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How to Use Amazon Sponsored Ads to Drive Holiday Sales

A full-funnel advertising approach is essential to outpacing the heightened competition in Q4. Learn how you can optimize your Amazon Advertising strategy to maximize your sales this holiday season. By Catherine Ibarra November 19, 2020

The holiday shopping season looks different this year. Prime Day in Q4 accelerated the start of holiday sales events, beginning earlier — in October — and extending through late December. 

To ensure your products and promotions stand out among the heightened Q4 competition over a longer period of time will require a full-funnel advertising strategy that leverages high-quality, creative ads with relevant and impactful messaging to keep shoppers engaged and enticed to continue making purchases over the course of the holiday season.

Ads have the ability to boost conversions by showcasing your brand identity, products, and promotions. Now is the time to ramp up your advertising budget through the end of the year to maintain discoverability and account for escalated CPCs and CPMs on Amazon’s marketplace and across e-commerce overall.

Learn how you can use Amazon Sponsored ads to enhance your advertising efforts and drive holiday sales.

Run Continuous Campaigns

Running campaigns on an ongoing basis will solidify your momentum during the holiday season and offer valuable insights to enhance advertising initiatives on the fly. An always-on approach is especially beneficial this year, since holiday sales began early. You can create continuous Sponsored campaigns by selecting the “no end date” option.

In a Sponsored Products keywords report, determine keywords that generate the best results and increase bids on the selected keywords.

If you are running a campaign to grow brand awareness, review new-to-brand metrics for Sponsored Brands, identify campaigns that are helping engage new customers, and double down on those. 

If you are using Sponsored Display to drive sales, measure the amount of ad clicks that convert into a purchase, and increase your budget on the appropriate campaigns.

Initiate a Targeting Strategy

Initiating a targeting strategy will help you reach more of your customers. It is also important to properly structure the targeting within your campaigns to produce the best results. A good structure can be achieved by testing keywords and products, which will help determine the best-performing combinations. 

You must also select an effective ad solution for your campaign. Best practices include testing all Amazon Advertising options and determining the solution that works best with your particular campaign and objective.

If your brand is in the electronics business and your goal is to expand product reach and gain new customers, you should test all ad solutions to find the best fit for your targeted approach.

You can start by implementing high-traffic category queries with manual keyword targeting on Sponsored Products and Sponsored Brands. You can also utilize Sponsored Brands to target non-branded keywords with branded creatives. 

Finally, you can use Sponsored Display views targeting to re-engage audiences. Testing each ad solution will provide the insight necessary to make the best choice for your campaign.

Set Strategic Bids

Strategically placing bids will help you win more impressions. It is especially critical to set your bids to the maximum amount possible on highly competitive peak days, such as Black Friday and Cyber Monday. You will only pay whenever a customer clicks on your ad and you have the ability to decrease your bid at any point. You can also set your bid on a group level to achieve greater control over your spending.

Sponsored Products offer a dynamic bidding feature. If you decide to utilize this feature, Amazon will adjust your bid in real time when it is more or less probable that your ad will convert to a sale.

With Sponsored Brands, you can apply the suggested bid or select an automated bidding. You can also use custom bid adjustments, which allow you to increase or decrease your bid by a fixed percentage.

Sponsored Display offers two options for dynamic bids; to lower your bids in real time when you are less likely to make a sale or raising and lowering your bids depending on the probability of a sale.

Utilize Bulk Operations

Utilizing bulk operations will help you save time by streamlining your advertising efforts. Bulk operations can assist in scaling your advertising campaigns by enabling you to create, edit, and optimize multiple campaigns simultaneously. This feature will make it more manageable to keep up with your advertising initiatives during the multiple shopping events this holiday season.

To begin using bulk operations on Amazon, you must go to Amazon Advertising, select bulk operations, and download the bulk operations template. You can apply changes across multiple campaigns through the bulk template instead of needing to make individual edits in the campaign manager. The template offers instructions, definitions, and template examples per ad solution to demonstrate how to create campaigns and apply changes to existing campaigns.

Catherine Ibarra
About the Author

Catherine Ibarra is a marketing consultant at Feedvisor, where she contributes to the company's content marketing initiatives. She has a technology background.

Final Thoughts

This Q4 is highly competitive due to holiday shopping events beginning early and running through late December. The multiple shopping dates offer consumers more opportunities to get discounts on products they are looking to purchase and a longer period of time to identify the retailer with the best deals. Brands are competing in offering the best savings and creative marketing. 

Pricing competitively and optimizing your advertising on Amazon will help you stand out among a myriad of competitors on the marketplace. Running ongoing campaigns with no end date, initiating a targeting strategy, strategically setting bids in your preferred ad solution, and utilizing bulk operations to streamline advertising efforts will increase your conversions this holiday season.

Feedvisor’s next-generation platform for Amazon Advertising, built on proprietary AI technology, is proven to improve product discoverability and increase sales. To learn more about how you can optimize your Amazon Sponsored ads to maximize holiday impact, click here.

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