Key Elements of Setting Up a Successful Amazon Advertising Campaign

Setting up an advertising campaign on Amazon is easy. It’s creating one that’s successful that’s then hard part.

To ensure you meet your business goals, you need to consider lots of different elements if you are to get ahead of your competitors and enjoy a steady stream of sales. Your end goal should be to have an Amazon campaign that runs smoothly and needs little management, dynamically tweaking bids when a sale is likely and showcasing your brand to those that have shown interest.

To help, we’ve put our years of experience of creating Amazon advertising campaigns to good use. Here’s a quick guide to the key points you need to consider to turn an Amazon advertising campaign into a successful Amazon advertising campaign:

S.M.A.R.T. Goals

Regardless of what Amazon ads you opt for, you should create S.M.A.R.T. goals to help shape your campaign. They will make it easier to determine the success of your campaign over time. S.M.A.R.T. goals are:

  • Specific
  • Measurable
  • Achievable
  • Realistic
  • Timely

For example, as a brand selling on Amazon, your advertising goals could be:

  1. Gain 40 reviews for a product in the first 6 months of product launch
  2. Increase product sales by 20% in 3 months
  3. Reduce a product’s inventory by 90% before launching a new product

Advertising Costs

In order to make a profit, you need to calculate your Advertising Cost of Sale (ACos). Your ACos will impact the budget of your campaign as well as individual CPC bids, so it is crucial you work this out before setting up your campaigns . If it’s too high, you may need to reconsider which products are worth advertising. Your ACoS is calculated by taking into account:

  • Selling price
  • Cost of goods sold
  • FBA cost
  • Miscellaneous costs

Once you have all these numbers to hand, you can subtract all your outgoings from your selling price and work out how much you need to spend to earn a profit. For older inventory stock, calculating a break-even point to clear old stock may be wise so you restock with more profitable stock.

Keyword Research

The basis of all successful Amazon advertising campaigns is thorough, tested keyword research. No matter what size business you are, Amazon’s recommendation is that you set up your campaigns with automatic targeting for a minimum of two weeks. After that two-week period, you will have a large amount of valuable keyword data to utilise alongside your own keyword research. Your keyword list should be compiled of:

  • Your own priority keywords
  • Competitor keywords
  • Automatic targeting recommendations
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