3 Strategies to Improve Amazon Ads ROI

One of the best ways to improve your bottom line is to make sure that your advertising dollars are spent in a way that maximizes ROI. Especially on Amazon, so many sellers are trying to sell similar products, making it vital to utilize Amazon Ads to get your product seen more frequently. Here are a few strategies that help you make the most of your ad spending.

1. Make sure target keywords are in product listings. 

The goal for Amazon is to give their customers the best shopping experience possible, and part of the way to do that is to make sure that ads are as relevant as possible. They want to ensure that any ad they show is actually relevant to the product the ad is trying to promote. 

So, be sure to add target keywords in the descriptions and titles of your product listings, which easily lets Amazon see that the ad is relevant. Be sure to make the addition of these keywords natural, as your goal is still to sell the customer on your product. Keep in mind that you are not writing for an algorithm; you are writing for potential customers in a way that the algorithm will like.

2. Price bids so they still provide value for you.

Not all products and keywords can have the same bid amount, because they all will have different product margins. Don’t use high bids for low margin products, as you’ll likely see volume but a high ACOS that makes the product unprofitable.

It is important, however, to keep in mind that with newer campaigns, you

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may need to bid a little higher to get some search history that Amazon will respect. Their goal is to make money too, which means that they will likely give preferential treatment to businesses with a longer track record of sales and business creation for Amazon.

3. Get specific on keyword search terms.

While broader search terms can make sense, they will also have the most competition. Longer search terms with three or more words put together can help a potential customer hone in on your product if it is right for them, possibly making search terms more relevant. 

For example, if your product is a Christmas themed kids book, it may not be specific enough to use a keyword phrase such as “kid’s book.” While technically accurate, it will be glossed over by customers searching for books that have nothing to do with the holiday. If you make your search more specific, such as “Children’s book for Christmas,” it is much more likely to be relevant to someone searching for that one right book.

Optimizing your Amazon advertising campaigns can help increase ROI and help you spend your dollars efficiently. These three strategies can help get you in the right direction to increase your profit margins.