The Ultimate Guide to Amazon Advertising in India

  • Author: Veena Mahbubani
  • |
  • Published Date : 20 July , 2020
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Amazon is a .. wait no one needs an Introduction to Amazon. All of us have ordered something or the other on Amazon at least once in our lifetime and some of us spend half our salaries ordering stuff we want because it’s just so convenient!

Amazon also offers Advertising Services which allows advertisers to leverage the massive reach of this e-commerce giant, greater than 200M to make a purchase or research before purchasing to promote their products. Amazon ads are a great way to reach out to a large number of people at the same time.

Here are some stats on the reach and engagement metrics on Amazon in India

This guide will touch upon:

  • User Shopping Behavior
  • Benefits and uses of an Amazon Advertising strategy
  • Reaching the right audience on Amazon
  • Ad Formats and Slots on Amazon Ads
  • What is Amazon Brand Store?
  • How to create a profitable Amazon Advertising Strategy
  • Basics of Campaign Creation and Optimization
  • How to Leverage Amazon Advertising across the Marketing Funnel
  • Case Studies
  • Bonus - New Features and Betas

User Shopping Behavior and Findings from Amazon

We all know that purchase behavior and purchase cycles are dynamic and complex. Based on an Internal Research by Amazon, when someone intends to buy a product there is an average gap of 12+ days between the first search and final purchase. The user spends 2+ days actively researching about the products after going through the product details for 9+ minutes and then checking the customer reviews. Following which the user adds products to cart and then shortlists 2-3 products and to make the ultimate purchase either online or offline.

So there is huge scope for advertising on Amazon in India to

  1. Helps brands reach potential customers throughout the purchase journey with relevant targeting options and amazon ad formats
  2. Helps create brand awareness and drives customer engagement
  3. Influences sales either directly on the platform or indirectly through other platforms like Google Search or Store Visits

Reaching the Right Audience on Amazon

You can target relevant users on Amazon using

Amazon Audiences

  • Search
  • Contextual
  • Behavioral
  • Gender & Geo

Advertisers Audiences

  • Customer List
  • Creating Audience with Pixel

Amazon Audiences

Search Ads on Amazon

Amazon search ads are very similar to search ads on Google where an advertiser bids on keywords for products they want to gain visibility and a shopper looks for those similar keywords on the amazon search bar. The ad is shown to the user and the advertiser pays only when the user clicks on the ad. Amazon ppc ads (pay per click) are very different since the intent of the searchers to make a purchase is 100% when it comes to Amazon compared to Google Search where a searcher’s intent has other uncertain elements like “I want to” and “What is” “how to” queries.

Search Ads Formats on Amazon Advertising

Sponsored Brand

Sponsored Brand Ads appear on the Search Results page above the products. This Amazon advertising strategy gives advertisers a boost to their brand awareness and visibility on the platform. When a user clicks on the ad they are either taken to the Brand Store within amazon or a custom landing page. When the user clicks on a specific product they are redirected to the product page.

Sponsored Products

Sponsored Product Ads make your ad appear in the first page of the products in the search results

Did you know that 70% of the users don’t even look beyond the first page of the search results? This format directs users to their products in the first page of the results and thereby increases sales.

Behavioral Targeting

Behavioral Targeting simply means targeting users based on specific types of online or shopping behavior. Amazon Advertising has 3 segments of Behavioral Targeting which are in:

  • Market Segments
  • Lifestyle Segments
  • Custom Segments

In Market Segments - In market segments, target users that show an intention to make a purchase in a particular category by looking at their recent browser behaviour and search history. For example IM - Tops for women 

Lifestyle Segments - This segment targets users with long term purchase behavior and search history related to a particular lifestyle. For example - Fitness Interest 

Custom Segments - Custom Segments are segments that are created based on the brand’s objective. For example - users that purchase women’s grooming products but not from the advertiser’s brand.

Contextual Targeting

Contextual Targeting is an Amazon advertising strategy which serves to attract users to product pages of the products the users are actively viewing; products that are relevant to the brand’s interest rather than the users’ past purchase behaviours.

Gender & Geo Targeting

Gender - Target a specific gender to reach an audience relevant to a brand or customize your communication for each gender.

Geo - Target specific countries/states/cities/pincodes to reach your relevant audience

Customer Lists

Amazon allows advertisers to upload a list of emails of their existing customers to reach them on Amazon and also reach users displaying similar behavior.

Remarketing

Remarket to users that have already interacted with the brand on Amazon.

Ad Formats and Slots on Amazon Advertising

Along with Search Ads which display ads on the search results page, advertising on Amazon also offers a wide range of rich display, video creatives and slots on the platforms

Display Ad Slots

Ads with Lifestyle and In market Targeting are displayed on the below slots

Mobile/Desktop Homepage

Mobile/Desktop Deals Page

On the Search Results Page

Ads with contextual targeting are display on these slots

On the Product Page

Video Ads Slots

On the Homepage and billboard page for desktop

On the Homepage and product details page for mobile

What is Amazon Brand Store?

A Brand Store on Amazon helps advertisers have their own multi-page store on the platform to promote their brand and products for free.

Benefits of Amazon Brand Store

  • Advertisers can easily create pages for products and categories using predesigned templates or drag-and-drop tiles.
  • This amazon advertising strategy also gives the advertisers their own amazon web address for example - amazon.in/louisphilippe
  • Use the brand store as a landing page to drive traffic from any source
  • A dashboard with store insights which can be used to understand sales from different traffics and sources and use those insights to plan and optimize ad campaigns
  • Engage with users through images and videos on the page
  • Maximize sale on the platform

How to create a profitable Amazon Advertising Strategy?

Now that you have understood the Amazon Advertising and the capabilities on the platform let’s dive into how you can create a profitable Advertising Strategy on Amazon.

  1. Determine your goals
  2. Pick the right products to promote
  3. Structure your campaigns
  4. Optimize Product Pages
  5. Measure and Report

1) Determine your goals

This step is of the utmost importance when it comes to crafting your Amazon Advertising strategy. Clearly define the objectives of your campaign whether it is creating awareness within your target audience or increasing sales or reducing the Amazon Cost of Sale, such as:

  • Drive x number of users to the brand store
  • Increase sales by x% in x months
  • Reducing ACoS by x% by date
  • Sale x number of x product

With clear and concise objectives like these, it makes it much easier for advertisers to choose the products that they have to promote, type of campaign to run,  effective creative and targeting options to achieve brand objectives.

2) Pick the right products to promote

Ask yourself questions like should I promote my best selling products to help drive sales? Promoting a low value product might generate sales but will that be profitable? Should I work on a strategy to identify high margin products and identify high ranking keywords for them? Do I have reviews for the product that I want to promote and where do I stand compared to my competitors?

3) Campaign Structuring

This is very basic yet very crucial to the success of the Amazon advertising campaign and has a huge impact on the amazon ad rank. Campaigns can be categorized by product categories or subcategories to avoid conflict between keywords, and customize the communication in the ads to be as specific as possible.

4) Optimized Product Pages

Amazon ads can successfully drive traffic to product pages but product pages also need to be optimized. Think of it from a shopper’s perspective and think of all the details that you would want about the product if you were to make the purchase and add every single detail on the product page with enough images of the product.

5) Measurement and Reporting

  • Be cognizant of the KPI you measure for each campaign or objective.
  • Measure Brand Keywords, Competitor Keywords and Generic Keywords separately to see what give you a better ROI at a lower cost.
  • Leverage data points from store insights, analyze which campaign, products, sources work better and add additional budgets
  • Look at ways to measure the overall impact of your Amazon Advertising strategy and not just the direct sales. For Instance - asking users that walked into the Local stores where they discovered the product.

Basic of Campaign Creation and Optimization

Basics of Campaign Creation

Before creating Amazon campaigns you need to be familiar with the key concepts or terms of a campaign on amazon

Search Term - The term a user looks for to discover products on amazon

Keywords & Match Types - The keyword refers to the term the advertiser bids on to get discovered and the match types determine how close the search term is to the keywords. There are 3 match types: Broad, Phrase and Exact

Broad - Broad keywords can include words before or after the keywords you have added. For example your keyword is tops, and your ad can trigger for terms like “blue tops for women” this match type helps in increasing the traffic to your product pages and can be used for awareness campaigns 

Phrase - Phrase match focuses on the sequence of the keywords used. For instance if your keyword is “messenger bags for women” the ad will trigger if there are words before or after the keyword, provided it is in that sequence. This match type helps drive highly relevant traffic to the product pages and thus increase sales

Exact - Exact match keywords get triggered when the user looks for the exact keyword. This drives highly relevant traffic but might restrict the quantity of traffic.

Negative Keywords - Adding irrelevant and unwanted keywords to indicate that you do not want your ads to trigger for these keywords.

Campaign Types - There are two campaign types Manual and Automatic Campaigns. Manual campaigns give the advertiser more control over the targeting and optimization and Automatic Campaigns let amazon do it all for the advertiser.

Pro Tip - Manual campaigns generate more accurate results. However if your product is well optimized, have run campaigns on the platform and have learnings in the system,  automatic campaigns can generate great results.

Bidding - Advertisers can choose between fixed bids or Amazon’s Dynamic bidding which allows amazon to optimize bids in real-time based on the learnings

Best Practices on Amazon Campaign Creation

  • Pick the right campaign and creative type for the campaign objective
  • Structure Campaigns based on categories and subcategories to avoid conflict and to improve relevancy
  • A/B test different match types
  • A/B test Automatic and Manual campaigns
  • Bid on brands similar to your brand to reach more users

Campaign Optimization Best Practices

  • Add Negative keywords and exclude irrelevant searches to avoid wasted cost
  • Monitor search terms and expand your keyword list
  • Remove low performing and high cost keywords and products
  • Discover Keywords from your Automatic campaigns and add it to the Manual campaigns
  • Maximize the budgets on best performing keywords 
  • Track product level performance and remove underperforming products and boost best performing products
  • Leverage the Full Funnel Approach
  • Drive traffic to your Amazon Brand Store to Boost Sales from other sources

How to Leverage Amazon Advertising across the Marketing Funnel

Full Funnel marketing is very important for any campaign.

The key to an awareness campaign is to create engaging creatives and target users relevant to your brand. A KPI for your awareness campaigns could be CTR to measure just how relevant your targeting is and how engaging your creatives are. After which you can use the audience created in the awareness campaigns to drive consideration and metric to measure here can be added to cart and drive users down the funnel.

Here is an example of how you can leverage amazon advertising to be present to users across the marketing funnel.

Case Studies

Other Features & Betas on Amazon Advertising

Amazon Lead Generation Forms

Brands without products listed on Amazon can also advertise and drive traffic to an external landing page or generate leads within the platform with Amazon’s inbuilt lead generation form

Engagement Quiz

Create an engagement quiz for relevant audiences to your brand and personalize communication in the future campaigns