Bidding on brand keywords with Amazon Sponsored Ads is a great way to create a unique brand experience and connect with our ideal customers.
A great opportunity of bidding on our own brand is that it allows us to expand our brand presence. This includes cross-selling our own products or up-selling products if you sell complementary products. If a branded product is underperforming and receiving fewer impressions, creating brand keywords targeted to this specific product can help increase impressions and therefore increase sales over time. Amazon published a case study highlighting that branded campaigns were 41% more effective at driving brand awareness and 34% more effective at driving purchase intent. Therefore, bidding on our own brand keywords helps customers find exactly what they are looking for, while learning more about our brand and products.
While, as advertisers and sellers, it is easy for us to identify ads on Amazon, this is often not the case for buyers. Many buyers are unaware that there are ads on Amazon and cannot differentiate between an ad and an organic listing.
Having ads integrated into the page can help improve the shopping experience and improve ad conversion rates. Better ad conversion rates mean that ads perform better, leading to advertisers spending more on ads and Amazon making more money.
As a seller, our goal is to rank first on the search results page. Buyers tend to click on the top listings (whether organic or paid) when the product matches the search term. Therefore, owning the top positions can result in high clicks and high sales. It is a common strategy for advertisers to bid on their competitor’s brand keywords. If we don’t bid for our brand, we may lose top positions to your competitors and therefore lose sales. This is where setting up brand defense campaigns can help us own the top of the search results page and prevent competitors from stealing sales from us.
Amazon is focused on the customer experience, so when deciding which ads to show, ad relevance is an important factor. If someone searches for our brand, the ad will be much more relevant than the competitor’s ad. Therefore, Amazon allows us to own ad placement at a lower cost than our competitor. Since shoppers are directly searching for our brand, the purchase intent is usually higher, which increases the conversion rate. Therefore, we tend to see good performance from branded campaigns due to increased impressions, lower CPC and higher conversion rates.
If our competitor starts converting several people who came looking for our brand, we may improve organic rankings for the brand’s search terms, further diluting our brand on Amazon. Maintaining organic rankings on Amazon is a long-term game, and giving up momentum by not running ads we may cede ground to our competitors that may be difficult to regain. Therefore, running ads to maintain the most positions in the search results is a great way to go.
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