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  • Writer's pictureAdam Eshenroder

How to Win Your Amazon Advertising Bids Every Time, Without Overpaying

Updated: Apr 4

In the busy Amazon marketplace, where millions of transactions happen daily, the art of advertising is crucial for brands who want to stand out from the crowd of products vying for your customer’s attention. 


With all that relentless competition, every click and conversion counts, making the precision of your advertising efforts not just beneficial, but essential to your survival and growth as a brand. 


In this digital arena, it’s critical you use your advertising budget strategically. In fact, the strength of your advertising strategy is the lynchpin of your success, separating thriving brands from everyone else.


Spending money on ads without that strategy is like sailing a ship without a compass. You will never find success, without direction. Luckily, when it comes to Amazon advertising, you do have a compass. It’s called Return on Ad Spend (ROAS), and it is what will help you find your way through the murky waters of Amazon advertising, where danger lurks behind every wave.


ROAS isn't just a metric; it's a crucial way for you to measure whether your advertising strategy is on course or adrift. Fine-tuning your approach based on your ROAS is like navigating with precision: by adjusting your sails and steering your vessel according to its guidance, you can chart a course to success. 


Should the winds become unfavorable, ROAS also equips you with the insight you’ll need to turn back and set sail with a product more suited to the currents of consumer demand.


Armed with the insights you gain from understanding your ROAS and the importance of a strategic approach, this guide is your navigational star in the vast ocean of Amazon advertising. 


We’ll now aim to demystify this process, presenting a clear map to not just compete but excel in Amazon’s advertising auctions. 


By syncing with Amazon’s core values—relevance and customer satisfaction—you're charting a course to claim your place at the top of your category. All this, without the burden of overspending. 


Now, let’s dive into the strategies you’ll need to win your advertising bids every time, without paying a penny more than you have to.


These Are Five Keys to a Successful Amazon Advertising Strategy

(That Lets You Keep More of Your Money)




If you want to succeed with Amazon advertising without draining your advertising budget, you need to bid with precision, based on insight. 


The following five keys will help you pivot from theory to practice so that you can refine your advertising approach, so that every dollar you spend moves you closer to the win you’re seeking. 


  1. Master Your Keywords: Start with a deep dive into your product’s keyword research. Tools like Amazon’s Keyword Planner, Helium10 and Jungle Scout can provide insights into the search terms your potential customers are using. By focusing on precise, high-intent keywords (i.e. the keywords that most often lead to buys), you ensure that your ads resonate with your audience, improving their quality and effectiveness without overspending. To round things out, we also suggest incorporating negative keywords to filter out unrelated search terms, ensuring your ads target only the most relevant audience. 


△ Action Step: Compile a list of relevant keywords using Amazon’s Keyword Planner, Helium10 and Jungle Scout. Focus on the ones with high search volumes but moderate competition to find your niche.


  1. Adjust Your Bids and Optimize: Your initial bids should be conservative, allowing you to gather valuable performance data without exhausting your budget. Then, use that data to refine your bidding strategy, helping it evolve to become more effective over time.


△ Action Step: Review your campaign performance weekly to identify trends and adjust your existing bids for any under- or over-performing keywords accordingly.


  1. Pay Attention to Your Competitors: Use Amazon’s Brand Analytics and Market Product Guidance, as well as tools like H10 and Keepa to keep an eye on your competitor’s strategies and other market trends. These tools offer you insights that can help you make informed strategy adjustments, so that you to stay competitive without increasing your spend.


△ Action Step: Regularly check Brand Analytics for shifts in market trends and adjust your ad strategy to make the most of new opportunities.


  1. Use Your Budget Wisely: Make sure you’re managing your advertising budget wisely by allocating more funds to successful campaigns and reducing spend on those that are underperforming. This may seem basic, but we see so many advertisers miss it! Doing this always ensures that your advertising spend is optimized for the best possible ROI.


△ Action Step: Analyze each ad’s performance metrics and identify which ads are top-performing, and which aren’t. Reallocate your budget to support the winners.


Now, Let’s Hear a Real-World Success Story… 


Let's look at a cool example of a home decor brand we helped get it right with their advertising strategy. 


We started them off with small bids, really paying attention to what was working and what wasn't. As we figured out which ads were bringing in the goods, we started putting more money behind those winners and eased off the ones that just weren’t cutting it. 


Their smart moves paid off big time, leading to a big boost in how much return they were getting. It just goes to show, knowing where and how to play your ads can make all the difference! 


Wrapping Up


So, what’s the takeaway here? Winning with Amazon ads isn't about having the biggest wallet. Instead, it’s about being smart with what you do spend. 


Get to know the ins-and-outs of Amazon’s ad auction, choose the right keywords, tweak your bids based on what the data tells you, and use Amazon's own tools to your advantage. 


If you do all these things, you can really level up your ad game. It’s all about playing it smart. Remember, in Amazon’s world, a well-thought-out strategy will always beat just throwing money around.


 

Want more help? Reach has some of the best advertising experts in the world working for our brands. We pay less on average, and get higher returns than our brand's competitors on Amazon. If you’re ready to stop hitting or falling short of your advertising goals and start exceeding them, set up a call with our team.


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