Top 5 Amazon Advertising Strategies To Utilize in 2024

As more brands continue to recognize Amazon's potential, it’s clear that this retail giant offers exceptional opportunities for customer acquisition and sales. To capitalize on this, staying updated on the latest strategies, ad formats, and targeting options is crucial for success.  

The vast reach of Amazon doesn't mean you must choose between selling on Amazon and maintaining your current sales avenues. In fact, for brands of any notable size, there's a good chance someone is already selling your products on Amazon. The real question isn’t whether your brand should be on Amazon, but rather how you can control and enhance your brand's presence on the platform.

With competition growing rapidly, developing a focused advertising strategy is essential to effectively engage with your target audience. In this blog, we look at the best ways of doing this and highlight several Amazon advertising strategies to consider when planning your campaigns.

Leverage Amazon’s AI tools 

Amazon's AI-powered Image Generator is transforming how advertisers create engaging lifestyle imagery for their products, enhancing the customer discovery experience. Launched last fall, this tool utilizes generative AI to analyze product descriptions and customer reviews, automatically generating ad-ready images that effectively showcase products in context. Advertisers leveraging the Image Generator have reported over a 20% increase in campaign submissions and a nearly 5% boost in Gross Merchandise Sales (GMS), showcasing the significant impact of relevant and compelling visuals on both consumer engagement and brand performance. 

Amazon is introducing new capabilities, including an aspect ratio feature that allows advertisers to generate images in various dimensions and resolutions. This feature addresses the challenge of balancing standard and native ads, enabling brands to create high-quality imagery that is easily adaptable across multiple platforms, from Amazon to Twitch. With plans for ongoing advancements in generative AI features, Amazon aims to enhance ad quality, optimize formats, and provide tools that improve overall campaign effectiveness.

With generative AI becoming more prevalent, creating copy that resonates with shoppers has become more manageable. Even Amazon offers its own AI tool for product listings. However, always remember that it’s real customers making purchase decisions, so your copy must be persuasive and conversion-oriented.

Regularly Update Keywords and Maintain Relevance

Amazon’s algorithm is designed to promote products that customers are likely to buy, similar to how Google’s algorithm prioritizes the best answers. Several factors influence product rankings, including:

• On-Page Elements
• Customer Reviews and Ratings
• Pricing
• Inventory Availability
• Images and Multimedia Content

Keyword research is vital as the platform uses AI and machine learning to fine-tune search relevance and customer recommendations.

If you haven’t revisited your product detail pages recently, now is the time. Consumer trends have shifted, and newer data is available, making it essential to keep your keywords fresh. Make sure to seamlessly integrate them into your product titles, descriptions, and bullet points, without compromising the natural flow of your content.

Combine Coupons with Amazon Ads 

Discounts and deals are universally appealing, and businesses can benefit from this by offering coupons alongside your sponsored product ads. Running a coupon in conjunction with advertising on Amazon can significantly increase product visibility, attract more clicks, and boost conversion rates.

Coupons offer a direct incentive for potential buyers, which can make your product more attractive compared to competitors. When these discounts are highlighted in sponsored ads, they catch the eye of potential customers across search results, increasing the likelihood of clicks and conversions.

While it is important to carefully analyze pricing and profit margins to ensure sustainable discount and advertising costs, the potential benefits in terms of visibility, sales, and customer acquisition make coupons an often worthwhile investment.

Following certain Amazon FBA Hacks Can Increase Sales  

• Product Targeting Campaigns: Businesses should focus on targeting competitors' listings with lower ratings. Use tools like Helium 10 to find these listings and increase your conversion rate by displaying your products on their pages, especially when reviews are better.
• Low ACoS Campaign: Brands can set up automatic campaigns with a low bid (e.g., $0.12) and a daily budget of $75. These campaigns pick up low-cost sales that might otherwise be missed, helping to maintain profitability even on a limited budget.
• Seasonal Keywords: Make sure to incorporate seasonal keywords in your PPC campaigns and listings. Tailor images and descriptions to align with holidays and events like the Super Bowl or Father's Day, increasing relevance and boosting sales during peak times.
• Coupon Strategy: Increasing product price slightly and offering a coupon (e.g., 30% off) can make customers feel they’re getting a deal. This will improve click-through rates and conversions without sacrificing profit margin.
• Amazon Posts: It is important to leverage Amazon Posts, which are similar to Instagram within Amazon. Regularly posting engaging content can drive clicks and boost visibility, which can lead to increasing sales without additional PPC costs.

Pay attention to the latest updates in Amazon DSP  

Amazon has enhanced its alerts and recommendations for advertisers using Amazon DSP by introducing new features across the campaign overview and order line item pages. Advertisers can now identify and address issues with underperforming orders or rejected creatives with just one click. The pacing alerts provide real-time analysis of campaign data, notifying advertisers about orders at risk of underspending their budgets and offering actionable recommendations to help get campaigns back on track.

The updated interface includes a “Recommendations card” on the order line item page, which displays relevant alerts and optimization suggestions. This card simplifies the optimization process by allowing advertisers to view and implement recommendations directly from the campaign management dashboard. These improvements are designed to keep advertisers informed and facilitate quick actions to maximize their campaign performance across various regions, including North America, Europe, the Middle East, and Asia Pacific.

Final Thoughts

Prioritizing the needs and preferences of customers is vital for success. By harnessing Amazon’s innovative advertising tools and generative AI to create compelling visuals and continuously updating keywords to stay relevant businesses can effectively engage audiences and drive meaningful interactions.

To learn more about AMZ Pathfinder, visit their website, or book a call with a member of their expert team.