Today more and more people are talking about the . Voices are heard in favor, others against. American experts are heard saying that it should not be used, others that it is vital.
We also hear that it is necessary to invest in Amazon ADS because it helps you position (like Google ADS to position a URL for a specific keyword in Google) or that Amazon is considering making the advertising disappear because there are “bad” products that dominate the first results simply because they bid more for the ads , etc.
So in this article we are going to try to reveal all the doubts that may arise.
Debunking Myths About Advertising on Amazon ADS
1. Advertising in Amazon ADS can disappear
No way. That’s how direct I am. This is just my personal opinion, but amazon invoice a huge amount of money through this system.
It is true that there is a serious problem which is that there is a lot of “bad” advertising on Amazon and this makes the user experience worse, but what Amazon will do is modify the algorithms to find the optimal point between user experience and its benefits.
There is Bad Publicity on Amazon: Real Example
What exactly do we mean? Let’s take an example. Suppose you search for: “men’s t-shirts”.
The first thing we see is an advertisement for a brand of Hawaiian T-shirts for men. This advertising on Amazon is more or less focused on the main keyword, but it doesn’t really satisfy the user’s purchase intention because… Is someone looking for men’s t-shirts looking for a Hawaiian?
Although that is passable, the following is no longer. The first 4 search results are from the advertising on Amazon called Sponsored Products and as we are going to explain now, it does not satisfy the search intention of the users at all:
- First Announcement: Waterproof pants are shown… ¿?¿?🤔🤔🤔. Fatal for the user experience.
- Second Announcement: T shirt! But with little stock and zero Ratings… Inadequate for the user experience.
- Third Announcement: Little stock, a single evaluation and on top of it bad. 🤦♂️🤦♂️🤦♂️. very bad ad
- Fourth Announcement: Prime, no Stock problems, with many reviews… Good ✔️
Still, as you can see, the first organic result is a product that better matches the user’s search intent than sponsored products on Amazon:
- Best optimized title
- With the Brand at the beginning, well highlighted at the beginning.
- With the best seller tag
- With a price range that indicates that there are many variants in terms of color and sizes to choose from.
- And… more than 400 evaluations with a very good average.
As you can see, this is a clear example in which Advertising on Amazon negatively affects the user experience. Something bad for Amazon, but… does that mean they are going to remove advertising?
For this reason, Advertising on Amazon will continue
If you are a new Seller who starts selling “men’s t-shirts”, naturally you will not be able to get to appear in the first results until many months have passed and you do a good job. Since, in this example, in the TOP 6 of organic results 4 of them have over 300 reviews.
So while you organically position the product you bid, through Amazon Advertising, to appear in front of those results with hundreds of ratings.
And Amazon allows this for two reasons:
- can not allow that there is a monopoly and that new brands cannot enter to sell to a competitive market niche. In fact, without advertising it would be terribly difficult to gain visibility to enter and sell in a sector like the one mentioned in the example. If it allowed that monopoly, the new brands and new sellers would go to another marketplace.
- Can’t throw stones against your own roof and eliminate one of your biggest sources of income.
So, for now, Amazon allows any Seller to bid on the first position of the search results, sacrificing user experience in favor of your income and the possibility of losing sellers.
Our opinion on whether advertising in Amazon ADS can disappear
As we said, our answer is NO. And we explain why.
Our opinion is that Amazon, in the end, will end up modifying the algorithm so that you have to meet minimum requirementssuch as the number of reviews of your seller account, of the product, customer satisfaction ratio, etc., so that you can bid on Amazon Ads for the top positions.
The drawback of this is thatin the end, I think that the purchase of valuations and some other Black Hat techniques would be encouraged even more because, if you create a product today and if not even for advertising, you will be able to show it in the first positions (which are the ones that generate sales), you will end up “forcing” compliance of the requirements that they put to increase your sales.
NOTE: It is stipulated that, for a Keyword, 64% of sales are taken by the first three products of the results. That is the reason why you have to be in the top positions.
2. Advertising campaigns improve your SEO positioning on Amazon
Yes and no. Both. But don’t worry, it’s not a trivial answer. In fact, when you read the explanation you will understand in which cases it DOES improve SEO and in which cases it does NOT.
Amazon ADS campaigns do improve SEO when…
The Amazon ADS campaigns do improve SEO when you are launching a new product or when you have a product already launched but it is not in the TOP 5 – 10 of a keyword.
How does this really work? You choose any of the two previous cases, the point is that by NOT being in that TOP 3 or TOP 5 you have a low sales speed. And this what that? Well, it is a vital part of positioning on Amazon based on the A9 Algorithm, which is in charge of deciding which products appear in front and which ones behind.
Basic notions of SEO on Amazon based on Customer Satisfaction
One of the vital points of SEO positioning in Amazon is the so-called Sales Velocity and Sales Rate per Visit to your Product Page. This means that the more sales you have, the better. A bullshit right?
The point is that you have to understand what generates more sales speed and sales per visit to your product.
A basic point to understand is that Amazon measures and knows how many units of a product you sell, by which keyword those sales have come and compares them with the products of your competition.
This way they can know that:
- The one in position 1 for “men’s t-shirts”, there are 10,000 people who have clicked on the product and 200 have bought = 2%.
- The one in position 2 for “men’s shirts”, receives 8,000 clicks and 160 have bought = 2%
- And the one in position 15 for “men’s shirts”, receives 1,000 clicks and 5 sales = 0.5%
Conclusion: Amazon is not paying attention to the one that sells the most units, but to the one that sells the most in percentage, because that indicates that the one with the highest percentage has a better listing, product and people trust it more.
Final explanation of why advertising campaigns on Amazon do improve SEO
Based on all this information, without advertising campaigns it’s hard to get more clicks than the products of your competition that are better positioned. So, you can use the campaigns to get more traffic.
Now once this is done, if your product sheet is good and manage to improve your Sales per Click ratio, even if your product is in position 25, Amazon will understand that you have a better than average listing and will improve your organic positioning.
In this example, you can see how there are two products with 6 and 8 reviews that have been positioned ahead of another that has more than 100 reviews in organic (non-advertising) results.
So… what can you do?
A very good strategy And what works great is to literally go all out in advertising campaigns when you have a poorly positioned product.
In this way, you make your product go from receiving just 1,000 clicks to tens of thousands of clicks. However, getting clicks is NOT IMPORTANTthe important thing is to convert those visits into sales.
So before you have had to optimize your product sheet to make it better than your competition:
- Brutal and informative images
- a good title
- Bullets that answer the main questions of your buyers
PRO TIP: Go to the negative reviews that have been given to your competition and see the questions that customers have asked about their products and answer them in the images and in the bullet points of your product.
DOUBLE PRO TIP: Please, forget about doing clumsy tricks of increasing the price and then putting it on sale or thinking that Amazon only buys by price. It is Totally False.
Disadvantages or risks of this strategy
Mainly there are two… Because surely someone has thought: “Leñe, I’m going to do that and sell hundreds of units instead of dozens”.
- Campaigns cost dough. And by having to be very aggressive you will have low profits because you will be playing with an ACoS of 20% to 30% in very competitive markets. This means that, if you normally have a 35% profit margin on Amazon, the campaigns will eat 20% or 30% (in the best of the best cases it will only be 10%).
- If your product is bad or if you don’t have a perfectly optimized listing, even if thanks to the campaigns you rise to the TOP 5, when you stop advertising, will fall under its own weight.
ACoS: Profit Ratio of the product. (€ Invested / € Sold) %
That is why it is so important to make the best possible listing.
Once you have positioned the product naturally, you can now optimize the campaigns much more and stop being so aggressive because you will already have positioned yourself in the TOP 3 and you will already be in the “Amazon Wheel”.
Namely, you will already be in the wheel of the TOP 5 in which natural positioning brings you enough visits and sales to stay without advertising. Case that we comment below regarding: “When Amazon ADS campaigns DO NOT help SEO”.
NOTE: For all markets, except those with extremely high competition with products with hundreds and hundreds of reviews, it is possible to position a new product in the TOP 5 with almost no reviews, as in the example.
Advertising campaigns on Amazon do not improve your SEO when…
When you are already in the TOP 5 for a certain keyword. It’s that simple.
We have done tests and in 3 clients where they had advertising campaigns for a value of more than €10,000 per month each, we suddenly took away all the advertising campaigns of the products that they already had positioned in the TOP 1 to 5.
And not only his position did not remain silent, but in some cases it improved and in all cases their total sales remained practically the same… but without advertising expenses.
What he did improve his benefits and a lot.
And what is this due to?
We return to the importance of the Ratio and the speed of Sales
The Amazon Wheel, folks. It is due to the Amazon Wheel. Let’s give an example to explain it better.
- You have a product that is positioned in the…
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