Getting their goods to the top of Amazon's search results page naturally is the ultimate goal for any seller on the platform. Un...
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Getting
their goods to the top of Amazon's search results page naturally is the
ultimate goal for any seller on the platform.
Unfortunately,
not everyone can realize their ideal.
Rather than
using other methods, Amazon sellers must rely on Sponsored Ads to get users to
their listings.
Does this
imply, however, that your listings won't ever naturally appear at the top of
the search results?
Is it
worthwhile to spend money on advertising campaigns in the hopes of seeing an
increase in organic ranking as a result of the advertising flywheel?
This blog
will teach you how to take advantage of the way that Amazon ad expenditure
impacts organic ranking on the platform.
Now let's
get started!
Table of Content
Recognize
the Distinction Between Organic and Ad Sales
Which is a
better option for you, paid or organic?
How Can
Sponsored Ads Enhance Organic Search Engine Ranking?
Ways to Use
Sponsored Advertising to Promote Organic Growth
Final
Thoughts
Recognize
the Distinction Between Organic and Ad Sales
Amazon
provides a variety of advertising options, including Sponsored Brands,
Sponsored Products, Sponsored Displays, and more, to help you market your goods
to prospective buyers.
Each time a
user clicks on your advertisement, you have to pay Amazon a fee.
Conversely,
your organic rating on Amazon's search results pages is typically what leads to
organic sales.
Your product
will be ranked on the organic search results page by Amazon's A9 algorithm,
which takes into account a number of parameters such as sales velocity, keyword
optimization, BSR rank, reviews, ratings, and more.
For organic
sales, you do not have to pay Amazon any advertising expenses in this case, but
in order to rank well in the search results, your product listings must be
optimized.
You can use
a variety of tactics to raise your organic ranking, including keyword research,
optimizing product titles and descriptions, creating A+ content, obtaining more
reviews and ratings, using Amazon FBA, and more.
Ad sales on
Amazon are more rapid and controllable than organic sales, which are more
long-term and sustainable. This is the main distinction between the two types
of sales.
Ad sales can
instantly enhance your visibility, traffic, and revenue, but they also come
with a cost: ongoing investment and monitoring.
Long-term,
organic sales can lower expenses, foster consumer loyalty, grow your brand's
reputation, and boost your share of voice—but they also take a lot of work and
perseverance.
Which is
a better option for you, paid or organic?
Asking this
question in the first place is incorrect.
Instead of
viewing organic and paid sales as competitors, realize that they are two
different but complementary marketing strategies.
Brands get
the biggest increases in traffic and conversions when they mix organic ranking
with paid advertising.
Consider
sponsored and organic search as a dynamic pair that can improve each other's
outcomes. Like Batman and Robin, really. Despite their disparate personalities
and skill sets, they function better together than apart.
How Can
Sponsored Ads Enhance Organic Search Engine Ranking?
To raise a
product's organic ranking, the Amazon A9 Algorithm considers a variety of
signals, including the quantity of clicks, CVR, sales velocity through targeted
adverts, verified reviews, and other factors.
Nevertheless,
it can be challenging to increase click-through rates and sales naturally,
particularly when introducing a new product or brand to the market.
Of course,
you may wait for your products to gradually get better search rankings based on
sales and user ratings. However, it can take years if it occurs at all.
First of
all, if your website is on the twentieth page of search results, it is
difficult to acquire organic sales.
70% of
consumers never look past the first page of an Amazon search results page, and
64% of clicks are typically directed toward the first three products!
Hence, your
best option is to launch advertising campaigns to promote your goods and
increase sales by placing them at the top of Amazon SERPs.
Ways to
Use Sponsored Advertising to Promote Organic Growth
Now that you
know the significance of using Sponsored Ads to promote organic growth, let's
look at some tactics to use them to do so:
Determine
High Growth Keyword Prospects
Investigate
competitors' products and high-volume category keywords that your product isn't
already ranking for.
To increase
conversion, place aggressive bids on the high-volume keywords as soon as you've
identified them.
As sales
start rolling in, your product's search ranking will rise, informing Amazon's
A9 algorithm of the product's relevancy.
Decide
Which Organic Growth Success Measures to Use
Concurrently
identify indicators that will provide you with a comprehensive view of the influence
of your advertising on your overall revenue and organic growth, while
maintaining a high bid on the high-volume term.
Here are
some metrics that you can monitor:
Organic
Rank:
Indicates
how highly your product appears for a specific keyword in the Amazon SERP. With
sponsored promotion, you should monitor whether your product's organic rank
rises with time.
Rank
Sponsored:
In the
search result, it displays the position of your Sponsored Product Ads. In order
to get it to the top of the search placement, raise bids if the ranking falls
to the rest of the search.
Organic
Sales:
This
displays the amount of money you get from sales of your goods that come from
organic sources. As your organic rank rises, you should observe an increase in
your organic sales.
Top of
Search Share of Voice:
This is the
percentage of total impressions that your product receives at the top of the
search results page for a particular keyword. You want to see an increase in
the share of voice at the top of the search placement on Amazon, as the first
result receives 80% of clicks.
Total
ACOS (PPC + Organic sales):
This
represents the percentage of your overall revenue (PPC + Organic sales) that
you spend on advertising. As you maximize the effectiveness of your advertising
and boost organic sales, you should see a decrease in your overall ACOS.
BSR:
It displays
how your product performs in relation to other products in the same category on
Amazon. Increases in sales velocity have a major impact on the BSR rate and,
consequently, the organic ranking.
Brand
Keyword Search Volume:
This
indicates the number of consumers that are using Amazon to look up your brand.
To get this data, navigate to Brand Analytics on your Seller Central dashboard.
It shows how well-known and devoted your brand is to consumers.
External
Traffic:
The amount
of customers visiting your product page from outside sources, such blogs,
social media, or non-Amazon advertising initiatives, is indicated by the term
"external traffic."
Thank
goodness, Amazon offers Amazon Attribution, a free advertising tool that lets
you assess the success of your outside marketing initiatives and make
data-driven decisions.
Run
Time-specific Advertising Experiments
Experimentation
is key to identifying new growth opportunities for your business – especially
when it comes to organic ranking.
Since Amazon
advertising has multiple variables, with controlled time-specific advertising
experiences, you can isolate these variables and understand the impact of
different tactics on your sales performance and organic ranking.
Let’s
discuss a few experiments you can do with your advertising campaigns.
Increase
Daily Budget
Set an
experiment period, and increase your daily budget for high-performing keywords
for that period.
It puts you
at the top of search engine results for all these high-value keywords,
improving visibility and sales.
An abrupt
increase in sales velocity has a favorable impact on organic ranking as well.
We conducted
a comparable trial with one of our customers.
Sponsored
Brand advertisements have been the main method used to increase brand
recognition. Additionally, the brand term accounted for 80% of their revenues.
But in order
to increase organic sales and raise their overall ACoS, they had to raise their
organic ranking for high-performing keywords.
For their
product listing, we identified three top-performing PPC keywords, built a new
campaign using them, and raised the daily budget from $30 to $100.
The
product's BSR in the "Sports and Outdoors" category dropped from
11,332 to 4,229 in just two months, and its organic ranking increased by 34%.
Put Bid
Multiplier Into Practice for Top-of-Search Positioning
Increase
your bids for top-of-search placement and increase traffic to your product
detail page by using Bid Multiplier.
It can have
a self-reinforcing effect because products near the top of search results
receive more clicks and possible purchases. Higher sales from increased
visibility further enhance organic ranking, which in turn leads to more
visibility and sales. We refer to this phenomena as the "Advertising
Flywheel."
Raise the
ACoS You Aim For
Raising your
goal ACoS is another method for raising your organic ranking.
For a
limited time, you can bid aggressively on relevant keywords for your products
by being willing to tolerate a higher ACoS. Increased clicks, conversions, and
purchases can result from it, which helps boost organic search ranking.
Organic
sales have increased by 87% in just three months, and the Share of Voice has
increased from 0% to 22%.
Additionally,
by placing product-targeting advertisements on the goods and categories in
which you outperform your rivals—for example, by charging less, having better
ratings, or receiving better reviews—you can boost sales.
By doing
this, you can direct their traffic to your own listing and increase purchases.
Additionally, it raises your organic position and sales velocity.
Boost
Recognition of Your Brand via Advertising
You can
receive more direct traffic on Amazon with a more well-known brand.
In order for
customers to locate your products naturally when they search on Amazon using
your brand name, concentrate on raising brand awareness.
Additionally,
you can make more money per customer and enhance customer lifetime value with
brand loyalty.
Targeting
relevant keywords and increasing brand awareness are two great uses of
sponsored brand advertisements. You can even run advertising on your own brand
keywords if your product is in a competitive niche to stop rivals from stealing
ad space on them.
Increase
Traffic Without Using Amazon
You can
market your product on other platforms besides Amazon.com. Emails, social
media, Google Search, and other external channels are some of the ways that
people find your Amazon listing.
Even though
Amazon doesn't state it clearly, it makes sense to boost organic ranking by
directing external visitors to your listing.
Increasing
conversion and sales velocity through external traffic to an Amazon listing
helps to increase organic ranking.
Listed below
are some strategies to increase outside visitors to your listing:
Social
Media Advertising:
Use
Pinterest and Instagram to target consumers with ads that lead them to your
Amazon product listings. It increases conversions and introduces new brand
customers to your product.
Influencer
marketing:
Work
together to market your goods on the social media accounts of micro and nano
influencers. Small influencers are the ones who drive the most traffic to your
brand store and product listings because they have the highest interaction
rate.
Finally, but
just as importantly, use social media or blogs to educate your target audience.
This is known as organic content marketing. Although it takes time, organic
content marketing eventually yields the highest return on investment for your
company.
Enroll in
Current Programs Offered by Amazon
In order to
assist you in bringing targeted traffic to your product listings, Amazon also
manages its own growth programs. Among these development initiatives are
With Amazon
Posts, you can make shoppable photo and video posts that appear at the bottom
of relevant product listing pages.
If your
business is registered, you may use these Amazon Posts to boost your organic
traffic and attract more potential new consumers for free.
Amazon
Live:
This is yet
another fantastic choice. It lets you engage with customers in real time and
showcase your product.
To broadcast
your livestreams on Amazon's homepage, brand shops, and other prominent
locations, use the Amazon Live Creator app.
Note: You must have an Amazon brand
registration.
Amazon
Influencer Program:
Last but not
least, make use of the Amazon Influencer Program. Influencers can set up their
own Amazon stores and get paid for recommending products through this expansion
of the Amazon Associates program.
Make contact
with these influencers and request product reviews. It might increase organic
sales and expand your audience.
Assess
Organic Success and Make Iterations Based on the Findings
What you are
unable to measure, you cannot improve.
Monitoring
your organic growth success measures is so crucial.
The main
indicator used to assess how Amazon advertising affects organic ranking is
typically the Total Advertising Cost of Sales (TACoS).
Your organic
sales are increasing if the TACoS gradually declines over time.
But
occasionally, when your product is in the launch or growth stage, for instance,
your ACoS can rise because you don't have any organic footprint on Amazon,
which can cause both our TACoS and ACoS to climb.
However,
TACoS ought to decrease as the product develops.
Keep an eye
on your product ranking for all of your high-performing keywords, not just
TACoS.
If you see
your goods moving up the organic ranking ladder, your advertising tactics are
unquestionably successful.
Final
Thoughts
Increasing
organic product sales is every seller's primary goal.
You must
thus be aware of how Amazon advertising influences your organic rating.
Businesses
and products will differ in what they require, therefore you must carefully
consider what should come first.
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