Amazon Marketing Services: Strategies to Maximize Your ROI

6 min readSep 27, 2024

Amazon is the largest ecommerce platform in the world, with over 197 million unique monthly visitors in the US alone. As an online seller, having a presence on Amazon can significantly boost your sales and revenue. However, with over 5 million sellers on Amazon, standing out from the competition is no easy feat. This is where Amazon Marketing Services (AMS) comes in.

AMS refers to Amazon’s portfolio of paid advertising solutions that enable sellers to promote their products and target potential customers. With the right AMS strategies, you can maximize your return on investment (ROI) and take your Amazon business to the next level. In this article, we’ll explore some of the most effective tactics to optimize your Amazon marketing campaigns.

Getting Started with Amazon Marketing Services

To use AMS, you need an Amazon Seller Central account. Here are the key steps to get set up:

If you don’t already have an Amazon Seller Central account, sign up for one. This will allow you to manage your Amazon business and access AMS features.
Enable AMS on your account under the Advertising tab. This grants access to the various AMS solutions.
Link your payment method to cover advertising costs. You only pay when customers engage with your ads.
Familiarize yourself with the AMS dashboard. This is where you’ll create, manage, and optimize your ad campaigns.

After completing these steps, you’re ready to create targeted Amazon ad campaigns using the array of AMS options.

Choosing the Right AMS Solutions

AMS provides a suite of advertising solutions, each designed for different purposes. Choosing the right options for your goals and products is crucial for success. Here are some of the main AMS solutions to consider:

Amazon DSP

The self-serve Demand Side Platform allows you to buy display ads on Amazon and reach audiences on other sites they visit with targeted banners and videos.

Amazon Stores

Curate a custom storefront to showcase your brand or product category. Help shoppers discover your products through an immersive digital experience.

Consider your goals, target audience, and product type to determine which AMS solutions to incorporate into your strategy.

Key Optimizations for AMS Campaigns

To maximize the impact of your AMS campaigns, be sure to implement these best practices:

Refine Keywords

Research relevant long-tail keywords using tools like Amazon’s keyword research tab. In campaigns, include match types like phrase and exact.
Analyze search term reports to discover new keywords your target audience uses and add them.
Organize keywords into ad groups around topics for more relevancy.

Compelling Ad Copy

Highlight your product benefits, features, or unique differentiators in your Sponsored Products ad copy.
For Sponsored Brands, emphasize your brand story, image, and why shoppers should choose you.
Use keywords naturally in the ad copy for optimal visibility.

Bid Optimization

Set higher bids for the most valuable keywords to maximize impressions.
Use automatic targeting to bid higher when shoppers are more likely to engage.
Adjust bids based on performance data — lower bids on underperforming keywords.

Negative Keywords

Identify and add irrelevant keywords as negative keywords to avoid wasted spend.
Leverage automatic negative targeting to exclude searchers unlikely to convert.
Continuously analyze search terms and add more negatives.

Audience Targeting

Use Sponsored Display and DSP to reach shoppers beyond Amazon based on interests, demographics, browsing behavior, and more.
Create custom audiences and tailor campaigns specifically for them across platforms.
Remain hyper-targeted to reduce wasted ad spend and increase relevancy.

Tracking Performance of AMS Campaigns

To determine the success of your efforts, it’s crucial to monitor key performance indicators closely. Here are important metrics to follow:

Impressions — How often your ads are shown. Aim for increased reach.
Clicks — When shoppers click your ads to visit a product page or site. Higher is better.
Click-Through-Rate (CTR) — Clicks divided by impressions. Look for CTR over 1%.
Cost of impressions — How much do you pay for 1,000 impressions? The lower, the better.
Sales — Track how many sales come through your ads. Optimizing for more conversions is key.
Return on Ad Spend (ROAS) — The revenue generated is divided by the cost of advertising. Aim for a positive ROAS.
Average Order Value — Monitor the spend per order for purchases from your ads and look to increase this.

Regularly evaluating performance data will reveal optimization opportunities to improve results over time. Be sure to set benchmarks to measure your success.

Amazon Attribution Models

Understanding how Amazon attributes credit for sales to ads is vital. There are two main attribution models:

Last Click Attribution — The previous ad click before a purchase gets full credit for the sale. This is best for close-to-purchase ads.

Time Decay Attribution — Conversion credit is distributed across ads interacted with over time. This is better for early-funnel ads raising awareness.

When structuring campaigns and evaluating performance, consider which model best fits your AMS goals. Then, test both approaches for your product range.

Best Practices for Ongoing Optimization

To maximize the return from AMS, be prepared to optimize efforts continually. Follow these practices:

Review reports frequently and pause poor performers.
Expand on what works — add similar keywords and audiences.
Maintain close control of budgets and bids for efficiency.
Test new keywords, match types and creative. Evaluate results.
Keep updating negative keywords to filter out irrelevant traffic.
Monitor changes in performance by day of week and time of day.
Use enhanced automation for bid, budget, and targeting management.
Coordinate AMS initiatives with other Amazon marketing like promos, coupons and more.
Don’t let campaigns remain static for too long — experiment and evolve approaches.

By continually optimizing your activity, you can achieve the best ROI from AMS while maximizing sales volumes.

Driving External Traffic to Amazon Listings

While most AMS solutions focus on Amazon site visitors, you can also drive external traffic to your listings using:

Amazon Product Ads — a self-serve platform to run Amazon Sponsored Product ads off of Amazon on sites, search engines, and social media.
DSP Retargeting — Display ads shown to previous site visitors, leveraging Amazon DSP data.
Social Media Ads — Facebook, Instagram, and Pinterest promotions to get more followers to your Amazon storefront.
Email Marketing — Send product promotions and coupon codes for Amazon products to email subscriber lists.
Influencers — Work with bloggers and influencers to drive their followers to Amazon product pages.

This multi-channel approach brings new audiences to Amazon who are already familiar with your brand, boosting conversions.

The Amazon Flywheel

With the right AMS optimization, you can benefit from the Amazon flywheel effect. This refers to how increased visibility leads to more sales, which boosts your organic ranking and presence on Amazon. Greater visibility then allows you to scale AMS initiatives further by riding this momentum, allowing sellers to separate themselves from the pack.

Final Tips for Amazon Marketing Success

Here are some closing tips to maximize the impact of your Amazon marketing:

Take time to test different AMS solutions and learn what works for your business before scaling spend.
Focus on quality keywords and creatives, not just driving massive volume without relevancy.
Closely monitor performance and make data-driven decisions to optimize efforts.
Be aggressive with bids and budgets on the terms and products, delivering results.
Reinforce Amazon listings with external traffic sources like paid search and email marketing.
Keep innovating — challenge yourself to test new optimizations continually.

With the right AMS strategies tailored to your products and business, you can cost-effectively scale your Amazon presence and sales. Just remain focused on ROI and automation to ensure marketing spend is efficient. Amazon marketing takes work to perfect but drives tremendous rewards.

Conclusion

leveraging Amazon Marketing Services is essential for brands looking to maximize their ROI in today’s competitive landscape. By implementing targeted strategies such as keyword optimization, data-driven advertising, and audience segmentation, businesses can effectively enhance their visibility and drive sales. IoVista Inc. is committed to helping clients navigate these strategies, providing expert insights and tailored solutions that empower brands to achieve their marketing goals on Amazon. With the right approach, companies can transform their advertising efforts into substantial returns, making the most of the opportunities Amazon presents.

Name: IoVista Inc.

Address: 5220 Spring Valley Rd Suite 568, Dallas, TX, 75254

Phone No: 214–239–0143