How Automated Advertising Can Help Your Amazon Store Thrive

A lot of businesses go on Amazon in an attempt to accelerate their online earnings through the exposure this eCommerce giant provides. However, along with the millions of active users that Amazon offers to brands, it also offers a fiercely competitive environment with close to 2 million sellers in its network.

Needless to say, no matter how good your product is or how much you invest in external advertising and promotions, you cannot succeed on this platform without a bit of push from Amazon itself. That’s why so many sellers these days seek help from Amazon promotions and Advertising to rank their products higher on the search results.

However, not every business has the time or resources to cater to the advertising requirements on Amazon. Amazon advertisement automation is a blessing for such sellers. In this article, we will discuss how automating advertising on Amazon can help your store grow exponentially, so read until the end!

What is Amazon Automated Advertising and How Does it Work

When you search for a product on Amazon, the result page will always show a few products categorized as “Sponsored” at the top. It indicates that the seller has promoted these product listings to rank above their competitors.

Automating these advertisements simply means that you do not have to set up each promotion manually. The entire process would be taken care of by AI, and all that you have to do is supervise and ensure that everything is rolling out according to your plan.

How Does It Work?

Amazon advertisement can be divided into two parts: 

  • Bid management
  • Keyword harvesting and management.

Both these advertising components require substantial research, time, and experience. To automate the advertisements, you simply have to automate the individual processes. Luckily, you will find quite a few automation tools in the market for both bid management and keyword harvesting.

Bid Management and Keyboard Harvesting: How Do They Work?

Bid management and keyword harvesting are the two most essential components of Amazon advertising and automation. Here is a detailed overview of how these two elements work:

Bid Management

To land an advertising space for Amazon-sponsored posts, sellers and advertisers have to compete and bid for their selected list of keywords and product targets. The more a seller is ready to invest in a particular set of keywords, the better are their chances of securing the space. 

Like any regular auction, bids for Amazon advertising also need to be constantly monitored and altered with respect to your competitors’ bids. It’s a full-time responsibility that makes it impossible for individuals to manage it alone.

That’s why more and more businesses are shifting to automatic bid management software so that they have something to keep an eye on the new bids rolling in even when they are asleep or away from their desks.

How Does Bidding for Amazon Advertising Cost-Per-Click Auction Work?

Amazon selects and ranks advertisements based on two methods, namely:

  • Standard Second-Price Auction
  • Enhanced Second-Price Auction

Every time a customer looks up a product, Amazon will look for relevant ads in that keyword and product category. Depending on these two methods, it will select and rank the advertisement.

Under the Standard Second-Price Auction, the highest bidder has to exceed the second-highest bidder only by $0.01. So if Amazon is using this method to rank the advertisements, the person who pays the highest will get the first rank.

But when Amazon uses Enhanced Second-Price Auction, it considers the bid value of the respective sellers and the relevance of the advertisement with respect to the customer’s query. In these cases, some sellers enjoy an indirect discount on their advertising if they can match their customers’ queries better.

Common Campaign Bidding Strategies

Before you set out to plan your first Amazon advertisement, make sure you check out three common campaign bidding strategies:

1. Dynamic Bids – Down Only

If Amazon finds that a certain click on an advertisement is less likely to convert, it will decrease the bid by up to 100%. This generally only happens for queries that are least likely to match the given advertisement.

2. Amazon Dynamic Bids – Up and Down

Under this strategy, Amazon will increase your bid up to 100% for ranking on the first page or 50% for other placements if it finds that a click on your advertisement is very likely to convert. Similarly, if they find a click is not likely to convert, it will reduce your bid by up to 100%.

3. Fixed Bids

Fixed bids deactivate the dynamic approach, and your bids stay the same regardless of the probability of a click converting to a sale.

Keyword Harvesting Automation

Keyword harvesting automation allows you to identify the right keywords for your brand and automatically move them from one ad group to another. This minimizes wasteful spending on negative keywords that will reap no benefit.

Keyword harvesting is generally implemented in two ways:

  • From broad to narrow keywords (manual way)
  • Using amazon’s automated campaigns (automated way)

Since we are discussing Amazon advertisement automation, let’s talk about leveraging Amazon’s automated campaigns to find the perfect set of keywords for your products.

Unlike manual keyword harvesting, where the seller has to provide a list of keywords to kickstart the process, automated campaigns will explore and find suitable keywords that complement your brand and product category.

In addition to the list of suitable keywords, it will also provide you with a detailed report on each of those search terms and their performance which can then be evaluated to pick the keywords with the highest success probability.

A lot of sellers use automated campaigns as a part of their core manual campaign, but if you want complete automation, there are several tools and software that take care of keyboard harvesting on your behalf.

Positive Keyword Harvesting

Keyboard harvesting aims to find out the terms with the highest search volume and the potential to convert a click into a sale.

Positive keyword harvesting simply means pulling out those terms that converted customers in their previous searches and adding them to your ad group. This can be done both in the manual harvesting process and the automated route.

Negative Keyword Harvesting

Finding out the terms with the maximum probability of converting a lead into a sale is not enough. You also need to look up search terms and keywords that can reduce your reach and waste your ad budget.

Negative keyword harvesting essentially picks out keywords that do not convert customers and has the lowest performance. These negative keywords are automatically pulled out from your campaigns if you opt for automated services.

Is Amazon Advertising Automation Really Worth It?

Different sellers have different opinions about Amazon advertising automation. That said, it definitely has its pros, so here are four ways Amazon advertising automation can help your brand:

1. Reduced Cost

Setting up advertisements on Amazon requires you to invest a substantial sum. If you are a small or medium-scale business, the last thing you want at this stage is the added cost of hiring a team to look after your Amazon ads. 

Instead, you can simply use an ad automation tool. Although some of them are paid, they are certainly more affordable than hiring new employees.

2. Efficiency

The internet never sleeps – even if your working hours are over, customers worldwide are constantly shopping on Amazon. So, you need someone to stick around 24×7 to monitor your advertisement campaigns, manage your bids, and keep an eye on the performance of your keywords.

It might be impractical for an individual to perform these duties. The solution? A tool – no matter where you are or what you are doing, your business and advertisement keep running consistently.

3. Expert Assistance

Every business owner isn’t necessarily a keyword harvesting, market research, and PPC advertising expert.

Handing over these responsibilities to an automation tool that has already been fed with this information is the perfect solution. It will reduce the workload of your team members and eliminate the need for investing in training your employees for the same.

4. Easy Management

If you are just starting out with advertising on Amazon, setting up everything manually can be tricky for you, especially if you are not technically adept. On the other hand, Tools are designed to understand the interface of Amazon advertising and manage the ads seamlessly, making your job much more straightforward.

Final Thoughts

Tackling the fierce competition in Amazon Marketplace organically is impossible, and advertisements are an indispensable part of every business on Amazon. Moreover, an investment as substantial as this gives you every right to ensure you get good returns. And the best way to fetch good results is through automated advertising. 

AI’s efficiency, the expertise of industry players, and a cost-effective solution, automated advertising on Amazon is a sure-shot way to boost your product reach and make it visible to millions of Amazon shoppers.

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