Decreased CPA by 68% by switching to feed-based Dynamic Ads
86% increase in conversions
400% decrease in cost per purchase
Crazy in Love grew to adopt a simple but effective social advertising strategy that now generates a considerable return on investment with Dynamic Ad campaigns on Facebook. The project started with an unsettling comment—“Client has excellent knowledge of search advertising, has little confidence in social.” We had our hands full. If the CPA spiraled out of control, Crazy in Love would instantly lose any temptation to test Facebook advertising.
Baby Steps
During initial meetings, Marin wanted to impart knowledge, so we explained the rules, techniques, and skills involved in Facebook advertising.
For starters, we ran a simple campaign structure with a conversion objective prospecting a 1% lookalike of the website’s website visitors. A simple campaign structure and objective would allow the Crazy in Love team to learn the basics.
After achieving moderate results (10% greater than target CPA), they were willing to test a similar structure across two other markets it was advertising in. We saw similar results.
A Growth in Confidence
As the client began to better understand how to optimize social ads, it became quite transparent that the social spend was generating revenue. Although we weren’t yet hitting the target CPA all the time, we were floating within 10-20% of our target across three markets.
Conversations shifted to Dynamic Ads, and how effective Dynamic Ads campaigns are in achieving a low CPA. After a week or so of working closely with the team on its product feed, and ensuring the Facebook pixels were correctly installed at each touch-point of the purchasing path, we launched DA in one market.
Since the particular market has significant web traffic, the results were instantaneous—we succeeded in decreasing the CPA by 66%.
Scaling Up
With DA successfully set up in one market, it once again provided a learning environment for Crazy in Love. Our account rep touched base a couple of times a week, suggesting change recommendations, offering a coherent reason every time, and building their knowledge.
Luckily, as the campaigns indicated a sound ROI, Crazy in Love pushed to self-educate and took every recommendation on board. At this stage the client was running Facebook campaigns for four months, and it became clear that it trusted that with successful optimization and strategy, there was a high chance of achieving a valuable ROI.
Testing and Lessons Learned
Crazy in Love's CPA was a purchase, so that became the focal point. To ensure top-notch DA campaigns, we taught them about the need to ‘feed’ our retention audiences. They understood the theory—however, because a purchase conversion was the main objective, they decided to use conversion campaigns as prospecting ‘feeding’ audiences.
Although conversion objective campaigns achieved some conversions, the total number of clicks weren’t enough to ‘feed’ our DA product audiences on Facebook. The DA CPAs started to spiral out of control, and as the client stumbled into the Christmas shopping period, it was noticeable that the campaigns weren’t being given the same care and attention. Ad scores began to fall, and frequency, CTR, CVR, and CPA all began to spiral.
The ads were becoming expensive. It was time to realign the strategy and ensure adequate optimization time.
Getting Back on Track
After agreeing that conversion objective campaigns were not optimum for ‘feeding’ DA campaigns, they agreed to test an outside traffic objective, in an attempt to drive more traffic with more clicks.
As the DA CPAs began to spiral we decided to rebuild our DA campaigns. This provided an opportunity to analyze attribution windows, to align retention days for optimum results.
By running Lookalike Prospecting campaigns with an Outside Traffic objective across all markets, we drove considerable traffic to the website that was later picked up by the DA setup. The results were excellent.
The Grand Finale
To highlight the success of this strategy we compared the data from Q4 2015 and Q4 2016. We noted an 86% increase in conversions, with a 400% decrease in CP purchase (€60.35 to €11.97).
Decreased CPA by 68% by switching to feed-based Dynamic Ads
86% increase in conversions
400% decrease in cost per purchase
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Amazon is a colossal marketplace where brands fight to capture the attention of millions of potential customers. To beat fierce competition, brands must go beyond the basics.
But first, lets make sure all the basics are covered. Then, read on to learn advanced tips and tactics that will help your Amazon Ads and Listings stand out.
Understanding Amazon Ad formats
There are three main Amazon ad formats - Sponsored Products, Sponsored Brands, and Sponsored Display. Let’s review each ad type’s traits and use cases.
Sponsored Products
Sponsored Product is the most widely used advertising format on Amazon. These ads drive targeted traffic to your product listings by showcasing your product on the results page for specific search terms that you select as keywords. The sponsored ads appear alongside the organic search results, making this ad type feel very native to the user’s shopping experience. Shoppers may not even notice they’re clicking on an ad.
Sponsored Brands
Sponsored Brand Ads allow you to showcase your brand and multiple products in a single ad. These are ideal for top-of-the-funnel advertising and are a great way to increase brand awareness. The downside is that these ads feel less organic to users and more like traditional ads, which may lead them to be biased against clicking on them. When running sponsored brand campaigns, it’s important to include eye-catching images or videos that will draw attention immediately.
Sponsored Display
The unique thing about Sponsored Display Ads is that you can use them to target shoppers regardless of where they decide to shop — on or off Amazon. Through machine-learning and multi-format creatives, you can reach your audience on Amazon and across thousands of other websites and apps.
Instead of focusing on keywords, these ads target users based on their shopping habits. Amazon claims that sellers who use these types of ads see an average of 33.9% more impressions, 3.6% more detail page views, and 2.6% more new-to-brand customers. Note those stats are for customers who run sponsored display campaigns alongside Sponsored Product and Sponsored Brand campaigns. So don’t rely just on one ad format, try all three and watch them work together!
Amazon Ads for non-retail brands
Amazon sellers are considered ‘endemic’ advertisers - meaning they run ads on Amazon to sell products on Amazon. But Amazon advertising isn’t just for retailers anymore! Non-endemic brands like banks, insurance companies, and streaming services now have the opportunity to advertise to Amazon’s massive audience. While endemic ads target customers who are actively shopping on the platform, non-endemic ads are focused on driving traffic to a website rather than an Amazon store.
This means that even if you don't sell on Amazon, you can still run display ads through Amazon's Demand-Side Platform (DSP), which we'll talk more about later.
Which ad type should I choose?
According to Junglescout, Sponsored brand campaigns see the highest average ROAS, followed by Sponsored Products, then Sponsored Display. It’s best to run all three ad types alongside one another, but if you’re just getting started, we recommend starting with Sponsored Brand campaigns if your goal is to improve brand awareness or starting with Sponsored Product campaigns if your goal is to drive sales.
The basics of optimizing Amazon Ads
Make sure that you have all of these basic optimizations covered before you move on to more advanced tactics. We’ll discuss those in the next section.
1. Strategically select keywords
Conduct thorough keyword research to identify relevant search terms that potential customers are using to find products similar to yours. Marketing automation tools like Marin can automate keyword research for you by crawling the search terms that past purchasers have used to get to you product page and suggesting terms that drive a high volume of clicks to be added as keywords. The ‘DIY’ method is to use the Amazon search bar for keyword research. Simply type your core keywords into the search bar and review the queries it autocompletes. Add all relevant query variations as target keywords. You can do the same thing with the Google search bar too.
It's also important to understand the different types of Amazon Keywords:
Frontend Keywords: Keywords that are included in the copy for the product listing, i.e. any key terms in your product title and description. Frontend keyword optimization is the reason that products on Amazon aren’t called simple names like “Almay Lip Gloss”, but rather “Almay Hydrating Lip Gloss, Soft Natural Colors, Prebiotic Complex, Hyaluronic Filling-Sphere Technology, 200 Rose Glow, 0.1 fl oz.” Including all those keywords in your product name may not look cute, but it helps Amazon’s algorithm understand which search queries to return your products for.
Backend Keywords: These are the keywords that you add to your campaign in Amazon Ads Manager. They won’t be visible to customers but will guide the algorithm on which search queries to serve your ads on.
Be sure to incorporate as many frontend keywords as possible in your product listing, and feature the most important ones first. Your list of backend keywords should be more robust and contain all target keywords you’ve gathered through your research.
2. Fine-tune your product listings
Make sure your copy is optimized for both search engines and potential customers. To showcase your product's features and benefits, write compelling product titles, detailed and informative descriptions, and provide high-quality images. A well-optimized listing not only improves your organic search ranking but also increases the likelihood of converting clicks into sales.
Make sure you’re adhering to Amazon’s product title requirements, listed here. Key takeaways are:
Titles should be up to 80 characters
Avoid using all-caps
Avoid promotional phrases like ‘half-off’ or ‘free shipping’
Use numerals, for example use 4 instead of four
Avoid listing size and color variations
Failing to follow these guidelines may lead Amazon to suppress your listing.
When it comes to descriptions, Amazon highly recommends using bullet points to highlight your product’s top 5 features. Amazon Sellers can add 5 bullet points, while Amazon Vendors are able to add up to 10. Start by listing the most important feature as your first bullet point, then move on to the second most important, and so on. Unlike titles, you should prioritize clarity over including lots of keywords when writing your bullet points. We recommend reviewing Amazon’s guide to writing good bullet points.
Amazon Audiences are ready-made targeting groups that you can serve ads to with just a few clicks. Apply audience targets in addition to your target keywords for precise targeting. You can target four types of audiences:
In-market: Users who have recently been shopping for products similar to yours.
Lifestyle: Audiences built based on an aggregate of shopping and viewing behaviors across Amazon, Prime Video, Twitch and more. Amazon aggregates this data and sorts users into groups like “makeup enthusiasts” or “foodies”.
Interest: Interest audiences are built based on browsing and buying behavior, similar to Lifestyle segments, but are more specific, like “interested in Asian food” or “interested in wedding makeup.”
Life events: These are groups of people that are about to experience a life event, like going on vacation or moving.
Test targeting different types of audiences to discover which are most engaged with your brand.
5. Run sales and promotions
To stand out in Amazon search results, offer promotions, discounts, and exclusive deals. Amazon's Coupons and Lightning Deals make it easy to run promotions. Not only are the coupons and deals displayed in your product listing, your product can also be listed on the Amazon Coupons page and deals page giving it visibility to users who weren’t even searching for it.
5 Advanced tips for Amazon Advertising
Once you've got the basics covered, try these advanced tips and tactics to elevate your Amazon advertising game.
Tip #1: Experiment with video ads
Customers are gravitating towards video more than ever. Using product demonstrations, customer testimonials, and lifestyle clips in your ads is a great way to convey your brand message and connect with your target audience. Video is especially important for Sponsored Brand campaigns, which enable you to showcase a video and a few featured products right on the search results page. You can find Amazon’s detailed guide to creating Sponsored Brands video ads here.
Tip #2: Run Ads for Amazon on Search and Social
If you’ve seen success selling on Amazon, consider advertising your Amazon store on other channels, like paid search and paid social. For example, many retailers include a sitelink to their Amazon Store in their paid search ads, with copy like “Buy on Amazon”. That way, the majority paid search traffic is still being driven to their website, but searchers have the option to buy on Amazon too. Having the option to order a product on Amazon may push users over the purchasing threshold since they’re familiar with the Amazon user experience and its quick purchasing process. If the product is available for Prime delivery, that’s another needle-mover.
It’s important to remember that if you do this while using Amazon’s tracking system, none of the conversions driven by your paid search campaigns will be attributed to paid search. Marin has built a cross-channel tracking solution to solve this problem. Click here to learn about Amazon Attribution.
Tip #3: Optimize for mobile
With an increasing number of shoppers browsing and purchasing on mobile devices, you want to be sure your Amazon listings and ads are optimized for mobile. Product titles have a 200 character limit on desktop, but only 70 characters will show on mobile, so be sure that all important info like brand name, product type, and key features are covered in the first 70 characters of your product title.
It’s also important to optimize the images on your product page for mobile. While you’re able to add up to nine images, only the first 7 images will be displayed on mobile, so choose those early images wisely.
Lastly, remember that mobile screens offer less space to describe your product. On mobile, only the product name, brand, and images show ‘above the fold’, meaning users don’t have to scroll to see them. Mobile users may swipe through your images and skim over the details. Therefore, it’s valuable to showcase key selling points in one or two of the images, like in the example from Revlon below:
Tip #4: Explore Amazon DSP
If your goal is to expand your reach and attract new customers, Amazon’s Demand-Side Platform (DSP) may be the answer. It enables you to programmatically buy ads and reach new and existing audiences both on and off Amazon, all the while using Amazon’s first-party data to target users in your demographic. Ads through Amazon DSP will serve on Amazon and on partner sites like Twitch, IMDb, Audible and more. Hitting users with ads on the sites where they spend their time can drive them back to your Amazon store. Amazon DSP offers unique options for ad types and targeting, and you can learn more about them in our Guide to Amazon DSP.
Tip #5: Consider a third-party bidding solution
Leverage advanced optimization techniques not available through Amazon's native advertising platform with a third party bidding tool. Whether you're looking to increase sales or drive brand awareness, bidding solutions like Marin can help you achieve your goals. Of course, Amazon offers it’s own automated bidding strategies, but many marketers struggle to hit their targets with Amazon’s solutions and turn to Marin’s tried and true algorithms. Plus, since Marin houses all your front and backend marketing data, its algorithms often have access to conversion, revenue, and targeting data that Amazon does not. Learn how Marin’s bidding drove a 155% increase in revenue for an Amazon retailer here.
How to Thrive in the Amazon Advertising World
Like all advertising platforms, the keys to success on Amazon are staying on top of the latest trends, continuously optimizing your listings, and testing different copy and placements until you find what works for you.
If you’re finding it all a bit overwhelming, you can manage and optimize your Amazon ads alongside all your other digital marketing channels in Marin’s unified grid. MarinOne even comes with a dedicated digital marketing expert who you can consult with on strategy. If you’re not sure how to get your Amazon campaigns to hit your ROAS goals, Marin can help. Schedule a demo with our team to learn more.