Advertising within Amazon
Amazon Ads will not only help spur marketplace sales but could start a virtuous cycle of revenue growth. In some ways, the Amazon marketplace is momentum-driven. Unlike Google or Bing, Amazon isn’t interested in presenting informational or entertaining search results. It wants to make sales. For this reason, Amazon favors high-converting products on its search result pages. One of the ways to improve a product’s conversions and sales is to advertise it on the platform. The more sales it gets, the more likely that product is to be included in organic results and the virtuous cycle begins.
“You know you can spend all the money you have on Google Ads and be dominant in the number one position and get a lot of clicks [but] it doesn’t impact your organic ranking,” said Evan Facinger, director of paid advertising at Wisconsin-based Convert More Marketing. “But Amazon is more of a closed ecosystem, and one of the biggest factors for the search engine side of things is product sales and the sales velocity, you know, the overall conversion rate….Amazon wants to show the actual products that are going to sell the most. So you can directly impact your organic rankings through advertising,” said Facinger. In this way, ads and Amazon search engine optimization can work together to increase sales.
The ads-to-search cycle is especially helpful for new products. Say, for example, that your brand has just launched a plant-based protein bar that you listed on Amazon’s marketplace. It will probably not be displayed near the top of search results for “protein bars,” but advertising that product could be a momentum starter to elevate organic rankings. This would be the case for a new direct-to-consumer product like the aforementioned protein bar or for a retailer who is the first to bring a vendor’s products to the marketplace. The virtuous cycle then continues as good organic search performance could reduce advertising costs for some keyword phrases and allow those advertising dollars to be invested in a new set of keywords targeting another product your company sells.
Ads Boost Sales
To be clear, Amazon Ads don’t just fuel search rankings on the platform. They will likely increase sales directly as well.
Bottom line – sellers needs to advertise to get product discovered within the Amazon marketplace and increase sales. Whether its a new product or an established product, there are different advertising strategies to consider and apply to get positive results.