Amazon advertising is a highly useful tool for e-commerce businesses. With a vast user base and an easily searchable product catalogue, the Amazon Advertising platform offers brands with the opportunity to sell more products and drive sales of specific products. However, given that there are over 2 million sellers on Amazon, it can be tricky to stand out from the crowd and make sure your product has the best chance of succeeding. Here’s how you can increase your Amazon Advertising Spend to compete better against other sellers in your category. As the number of brands and agencies turning to Amazon's Advertising Services is on the rise, so are the Advertising strategy options growing.

What is Ad Spend?

Amazon Advertising Spend

Ad spend is the money you spend on advertising to promote your business. It encompasses all the different types of ad costs, such as ads in newspapers, magazines, radio, and TV. It can also include online ads, such as banner ads, sponsored posts on social media, and Google AdWords. It is often broken down by each medium separately, but can also be looked at as a whole figure for all of your marketing campaigns. In this article, we’ll focus on total ad spend – that is the amount of money you spend across all your platforms.

There are many ways to measure ad spend: by cost per click (CPC), cost per thousand impressions (CPM), cost per acquisition (CPA), or cost per engagement (CPE). All of these metrics have their advantages and disadvantages; however, one should always start with the most basic and then move to more advanced practices if necessary.

What you should know before Increasing your Amazon Advertising Spend

Before you decide to increase your ad spend on Amazon and start investing heavily in sponsored products, it’s important that you understand how the platform works.

There are two main types of Amazon advertising; Sponsored Products and Product Display ads.

Sponsored Products are ads that appear on the product pages for the products that you want to promote, while Product Display ads will appear on search and product pages. And the metric used for measuring the performance of both of them is called Advertising Cost of Sales (ACoS). The Sponsored Products and Sponsored Brands are examples of cost-per-click ads where you will only pay when your ad receives a click. 

Before you start increasing your ad spend on Amazon and investing a lot of money into sponsored products, you should get a good understanding of how they work and how much they cost. Once you have a good grasp of the two main types of Amazon advertising and how much they cost, you’ll have a better idea of how much you can invest in each type of ad and which ones will have the best ROI.

How to increase your ad spend on Amazon?

The first step to increasing your ad spend on Amazon is to make sure that you are targeting the right keywords with your sponsored products ads. The more relevant your ads are to the customer, the more product sales you will drive. You can find the most relevant keywords for your product by using Amazon’s Keyword Explorer tool. Once you know which keywords to target, you can adjust your campaign budget and bid to make sure that your sponsored products ad always appears at the top of the search results for that keyword.

You can find the campaign budget and bid settings for each ad under the “Advertising” tab in your Seller Central account. Keep in mind that the higher your bid, the more you will spend on each ad.

Which Keywords should you Focus on?

As we’ve already mentioned, the first step to increasing your ad spend on Amazon and competing better against other sellers is to find the most relevant keywords to target. However, not all keywords are created equal and some will have a higher conversion rate than others. When choosing which keywords to target, you need to ensure that they have a high search volume and low competition. Amazon tracks the clicks and impressions for each keyword so you can see which ones are most popular and which ones are less so.

The more popular keywords will have more clicks and impressions while the less popular keywords will have fewer. You may be tempted to go after the high-volume keywords but it may not be worth the investment if the competition is too high. The lower-volume keywords may not have as many clicks and impressions but they tend to have less competition. You may find that these lower-volume keywords are a better investment.

Tips to Increase your Advertising Budget for a Category

Once you have a good grasp on which keywords to target and which types of ads to run, you need to decide how much to spend on each type of ad. This is where many sellers make mistakes. They assume that if one ad type is more expensive than another, it must be more effective. This doesn’t necessarily have to be the case. You first have to fix the budget for your Advertising campaign. There are several things you can do to increase your ad spend on Amazon and increase the ROI on each ad.

The first thing you can do is increase your daily budget. By raising your daily budget, you can increase the ad spend on Amazon and run more ads in a day. This will increase the number of impressions and clicks on each ad and improve the overall ad performance.

Conclusion: Understanding Amazon Advertising Spend

Amazon advertising is an excellent way to drive sales and increase product awareness. With an easy-to-use interface, wide user base, and proven results, Amazon advertising is an effective marketing tool for e-commerce businesses. However, with a vast number of sellers on Amazon, it can be tricky to stand out from the crowd. By following these steps, you can increase your ad spend on Amazon and drive more product sales, competing better against other sellers in your category.