Amazon Prime Day is not just an ordinary sales event; it’s a retail juggernaut that offers sellers a unique opportunity to boost sales and expand their market share. And if you want to take full advantage of this October Prime Day, you’ll need a strategic advertising plan. In this guide, we’ll delve into advertising strategies that can help you win market share and increase profitability during Amazon’s Prime Big Deal Days in 2023.
How to Increase Profitability With Amazon Advertising
You must balance market share growth with profitability to make the most of the October Prime Day event. Here’s how:
Cross-Target Your Own Products
You want customers to stay with your brand (and stay away from competitors). By cross-targeting your products — putting related products next to each other — you can encourage more sales, safeguarding your market share and profitability at the same time.
You must expand your advertising efforts on top-converting keywords that have demonstrated strong Return on Advertising Spend (ROAS) performance. Invest in these keywords to capitalize on their proven success.
The Three Steps to Grow Amazon Sales and Win Market Share
There are three major components to your Amazon advertising strategy:
1. Target With Sponsored Products and Sponsored Brands
You’ll want to target your advertising in three main areas:
- Competition products: Target products that are direct competitors to your offerings. Bid on keywords related to these products to divert potential customers to your listings instead.
- Category: Explore broader category targeting to reach a wider audience interested in products similar to yours.
- Competitor brand names: Many sellers face the challenge of competitors piggybacking on their product pages. Shake these competitors off your back and protect your market share by targeting their brand names in your advertising campaigns.
2. Increase Your Awareness and Consideration Campaigns
Consumers will start window shopping before the October Prime Day event. They may even add products to their cart to keep an eye out for incoming deals. Leverage this stage to raise awareness of your products:
- Sponsored product campaigns: Cast a wide net by using a mix of automatic and manual keywords to increase visibility.
- Sponsored brands: Showcase your brand with sponsored brand campaigns, which may include video advertisements and a boost to your Amazon storefront.
- Sponsored display campaigns: Utilize VCPM (Viewable Cost-Per-Mille) and page visit campaigns to encourage potential customers to visit your product detail page.
Build and launch these campaigns well in advance to allow sufficient time for learning and optimization.
3. Increase Organic Ranking
To maximize your October Prime Day success, you’ll need to boost your organic ranking by doing the following:
- Review brand analytics: Identify high-impact keywords (branded and non-branded) that significantly contribute to your sales.
- Bid aggressively: Bid aggressively on these keywords through sponsored product and sponsored brand campaigns (phrase and exact match) to secure top placements in search results.
- KPI focus: Shift your focus from Advertising Cost of Sales (ACOS) to Total Advertising Cost of Sales (TACOS) for these campaigns. Measure success based on placement, top-of-search visibility, total sales (combining ad and organic sales), new-to-brand sales, and conversion rates.
Final Thoughts on Amazon Prime Day Advertising
Amazon Prime Day is a prime (pun intended) opportunity for sellers to thrive. But, success requires careful planning and strategic advertising. By implementing these advertising strategies, you can win market share, increase profitability, and make the most of this retail extravaganza. Remember that Prime Day isn’t just about immediate sales; it’s also a chance to enhance your brand’s visibility and reputation, setting the stage for long-term success on the platform.