8 Tried and Tested Tips to Get a Higher ROI on your Amazon Ad Campaigns

What’s Covered!

Expert Advice: 8 Tried and Tested Tips to Get a Higher ROI on your Amazon Ad Campaigns - Tips by Kiran Patil (CEO & Co-founder, Growisto)

Tip of the week: ​​How did a $100 million ARR global brand turn Amazon into a profitable channel within a quarter?

Case Study: How Growisto helped PUMA achieve 1.7x revenue growth with a SEO compliant listing solution?

Tool of the Week: Maximize Amazon profits with RepricerExpress

Expert Advice

8 Tried and Tested Tips to Get a Higher ROI on your Amazon Ad Campaigns

With over 57% of US online shoppers starting their product searches on Amazon.com, sellers have the opportunity to reach out to a large audience. To be able to succeed on the marketplace, it is vital for brands of all sizes to learn how to optimize their Amazon ad campaigns and generate the highest ROI with the lowest ACOS.

In this newsletter, we are going to deep-dive into some of the most effective tips to get higher ROI on your ad campaigns:

1. Do a thorough keyword analysis: Undertake detailed keyword research and identify highly relevant keywords that customers are searching for. Mine your search term data regularly to find the highest converting keywords out of these and negate those that do not work. Try to eliminate keyword overlap, and focus on quality over quantity. Moreover, it is also important to refresh your keywords every few months in order to understand the changing user search behavior.

2. Employ negative keywords: Amazon also makes it possible to define negative keywords. Your ad will not appear for user queries that contain these keywords. For example, if you sell hair brushes and the word “brushes” is used as a broad match or phrase match keyword, then the ad will likely trigger keywords such as “make-up brushes,” “baby brushes” and various other keywords that are unrelated to your product. If users end up clicking on the ad, you will lose money as it will lead to increased ACOS and decreased ROI. Hence, implementing negative keywords is one of the most effective tactics for reducing clicks that will never convert and boosting your campaign’s ROI.

3. Pause underperforming keywords: As vital as it is for you to add relevant keywords, it is also essential for you to keep a check on the keywords that are not working. Regularly check your ad campaign and pause the keywords that are not giving you performance.

4. Utilize Bid multiplier: By leveraging Amazon’s “adjust bids by placement” feature, you can set bid multipliers between 0% and 900% for top of search (first page) and product detail page placements. When your ads are eligible to serve in these placements, your bid increases by the percentage you set, helping you better compete for these opportunities. The setting can be used to increase the visibility of your ads and generate additional impressions for a specific placement. Since all these placements have different conversion rates, therefore, you should utilize the multiplier function efficiently.

5. Employ campaign bidding strategies: Amazon offers four types of bidding strategy options: fixed bidding, dynamic up and down, dynamic down and ROI based. This allows the algorithm to alter bids, based on the chances of converting. It is necessary to regularly monitor the effect of these bidding strategies on your campaigns to understand what works and what doesn't. The idea is to evaluate a bidding strategy, depending on your objectives. 

For example: your objective could be ‘sales-driven bidding’; or it could be ‘RoI-driven bidding’. In both cases, the bidding strategy will vary a lot. Whatever the strategy be, it is crucial to regularly monitor and adjust bids based on your performance.

6. Optimize your bids - Not all your products have the same ASP, profit margin and conversion rates, therefore, it is not recommended to place the same bids for all keywords. The idea is to find optimal bids that will be high enough to have the potential to get you the desired visibility, but also low enough so that you do not tend to lose money.

7. Use different match types efficiently - For manual campaigns, it can be classified into broad, phrase, and exact matches. Broad match types contain all components of keywords in any order. Phrase match types contain all components of keywords in the same order. Exact match types contain word-for-word keywords. You need to utilize all these match types according to your needs and optimize your overall ad campaign.

8. Other conversion factors - Create an outstanding storefront or listing with A+ content and product images. Ensure that your listings are optimized with up-to-date and accurate data. Make sure that the right message is being conveyed and your listings actively speak to the audiences buying from you. Moreover, any other details about your brand or policies should be clearly listed out. Also make sure that you own the Buy Box, before running ads.

All in all, the aforementioned tips will help sellers formulate a comprehensive Ads strategy to navigate the Amazonian Jungle. Stay updated with Amazon's advertising policies and best practices to make the most of your ad campaigns.

Want to build an optimized Amazon ads campaign?

Tip of the week

​​How did a $100 million ARR global brand turn Amazon into a profitable channel within a quarter?

A $100 million ARR global brand selling their products across multiple countries on Amazon was facing losses.

Here's how data segmentation helped them took some hard decisions to turn marketplaces into a profitable channel for the business within a quarter.

The problem?

The brand was looking at the data at an overall level. The hypothesis was that ad campaigns are not efficient.

Therefore a lot of focus was on optimizing the campaigns. Identifying negative keywords, removing low-performing keywords, pausing non-performing campaigns.

But they were still facing losses.

This led to wastage of a lot of money!

What was the solution?

Segmentation of data to find out the real root cause!

We helped the brand in creating the dashboards to understand the data better:

As a result, some products were discontinued in some specific markets. In those markets, demand for those products was not much. Even after a lot of discounting, they were not picking up

With this level of detailing it was clear, what all products were making profits and what all were making losses. This led to the focus on products and markets that were working well. Campaigns were scaled in these markets and for these products. The brand saw an immediate drop of 50% in topline, but the margins turned positive. With positive margins, they were able to invest more in ads in the right areas and scale back their business to original levels within a span of 6 months

Summary:

Initially, the problem was not in ad campaigns. It was the wrong assumption. If the initial hypothesis is wrong, then your actions are bound to be wrong. Data never lies. Take its help to find the right problem to solve.

Case Study

How Growisto Helped PUMA Achieve 1.7x Revenue Growth with a SEO compliant listing solution?

PUMA is one of the largest global sports and fashion brands. Its products include a wide range of footwear, apparel and other accessories, which are both sports and casual wear.

Our Objective:

• Optimize product listings of >15,000 SKUs

• Increase revenue and organic visibility

Our Strategy:

Our team worked meticulously to figure out the target areas and created a step-by-step roadmap to improve them:

• Automation Tool Development: Developed a customized automation tool for recurring content optimization that caters to the wide catalog and serves its seasonal nature

• Keyword Diversification: Deployed attribute-specific keyword diversification to drive visibility for mid-performers

• Brand Gating: Introduced brand gating using low performers on top listings

• Review Mail Campaign: Launched review mail campaigns with tailored messaging to garner higher reviews and drive cross-promotion

Results:

• 1.7x Increase in Revenue within 5 months of engagement

• 32% Increase in Customer Reviews for top-selling SKUs

• 18,000 Listings Optimized Using Custom-built AI tools

Tool of the Week

Maximize Amazon profits with RepricerExpress

RepricerExpress is a dynamic repricing tool designed to empower online sellers on platforms like Amazon and eBay. By leveraging advanced automation and intelligent repricing strategies, RepricerExpress ensures that product prices are always optimized in real-time to maximize sales and maintain a strategic market position.

Features Overview:

• Automated Repricing: Adjusts product prices automatically based on predefined rules and competitive factors, ensuring real-time competitiveness.

• Rule-Based Repricing: Customizable rules allow sellers to tailor repricing strategies to match their business goals, including setting minimum and maximum price limits.

• Competitor Analysis: Monitors competitor prices and provides valuable insights into market trends, enabling informed pricing decisions.

• Scheduled Faster Repricing: Allows users to set specific times for repricing activities, offering flexibility and rapid capabilities for quick responses to market changes.

• Bulk Editing: Efficiently manages large inventories by enabling simultaneous repricing of multiple products.

• Performance Analytics: Delivers detailed analytics on sales, pricing history, and competitor movements, providing actionable insights for strategic refinement.