Amazon advertising can be a powerful tool for brands to increase sales and grow their market share. In this blog, we'll discuss a three-tier approach to Amazon advertising that can help you better understand your target audience and create an effective advertising strategy.
The first step to creating a successful Amazon advertising strategy is understanding your target audience. We break it down into three different targets: Branded, New to Brand, and Competitor.
Branded targeting is when you advertise to customers who have already shown an interest in your brand. This approach is cost-effective and can be an excellent way to reach customers who are already familiar with your products and more likely to make a purchase.
New to brand targeting is when you advertise to customers who have not yet shown an interest in your brand. This approach can help you reach new customers and introduce them to your products.
Competitor targeting is when you advertise to customers who have shown an interest in your competitor's products. This approach can be an effective way to reach customers who are interested in products similar to yours and may be willing to try your brand.
It's essential to understand that as you target more specific and high-value customers, the cost of advertising on Amazon increases. Branded targeting is the most cost-effective, followed by New to Brand, and finally, Competitor targeting is the most expensive.
To create an effective Amazon advertising strategy, it's essential to understand your target audience and design your advertising strategy around that. Tools such as DSP, Sponsored Display, Sponsored Product, or Sponsored Brand can be used to execute this strategy effectively. For example, is your DSP top-of-funnel ad generating more branded searches in Sponsored Products, hence generating brand awareness?
An effective Amazon advertising strategy can be a game-changer for your brand. By understanding your target audience and implementing a three-tier approach to advertising, you can maximize your ad spend and drive more sales. If you want to grow your market share, revenue, or build a brand from scratch, book a free Amazon Growth Audit with us today. Our experience working with brands like Compeed and Unilever can help you achieve your goals.