s vast media network.  

The greatest value add of Amazon DSP is that it allows advertisers to tap into Amazon’s first-party data. As a shopper on Amazon, every search, view, click, purchase, and review is tracked. This data tracking extends to Amazon’s myriad properties, from their websites and apps (more on that below) to their consumer devices, like Fire TV and Amazon Echo.  

In short, Amazon has a wealth of data about how, what, when, and potentially why consumers buy what they buy. While keeping the data anonymous, Amazon DSP allows advertisers to use it for marketing their products. 

Do You Have to Sell on Amazon to Use DSP Advertising? 

Brands are not required to sell products on Amazon to utilize Amazon DSP. They can use DSP to direct shoppers to their direct website, for example.  

As of August 2021, Amazon DSP is available in the following countries: 

  • Australia 
  • Brazil 
  • Canada 
  • France 
  • Germany 
  • India 
  • Italy 
  • Japan 
  • Mexico 
  • The Netherlands 
  • Saudi Arabia 
  • Singapore (coming soon) 
  • Spain 
  • The United Arab Emirates 
  • The United Kingdom 
  • The United States 

Where do Amazon DSP Ads Appear? 

Amazon DSP ads can appear on: 

  • Amazon, including on the homepage, Amazon Live page, product detail page, all reviews page, search page, deals page, and thank you page 
  • Amazon owned websites, such as Audible, Buy Office Mojo, Goodreads, IMDb, ShopBop, Twitch.tv, and Zappos
  • Amazon owned apps 
  • Amazon devices, such as the Amazon Echo, Fire TV, Fire table, and Kindle 
  • Affiliate websites and apps in Amazon’s network 

Amazon Ad Specs

Amazon’s ad sizes and policies can be found here. This page includes ad specs for Amazon DSP, audio ads, Fire TV, IMDb, Twitch, and a dozen other options.

Targeting Options in Amazon DSP 

Unlike traditional Amazon ads that target specific keywords or ASINs within the Amazon marketplace, Amazon DSP ads use Amazon’s first-party customer data to retarget consumers based on demographics, location, interests, categories they previously browsed, previous product views, previous purchases, device type, and more. 

Specifically, audience targeting is broken out into six options:  

In-Market  

Shoppers who have demonstrated high intent to buy within your product subcategory within the past 30 days. 

Lifestyle 

Shoppers whose search history and previous purchases relate to a particular lifestyle, such as pet owners or outdoor enthusiasts. 

Contextual  

Shoppers who have recently browsed for products similar to your offerings. 

Remarketing 

Shoppers who previously searched for, viewed, or purchased your or a competitor’s product. 

Audience Lookalike 

Shoppers who resemble the demographics and buying behavior of your previous customers. 

Advertiser Audiences 

Lists that the advertiser provides. 

What Ad Types are Available in Amazon DSP? 

There are four ad types available currently in Amazon DSP. 

1 – Static Ads 

Like the name suggests, static ads do not have dynamic elements. These ads feature a simple image and call-to-action. They can direct shoppers to an Amazon product listing, Amazon Brand Store, or your direct website. 

homepage ad placement

2 – Dynamic Ads 

Dynamic ads are just that – dynamic. The content within the ad is automatically optimized based on the audience. For example, if Amazon has observed a purchasing behavior wherein a shopper is more likely to read customer reviews before purchasing a product, they can serve an ad displaying a customer review.  

product detail page ad placement

Dynamic ads can only direct to an Amazon product listing page, so this is not a viable option if you use DSP to promote your direct website. 

3 – Video Ads 

Convenient that the names for each ad type is self-explanatory, right? Video ads display videos on and off Amazon, and they can direct to your products on Amazon or your direct website. 

Source: Amazon

4 – Over-The-Top (OTT) 

Okay, this is a slightly less descriptive name. OTT ads are full screen video ads that display on TV sources. Like a typical television commercial, these ads are not clickable. Instead, their purpose is to create awareness and incite shoppers to take action in a separate medium. 

Fire TV ad placement
Source: Amazon

What does Amazon DSP Cost? 

Amazon DSP requires a minimum total ad budget of $35,000. This minimum budget varies by country. The minimum required ad spend can also be lowered by partnering with an agency that manages a considerably larger monthly ad budget (typically achieved by managing ad spend for multiple clients). 

What is the Difference Between Amazon DSP and Sponsored Display Ads? 

Amazon also offers Sponsored Display Ads, which share some similarities with Amazon DSP. One of the biggest differences is costs: Amazon DSP comes with a minimum budget of $35,000, while Sponsored Display Ads are a pay-per-click (PPC) ad type just like Sponsored Product Ads and Sponsored Brand Ads. The other big difference is that Sponsored Display Ads are self-service, while Amazon DSP requires management (more on that below).

Amazon Sponsored Display Ads

Sponsored Display Ads target shoppers based on previous engaged with designated ASINs rather than by keywords. These ads can appear on and off the Amazon marketplace. Sponsored Display Ads blur the lines between the Awareness and Consideration stages of the buyer’s journey, inciting interest in shoppers both off and on Amazon. They are a potent tool for retargeting, though they lack the audience targeting and ad placements of DSP. 

How to Start Using Amazon DSP Advertising 

If you want to launch an Amazon DSP ad campaign, you have two options: self-service or managed-service. 

Managed-Service 

Under this option, Amazon will manage your DSP ad campaigns for you. The Amazon team provides data, consulting, and an advertising plan (more on that below). To access this option, you must commit at least $35,000 in ad spend. 

Self-Service  

If you’re able to spend at least $100K per month on DSP, you can access the self-service option. In this model, Amazon does not manage your DSP campaigns, but the name itself is a little misleading, as you still have to work through an authorized agency. The benefits of this model is that, through your Amazon agency, you can exercise greater and more direct control over your DSP campaigns than if an Amazon account manager ran your campaign. 

Can Kaspien Manage My Amazon DSP Advertising? 

We can! Kaspien has run multiple DSP campaigns successfully for our partner brands. If you’re interested in learning more, please reach out to your account manager or get in touch with us through our contact form. 

What to Expect from Your Amazon DSP Plan 

When you decide to launch an Amazon DSP ad campaign, an Amazon account manager will be assigned to you (or your agency, if you have an agency manage it for you). The Amazon DSP team will use Amazon’s exclusive first-party data to prepare a report that includes: 

Category & Brand Insights 

This section may include common concerns for your product category, trends on when shoppers are most active in this category, data related to branded searches, repeat purchase rates, which ad types your top competitors use, and percentage of competitors who run advertising. 

Advertising Plan 

This section features a detailed DSP advertising plan based on that data, which also includes the opportunity size. The opportunity size may factor in the number of shoppers who have visited your product category, the number of shoppers who visited products similar to yours but not purchased, the number shoppers who visited your product but not purchased, and the number of shoppers who bought your product. Target for customer acquisition and/or average revenue per customer needed in order to hit growth goals.  

Recommended Budget to Achieve Designated Goals 

The recommended budget is based on the goals you provided and the data/trends the Amazon team discovered in their review. The recommended budget may be broken out by quarters and key holidays/sales events. 

Amazon DSP Advertising Case Study 

Background 

Strider is a leading kids’ toy company known for their revolutionary bikes. We’ve partnered since 2018, steadily growing their Amazon sales. Amid the chaos of 2020, we launched one of our most ambitious Amazon DSP campaigns yet. 

Our Strategy 

We set two goals for the DSP campaign: Increase new customer acquisition and improve conversion rates for shoppers already familiar with Strider. 

To support these goals, we targeted shoppers who had viewed Strider’s or competitors’ listings but not converted. We also used dynamic display ads, which show shoppers the Strider product most relevant to their previous browsing history. The ads appeared on Amazon.com, Amazon devices, Amazon-owned sites like IMDB.com, and affiliate websites and apps. 

Our Results 

Amazon DSP Advertising Case Study

  • 2,159 units sold 
  • $244,000 total sales 
  • 4.9 ROAS (compared to the 3.0 ROAS Amazon projected in their plan) 
  • 188,000 unique shoppers reached 
  • 5.9 million impressions 

The campaign successfully brought more shoppers over the finish line and into the Strider family, with 66% of orders coming from shoppers who had previously viewed Strider products, and 84% coming from shoppers who had not previously purchased Strider products on Amazon. The first-time buyers will likely continue to buy from Strider for years to come. 

Learn More about Amazon Advertising Strategies

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Myth-busting the Amazon A10 Algorithm

In late 2019, the Wall Street Journal reported that Amazon had changed its A9 algorithm to favor its own brands. By mid 2020, Amazon-focused businesses, including software providers, Amazon agencies, and third-party sellers, started posting articles about an “A10” Amazon algorithm, although they described different changes than the WSJ article. Blog posts about the A10 algorithm have continually popped up ever since, describing how factors that affect product rank have been changed to carry more or less weight than before.

The trouble is, not one of those blog posts cites a primary source to back up their claims that Amazon actually did unleash a new algorithm. In fact, many of these posts simply parrot one another, without providing any data to back up their claims.  

So, we’re setting out to do some myth-busting. We’ve reviewed internal data to try to confirm or deny – based on Kaspien’s experience – claims about significant changes to the Amazon algorithm. 

Myth-Busting Claims Made about the Amazon A10 Algorithm 

Every commentor agrees that, if Amazon has been updating their algorithm, they have done so through a series of updates, rather than launching a brand-new algorithm all at once. These series of updates could be laying the groundwork for a new algorithm, or they could be simple fine-tuning of an already remarkable machine.  

Below are the common claims being made about the algorithm update, as well as what Kaspien’s data shows to confirm or refute the claims. 

Shopper Searches Now Matter More in the Amazon A10 Algorithm

The Claim 

It is understood that Amazon’s algorithm looks at many factors to determine product rank, including ratings, reviews, seller rating, sales velocity, fulfillment method, inventory amounts, pricing, and many more. One of the most important factors is keyword relevancy. 

Keyword relevancy simply means, how relevant does Amazon think your product is to a given search query? This is determined by the keywords incorporated into a product listing. 

Some claim that under the A10 algorithm, keyword relevancy has been given more weight, with the goal of showing consumers what they want to see, rather than what sellers want them to see. 

Kaspien’s data shows… 

Plausible. Keyword relevancy has always been important for success on Amazon, and Amazon has built its empire by being customer obsessed. It wouldn’t be surprising if Amazon tweaked its algorithm to favor customer queries more.  

However, this claim is difficult to confirm or refute because, as you will see later, other ranking factors, such as ads and fulfillment models, have not become less important. Furthermore, Marketplace Pulse notes that for years, Amazon has steadily replaced algorithmically generated recommendations on the search results page with ad placements. That Amazon would expand advertising then reduce its importance seems counter-intuitive.  

On that note, let’s take a look at our next claim. 

Amazon Advertising has Less Impact under the A10 Algorithm

The Claim 

Native Amazon ads, such as Sponsored Product Ads and Sponsored Brand Ads, now carry less importance for product rank under A10 than A9. Like the previous claim, the explanation is that Amazon is trying to show shoppers what they want to see by weighting other ranking factors higher. 

Kaspien’s data shows…  

Busted. Amazon advertising remains a key driver for increased traffic, click through rate, conversion rate, and sales velocity, all of which are important ranking factors. Amazon ad costs are rising, but this is due to sellers increasing their ad budgets after many pulled back ad spend in 2020. 

This is reflected in Kaspien’s performance metrics. Comparing 2020 to 2021 year-to-date, we see that conversion rate and click-through-rate have both improved, while advertising cost of sale (ACOS) rose from 8.04% to 8.53% and cost-per-click (CPC) rose from $0.31 to $0.38. If advertising seems to be having less of an impact now, it’s because the rise in competition necessitates more sophisticated strategies. 

We can also look to Prime Day 2021 to demonstrate the continued importance of Amazon advertising. Kaspien saw booked orders grow by 25% year-over-year, while our advertising revenues increased around 70% and impressions were up 40%, clearly demonstrating the impact of ads for channel growth.  

Last but not least, let’s look at how Amazon itself is approaching advertising. In 2020, Amazon’s advertising revenue exceeded $21 billion, growing 66% year-over-year. Amazon has a vested interest in making ads a desirable offering on their platform, and they do that by maintaining their value to sellers. 

Build Highly Profitable Amazon Advertising Campaigns

Campaign profitability is dependent on campaign insights; if you cannot measure performance, you cannot improve it. So, how do you make sure you get the depth and breadth of insights needed? It all starts with campaign architecture. We’ve a whole (and free) eBook all about it.



 

Off-Amazon Marketing has More Weight

The Claim 

Amazon’s A10 algorithm greatly favors products that receive traffic from off-site. This would mean that Google Ads and social media advertising would play a much more important role in product rank on Amazon. 

If true, this update to the algorithm is a frankly clever tactic by Amazon to grow their market share: they have significantly increased the incentive for sellers to actively promote their marketplace on other platforms. The existence of Amazon Attribution and the recent launch of the Brand Referral Bonus program lend some credence to this claim. 

Kaspien’s data shows…  

Plausible. The aforementioned WSJ article published in December 2019, and blog posts about the A10 algorithm became increasingly common starting around May 2020. If these blogs caught onto A10 shortly after its launch, we would expect to see products that were being promoted through off-site channels – such as Facebook or Google – to see an immediate improvement in product rank around the same time (assuming the brands had large enough audiences to send a notable amount of traffic).  

Unfortunately, that’s a rather difficult assessment to make given the fact we had a global pandemic that drastically altered consumer buying behavior during this same time period. Supply chain issues, inventory shortages, a surge in online shopping, and more means there are simply too many concurrent variables to definitively say whether or not off-Amazon marketing has more weight. 

All that said, even if off-Amazon marketing doesn’t have more influence on Amazon that it used to, it still has meaningful influence on Amazon, as it has for some years. Anytime you can direct more shoppers to your Amazon listing, regardless of source, it will impact your product rank. Learn more about using social media to drive traffic to Amazon. 

Seller Authority Matters More in the A10 Algorithm

The Claim 

“Seller authority” consists of many factors, including the seller’s age, number of ratings, average rating, product return rate, return handling efficiencies, product catalog size, and product catalog diversity. The idea is that these factors are key indicators of how much value a seller adds to the Amazon customer experience. To reflect that, sellers with higher seller authority are more likely to win the Buy Box than newer/smaller sellers, all other things being equal.  

These factors were considered under the A9 algorithm, but the A10 algorithm allegedly increased the influence these factors have on a product’s organic placement on the SERP. Once more, this claim is based on the idea that Amazon wants to improve the customer experience. 

Kaspien’s data shows…  

Plausible. Kaspien is one of the oldest third-party sellers on Amazon (founded in 2008). If this claim is true, then products sold by Kaspien should benefit. When we look at the data, we see that Kaspien and most of our partners have grown substantially YOY, but how much of that growth is attributable to seller authority is a hard thing to isolate.  

We ran marketing for many of our brands, and we have dedicated account managers providing strategic guidance. There was also a global pandemic, which drove more shoppers to buy online than ever before. The truth of the matter is that seller authority never exists as a variable in isolation, so it’s nigh impossible to quantify how much impact it has on its own. 

FBA has Less Weight / FBM has More Weight 

The Claim 

Since early 2020, Amazon has repeatedly restricted inventory quantity limits at FBA centers and raised the inventory performance index (IPI) requirements, making it challenging for brands to maintain sufficient inventory levels at FBA. As of July 2021, sellers are permitted 55 days of inventory coverage at FBA, including lead time.  

Some have claimed that, because of this turbulence, Amazon’s algorithm is now no longer favoring FBA orders over FBM orders. 

Kaspien’s data shows…  

Busted. Reviewing orders from January-July 2021, we see no change in the ratio of FBA orders compared to FBM orders. If there was any favoritism in 2020, it is no longer present.  

FBA vs FBM Orders in 2021

So, why might others have made this claim? Well, because Amazon FBA has been so turbulent, larger sellers have been forced to invest in more FBM options. As a result, FBM orders have risen, but not disproportionately to FBA orders. Learn more about the benefits of diversified fulfillment strategies for Amazon.

Other Variables that Affect Product Rank in the Amazon A10 Algorithm

The above list covers only claims about factors that had allegedly changed in Amazon’s A10 algorithm. There are many variables that can affect product rank, including: 

  • Keyword relevancy 
  • Keyword density 
  • Listing traffic 
  • Price 
  • Sales velocity 
  • Conversion rate 
  • Discounts 
  • Inventory coverage 
  • Customer reviews 
  • Average star ratings 
  • Answered questions 
  • Seller rating 
  • Number of returns and return ratings 
  • Product margin 
  • Fulfillment model 
  • Shipping speed 
  • Prime eligibility 

How to Improve Product Rank in the Amazon A10 Algorithm 

To improve organic product rank, focus on the following tactics: 

  • Write product listings with both consumers and the algorithm in mind. This means strategic keyword usage, while maintaining a compelling value proposition that will excite shoppers.  
  • Set clear and accurate expectations through images and text. Miss-set expectations are a leading cause for negative customer reviews, and positive reviews are key for good rank. 
  • Speaking of reviews, try these 5 Amazon-compliant review generation strategies to get some more. 
  • Increase listing traffic. The above tactics improve organic traffic. Use social media advertising to drive additional traffic to Amazon. 
  • Sales velocity is a leading factor in rank, so you need to sell more. How? In addition to the above, use Amazon adsDSP, and Amazon coupons to boost sales. 
  • Shoppers cannot buy if you don’t have inventory stocked. Make sure you maintain complete coverage through FBA and FBM hybrid solutions. 
  • Price competitively. Amazon’s value proposition to consumers is that it offers the largest product selection at the lowest prices. Therefore, competitive pricing is an important ranking factor. 
  • Maintain inventory coverage. Stocking out removes your listing from the search results page, and product rank atrophies as a result. This creates a domino effect: If product rank goes down, marketing performance and sales velocity also go down and take time to recover. 

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Amazon Sponsored Products Overview

Amazon is becoming increasingly saturated and competitive, and so too is the importance of Amazon advertising. There are a variety of ways companies can advertise on Amazon, including Sponsored Product Ads, Sponsored Brand AdsSponsored Brand Video AdsSponsored Display Ads, and Amazon Demand Side Platform (DSP). Each plays an important role in a brand’s Amazon success. 

Kaspien’s Digital Marketing Manager, Jeremy Rossow, stressed the importance of Amazon ads: 

Having a sponsored ads strategy on Amazon has become an absolute necessity for brands to be successful on the platform. Brands should view advertising in the same way they view inventory management and listing optimization: it’s a must for continued sales and growth on Amazon.

When starting your advertising campaign, determining which types of ads would be the most beneficial for you can be confusing. Generally, Sponsored Product Ads are a great place to start. 

What are Amazon Sponsored Product Ads? 

Amazon’s Sponsored Product Ads are likely a familiar sight to those who frequent the marketplace. These types of ads appear in many places throughout the SERP (nine times to be exact) and look like regular listings. The only difference between these listings and non-sponsored listings is that these have the word “Sponsored” located near the lower left corner of the product photo.  

Amazon Sponsored Product Example

The resemblance to a normal listing can decrease buyer hesitation. Sometimes, consumers are hesitant to engage with advertisements as they can seem ingenuine or forced. A study done by the American Association of Advertising Agencies showed that 96% of consumers don’t trust advertisers — which also means they don’t trust the ads they produce. 

However, this study was not specific to Amazon, and that’s important. When consumers are going about their daily lives, it makes sense that receiving an ad can be intrusive. But, when consumers are on Amazon, they are looking to buy, or at the very least considering a purchase for the future. That shift in headspace is key, and a big reason why Sponsored Product Ads perform so well. In the last twelve months, Kaspien’s Sponsored Product Ads have averaged an 11% conversion rate! 

How Amazon Sponsored Product Ads Work  

Sponsored Product Ads work in a similar fashion to other forms of advertising on Amazon: They run on Amazon’s PPC (pay-per-click) model. This allows brands to pay only for the ads that are clicked on, which is extremely beneficial for companies as they are not paying for ad campaigns that are unsuccessful in boosting recognition or revenue. 

Sponsored Product Ads also work on an auction model. Sellers bid on specific keywords, telling Amazon that if a shopper searches “____,” they are willing to pay X dollars or cents for their ad to appear on the SERP.  

When setting up their campaign, sellers specify the greatest amount they would be willing to pay to be featured as a Sponsored Product for the specified keyword. As various sellers bid on keywords, Amazon assesses the bids in order to determine who wins the auction. Amazon’s algorithm considers product rank, product ratings, customer reviews, product relevancy, and various other attributes to make the decision. Amazon charges the winner of the auction only $0.01 more than the second highest bidder. For example, if the highest bidder bid $1.00 and the second highest bid $0.55, the winner would only pay $0.56.  

What are Good Performance Metrics for Sponsored Product Ads? 

When implementing a Sponsored Product Ad campaign, it is important to keep your ideal metrics in mind. Key performance indicators include: 

Click-through-Rate (CTR) 

The CTR is an extremely important KPI, as it measures your ad’s effectiveness with the target audience. To calculate, divide the number of ad clicks by the impressions that it received on the SERP (clicks/impressions). If your CTR is low, it indicates that your ad is either targeting a non-ideal audience or the audience is not intrigued enough by your product.  

To improve CTR, you may need to adjust which keywords you’re targeting and/or update your listing title and image, since the title and image appear in the ad. Finally, you may need to consider pricing and reviews. If your product is priced too high or has few or poor reviews, that can also impact CTR. 

Conversion Rate (CR)

Conversion rate measures your listing’s ability to attract Amazon users and convert them into customers. This metric is measured by dividing the number of orders you received by the number of clicks your listing got (orders/clicks). The result indicates how well your listing is optimized for converting shoppers who clicked your ad.  

To increase your conversion rate, it may be a good idea to review your listing copy, work to increase positive reviews, alter your optimized keywords, or review your competitor tactics and respond appropriately. All these changes can make a big difference in your ability to convert more shoppers. 

Return on Ad Spend (ROAS)

Return on ad spend shows how much revenue you received from an ad campaign vs how much you spent. It can be calculated by dividing your ad revenue by the ad spend (ad revenue/ad spend).  

If your ROAS is not where you would like it to be, you may not be taking full advantage of the opportunities presented to you. To increase your ROAS, take advantage of Amazon promotions, optimize for less competitive keywords, or use exact match bids. 

Advertising Cost of Sale (ACOS)

Advertising Cost of Sale measures how much you spent on advertising to obtain your product revenue. ACOS is the inverse of ROAS, though ACOS is used more often in the industry. This metric is calculated by dividing the amount you spent on advertising by the revenue you received from product sales. As a good rule of thumb, you will want your ACoS to be around 15-20%, though lower is better. 

If your ACOS is too high, it suggests that your ads are not targeting ideal shoppers and/or, similar to conversion rate, that your listing is not optimized to convert shoppers after they click into your listing. Amazon ad costs are rising in 2021, but we’ve written a blog post about key ways to reduce Amazon ad costs without sacrificing sales.

Kaspien’s Advertising Performance Metrics

At Kaspien, our average 2020 metrics across all product categories included a CTR of 0.42%, a Conversion Rate of 10.48%, ROAS of 12.43, and an ACOS of 8.04%. Our digital marketing efforts boost total sales by 30% on average. If you are looking for help to increase your Amazon advertising performance, feel free to contact us! 

Amazon Sponsored Product Ads Best Practices

Set Competitive Bids  

For keywords that are long-tail and specific to your product, set aggressive and competitive bids. This will allow you to have a better chance against your competitors and will boost your chances of being featured. For keywords that are broader and more generic, we recommend you still bid, but at a lower value, as you’ll reach a broader and potentially less relevant audience with these keywords.  

Keep a Close Eye on Trends  

Shopper habits and trends ebb and flow easily, so it is vital to stay ahead of these trends and notice them as they are happening. Keep a close eye on trending keywords and adjust your ads and listing as needed. Just be careful not to make edits too frequently, as doing so means there isn’t enough time to collect data on how your previous edits impacted performance. 

Do not “Set It and Forget It”  

Shopper habits change, as do competitors’ ad strategies. Because of this, merely setting bids and leaving them will not work. Amazon is a dynamic and ever-shifting marketplace, so in order to maximize advertising profitability, you must regularly manage and optimize your ad campaigns.   

Using these fundamentals leads to results like this (read the full JumpOff Jo case study here):

Amazon Advertising Performance Graph

Learn the Best Way to Structure Ad Campaigns

Download the free eBook: Architecting Amazon Sponsored Ad Campaigns.

Amazon ad architecture eBook

Requirements for Amazon Sponsored Product Ads 

Comply with Amazon’s General Guidelines 

To create Sponsored Product Ads, sellers must comply with a list of guidelines and requirements set out by Amazon. Fortunately, these guidelines are quite easy to meet. They include: 

  • Content must be suitable for a general audience 
  • Content must accurately depict advertised product with correct information 
  • Only advertise products you have the right to advertise as you are the registered seller or brand itself  

Amazon also has a list of prohibited content for Sponsored Product Ads. This content is restricted for a variety of reasons, from trademarks to the glorification of harmful activities. Some of this prohibited content includes: 

  • Amazon Trademarked products or services 
  • Content that promotes drug use 
  • Culturally inappropriate content  
  • Content that promotes dangerous activities  

Amazon also prohibits certain types of photos and videos to be used within their Sponsored Product Ads. These visuals include: 

  • Content of weapons that are threatening, gruesome, directed, or associated with a minor  
  • Visible intimate body parts  
  • Sexual content 

For a full list of Amazon Sponsored Product Ads prohibited content, hop over to their website for the full list! 

If you are looking for a place to start your Amazon Advertising campaign, then Sponsored Products are likely an advantageous option for you and your company. They are a great option and prove to be beneficial to companies of all sizes! 

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Amazon Ads are getting more expensive

Amazon Ads are Getting More Expensive 

On June 9, 2021, Marketplace Pulse published an analysis of Amazon advertising in 2020 and 2021. They found that the average cost-per-click (CPC) is up 50% year-over-year and up 30% since the start of the year. Likewise, the average advertising cost of sale (ACOS) up 36% year-over-year and up 20% since the start of the year. 

Average CPC Reported by Marketplace Pulse 

  • 2020 Average: $0.85 
  • January 2021: $0.93 
  • June 2021: $1.20 

Average ACOS Reported by Marketplace Pulse 

  • 2020 Average: 22% 
  • January 2021: 25% 
  • June 2021: 30% 

In their report, Marketplace Pulse notes that advertising costs are rising as a result of more brands advertising on the platform while the amount of ad real estate has remained relatively unchanged. Additionally, established brands and brand acquirers are investing larger advertising budgets into Amazon, further driving up CPC costs. 

The report has a sobering conclusion: As Amazon advertising gains more prominence, customer acquisition costs (CAC) will only continue to rise. 

How Kaspien’s Ad Performance Compares 

To succeed in this landscape, you need a cost-effective ad strategy – which Kaspien has. Just take a look at how our ad campaigns stack up to those reported by Marketplace Pulse. We think it paints a pretty compelling picture: 

Marketplace Pulse vs Kaspien metrics for 2020 

  • Avg. CPC: $0.85 vs Kaspien $0.31 
  • Avg. ACOS: 22% vs Kaspien’s 8% 

Marketplace Pulse Metrics vs Kaspien metrics for 2021 YTD 

  • Avg. CPC: $1.20 vs Kaspien’s $0.42 
  • Avg. ACOS: 30% vs Kaspien’s 11% 

How Does Kaspien Achieve Lower Amazon Ad Costs? 

We achieve results like this thanks to our proprietary advertising software, AdManager. We use it when we manage Sponsored Product and Sponsored Brand campaigns for our Retail and Agency partners, and it’s also available as SaaS. AdManager deploys best-in-class software features to drive incredible results. Here are just a few highlights:  

Day Parting 

Schedule your ads to run during the days and times that deliver the most sales for the best cost. Users can also view performance results for multiple key metrics. After implementing Day Parting, we see ACOS improve 40%. 

Dynamic Bid Optimizations 

Unlock the transformative power of tiered bid optimizations. Create custom bid management rules that can bid up or down daily at the keyword level based on any combination of performance metrics. 

Search Term Optimization 

AdManager automatically identifies and adds high-converting search terms as keywords to your campaign to ensure continued relevancy and sales. It also automatically identifies and negates poor-performing terms to minimize wasted ad spend. 

Profitability Enhancing Budget Optimization 

Make sure your most profitable campaigns are always running. AdManager lets you set custom rules that automatically increase daily budget for high-performing campaigns if they run low, so your most profitable campaigns never turn off. 

Through features like these, AdManager improves our partners’ ACOS by up to 50% and boosts total Amazon sales by 30% on average! 

Expertly Crafted Campaign Architecture 

While AdManager is our not-so-secret weapon, a tool is only as good as the person using it. In studies conducted over the last five years, Kaspien’s advertising experts have repeatedly validated the following tactics as best practices for campaign architecture. 

One Product Per Ad Group 

Campaign architecture determines what data is visible to advertisers, which directly impacts their ability to optimize campaigns. As such, it’s important to provide advertisers the clearest data possible.  

The best way to do that is to limit campaigns to one product per ad group because the most critical factors that impact campaign performance live at the product-level, such as price, margin, rank, keywords, target advertising cost of sale (ACOS), ideal cost-per-click (CPC), and inventory levels. 

One Product Per Match Type 

In a similar vein, we also recommend building Amazon campaigns with one product per match type. This model further helps advertisers use data insights to drive optimizations. 

One Product Per Match Type

Through this design, you enjoy the following benefits: 

  • Accounts for each product’s margin and price 
  • If a product runs out of stock, the ads stop running, preventing wasted ad spend 
  • Can see which search terms converted for each product, enabling better keyword optimization 
  • Can negate search terms from Broad Match or Phrase Match types when adding the search terms as Exact Match keywords, improving relevancy and cost-efficiency 

4-Campaign Build for Amazon Ads

Combining one product per ad group and one product per match type, we get a campaign architecture that looks something like this: 

4-Campaign Build

In the 4-Campaign build, advertisers can harvest search terms from Automatic, Broad Match, and Phrase Match campaigns to create keywords for Exact Match campaigns. This enables continual keyword generation, improving campaign relevancy. When using the 4-Campaign build, it’s important to remember to negate search terms in Automatic, Broad Match, or Phrase Match campaigns after adding them as keywords in Exact Match campaigns. If you don’t, you’ll split relevancy across campaigns. 

With more precise data at the campaign and product levels, you have a clearer picture at both the macro and micro scale. With a clearer picture, you can make smarter strategic decisions, which in turn yield better results. 

Of course, it would be foolish to say that this 4-Campaign build is a one size fits all. We’ve seen it be highly effective for brands across the spectrum, but there will always be exceptions. Depending on your goals and if you have variation listings, you may need to modify the 4-Campaign build. 

Want the Unabridged Guide?

Download the free eBook: Architecting Amazon Sponsored Ad Campaigns.

Amazon ad architecture eBook

 

Make Your Amazon Ads More Cost-Effective 

We’ll end with two facts: Amazon advertising is getting more expensive, and Amazon advertising will remain an important part of growing your brand online.  

Once you’ve reconciled those facts, the next step is taking steps to minimize your ad costs without sacrificing performance. For that, you need better tools and better strategies. Kaspien can help with both: we can manage your advertising campaigns for you or you can use AdManager yourself. 

Learn More about Amazon Marketing Services  

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When is Amazon Prime Day this Year? 

UPDATE – Amazon Prime Day will be June 21-22, according to Bloomberg.

Amazon has not yet announced the exact dates for Prime Day, but it is reportedly scheduled for June this year. An Amazon source also stated to Kaspien that June will be the likely date. While normally held in July, Prime Day was delayed until October 13th-14th in 2020. Deadlines for deal submissions and inventory are in April and May, giving credence that the event could occur in late June.  

According to Recode, the decision to move Prime Day slightly earlier than usual may be to boost Amazon’s quarterly earnings in Q2, which saw massive growth driven by the global pandemic in 2020. Amazon’s spokesperson denied that the earnings calendar was a factor for scheduling Prime Day.

How Big Will Prime Day Be? 

2021 will mark the Amazon’s sixth Prime Day, each of which has generated more sales than the last. Amazon now boasts more than 150 million Prime members globally, over 100 million of which for the US marketplace. 

Prime Day 2020 Results 

According to Statista, Prime Day’s global sales exceeded $10.4 billion in 2020, growing from $0.9 billion in its inaugural year of 2015. 

A Rolling Stones Magazine poll found that on Prime Day, the top ten selling products were: 

  1. Apple AirPods with Charging Case 
  2. Bose Solo 5 TV Soundbar 
  3. YI 1080p HD Wireless Home Security Camera 
  4. VANKYO LEISURE 3 Mini Projector 
  5. Echo Show 5 
  6. Amazon Smart Plug 
  7. Back Bay Wireless Bluetooth Shower Speaker 
  8. 23andMe Health + Ancestry Service 
  9. Pure Clean Automatic Vacuum Cleaner 
  10. YOSUDA Indoor Cycling Bike 

 

During Prime Day 2020, Amazon 1P accounted for half of the top ten selling products. Eight of the top ten selling products were from the Electronics category, including the top seven products. Digital Commerce 360 estimates that Amazon claimed 65% of the $10.4 billion in sales on Prime Day 2020. 

Source

Prime Day 2021 Expectations

While 2021 thankfully lacks the same degree of pressure driving shoppers to buy online as 2020, we expect Prime Day to deliver another strong showing. COVID-19 forced more consumers than ever to use digital shopping. Even as more physical stores re-open at greater capacities, the body of online shoppers has permanently grown, and their numbers will support Prime Day sales. 

At Kaspien, we’ve seen strong sales results for the first quarter of the year compared to last year, indicating that Prime Day 2021 is on track for a sixth record-breaking year. 

What are Walmart and Target Doing on Prime Day? 

Amazon’s made up holiday to boost summer sales drew the envy of many competitors, and in 2020, we saw other online marketplaces launch promotional events during the same period. Walmart announced a “Big Save” event that ran October 11th-October 15th. Target brought back Target Deal Days on October 13th-October 14th. 

It’s likely that these competitors will run coinciding events to Prime Day. Shoppers are already looking for deals online for Prime Day. By launching competitive events, these marketplaces can capture some of that traffic. 

Neither marketplace has announced such an event yet. Like last year, they may be waiting to hear Amazon’s official dates for Prime Day before they announce their own. By delaying the announcement of their own events, these retailers make it more difficult for sellers on their platforms to prepare. 

Amazon Prime Day 2021 Deadlines 

Deadline to Submit Amazon Lightning Deals for Prime Day 

  • April 16, 2021: Last day to submit Lightning Deals for North American marketplaces 
  • April 23, 2021: Last day to submit Lightning Deals in Europe, Australia, Turkey, AUE, Saudi Arabia, and Japan 

Deadline to Submit Amazon Coupons for Prime Day 

  • May 28, 2021: Last day to submit Amazon Coupons 

Deadlines for FBA Inventory for Prime Day 

  • May 30, 2021: Last day for inventory to be received at FBA centers in India 
  • May 31, 2021: Last day for inventory to be received at FBA centers in the US and Canada 
  • June 1, 2021: Last day for inventory to be received at FBA centers in Australia and Mexico 
  • June 6, 2021: Last day for inventory to be received at FBA centers in France, Germany, Italy, the Netherlands, Turkey, and the UK 
  • June 7, 2021: Last day for inventory to be received at FBA centers in UAE and Saudi Arabia 
  • June 13, 2021:Last day for inventory to be received at FBA centers in Japan 

Amazon Marketing Strategies for Prime Day 

Amazon Prime Deals 

Prime Day Deals are the big attraction, with sellers offering some of the steepest discounts of the year for highly desired products. Prime Day Deals are featured on a dedicated page and Amazon’s homepage, resulting in huge spikes in traffic and sales. The deals are limited by quantity or time, further motivating shoppers to act now. 

Amazon Coupons 

If you’re too late or aren’t eligible to submit Lightning Deals for Prime Day, Amazon coupons are your next best bet. Amazon reports that coupons increase sales by 12%. The coupon “tag” that appears on both the product listing and the search results page helps catch the eye, and the discount can be enough to pull shoppers over the finish line. Coupons also indirectly support product rank improvement, which is especially helpful during the intense competition of Prime Day. 

Kaspien has conducted numerous tests to determine the most effective ways to deploy coupons. Check out this post to read about best practices for Amazon coupons. 

Prime Exclusive Discounts 

Amazon launched Prime Exclusive Discounts in June 2019. As the name suggests, Prime Exclusive Discounts are seller-funded discounts visible and accessible only to Amazon Prime members.   

From a consumer’s perspective, there is little difference between coupons and Prime Exclusive Discounts except for the exclusivity. From a seller’s perspective, Prime Exclusive Discounts don’t come with a $0.60 redemption fee, but they are much more burdensome to set up and do not deliver substantially different results.  

That said, if there ever was a time to try Prime Exclusive Discounts, Prime Day is the day. 

Amazon Advertising 

We’ve said it before and we’ll say it again: Amazon advertising is the most effective marketing tool in an Amazon marketer’s toolbox. Of course, the efficacy of this tool is influenced by many other factors, including if the product listing is fully optimized. Assuming it is, Amazon ads will often drive the highest return on ad spend out of all your paid marketing efforts. 

We’ve written several pieces about how to get the most out of your Amazon sponsored ads, including: 

In general, start running Amazon ads at least 1-2 months before Prime Day, as Amazon sponsored ads take time to build traction, and you want to be well positioned going into the fierce competition of Prime Day. 

Amazon Live 

In 2020, Amazon Live reached a whole new level as celebrity influencers like Demi Lovato were featured in product endorsements streams.  

Amazon Live Demi Lovato

Amazon Live is a great way to feature your products on more pages during Prime Day, helping bring in more traffic. The service is free, so all it requires is a little forethought and time.  

Social Media Marketing for Amazon 

While traffic surges on Amazon during Prime Day, you can direct more of it to your product listings through social media marketing for AmazonUsing a combination of organic and paid efforts, including influencer marketing, brands can build excitement and bypass competitors’ Amazon ads by promoting their products where shoppers are already at. 

Apply Findings from Amazon Prime Day to Q4 

Prime Day is one of the single largest sales events of the year for brands on Amazon, making it an excellent way to test the waters and prepare for Q4 on Amazon. If you want to get even more prepared for future peak seasons, subscribe to our blog and we’ll send you info on the latest Amazon news and proven best practices. 

 

The two cornerstones of Amazon marketing are search engine optimization (SEO) and paid sponsored advertising. Combining both efforts is a crucial strategy for growth on Amazon. In this blog post, we’ll explain how SEO and search marketing works on Amazon and how the two can be combined to improve overall results. 

Amazon Search Engine Optimization Overview 

When discussing SEO, we are referring to the overall optimization of product listing content with the end goal of high placement on the Amazon search engine results page (SERP). Optimizing listings means optimizing copy. You can put down whatever copy you want, but if you wish to rank on the SERP and convert sales, you must optimize for both the A9 algorithm and your consumer. For example, below is a keyword-stuffed title that might be well optimized for the algorithm, but not for the consumer: 

The title is long and difficult to understand. If consumers saw this title on a SERP, they would likely keep scrolling to other listings. Brands must find a balance between titles and copy optimized for the algorithm but are also consumer-friendly.    

When optimizing your listing, there are primary and secondary focuses. The primary focus should be your title, the key features, and the standard product description. These are what the A9 algorithm scrapes for when determining relevancy to consumers.   

Second, focus on your A+ Content, Media Gallery, Pricing, Search Terms, and Reviews. These secondary focuses help drive conversions. A+ Content, photos, videos, and reviews are among the few ways consumers can connect with your product without physically touching it. Pricing is also important because if your price is too high, consumers will choose cheaper comparable products instead. 

Amazon Advertising Overview 

When talking about advertising on Amazon, we are referring to paid advertisements seen throughout the Amazon marketplace. This paid advertising includes Sponsored Product Ads, Sponsored Brand Ads, and Sponsored Display Ads. Paid advertising is the fastest-growing division within Amazon, and as such, the platform is steadily becoming a pay to play marketplace.    

When should you use paid advertising? That depends on your goals. Are you trying to drive additional impressions and clicks? Are you trying to increase sales on specific ASINs? Are you trying to raise brand awareness? Are you launching a new product on Amazon? These questions will influence which types of ads to use.   

Below are the types of sponsored ads on Amazon: 

Amazon Sponsored Product Ads

Pay-per-click (PPC) ads that appear in strategic areas on Amazon, such as the top of the search results page and within a product detail page. These ads give brands’ products more visibility and increase the likelihood of purchase by consumers. 

Amazon Sponsored Brand Ads

Formerly called Headline Search Ads, this ad type displays a banner ad at the top of the search results page. The banner ad contains a brand image and features up to three products. This ad type is typically best suited for generating brand awareness. 

Amazon Sponsored Display Ads

PPC ads on Amazon and Amazon-owned websites and apps that target shoppers by searches, views, purchases, or products. 

Interdependency Between Search Engine Optimization and Amazon Advertising 

Now that we’ve covered the basics of SEO and Amazon advertising, dive into the interconnectedness of the two. The intersection takes place amdist keyword research, gathering reviews, setting up variations, setting up your listing media gallery, and Amazon compliance. 

Keyword Research 

Keyword research identifies top trending keywords for your products that improve the chances of placing in relevant search results. SEO for product listings and search marketing both rely on keyword research to be effectiveAdd focus keywords into title and listing copy to build organic relevancy, improve ad performance, and overall placement.  

Customer Reviews 

The process of growing reviews compliantly is time-consuming, but they provide a level of trust that sellers need in order to persuade consumers to purchase. The number of reviews also directly impacts the performance of organic and paid placement. To improve your placement, you can run paid advertising to bring more converting traffic to listings, which will naturally help increase review numbers. Even more so if SEO has already implemented their review generation efforts. 

Unfortunately, Amazon retired the Amazon Early Reviewer Program in April 2021, making it more difficult for new products to acquire new reviews. 

Variation Listings 

Variations put like items together within a single Amazon listing, giving consumers the ultimate shopping experience. Variation listings accomplish two things that help improve SEO and search marketing performance:   

  1. Variations can aggregate reviews and make a listing look more trustworthy. Will encourage more traffic to click ad.   
  2. You can consolidate ads to focus on top child ASIN, but it will drive sales to the whole variation and improve rank. 

Media Gallery 

The media gallery is the carousel of images and possibly videos that appears above the fold of a listing. Optimizing the media gallery entails uploading high-resolution, compliant images, and videos. For many ad types, the hero image is displayed in the sponsored placement. Additionally, you can use Sponsored Brand Videos to show specific features to shoppers. 

Amazon Compliance 

Keeping up with Amazon’s terms of services is a full-time job, but doing so will ensure your listings and ads stay active. When working on Amazon SEO and search marketing, be sure to omit restricted keywords from listings to reduce the risk of listing suppression. You should also ensure that target keywords are within character restrictions, so they have weight in listing relevancy. It’s also worth noting that you can bid on phrases related to but not including restricted keywords to improve placement for those searches. Listen to podcast episode, Resolving Compliance Issues on Amazon, with Amazon Sellers Lawyer.

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According to Amazon, 69% of customer searches on Amazon don’t include a brand nameThat means that most shoppers are still in the consideration phase and have not yet decided which product to buy. Of the shoppers that do use branded search terms, 25% do so for multiple brands while shopping, indicating that they have narrowed their list but are still in the consideration phase. 

Amazon advertising is a powerful tool for reaching and winning these shoppers. Amazon advertising includes multiple ad types, and each serves a purpose in your Amazon marketing strategy. In this post, we’re going to focus on just two: Sponsored Brand Ads and Sponsored Brand Videos. 

What are Sponsored Brand Ads? 

Sponsored Brand Ads are cost-per-click (CPC) banner ads that help generate brand awareness and heighten engagement. Sponsored Brand Ads appear at the top, middle, and bottom of the search results page. Like Sponsored Products, Sponsored Brands appear for seller-selected keywords.  

While Sponsored Product Ads are known for being the highest converting ad type on Amazon, Kaspien has seen very promising results from Sponsored Brand Ads. On average, our Sponsored Brand Ads have a 14% conversion rate and a 7:1 return on ad spend (ROAS). 

Amazon Sponsored Brand Ad Strategy 

If Sponsored Brand Ads yield such strong results, why do Sponsored Product Ads still get the most attention? Even at Kaspien, we regularly recommend Sponsored Product Ads first, Sponsored Brand Ads second. 

It comes down to difficulty. Every search engine results page (SERP) offers multiple ad placements for Sponsored Product Ads, but only one Sponsored Brand Ad can appear at the top of the SERP. When Sponsored Brand Ads are the first thing that shoppers see on the SERP, and there’s only one placement available, you can see how this ad type becomes highly competitive.  

Given the challenge and the potential, what are the best ways to use Sponsored Brand Ads?  

Promote Best Performing Products 

 Amazon’s algorithm favors products with high conversion rates for Sponsored Brand Ad placements. That fact, combined with the intense competitiveness of the ad type, means you’ll see the greatest success when you run Sponsored Brand Ads for products with low rank and high sales velocity.  

Define Your Goals 

What if you are launching a new product or expanding your brand to Amazon? Should you never use a Sponsored Brand Ad?  

Not necessarily; it depends on your goals. If you want to drive conversions, you should promote your best performing products. In this case, you should bid on branded-keywords. This will place your ad in front of shoppers already interested in your brand and help pull them over the finish line. 

If your goal is to build awareness for your brand or product, then Sponsored Brand Ads can certainly support, but they’ll do so with a lower conversion rate. In this instance, you should bid on non-branded keywords. This will place your ad in front of shoppers still in the consideration phase.  

Pair New Products with Established Products 

If launching a new product, pair it with two established products in a Sponsored Brand Ad to help it generate traction quicker. The established products will help the banner ad win placements, creating more visibility for the new product. 

Target Repeat Buyers 

Generally, we recommend bidding on branded keywords because they have a higher ROAS. This is especially true in categories that have higher rates of brand loyal shoppers, such as the Pet Supplies category or Baby category.  

In these categories, shoppers highly value brands that they deem trustworthy. Because the product will be used by a loved one and safety is paramount, shoppers research their options. Once they find a brand that they like, they can skip the research step and return to the trusted brand. When this happens, shoppers use branded search terms, and that’s where your Sponsored Brand Ads can step in to meet them. 

Promote Multiple Product Lines 

Because Sponsored Brand Ads display three products, you can use them to display the breadth of your product offerings. This strategy can be particularly helpful in categories where shoppers expect to be able to purchase multiple product types from one brand, such as Electronics or Baby 

Direct Shoppers to Your Amazon Store 

In the same vein as above, we also recommend pointing your Sponsored Brand Ads to your Amazon brand store. This enables you to show all your product offerings in a branded digital storefront, removed from the competition of the SERP. 

What are Amazon Sponsored Brand Videos? 

Similar to Sponsored Brand Ads, Sponsored Brand Videos are CPC ads on Amazon that generate brand awareness and support conversions. These ads appear on the SERP for desktop and mobileAccording to a survey by Wyzowl, 68% of consumers prefer to learn about products or services through video.  

At Kaspien, we’ve seen very promising results from Sponsored Brand Videos, with our ads delivering an average advertising cost of sale (ACOS) of 9%. Amazon also reports that some advertisers see 55% lower CPC’s for Sponsored Brand Videos compared to Sponsored Brand Ads, which can be attributed to lower competition for the ad type. 

Currently, Sponsored Brand Videos can direct shoppers only to the product page, but Amazon notes that advertisers will be able to point shoppers to Brand Stores soon. 

Amazon Sponsored Brand Video Strategy 

Sponsored Brand Video strategy differs in several ways from Sponsored Brand Ads. You should still pick a top performing product if you want the highest ROAS, but if you have the budget, you can also use Sponsored Brand Videos to catapult new products to success.  

Use Sponsored Brand Videos in Competitive Niches 

Sponsored Brand Videos add clarity, excitement, and a wow factor to products, which makes them an ideal marketing lever for a competitive niche. 

Pair Sponsored Brand Videos with Coupons

As you can see in the screenshot above, the coupon tag is visible in Sponsored Brand Video ads. Pairing sponsored ads with Amazon coupons is a great way to increase visibility and add an even greater incentive to click! 

Build Awareness 

Amazon notes that CPC can be significantly lower for Sponsored Brand Videos compared to Sponsored Brand Ads. As such, you can afford to focus on building brand awareness, bidding on non-branded keywords to widen your audience. 

Reuse Videos on Other Channels 

If you go through the time and money needed to create a high-quality video, get as much mileage out of it as you can. Reuse the video in your product listing, social media, Google advertising (including YouTube), and your direct website. 

Sponsored Brand Video Selection 

If you’re asking yourself, “What video should I pick?” you’re not alone! Best practices for video selection may differ by category, but generally, videos should be informational, promote key product features, establish an emotional appeal, and be simple enough that the main ideas can be understood without audio. We also highly suggest including text overlay, enabling you to fully engage shoppers even with their device on mute. 

Example of a Sponsored Brand Video 

In the below example from Arava, a girl uses their tear stain wipes on her own eyes before taking a separate wipe to use on her dog. This demonstrates that the product is safe and gentle enough to trust on your pet’s skin. Best yet, viewers can understand this product feature without turning on audio. 

Amazon Sponsored Brand Video Requirements 

What You’ll Need 

  • Video Title(s) 
  • Video image thumbnail 
  • List of ASIN(s) to apply (300 max) 
  • What your customers should know about the product (in less than 60 characters) 

Sponsored Brand Video Do’s and Don’ts 

Amazon recommends the following do’s and don’ts for Sponsored Brand Videos: 

Do 

  • Keep the video 15-30 seconds 
  • Showcase the advertised ASIN in the first few seconds 
  • Add an end card 

Don’t 

  • Have black or white frames at the start or end fo the video 
  • Use star ratings or reviews in the video 
  • Use Amazon branding elements 
  • End the video abruptly 
  • Have black bars on any side of the video 
  • Show URL links 

Sponsored Brand Video Requirements 

  • Aspect ratio: 16:9 aspect 
  • Dimensions: 1280 x 720px, 1920 x 1080px or 3840 x 2160px 
  • FPS: 23.976, 24, 25, 29.97, 29.98, or 30 
  • Bit Rate: 1 Mbps or higher 
  • Codec: H.264 or H.265 
  • Length: 6-45 seconds (15-30 seconds is recommended) 
  • File Size: 500 MB or smaller 
  • Format: MP4 or MOV file (480p or higher recommended) 
  • Main or baseline profile 
  • Progressive scan type 
  • Only 1 video stream 

Sponsored Brand Audio Requirements 

  • Sample Rate: 44.1 kHz or higher 
  • Codec: PCM, AAC or MP3 
  • Bit Rate: 96 kbps or higher 
  • Stereo or mono format 
  • Only 1 audio stream 

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We are proud to announce that Day Parting is now available in our Amazon campaign management software, AdManager. Day Parting enables Amazon advertisers to schedule pay-per-click (PPC) ads to run only during the days and times that deliver the best resultsThe Day Parting feature also displays performance results for multiple key metrics broken out by day and time, helping guide users’ strategy.  

AdManager is one of the only Amazon ad management applications available to offer Day Parting. Amazon’s native advertising console lacks the ability to segment performance metrics and schedule ads by time. 

Through Day Parting, advertisers can grow sales while minimizing ACOS, maximizing their Amazon marketing profitability. By displaying multiple metrics by day and time, users have the information they need to support various goals. For example, if focused on growing brand awareness, users can set ads to run during times when impressions are highest. If focused on reducing costs, users can run ads during the time that ACOS is lowestWhatever your goals, Day Parting provides the data insights needed to achieve them.

Promising Early Results from Day Parting

Six weeks since implementing Day Parting for our partners’ Amazon advertising campaigns, ACoS has decreased by 40%! This translates to an additional $6 return on every ad dollar spent – a very material impact!

We expect AdManager to drive continual improvements as it constantly intakes and acts upon Day Parting data to refine optimizations.

Kaspien Delivers Results through AdManager

Day Parting is just the latest of ongoing enhancements to AdManager. As a tech-enabled marketplace optimization platform, Kaspien is a firm believer in continual iterations. The Amazon marketplace continues to evolve, and sellers’ tools must evolve with it to meet new challenges and seize new opportunities.  

In 2020, Kaspien used AdManager to drive extraordinary results for our brand partners. 

  • 55% avg. increase in ad sales YOY  
  • 39% avg. increase in ad orders YOY 
  • 41% avg. decrease in ACOS YOY 
  • 6% avg. ACOS on over $90M ad revenue 

AdManager is available as a self-service software or as part of our Amazon advertising managed service. AdManager is provided complementary to our Retail and Agency partners’ ad campaigns. 

Why Use Day Parting for Amazon PPC? 

One of the first questions we hear asked about Day Parting is, “Why would I turn off ads? Even if the people that click the ad do not convert after clicking, the click still indicates interest. Maybe they’ll come back another day to purchase. Furthermore, the failure to convert may be attributed to poor targeting rather than time of day.” 

We understand that viewpoint. There’s logic to it. But we created and strategically use Day Parting because empirical evidence – not hypotheticals – proves that Day Parting makes Amazon ads more effective. To briefly elaborate, here are three data-backed reasons to use Day Parting:

#1 – The data shows that clicks late at night or early in the morning produce fewer sales at a higher ACOS than clicks during business hours or in the early evening.  

#2 – Second, more clicks without a purchase can ultimately reduce campaign relevancy and decrease performance over time.  

#3 – Lastly, if a brand is having trouble keeping campaigns active all day due to budget constraints, it’s much more beneficial to run ads during times when shoppers are more likely to convert to maximize their ad dollars. 

Each brand should assess the impact of Day Parting for themselves. Some may find they prefer to run ads without it. But based on what we’ve seen for our partners’ ad campaigns, we expect that most brands will enjoy better results when using Day Parting. 

How AdManager Enhances Amazon Advertising Performance 

In addition to Day Parting, AdManager offers many other competitive features for Amazon advertising. 

Dynamic Bid Optimizations 

Unlock the transformative power of tiered bid optimizations. Create custom bid management rules that can bid up or down daily at the keyword level based on any combination of performance metrics. 

Search Term Optimization 

AdManager automatically identifies and adds high-converting search terms as keywords to your campaign to ensure continued relevancy and sales. It also automatically identifies and negates poor-performing terms to minimize wasted ad spend. 

Search Term Optimization

Profitability Enhancing Budget Optimization 

Make sure your most profitable campaigns are always running. AdManager lets you set custom rules that automatically increase daily budget for high-performing campaigns if they run low, so your most profitable campaigns never turn off. 

Budget Optimization

Out of Budget Table 

AdManager also includes an Out-of-Budget table, which shows you when campaigns ran out of budget, how often they run out of budget, and the ideal budget for each campaign. 

Out of Budget Table

Campaign-Agnostic Keyword Management 

Save time and streamline campaign management using the centralized keywords table, which enables users to manage keywords across their entire portfolio in one place. 

Automated “4 Campaign Build” Creation 

Maximize data insights and improve performance using our proven “4 Campaign Build” architecture. When creating a new campaign, you can select our “4 Campaign Build” to automatically create three manual campaigns (one per match type) and one automatic campaign. 

4 Campaign Build Ad Architecture

Try AdManager for Free for 30 Days 

Try AdManager’s self-service option through a free 30-day trial, no strings attached. If you’d prefer to have Kaspien’s marketing experts manage your Amazon advertising, reach out to us here. 

Sign Up for a Free Trial


The Role of Amazon Advertising 

If you sell on Amazon, you need to utilize Amazon advertising. In today’s era, Amazon has too many sellers and too many products for you to expect success without investing in marketing. But, don’t think of Amazon advertising as an obligation; it’s an opportunity.  

Kaspien grew Amazon advertising sales 55% year-on-year in 2020 while simultaneously dropping our advertising cost of sale (ACOS) 41% year-on-year. When you’re an expert at Amazon advertising, it shows in your top line and bottom line. But to become an expert, you must master the basics.  

That’s exactly what we aim to cover in this post. Let’s get to it.  

How Does Amazon Advertising Work? 

Most Amazon ad types, including Sponsored Product Ads, Sponsored Brand Ads, and some Sponsored Display Ads are cost-per-click (CPC) ads based on an auction system. Advertisers select the highest amount of money they are willing to pay for an ad placement for a specific word or phrase, called a “keyword”.  

When a shopper enters a search query that contains the keyword, an auction occurs. Amazon’s system looks at all bids for that keyword, then, using a combination of factors that Amazon keeps secret, Amazon selects the winner of the auction. The winner’s ad is placed in front of the shopper.  

Cost-Per-Click Pricing Model 

If the shopper clicks on the ad, the advertiser is charged. If the shopper doesn’t click on the ad, the advertiser is not charged. Amazon charges only $0.01 higher than the next highest bid, so if advertiser A sets their maximum bid as $5 and advertiser B set their maximum bid as $0.98, Amazon would charge advertiser A only $0.99. This may lead one to think it’s always best to set an absurdly high bid to ensure you always win the placement.  

In reality, this would result in your ad placing far too frequently, driving up your advertising costs and rapidly burning through your budget. If you allocated $500 per month, you could easily spend that in a day with such a strategy. Additionally, this approach is also prone to placing ads in front of too broad an audience, resulting in poor conversion rates. 

Amazon Advertising Summary 

To summarize, Amazon advertising occurs in five steps: 

  1. Advertisers select the keywords they want to bid on, and how high they are willing to bid for each keyword 
  2. Shoppers input a search query in the search bar 
  3. Amazon identifies which keywords are in the shopper’s search query, then reviews all bids for that keyword 
  4. Using a semi-secret list of factors, Amazon’s system selects the winning bid, and that ad places on the search results page 
  5. The winning advertiser is charged only if a shopper clicks on the ad 

 

Two Key Factors: Bids and Search Terms 

When we look at Amazon advertising in this way, we see there are two critical factors for advertisers: bids and search terms. Both have sweet spots, and undershooting or overshooting these sweet spots results in poor marketing performance. 

This has led to a great deal of time and attention being devoted to bid optimizations and search term optimizations, both in the form of strategies and the development of software that can automate the time-intensive processes. 

Bid Optimization for Amazon Advertising 

Bid optimization is the act of increasing or decreasing bids for specific keywords in order to strike a balance between frequency of ad placement and marketing budget. If ads place too frequently, you quickly run of budget. If ads place too infrequently, you sacrifice product visibility and sales, limiting your market share.  

Staying in the sweet spot requires constant attention, as Amazon is a dynamic marketplace. New competitors are constantly appearing, existing competitors regularly revise their strategies, peak seasons come and go, and consumer demand can surge or plummet unexpectedly due to unforeseeable external factors (like a pandemic, cough cough).  

As such, advertisers do not have the luxury of a “set it and forget it” approach, at least not those that care about strong marketing results. (If you have an agency or freelancer managing your Amazon ads, make sure they are actively managing your bids. If they are not, you’re paying for a mediocre service. Learn more here: How to Tell If Your Amazon Advertiser is Worth Their Salt.) 

Search Term Optimization for Amazon Advertising 

Search term optimization is the act of adding or removing keywords to an ad campaign based on the keyword’s performance and/or shopper search queries. To understand search term optimization, let’s make sure we have a mutual understanding of a few key terms: 

  • Search term: The word or phrases that a shopper types into the search bar on Amazon 
  • Keyword: The word or phrase that an advertiser bids on in an Amazon advertising auctionA search term must contain a keyword in order for an ad to bid on it.  

Search term optimization is critical because it determines whether your ads place in front of the shoppers who are most likely to buy your product.  

So how does it work? 

Advertisers can identify keywords that they want to bid on in a few ways: 

  • Common sense – What terms would you use to find a similar product to what you’re advertising? 
  • Competitor research – What words or phrases are competitor products focusing on in their listing title, bullet points, and product description? 
  • Customer reviews – What words are customers using to describe your product or competitors’ products in customer reviews?  
  • Seller Central – Amazon sellers can download search term reports from Seller Central to see a list of search terms that their listing placed for organically. 
  • Third-party keyword research tools – There are several credible services for keyword research, such as Jungle Scout, Helium 10, and Merchant Words. 

Like bid optimizations, search term optimizations are not a “one and done” act. Advertisers should regularly review performance and make changes as needed. This ongoing process is what advertisers are typically referring to when they say “search term optimization.”  

Match Types for Amazon Advertising 

Before we go further into how to conduct search term optimization, we need to define a few more terms. On Amazon, advertisers can place keywords into three buckets, called “match types.” Each match type should be used a little differently than the others. Understanding how to use these match types is a critical part of search term optimization. 

Broad Match 

When a keyword is set for broad match, your ad will bid on any search query that contains the keyword, regardless of whether there are other words before or after the keyword. Your ad will also bid even if the keyword is in a different order. For example, if your keyword is “phone case,” your ad would bid for search query of “case for phone.”  

Broad match keywords help place your products in front of new shoppers with a general interest, increasing product visibility. 

Phrase Match 

When a keyword is set for phrase match, your ad will bid on a search query if it contains the keyword in the same order as you set it. The ad will still bid if other words precede or follow your keyword, but the search query itself must include the keyword in the correct order. So, if your keyword is “phone case,” your ad would not bid if a shopper searched “case for phone,” but it would bid if a shopper searched “black phone case” or “phone case for iPhone.” 

Phrase match keywords help place ads in front of slightly more targeted shoppers but is still geared towards increasing product visibility. 

Exact Match 

When a keyword is set for exact match, your ad will bid on a search query if it contains only the keyword in the same order as you set and has no other words in the query. The search term and keyword must match exactly. 

Exact match keywords place ads in front of highly targeted shoppers who are more likely to convert. However, they will not do a whole lot for increasing product visibility to a larger audience. 

Automatic Campaigns 

“But wait, you said there are only three match types!” I did, and there are. But match types can only be selected when running manual campaigns on Amazon. Amazon also offers a second campaign type: automatic campaigns.  

Automatic campaigns are run by Amazon’s instead of an advertiser. These campaigns can be used to identify new search terms that should be added as keywords to your manual campaigns, making them an essential ingredient for Amazon advertising success. 

As you can see, each match type fills a different role and use case. Advertisers are wise to make use of all three match types; focusing only on broad match or only on exact match would limit an ad campaign’s efficacy. Likewise, advertisers should make use of automatic and manual campaigns. 

How to Make Search Term Optimizations  

With this understanding of match types, we can finally get to search term optimization. To get started, Amazon advertisers need to identify which of their current keywords are performing great, average, and poorly. They should also identify which search terms they should add to their campaigns as keywords. 

Search Term Migration 

Search terms that the product consistently ranks for should be added as keywords. These terms can be identified using the methods mentioned above and through automatic campaigns. Depending on the specificity of the search term, they may be added as broad, phrase, or exact match keywords. 

Keyword Migration 

Keywords that are performing great in broad or phrase match types should be migrated to exact match. This results in your most-relevant ads being placed in front of the most relevant shoppers. Plus, by migrating these keywords into exact match, you have more control over bid optimizations for these star keywords. 

Some broad match keywords that perform well may still be a little too broad (pun intended) to migrate directly into exact match, so instead, you can migrate them into phrase match. 

When you migrate a keyword from one match type to another, always remember to negate the keyword from the previous match type so you’re not bidding against yourself.  

Keyword Negation 

Key words that are performing poorly should be flagged as “Negative Keywords,” or keywords that your ads are set to not bid on. Negative keywords can be very helpful when your keyword may involve multiple product types, and only one product type is relevant.  

For example, if selling a lavender oil product, you may bid on “lavender oil.” However, if you found that your ad was placing for lavender candles, you could flag “candle” as a negative keyword so that your ad would never place for a shopper that was specifically interested in candles. 

Negating keywords helps ensure that you’re not wasting ad spend on irrelevant placements. It’s a key practice for using a marketing budget efficiently.  

Campaign Architecture Enables Optimizations 

Both bid optimizations and search term optimizations are made much easier to identify and manage when you construct your campaigns in a certain way. 

In general, we recommend creating four campaigns: 

  1. Broad Match Campaign 
  2. Phrase Match Campaign 
  3. Exact Match Campaign 
  4. Automatic Campaign 

 

Each campaign can contain multiple ad groups. In general, we recommend including only one product per ad group. Amazon provides reporting at the ad group level, so this architecture enables you to see ad performance at a product-level, including insights that inform bid and search term optimizations. 

Next Steps 

If this sounds like a lot, well, it is. You can absolutely manage your Amazon ad campaigns using only Seller Central, but this is really only usable for sellers with a small product catalog. As you scale, you’ll need to find ways to automate much of this process. That’s why Amazon advertising agencies and Amazon advertising software exists.  

Kaspien offers self-service software for Amazon ad campaign management, with the option to hire our experts to manage campaigns for you if you don’t want to take the process in house. 

If you’d like to learn more about Amazon advertising, check out our free eBook!

Amazon Advertising eBook 

A Chow Chow Wearing Sunglasses and a Kitten

The Pet Supplies category is an emotions category – shoppers buy with their emotions and justify with logic. The joy that comes from delighting a beloved pet or the fierce protectiveness that comes when thinking of their safety – these are grounding factors that must guide your marketing strategy for the Pet Supplies category.    

Pet Owners Seek Trustworthy Brands 

Shoppers in the Pet Supplies category tend to demonstrate high brand loyalty. Shoppers want to trust that the toys, treats, and items they buy for their pets are safe and reliable. Once they’ve found a brand that they trust, they tend to stay with it.  

We see this played out in data, which shows that first-time buyers enter the category using broad keywords, like “dog toy,” while repeat buyers often use branded keywords.   

In the same vein, we also see that shoppers in the Pet Supplies category are willing to pay for quality. Because pet owners want the best for their pets, they’re willing to pay more for higher quality items. This is especially important to consider given that this category struggles disproportionately with counterfeit product. The low production and freight costs often associated with this category make it a prime hunting ground for counterfeiters. 

3 Ways to Tailor Your Amazon Marketing Strategy for Pet Products 

1 – Lifestyle Images are a Must  

Exciting visuals are critical in emotions categories because they are the first step towards inspiring an emotional rapport with shoppersLifestyle images are images that show your product in use in a natural setting. An adorable photo of a dog using your chew toy will delight shoppers and make them want to see that joy in their own furry friend. In many cases, they also help display the size of the product, helping ensure customers know what size they’re buying. 

Dog with Frisbee in park

Recommendations: 

  • Re-use images generated by influencers for your Amazon listings 
  • Include 2-4 lifestyle images and 1 video, if possible, in your Amazon listings 

Read more about the role of images and video for Amazon marketing. 

2 – Tell a Story with A+ Content 

A+ Content is a potent marketing tool in any category, but especially so in the Pet Supplies category. Pet owners value safety and reliability from the brands they patronize. A+ Content is an excellent place to acknowledge and empathize with their desire. Share your brand’s story and values to show shoppers that your brand is worthy of their trust. 

A Plus Content on Amazon

Recommendations: 

  • Create A+ Content for top performing ASINs (requires Brand Registry) 
  • Share your brand story and values 
  • Use additional imagery that shows your products in use 
  • Highlight product features 
  • Include a sizing chart, if applicable to the product 
  • Link to your other product lines through a comparison chart 

Learn more about earning customer trust in a skeptical world. 

3 – Reach Brand-Loyal Shoppers with Sponsored Brand Ads 

Earlier, we identified shoppers in the Pet Supplies category as being brand loyal. We see this played out in Sponsored Brand Ads – banner ads that show the brand name, logo, and several products. Sponsored Brand Ads typically have lower conversion rates than Sponsored Product Ads, but in the Pet Supplies category, we see strong performance because repeat buyers are seeking specific brands. 

Sponsored Brand Ad on Amazon SERP

Recommendations: 

  • Direct Sponsored Brand Ads to your Amazon Store 
  • Bid on branded keywords so the ads appear for repeat buyers 

Learn more about sponsored ad strategy on Amazon. 

The Best Doggone Guide to Pet Supplies on Amazon 

Like what you’re learning? This is only scratching the surface. Our Amazon marketing experts put together a comprehensive Amazon seller’s guide to selling pet products on Amazon. It contains a category overview, top challenges for pet brands on Amazon (and solutions for them)legal and marketplace requirements, and 10 ways to customize your Amazon marketing strategy specifically for the Pet Supplies category.  

 

Download the Free eBook


Is your Amazon advertising agency delivering results?

Amazon advertising represents one of the most cost-effective tools to advertise products. Experienced sellers and marketers know that every opportunity you get to optimize your ad spend and keywords is a way to increase your bottom line. This means itextremely important to manage your Amazon ads properly. Due to the time and complexity of ad management, many businesses outsource their Amazon advertising to a third-party, such as a marketing agency, contractor, or freelancer. The amount of third-party Amazon advertisers is growing, and the market is getting crowded. The large number of choices can be overwhelming for anyone, let alone a brand entering the Amazon advertising space for the first time.   

When you’re paying someone to manage your ad campaigns, you should know if they’re worth their price. Unfortunately, too often, they’re not. They may be charging you hundreds of dollars per month when they only check on your campaigns monthly. That’s not okay.  

The problem is, it can be hard for business leaders to assess their agency’s or contractor’s true performance if they’re not versed in Amazon advertising fundamentals. To help, we’ve put together this blog post to help you determine if your Amazon search marketer is worth their salt. 

Watch the video to learn how to create high-performing Amazon Sponsored Product campaigns. 

5 Questions to Ask Your Potential Search Marketer 

1) How Often will Bids, Budgets, and Search Terms be Optimized?  

Is it every day, every week, or every month? Is it every six months? Frequency of optimizations is a critical consideration. Some folks are going to be affordable, but they may only log in to “optimize” your Amazon advertising campaigns once a month. The reality is that’s not optimization. The Amazon landscape fluctuates too greatly and too frequently to implement optimizations that rarely.   

On the other hand, some may say that they will optimize your advertising campaigns every day. At that point, they may be over-responsive and over-managing. Amazon changes frequently, but it takes time to see what effect your previous optimizations are having. The sweet spot is somewhere between these two examples, in many cases being two to three times per week. 

2) What Cadence will We Receive Performance Reports?  

Your Amazon advertising agency or freelancer should provide reports regularly. As with the frequency of optimizations, there’s a sweet spot. Checking reports too rarely can result in poor performance and missed opportunities. Conversely, checking reports too frequently can lead to unnecessary stress and micro-management. Optimizations take time to take effect, so your reports should be spaced far enough apart to provide a true picture of what your last optimizations did. 

Performance reports are like your child’s report card. If you review their report card only once per quarter, it may be too late to implement the changes needed to bring the grade up from a D to an A. Likewise, if you review their report card every day, there won’t be enough of a difference to suggest what, if any, changes are needed. 

To start, we recommend a monthly cadence for performance reports. This prevents overreactions, while still being frequent enough that you can make strategic adjustments.  

3) How Do You Plan to Manage Budget and How Will We Hold You Accountable?  

Your budget may be based on a percentage of sales, or you may have a $10,000/month marketing budget. How is your Amazon advertising agency going to manage and optimize your budget effectively? Are they using an ACoS target? Are they going to try to reduce costs as much as possible? Are they going to be targeting only sales? Your Amazon advertising agency should have well prepared answers backed by data for these questions. 

One type of relationship to watch out for is pay-for-performance oriented relationships. While your sales may increase, you may be increasing your ad spend by an inordinate amount, diminishing efficiency and ROI.   

4) How Much of Our Budget is Spent on Branded Keywords?  

Are there any high-value keywords that you’d like your products to place higher on the SERP for? Is it a branded term, a competitor’s term, an industry-specific term, or a category-term? If so, you should discuss that with your potential Amazon advertising agency or contractor because those types of targeted keywords may have a higher cost or higher conversion rate. 

It’s easy to spend more than 50% of your budget on branded terms, but that can inhibit your advertising campaigns’ ability to reach new shoppers. Ask your partner how they will manage and optimize between your branded terms and non-branded termsUltimately, you’re trying to find consumers who aren’t only searching for your brand because that’s how you reach new people and acquire more customers 

5) What Organic Sales Lift can be Attributed to Your Marketing Efforts?  

When you’re paying someone for a service, you have a right to know what results you can reasonably expect from their work. Excellent Amazon ad management products, used with reasonable effort, proper inventory, good positioning, and excellent logistics, should raise sales by 30%. Some people will claim they can go even higher than that. If they say they can increase organic sales by 35%-40%, thatI’s not too crazy, but if any agency or marketer says they can guarantee 50%, 60%, or 70% organic sales growth, you should be worried. 

Here at Kaspien, we offer AdManager to help businesses optimize their Amazon advertising campaigns. If you want to use it yourself, SaaS is available. If you want us to manage your ad campaigns for you, we can do that too. 

Telling Factors You Can Check On 

Once you have hired an agency or freelance search marketer to manage your Amazon advertising campaigns (or if you already have one currently employed), you should continue to monitor their work. We recommend checking the following 6 factors as a way to assess how well they’re managing your advertising campaigns. 

1) Are All Campaigns Set to Automatic Targeting?  

If they are, that means your search marketer is not actively managing the campaign. They’re letting Amazon’s autopilot handle the work while they collect a paycheck from you, and your campaigns are missing significant optimization opportunities.   

2) Are Automatic Campaigns Greater than 20% of Total Spend without any Search Terms being Added to Other Campaigns?  

You should always be running both automatic and manual campaigns. However, if your automatic campaigns are generating significant parts of your spend, you should be worried because it indicates your manual campaigns are not being properly optimized. (One caveat to this is if it’s a new campaign. For new campaigns, automatic campaigns may account for the majority of spend while they build relevancy.) 

3) Do Automatic Campaigns Have Negated Search Terms?  

Negating search terms in automatic campaigns after migrating them as keywords in manual campaigns is a matter of good hygiene. Negating search terms from automatic campaigns prevents them from competing with your manual campaigns. If your search marketer is not doing this, that should be cause for alarm. Not doing this is bad etiquette and muddies your metrics, making it harder to manage the given manual campaign, your specific ideal customer acquisition rate, and ideal cost-per-click.  

4) Are Small Groups of Products Utilizing the Majority of Spend?  

If a majority of your spend is from a small list of high velocity products, then youre missing opportunities for your other products. Your search marketer should be attempting to spread your ad spend across your whole catalog, rather than focusing it on a small group 

5) Are Branded Keywords Accounting for the Majority of Spend?  

Branded keywords accounting for a majority ad spend is a huge red flag because it indicates your campaigns are not targeting new shoppers. Consumers will never search for your specific brand if they have never interacted with it before. For example, a consumer might search for “dog toy” or “soft dog toy”, but never “ZippyPaws” unless they have interacted with “ZippyPaws” before. Spending your money on branded keywords to attract new customers is wasting money. 

6) What are Your Highest Performing Keywords?  

If you have a high cost-per-click (CPC) but youre winning the bid for your generic competitive keywords, youre in good shape. It does make you a target for competitors, but it’s a good problem to have. 

Find the Right Amazon Advertising Agency 

Don’t let someone take advantage of your trust. If you’re paying someone, make sure you have mechanisms in place to hold them accountable. Ask prudent questions and check on your campaigns. 

While you’re here, here are some other resources you can use to educate yourself on Amazon advertising 

Amazon PPC Management Software

Today, we’re excited to announce the release of a new suite of features for our Amazon PPC management software, AdManager. The new features include: 

  • Automated search term optimization 
  • Automated budget optimization to maximize profitability 
  • An Out of Budget table that recommends ideal budgets 
  • A new “4 Campaign Build” option for campaign creation 

All these features are being added for free for existing users and will be included as standard features for all new subscribers.

This set of features joins the existing suite of features, which includes dynamic bid optimizations, a centralized keywords table for simplified campaign management, and detailed reporting. 

Automated Search Term Optimization 

AdManager can now automatically identify and add high-converting search terms as keywords to campaigns, promoting relevancy and driving more sales. Users set custom rulesets that will mine customer search terms from automatic campaigns and broad and phrase match types. If a search term meets your selected parameters, AdManager will automatically add it as a keyword to your manual campaigns.  

With this feature also comes keyword negation. AdManager will automatically identify and negate terms that don’t meet your custom performance thresholds. For example, a keyword that continuously generates clicks but never generates a conversion is wasting your budget. AdManager can now automatically negate such terms, minimizing wasted ad spend and increasing campaign relevancy. 

Search Term Optimization

Never Run out of Budget 

AdManager now lets you set custom rules that automatically increase daily budget for high-performing campaigns if they run low. This way, you ensure that your most profitable campaigns never turn off, maximizing your revenue. 

Budget Optimization

Campaign Budget Optimization Table 

AdManager now includes an Out-of-Budget table that shows at what time a campaign ran out of budget, how often they run out of budget, and uses Kaspien’s proprietary data to recommend an ideal budget for each campaign.  

It’s important that campaigns can run 24 hours per day because optimizing campaigns requires data. If your campaigns consistently run out before 10am, any optimizations you make are using incomplete data, and as a result, risk doing more harm than good. The Out of Budget Table provides both visibility and a solution for this problem.  

Out of Budget Table

Automated Campaign Build Strategy 

Maximize data insights and improve performance using our proven “4 Campaign Build” architecture. When creating a new campaign, you can select our “4 Campaign Build” to automatically create three manual campaigns (one per match type) and one automatic campaign. 

Since we began advertising on Amazon seven years ago, we’ve been experimenting with campaign architecture to find the most effective structure for strong results and ease of management. The 4 Campaign Build is what we’ve found to be the most effective.  

Manually creating this architecture is time consuming, which has led many marketers to regretfully turn away from it, even knowing the benefits to data insights and performance. AdManager solves this problem by automating its creation.  

4 Campaign Build Ad Architecture

For New and Experienced Marketers 

AdManager is designed to cater to both novice and experienced Amazon marketers. The easy-to-use interface and data visualization make it accessible for marketers not yet versed in Amazon advertising. For users who are experienced with Amazon advertising and want to get more in the weedsAdManager offers the depth and customization that you’re looking for.  

Take a self-guided demo to see the backend, or request a live demo with a specialist to see AdManager in action and ask more detailed questions.  

If you’re not ready to start using the software yourself, AdManager is also available as a managed service. Our experts can serve as an extension of your team and manage your Amazon ad campaigns on your behalf. 

Our Lowest Prices Ever 

To celebrate the launch of these new features, we’re offering AdManager at our lowest prices ever! Self-service AdManager is now available starting at $99/month and managed service AdManager is available starting at $1,300/month. Visit Kaspien.com/AdManager to learn more.