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Navigating Amazon Advertising Is Challenging But the Revenue Potential Can’t Be Ignored

Ellen Harvey

Amazon is not only the largest e-commerce destination on the web, it is also a leading advertising platform, slated to capture 8.8% of all digital advertising dollars in 2019. That’s just behind Google and Facebook which are predicted to earn 37.2% and 22.1% of digital advertising dollars. Amazon is particularly attractive to retailers because it can deliver marketing messages to consumers who are ready to purchase. That is why the e-commerce giant is expected to grow its ad business by 50% this year.

Many retailers have the budget to advertise on Amazon, but are unsure how to get started or optimize their existing campaigns. The advertising platform is still nascent and difficult to manage. Retailers need to navigate unique eligibility requirements, time-consuming campaign creation, and limited reporting in order to make the most of this channel. But with data-driven strategies and proven best practices, retailers can drive significant revenue with Amazon ads.

That is why Sidecar developed the Retailer’s Guide to Amazon Ads. The e-book explores every facet of Amazon advertising retailers need to know about, including:

  • What Ad Formats Are Available on Amazon: Amazon offers a variety of ad formats that can help retailers achieve different goals from revenue growth to brand awareness and retargeting. Retailers need to understand how these different ad formats–sponsored products, sponsored brands, and display ads–can achieve their unique business goals.
  • How to Win the Buy Box: Retailers must win the Buy Box in order to be eligible to advertise on Amazon. The Buy Box is the white box that appears on the right side of the product detail page. Amazon uses an algorithm to determine which retailer has the best price, fastest shipping, and/or highest seller metrics. The retailer with the best combination of these attribute wins the Buy Box and has a greater likelihood of winning the sale.
  • How to Build an Amazon Campaign: Amazon offers two different campaign types: automatic, where Amazon matches products to search queries based on product details, and manual, where retailers choose what keywords to bid on. Retailers need to use both campaign types to achieve success on the channel.
  • How to Set the Perfect Bid: Retailers can set the best CPC bid on Amazon using a few key metrics, including average conversion rate, average order value (AOV), and advertising cost of sale (ACoS). With these three data points, retailers can calculate the perfect CPC bid every time.

The Retailer’s Guide to Amazon is a great resource for retailers who are just getting started advertising on Amazon or are ready to take a fresh look at their campaigns.