Bidding on branded keywords with Amazon Sponsored Ads is a great way to create a unique brand experience and connect with our ideal customers.
1. INCREASE BRAND PRESENCE
A great opportunity of bidding on our own brand is that it allows us to increase brand presence. This includes cross-selling our own products or additional sales of complementary products if you sell complementary products.
If a branded product has lower performance and receives fewer impressions, creating branded keywords targeting this specific product can help increase impressions and therefore increase sales over time.
Amazon released a case study highlighting that brand campaigns were 41% more effective at driving brand awareness and 34% more effective at driving purchase intent. Therefore, bidding on our own branded keywords helps customers find exactly what they are looking for while also learning more about our brand and products.
2. PROTECT LOYAL CUSTOMERS FROM COMPETITION
While, as advertisers and sellers, it is easy for us to identify ads on Amazon, this is not usually the case for buyers. Many buyers are unaware that there are ads on Amazon and cannot differentiate between an ad and an organic listing.
The fact that ads are integrated into the page can help improve the shopping experience and improve ad conversion rates. Higher ad conversion rates mean that ads have higher performance, which makes advertisers spend more on ads and Amazon make more money.
As a seller, our goal is to occupy the first position on the search results page. Buyers tend to click on the first listings (whether organic or paid) when the product matches the search term.
Therefore, owning the first positions can result in high clicks and high sales. It is a common strategy for advertisers to bid on the competitor’s branded keywords. If we do not bid on our brand, we can lose the first positions in favor of our 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 focuses on the customer experience, so when deciding which ads to show, the relevance of the ad is an important factor. If someone searches for our brand, the ad will be much more relevant than the competition’s. Therefore, Amazon allows us to own ad placement at a lower cost than our competitor. Since buyers are directly searching for our brand, purchase intent is usually higher, which increases conversion rate. Therefore, we often see good performance with brand campaigns on Amazon.
3. INCREASE SALES
Owning the top of the search results page for our brand can increase sales. As mentioned earlier, high ad performance and high conversion rates can lead to more sales.
Additionally, owning the top of the search results page can increase the likelihood of a purchase. A study by Slice Intelligence found that 55% of product searches on Amazon start with the search bar. This means that customers are actively searching for products on Amazon, and if they find our brand at the top of the search results page, they are more likely to make a purchase.
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