Whether you’ve been successful with Amazon Paid Ads or not, it is always a wise decision to invest in advertisement unless you’re selling something really unique. Over the time, Amazon advertisement proves to be an effective tool for every seller in increasing their sales & ROI. No matter whether it’s your first time on Amazon Paid advertising or you’re already into it, there are a lot of factors that should be considered to get the most from your paid campaigns otherwise you’ll only lose your money

Amazon Sponsored Advertisement can be categorized in 2 basic forms:

1. Preparation before Launching
2. Ads Optimization after Launching Ads

1. Do you want to promote products, specific category or brand?

 Amazon basically offers 3 types of advertisement options viz. Headline Search, Sponsored Products and Product Display. Depending on whether you want to promote individual product or brand, you have to opt from these.

• Choose products that you want to advertise:

Sponsored Products	Headline Search	Product Display
Paid ranking of ASINs in search results	Ideal for brand-based promotion against search results	Displaying ads on competitor’s listing
Available in Seller Central	Available in Seller Central	Only in AMS Panel
Low Costing	High Costing	Moderate Costing
Automatic/Manual Campaigns	Manual Campaigns	Manual Campaigs

 ï Make a list of products that you want to advertise. For optimum ROI, ensure to choose only those products that have promising detail page like reviews, good images, content, etc. Running paid ads on optimized listings will result in reduced bounce rate or low ACoS (Advertising Cost of Sale). Products with low star rating or average detail page look will mostly result in high impression but marginal purchase rate

• Create different categories for different products. Avoid adding two distinct types of products in same ad group like earphone with power bank.

• Choose your keywords ‘wisely’:

 Keyword is the primary important aspect of any paid advertisement. There are several ways to opt for a good keyword database as per your chose advertising method. While sponsored products should have more focus on product or category keywords (like earphone), there can be brand specific keywords including competitor brand when it comes to headline search/product display advertising method.

• A good way to build good keywords over the time is to follow the below-mentioned strategy:
• Understand Amazon Users Search Behaviour
• Research keywords
• Run Ads with Low Budget
• Download Report & Filter-out Keywords with Low Traffic or Unusually High ACoS
• Increase Bid/Budget on High-performance Keywords

• Relevancy Factor

 Relevancy is the prime thing that will ensure the success of your campaign. Relevancy simply depends on the number of clicks on your ads whenever your ad shows in search results. More clicks will eventually lead Amazon to believe that the product is compatible for the customer specific keyword. It’s like quality score from AdWords.

Relevancy does not build in a day or week but it takes time. If your ASIN will have more relevancy, your ASIN will show even if your competitor and you have the same bid for same keyword

• Bid Optimization

Bidding is among the prime factors for driving sales/impression on Amazon. Your keyword bids against specific keywords determine whether you’ll gain impression or not – underbidding will not show up your ad whereas overbidding may burn a hole in your pocket. That’s why, it is recommended to optimize the bids after 1 week of setting up your new ad.

Objective

1. Sale Performance
2. Brand Awareness

Strategy

1. Optimize bids for better ACoS.
2. Optimize keyword for better impression

• Keyword Optimization

Keyword is the lifeline of any advertisement. Initially, it is evident that you may use ‘n’ number of keywords. However, it is important to review your advertisement to filter out the keywords that are either only resulting in clicks but sales or not generating any impression. Besides, here are some other steps to look after:

1. Add negative keywords.
2. Pause keywords that have high ACoS.
3. Add new relevant keywords.

• Build an Efficient Budget

 Budget is an important factor that needs to be calculated during ads. It is recommended to set a daily budget and watch out if it’s getting utilized or not. If campaigns are getting out of budget, have a look if it’s performing well or not. If it is performing well in terms of chosen target i.e. impression or sale, increase the budget otherwise you need to work on it.

Bonus Point: On sale days, keep your daily budget on higher side for your best-performing campaigns.