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There’s no point in wasting ad spend on products that won’t benefit, so you’ll save yourself some valuable ad dollars by identifying the products that could benefit most.3. Understand the Flywheel effectThe Flywheel effect is the concept of using paid advertising to generate earned media to drive overall growth. Earned media and paid media are comprised of reviews, detail page views, and orders, while your product content is owned media.Flywheel effect imageImage via HubSpotHere’s how it works: Paid ads drive traffic to your product pages, boosting the product’s position in the organic search results.
Traffic and a favorable position in the organic Thailand WhatsApp Number results increases the likelihood that the product will earn the “Amazon’s Choice” designation. In turn, the “Amazon’s Choice” label earns your product more attention from shoppers, resulting in more traffic, and so on. It’s a continuous cycle.How to capitalize on the Flywheel effect in your Amazon campaignsUse business metrics to measure your performance. Keep in mind, though, that advertising doesn’t exist in a bubble—so avoid the common mistake of measuring success based on ACoS (Advertising Cost of Sale). Instead, look at your total revenue, gross profit, and TACoS (not those tacos—we’re talking about Total Advertising Cost of Sale).
TACoS is a measure of how your ad spend impacts overall revenue, including organic4. Use category-specific targeting for Amazon Sponsored ProductsSponsored Products are the most popular advertising option, used by about 29% of buyers, according to Cowen and Co.’s research. These ads appear above, below, and alongside the Amazon search results, as well as on product detail pages, and are similar to Google’s product listing ads.Sponsored Products allow you to use category-specific targeting, which pairs your company’s products with complementary products, thus increasing the odds of converting shoppers.
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