Structuring Your Amazon Advertising Account

Amazon Advertising 101

Advertising is often seen as one of the earliest forms of business communication. Dating as far back as 2000 B.C, advertising has always been a way to promote a service or product to the mass public. Beginning with the implementation of the stone tablet and oral advertising in 2000 B.C, advertising has evolved into being more indirect.

In the modern age of technology, advertising is channeled through a digital platform. Whether that platform is television, radio or the internet, the world has seen a sudden shift in consumer behavior. One of the most prominent platforms for consumer products is the internet. According to Digital Buyers Worldwide, the total amount of online shoppers, for 2019, has already reached 1.92 billion. With this being said, businesses have flocked to sites like Amazon, to sell their products. The good thing is, Amazon has its own system in place for advertising.

If you are a first-time user, advertising on Amazon can be a tricky platform to sell and distribute your products on. Within this blog, we will go over the steps you need to take in order to set your account up for success.

Step 1: ASIN based product categorization

The first step to successfully structuring your Amazon Advertising account is grouping all of your ASINs into product categories. An "ASIN" refers to the Amazon Standard Identification Number that each product has attached to it. The purpose of this step is to potentially take an account that may have hundreds of ASINs and segment it into more manageable bucket ASINs. The product categorization infrastructure will inform campaign structure, reporting, and bid management. ASIN's within a product category will be managed within the same group of campaigns.

ASINs need to be categorized based on

  1. Logical product grouping
    • Keep categorization high-level to allow efficient management.
    • Make sure to segment future product categories based on performance data.
  2. Product Price Range
    • Campaigns that target Return on Advertisement Spending (ROAS) need initial keyword bids that are set based on the price range of the current target ASINs.
    • Applying an assumed conversion rate to the current average price allows you to reach your target ROAS.
    • For this to happen, target ASINs within the campaign must be in the same price range.

Step 2: Target ASIN Selection

Target

Next, you are going to want to start selecting the ASINs you want to target for each product category. Each product category supports the same group of ASINs.

Select five to ten ASINs for each product category. Selecting only one ASIN will limit your reach. Sponsored product campaigns may display multiple Ad placements for a single search query. In order to run sponsored brand campaigns, you need to have at least three ASINs.

Selecting more than ten ASINs to target makes reporting and optimization more difficult to maintain. If multiple ASINs fit within a product category, select your best ten selling ASINs within the category to target. Run your Campaign for one month and analyze the ASIN performance. After running your campaign, keep the top five performing ASINs and swap out the other five ASINs within the category to be tested against the top performers.

Select "Retail Ready" ASINs

"Retail Ready" is a term used to describe Amazon's list of criteria an ASIN needs to meet before being included in an advertising campaign. Some items on that list include:

  • At least fifteen reviews with an average rating of 3.5 stars
  • The ASIN is "in stock"
  • Clear and accurate product content with character limits maximized
  • Includes at least five high-quality images

Step three: Campaign build-out

Construction

The next step to ensuring your advertising account is in top shape is to build-out your campaign. Within your account, each product category needs to be supported by multiple campaigns targeting the same group of ASINs. The purpose of this method is to speak to users at each stage of the path to purchase. Within this step, there are three different sponsored brand campaign types to choose from.

Category/Product Target Campaign

This campaign type allows you to choose specific products, categories, brands, or other product features that are similar to the product in your ad. This method of targeting will allow you to drive a higher volume of impressions, building brand awareness.

Keyword Targeting Campaigns

This campaign type requires you to segregate both brand and non-brand keywords. Non-keywords are searched by users who aren't brand aware and are in the market for your product. Non-brand campaigns showcase in front of these highly-qualified users, helping to drive them to purchase.

Brand keywords intend to drive customers to purchase from your brand. Brand campaigns allow you to maximize the conversion rate. They can also help block competitors who may bid on your brand terms.

Auto Target Campaigns

Auto target campaigns serve ads by matching your product descriptions with a user search query or similar products. These campaigns should be ran alongside keyword targeting campaigns. This is done by setting an auto-campaign bid that is lower than all of your keyword bids.

This campaign will essentially act as a keyword investigation tool, identifying relevant search queries that aren't included in your keyword campaigns. Make sure you conduct a search query analysis regularly to identify the most relevant search queries being captured. You need to add search queries as keywords within the keyword-targeted campaigns.

Naming Your Campaigns

When you create a campaign, make sure each one has a distinct name assigned to it. This will help keep your account organized, allowing for more efficient navigation, optimization, and reporting. Make sure you follow these guidelines when naming your campaign:

  • Ensure standardization across all campaigns
  • Reference all levels of campaign segmentation that you would like to in performance reports
  • Utilize numbers within campaigns to ensure they sort in order

Step 4: Reporting

Report

The fourth and final step is all about reporting. Often seen as the most difficult step, report generation can be a tricky mess to sort through. In this section, we will walk through how to generate a report.

Step 1.

During the first week of every month, download campaign performance data for the previous month from the Amazon dashboard.

Amazon Advertising Dashboard

Step 2.

Sort the exported data by campaign name.

Campaign Name Advertising

Step 3.

Copy performance data from the exported document and paste it into the highlighted cells within the report template.

Performance Data Amazon

Step 4.

Keep data for all previous months in your report. Add data for each new month as you proceed.

Previous Data Amazon

Takeaways

In this post, we covered how to categorize products based on ASIN, how to target ASIN selection, campaign build-out and how to generate a report. Now that you have the skills you need to create a campaign, you are now ready to let the world know about your product. If you are still having trouble advertising on Amazon, then click here to watch this quick video.