Intro to Amazon Ads

Today we are going to talk about the hot topic of Amazon Advertising. It's one of the things our brands always ask about like how we handle Amazon Advertising and what the best strategy is. Amazon is a super competitive platform, and when the majority of brands launch their products, they primarily concentrate on the content side and maneuvering through Amazon Advertising in order to be highly ranked on the algorithm. The problem is the majority of the time brands start advertising too early. What we recommend doing is to concentrate on the foundation: the content, the SEO, and reviews, in order for us to then bring the customer into the platform through traffic or paid advertising.

Worry about brand authority and content before you advertise.

If you have crappy food it doesn't matter how great the restaurant looks, people are not going to stay and continue to purchase your food. What you should do is have an awesome menu and awesome food and then you drive traffic through advertising. Also having an amazing restaurant that people can go in and they're satisfied. 

The same thing applies to the Amazon ecosystem. We want to do the same thing in order for us to be able to drive the traffic through advertising but actually convert. The majority of the struggles that we go through is understanding the amazon algorithm.

Pay-per-click is an alternative to advertising, however, it should not be the main focus of your Amazon ecosystem strategy.

PPC eats into your total sales when you pay for keywords that you already own organically.

This is because your Amazon strategy should be long-term play. Advertising helps us get there through the constant push of traffic to our listings, our great products, and great content and ownership of the brands, then we can retain the customer. So it's mitigating between customer acquisition and customer retention. 

Amazon advertising is highly complex because there are certain attributes that you need to understand in order for you to win the customer long-term. It's important to make sure that Amazon advertising doesn't increase so much that it's eating up your organic sales.

Ideally PPC (Pay Per Click) should be no more than 40% of your total sales.

Maintaining a balance between the two it's highly recommended.

This will be a three-part article series going more in-depth about the five different attributes of the Amazon Ecosystem for you to have a successful campaign launch customer acquisition and customer retention. We will talk about Amazon Advertising in general and also a more complex and more advanced type of advertising for the flywheel effect, customer acquisition, and customer retention.