How to Improve Your Display Ads Performance on Amazon

Online shopping has become more and more popular in the last few years. It’s no wonder that Amazon is getting bigger, making its founder, Jeff Bezos, the richest man in the world.

Jeff Bezos is not the only one getting richer because of Amazon. In fact, around 19 percent of Amazon merchants are earning more than $1 million a year.

But, making a million dollars each year on the world’s biggest online selling platform is not as easy as it sounds. You must be one step ahead of your competitors. You must make your product more visible to your potential customers. And you could do this by investing in product display ads.

Amazon Marketing Services (AMS) offers three types of ads to its merchants – sponsored products ads, headline search ads, and product display ads.

The first two ad services target specific keywords. Product display ads, on the other hand, target potential customers based on their product interests and preferences. This product aims to deliver extremely relevant ads to customers who are actively viewing specific products.

The Amazon display ad uses a cost per click (also known as pay per click) system. This means that you’ll pay for the ad only when a shopper clicks on it. Your display ad can appear on the product detail page, the customer review pages, at the top of the offer listing page, and the right part of the search results.

This ad type usually requires a budget of $100 per campaign and it specifically targets customers that are comparing brands and prices. Product display ads help you reach out to people who are already interested in your product. It increases your product’s online visibility and credibility. And most of all, it’s cost-effective. Why? Because you only pay Amazon each time a potential customer clicks on your ad.


Interest Targeting vs Product Targeting

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As previously mentioned, this ad type does not target specific keywords. It targets specific products and interests.

When you create a product display ad, you have to choose between two targeting methods – product or interest.

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Product-driven display ads allow you to target a specific product or competitor. Let’s say that you’re selling Lululemon yoga pants and your biggest competitor is Ododos.

To steal some of the competitor’s market share, you can place ads on their product detail page. This way, potential customers would see your product when they click on Ododos yoga pants detail page.

This targeting strategy helps you focus on a specific group of customers – the ones who are interested in Ododos products.

Interest-driven display ads, on the other hand, help you target a wider group of shoppers. This allows you to target customers with specific interests or shopping behaviors. This helps you increase brand awareness and attract new customers.

Let’s say that you’re selling a sports bra line. Instead of targeting a specific product or competitor, you can target customers who are interested in running, Zumba, weight loss, exercise, or Crossfit.

How to Increase Your Sales Through Your Display Ads

The AMS product display ad service is awesome because it allows you to target people who are already interested in your products. But, if your ads are not doing well, below are the few tips that you can use to increase your product display ad performance:


1. Target the industry leader.
Let’s say that you’re selling ground coffee and you want to boost your sales. One of the best things that you can do is to display your ad on the product details of the industry leader – Death Wish Coffee. This brand has an average rating of 4.5 stars and it’s popular among serious coffee lovers. It is one of the most profitable online brands. It earned $15 million in 2016 and 45% of that revenue came from Amazon. So, if you want to boost brand exposure, your best bet is to place an ad on a relevant Death Wish product.


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2. Place maximum bids when targeting your competitor’s high performing products.
Let’s say that you really are a ground coffee seller and you decided to place your Ad on the best-selling coffee – Death Wish. So, you just have to sit back and relax, right? Not really. Remember that AMS has a bidding system. This means that you have to specify the maximum amount you’re willing to play for every ad click. AMS usually provides the recommended cost per click bid.

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You have to remember that other sellers also want to place their ad on best-selling products. Let’s say the recommended ad bid is $0.50 to $1.50 dollars. To secure your ad slot on a high traffic detail page, it’s best to choose the maximum bid. This increases the probability of your ad being shown.

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3. Target related products

One of the best ways to increase your ad conversion rate is to target related products. Let’s say that you’re selling socks. You can place your ad on your top competitor or you can place it on the detail page of related products such as sneakers and sports shoes.

If you’re selling wine glasses, you can strategically place your ad on the best-selling red wines and champagnes.

4. Use a clean, clear, and attractive photo.

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Your product photo is the most visible part of your display ad. This is the reason why you should invest in good photos.

Product display ads are not keyword driven, but you should still optimize your Amazon store. Your headline and product description must contain important search terms. But, make sure that your description is well-written. Don’t just insert keywords anywhere in your text. Make sure that every sentence makes sense.

Use simple words and see to it that your product description matches your pictures. Make sure that your product detail page has a high level of professionalism.

5. Write a captivating, compelling, and specific headline.

When you’re writing your product headline, make sure to include the following information:

  • The brand

  • The size of the product

  • The item’s best feature

  • The product’s target market

Let’s say that you’re selling a SwissGear backpack designed for active women. Instead of just saying “SwissGear backpack”, you can say “45 L Swissgear Women’s travel backpack, Tactical, Waterproof”. This headline captures the interest people of who are actively looking for a product similar to yours. This headline doesn’t only increase your ad click rate; it also increases your conversion rate.

6. Carefully choose which product to advertise.

A lot of merchants think that the best way to increase their revenue in Amazon is to advertise their lowest performing product. That’s a risky strategy.

To increase your revenue, you must listen to what your sales numbers are telling you. Your low-performing products are not doing well, probably because they’re crappy and only a few people need them. So, don’t waste your advertising resources on products that won’t sell, unless you’re desperate to sell them.

7. Have a well-written product detail page.

The end goal of the product display ad is not to increase your page traffic, but to increase your sales. So, it’s important that you have a well-written and concise product detail page.

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Product display ads are not keyword driven, but you should still optimize your Amazon store. Your headline and product description must contain important search terms. But, make sure that your description is well-written. Don’t just insert keywords anywhere in your text. Make sure that every sentence makes sense.

Use simple words and see to it that your product description matches your pictures. Make sure that your product detail page has a high level of professionalism.

8. Review the results of your ad campaign on a daily basis.

You can start collecting your display ad data after it has been live for a day. The ad report includes impressions, total sales, clicks, detail page views, click through impressions, and advertising cost of sales.

This data helps you make better advertising decisions in the future. This helps you determine which products to advertise. It also helps you modify your overall business strategy.

Let’s say that you have 30 clicks, but you have zero sales. What does this information tell you? Well, this means that the people who clicked on your ad are comparing features (and prices) and have found a better product. If this is the case, maybe you should revise your product description and make it more captivating. You may also have to post better pictures or produce better products.

Final Thoughts

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The Amazon product display ad is a great service. Its cost per click is usually about $0.35, significantly lower than Google AdWords PPC and Facebook Ads.

This service is not only cheap. It also increases your product visibility. Why? Well, customers search a product on Amazon twice as frequently as on search engines like Google. This number is expected to increase in the next few years. In fact, 90 percent of shoppers still search for products on Amazon even if they have already found in a physical store or another retail websites.  This is the reason why you should invest in Amazon ads. But, placing ads on your competitor’s product detail page is simply not enough. You must make your ad interesting, too.

The product display ad is a great marketing product. But, you should not put all your eggs in the display ad basket. You should spread out your advertising budget on all three AMS products. This way, you get the best out of all the three worlds and maximize your revenues.