Is the Advertising Campaign Worth it?
Since starting up on Amazon we have had some sales but not as many as we had hoped. I have a direct contact for Amazon and when I asked him if there was anything I could do to bulk up sales he just said add more products and do an advertising campaign. Can I ask if many people have done this and was it helpful? Just feel fees to Amazon are already fairly substantial and doing an advertising campaign just adds to costs so wanted to see if it would be worth? Any info greatly appreciated.
15 replies
Seller_iBrSIJDZKlsXi
Hi.
We are using advertising campaign, but only for the products manufactured by us and under our own brand.
It works great and it brings loads of attention to our products, so definitely worth it.
That being said I would be careful with advertising products widely available on the market, because once your competition will see growing interest in the products advertised by you, they will join them and undercut you with the prices, and all your money and effort invested in promoting these products will land in someone else pocket.
something to think about
Seller_Rkf2znCXtSZpI
For us it works on some products but not others.
No.1 the listing has to be flawless. i.e. great description and Pics
Once set up monitor click through rate to Sales ratio.
There’s also long term benefits to factor in. i.e. good ranking. Then if the listing is strong enough it will hold position with the extra exposure from being ranked better and you can remove advertising.
You have to accept what profit/loss you are willing to accept while testing.
Always worth a try.
Seller_lBVct58q3uKGC
Very much depends on the product.
If you’ve got a high-margin product with little competition which doesn’t rank well in organic search it could be useful. For anything with thin margins, lots of other sellers or already a high organic rank its a lot less useful. Your ads also only show when you win the buybox.
Amazon’s PPC model also requires upfront investment to tune your campaign, which may or may not pay off.
Pushing you towards advertising is part of the account manager’s mandate from our experience, it doesn’t guarantee its going to add value to you.
Seller_72Sy9T6sEfmjl
you should remember that the visibility of your ads is directly related to the sales history of your products.
So if you have not sold many or any items don’t expect many impressions, especially if your competitors are also advertising and have a better sales history than you. Their ads will push your ads down to almost invisibile.
Seller_amUAzjvL5uIzu
All my products are advertised with an ACOS of around 2.5% so very cost effective but still only generates under 5% of my sales.
Seller_jPqj6QyLb56ke
I use it on most of my items and it does make a difference.
Seller_1UHZI4aO0qsTl
Depends on the products you are selling but we have enjoyed great success with advertising on Amazon. We’ve spent about £750 this month on advertising and generated just under £5K in sales. Average cost of sales was just over 15% which isn’t terrible but can be improved on. I would highly recommend exploring this option if you want to grow your own brand and sales.
Seller_x1xMSBwZsJrTE
It used to work for me, now there’s too much competition and cost have gone up.
Even if you advertise Amazon is ‘sellective’ about what keywords they will let you rank for, so while your competitors get their ads shown you will not, no matter how much money you throw at it.
Seller_nRDR7opJiUMOJ
When doing your costings, it may be wise to include some spend for marketing if you’re worried about your margins getting hammered. If you can’t do this then I’d still recommend campaigns, what you need to remember is that even if you’re getting some sales at a lower profit margin, it has a greater impact on your product as a whole:
. Improved rankings - Amazon will see the product selling and this will help improve your organic ranking
. Product reviews - The more sales you get, the higher chance of getting those all important customer product reviews; this is import in improve customer confidence
. Brand awareness - The customer may return and order more products from you; especially if you have a unique offering
I would highly recommend it however, just be careful as it’s quite easy to overspend.
Seller_kHIYvQFgzwVAy
Not sure tbh, because your ads are displayed at the bottom of the page on the search results, and I think at the bottom of product listing pages, so it’s a case of whether the buyer will scroll down, the more people who buy your products the higher your rank is, so I suppose it could work if you are competing with thousands of other sellers for the same product, but if you manufacture your own products and 90% of them are unique, it’s probably not worth it.
