When opening an Amazon store and selling products, advertising investment is a crucial consideration. The right Amazon advertising investment ratio can bring considerable profits to your store and increase product sales. However, determining the right advertising ratio and doing a good job of advertising is not an easy task. This article will focus on the optimization strategy of Amazon advertising investment ratio to help you increase store sales.
1. Determine the advertising investment ratio based on goals and budget.
Before formulating the advertising investment ratio, you need to determine your sales goals and the budget available for advertising. Considering Amazon’s advertising investment ratio recommendations, it is usually reasonable to control advertising spending to around 25% of total sales. However, the situation of each store is different, so you may need to adjust it according to your own situation. When setting an advertising budget, make sure to reserve enough money for testing and optimization to find the most effective advertising strategy.
2. Pay attention to the changing trend of the advertising investment ratio.
It is important to monitor the changing trend of the advertising investment ratio over time. By regularly analyzing advertising reports, you can understand the input and output of advertising in different time periods. With this data, you can determine the keyword competition and advertising effectiveness in a specific time period, and adjust the advertising budget accordingly to optimize your advertising investment ratio.
3. Adopt a time-sharing delivery strategy.
In order to improve the input-output ratio, it is an effective strategy to distribute the advertising budget in different time periods. By analyzing sales data, you can understand the changes in product transactions every week and in different time periods every day. Increasing the advertising budget in the “golden time period” with high conversion rates and reducing the budget in the time period with lower conversion rates can deliver ads more finely. Doing so can maximize the effectiveness of advertising and ensure that your advertising investment gets the maximum return.
4. Increase advertising investment during holidays.
For holiday-related products, you can adopt a strategy of increasing advertising investment separately. For example, the upcoming year-end peak season, Halloween, Christmas, and New Year’s Day. Starting to run ads 1-2 weeks before the holiday starts, using popular keywords related to holidays can effectively increase product exposure and sales. By focusing advertising investment on holidays, you can take full advantage of the peak period of customer shopping enthusiasm and improve store sales.
5. Optimize the advertising of core keywords.
After the advertising has been running for a period of time, by analyzing the advertising report, you can find some core keywords with high conversion rates. For these core keywords, you can set up separate advertising groups, increase the advertising budget, and optimize them. Optimizing the advertising of core keywords can further increase the sales of products, and can observe the changes in conversion rates in the later period, helping you to continuously optimize advertising.
6. Keep low-priced automatic advertising.
For stores that have just started advertising, it is recommended to run automatic advertising for a period of time instead of immediately launching manual advertising. Many sellers may turn off automatic advertising after enabling manual advertising in order to reduce unnecessary investment. However, I suggest that you keep low-priced automatic advertising and reduce the budget for automatic advertising. Doing so can allow your products to gain more exposure and potential customers, and provide more valuable data references for subsequent advertising optimization.
7. Continuously optimize advertising strategies.
Optimizing the advertising investment ratio is not a one-time task, it requires continuous monitoring and optimization. Regularly analyze advertising reports and pay attention to key indicators such as conversion rate, click-through rate, and advertising spend. These data can help you understand the effectiveness of advertising and make corresponding adjustments. Adjusting keywords, adjusting advertising budgets, and testing different advertising ideas are all strategies to improve advertising effectiveness. Continuously optimizing advertising strategies will keep your store competitive, obtain higher conversion rates, and increase profit margins.
When opening a store and selling products on Amazon, a reasonable Amazon advertising investment ratio is crucial. Determine the advertising investment ratio according to goals and budgets, pay attention to the changing trend of the investment ratio, and adopt a time-sharing delivery strategy, increase holiday advertising investment, optimize advertising for core keywords, maintain low-priced automatic advertising, and continuously optimize advertising strategies. These are all key strategies to increase store sales. By constantly adjusting and optimizing the advertising investment ratio, you will be able to increase product exposure, increase sales, obtain greater profit margins, and make your Amazon store more successful.