Historically, sponsored product ads have been highly effective as they are directly correlated to sales featuring strong buying intent, low barrier to entry, nominal capital expense, and easy attribution. Moreover, they've provided businesses with high conversion rates increasing their return on investment in advertising.
That being said, consumer behavior is now going through a transition and 6 out of 10 customers are now searching for products on Amazon. According to Scott Hadedorn, CEO of Omincom Media;
"Consumers are no longer double hopping from Google to Amazon, they just go straight to Amazon"
This means as an Amazon seller you've got your work cut out. You've to look beyond sponsored product ads to stay competitive. Here are a few important tips.
1. Invest in Brand
Amazon is now introducing "Top Brand" badge which points towards the fact that customers are looking for more reliable and trustworthy results when they search. Being a recognizable brand will help your brand gain trust and customer loyalty. The downside is that it may also give an unfair advantage to established market leaders.
This is why it's the right time to invest in your branding as it'll help you achieve a variety of goals including:
Branded search terms feature lowest CPC and deliver highest CVR
The greater the number of branded search terms the lesser your ad spend
Will help you build brand loyalty resulting in repeat business
2. Invest in Creative
Amazon is now providing sellers with the opportunity to show highly creative ads on its platform including custom design DSP ads as well as video in search ads.
With DSP you can get reach out to a custom and highly targeted audience, create custom creative ads and establish more robust funnel positioning that includes awareness, repurchasing, and retargeting.
In simpler words, investing in creative now will provide you with much more flexibility as compared to sponsored display.
3. Know Your Metrics
In order to optimize your advertising campaigns in the long run, you have to understand how different phases of customer experience are interlinked.
For example, conversions will lead to reviews which in turn will have an impact on your ranking generating more impressions resulting in further conversions.
This is why you also need to wrap your head around the relation between attributed and organic sales. It's also important to advertise outside of Amazon as it unlocks new ad inventory and an entirely different potential target audience.