Understanding the Winning Amazon Advertising Strategy

Unfortunately, the secret is out. Amazon advertising is an incredibly powerful tool to drive increased clicks, conversion, and sales. As a result, thousands of Amazon sellers utilize pay-per-click advertising called “Sponsored Products” to generate sales momentum and grow market share.

Although most Amazon sellers leverage pay-per-click ads, running campaigns at peak performance isn’t easy. Moreover, it is common to lack a formal growth strategy to overcome many of the unique challenges associated with effective Amazon advertising. At the end of the day, it all comes down to one thing: measurable return on investment.

That is why we are breaking down three steps to executing a winning Amazon advertising strategy. As Amazon is becomes an increasingly pay to pay marketplace, these three steps an essential playbook for all Amazon sellers to follow. Ready to learn more? Keep reading to discover how the Teikametrics Flywheel solution streamlines these steps to save time, optimize advertising, and unlock business clarity.

Step One: Understand Business Metrics

The cornerstone of a successful advertising initiative begins with measurable business metrics: gross profit, total sales, total ad sales, and TACoS (Total Advertising Cost of Sale). These metrics provide context for how advertising impacts overall business performance. One major benefit of tracking these metrics provides is peace of mind.

Specifically, utilizing business metrics unlocks a critical perspective for putting advertising efforts in context of business performance. Knowing how advertising dollars spent contributes to overall sales and bottom line profit is key. Advertising can’t remain isolated from overall business performance to achieve measurable long term success. Therefore, understanding business metrics provides clarity that is critical to enable Amazon sellers to better understand profitability.

 

 

Step Two: Dive Deep Into Product Level Profitability

Not every product in a catalog shares the same margins. That is why understanding gross margin per product is a paramount. Specifically, product level profitability insights unlock the ability to view which products benefit most from advertising.

 

 

Remove risk by identifying which products are the most profitable and which ones are the most costly. Then, use advertising to strategically magnify products to maximize profit. In doing so, advertising spend can be focused on optimizing for profitability.

Step Three: Automate PPC Optimization

Manually adjusting and updating bids on keywords is time intensive. The machine learning technology in Teikametrics Flywheel constantly adjusts keyword bids to earn the best value for clicks. Moreover, it identifies top performing search terms, suggests keyword match types, and eliminates wasted ad spend with negative keyword recommendations.

 

Automating these optimization tasks provides a distinct advantage to beat out competition and maximize advertising spend. Completing this step without a sophisticated software is possible but is more challenging to achieve because of the time and resources required.

Fortunately, Teikametrics is offering a Free 30-Day Trial of the Flywheel retail optimization platform. Teikametrics Flywheel was designed simplify these steps by putting cutting-edge data science at your disposal so you can get the most out of your precious advertising dollars. You get both a revolutionary algorithm to optimize advertising and complete profitability visibility.  This combination is what makes Flywheel unlike anything else on the market.

And did we mention it works? Amazon sellers typically experience 34% growth in total GMV (Gross Merchandise Value) in the first sixty days of using Flywheel. Click here to learn more!

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