Amazon is a company that diversifies into several product lines, from music to food to furniture. Its motto is From A to Z, referring to all the products and services it offers its customers or users.
This American company focuses on e-commerce and cloud computing services at different levels. It also offers digital media content, hardware, and online marketing.
Amazon is adapting to the needs of its consumers in the online world at a dizzying speed, becoming one of the sector’s giants and practically the entire world. Amazon is present in more than 14 countries, from the United States to Germany and China.
In the digital context, millions of users know Amazon as the place to make their online purchases at competitive prices and under extremely competitive shipping conditions. In countries such as the United States, Amazon has the largest market share in online sales and has become the largest product search engine worldwide, often surpassing the search engine par excellence Google.
Amazon Strategies
The great development that Amazon has achieved over the years is mainly due to these differentiating strategies:
- Digital disruption. Amazon has opted for a fully dynamic and digitalized role, differentiating itself from its competitors by causing a complete digital disruption.
- Digital orientation. Amazon is focused on continuous market analysis to understand the digital maturity of the sectors and use it as points for improvement.
- Digital transformation strategy. Amazon generates new strategies to carry out its digital transformation.
- Industry 4.0. Union of processes and data with information and communication technology.
- Artificial intelligence. Increasingly, the advantages offered by artificial intelligence are being used to improve productivity.
- Digital operational excellence. Continuous optimization of actions and measures, thanks to continuous analysis.
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The main services within Amazon
- Private providers. Among the private providers we can find Amazon Publishing, which makes it easy for writers to publish their works in an easy and intuitive way within the Amazon platform. We can also find Amazon Service for Seller Central, which is oriented to offer services to companies and distributors with the aim of facilitating their online sales on Amazon.
- Ecommerce aimed at private suppliers. Not everyone knows that Amazon also has specialized online stores.
- Business Suppliers. Amazon Advertising is the Amazon platform through which Amazon offers its advertising services to its customers. We also find Amazon Vendor Central, which is only available to its supplier customers.
- Media geared towards business providers. Amazon provides media services to its professional providers such as Amazon Video.
- Private Consumers. Focused on its end customers. One of its most sought-after services by its customers is Amazon Prime.
- Consumer companies. Amazon Business or Amazon Web Services.
- Consumer-oriented hardware. Amazon has created Alexa, a cloud-based voice service that performs actions commanded by the user. It can tell you everything from current traffic to controlling all the devices in your home completely digitally.
Top Amazon Seller Profiles
There are various sellers within Amazon. First of all, you must activate an individual or professional account, and then select the type of seller you want to be, among which we can select:
- Reseller. Sell third-party branded products
- Brand. You manufacture and sell your own brand in different channels
- Retailer. Sell third-party products on Amazon.
- Private Label. Buy products, brand them and sell them on Amazon.
Amazon Advertising PPC Concept
Amazon Advertising PPC is a pay-per-click platform. It is a tool similar to the one found on Google, where we can sponsor and create ads within the Amazon platform. Its main objectives are to increase visibility, improve sales, control costs and generate an increase in all these elements with the minimum possible effort and the best results.
When creating our ads on Amazon Advertising, we must generate attractive creatives and segment the audience as precisely as possible.
Types of ads in Amazon Advertising PPC
The ads that we can find in Amazon Advertising are:
- Sponsored products . These are ads that we find in search results or product pages. You must select your keywords, which you can do either manually or automatically. Then you must select your target audience and as your ad gains exposure and history, Amazon Advertising, thanks to its algorithm, optimizes these campaigns by modifying your audiences to those that give you the most profitability.
- Sponsored brands. This allows you to attract potential customers with more than one advertisement for your products or services. The creatives for this type of advertisement are usually more eye-catching and captivating. This type of advertisement can be placed alongside the company logo or through a video or image.
- Display Ads. Allows you to run remarketing strategies, not only on Amazon, but also on sites affiliated with Amazon such as Netflix or Facebook.
How to create an advertising campaign on Amazon Advertising?
First of all, we must select the type of ad and campaign we want to run through the Amazon platform. The most commonly used type of ad is sponsored products, as they help increase our revenue, as well as promote our products or services by reaching new users. The least commonly used type of ad is currently the Display ad for Amazon, as it is a new type of ad and its use is still growing.
Once the ad is selected, we must give our advertising campaign a name, which must be as descriptive as possible for our clients. We must also select the start and end date for the campaign, as well as establish a daily budget so that Amazon Advertising knows what our maximum spending amount is.
Next, we must select the objective of the campaign(s), along with the selection of products and offers that you are going to select. And finally, Monitor the results.
Amazon Advertising campaign structure and PPC strategy
- Campaign. First of all, we must create the campaign, along with the name with which we will identify it and its daily budget. In addition, we must establish the period and the appropriate segmentation.
- Ad group. Once the campaign has been created, we will add ad groups, selecting the product or products we wish to advertise. For this reason, it is important to add a title attached to one of our keywords and add bullet points, where we will highlight at least 3-5 advantages that differentiate us from our competition. And finally, we will add a description of our product, at least 1,000 characters, along with images of the product or service.
Monitoring developments with Amazon Advertising through metrics
A very important part is knowing how our advertising campaign works and if it is turning out as we wanted, so we must pay attention to the following metrics:
- CTR (Click-through rate). This is the number of clicks obtained by launching a certain number of impressions. It allows us to see the impact that our advertising campaign has had. And it is calculated by dividing the number of clicks by the number of impressions, multiplied by 100.
- Conversion Rate. This is the percentage of sales generated when users perform an action. It is calculated by dividing the number of goals achieved by the unique users who visit our website.
- PPC (Pay per click) metric that determines each time the user clicks on one of our ads or impressions.
- ROAS (Return on Advertising Spend). Metric based on the relationship between sales and investment made in advertising.
When to use Amazon PPC strategy?
- At that time when we want to enhance our product lines
- When we want to increase our sales of new products.
- To generate recurrence, that is, to build customer loyalty.
- Create seasonal campaigns, such as Father’s Day, Christmas, etc.
- Also to generate seasonal break campaigns.
- And to protect or attack our most direct competitor in a strategic way.
Amazon’s A9 Algorithm
Amazon’s own algorithm is called A9 and identifies the products and sellers in its Marketplace based on a series of variables, which are essential to understand and know how Amazon positions itself.
This algorithm is mainly based on the correct use of keywords for each product or service that exists on the description page of each product, as well as being based on the number of images and quality. Another important element is the rating and comments of the products. Amazon’s A9 algorithm is constantly changing to keep up.
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