How Amazon Sponsored Products Boost Brand Revenue
If you’re looking to improve your performance on Amazon, honing in on your ad strategy is one of the best ways to start getting your products in front of more eyes and increasing sales. Because they’re disguised as traditional products within search, Sponsored Product ads should be the cornerstone of your Amazon ad strategy. They’re able to capture consumers’ eyes in more organic ways to drive traffic, and, ultimately, revenue growth, for your brand on Amazon.
Traffic is a key component of Pattern’s ecommerce equation: revenue: traffic x conversion x price x availability. When you can optimize your strategy to get more of the right traffic to your listings, you’ll be able to spend on initiatives like ad strategies in a smarter way to drive better product performance on Amazon.
Here’s why Sponsored Ads, in particular, are a great move for any brand selling on Amazon:
Improve Organic Rank Over Time
Many brands hesitate to invest in Amazon ads like Sponsored Products, preferring to increase product rank organically instead of worrying about paying a long-term cost. We know, from our vast experience accelerating brands on the platform, that Amazon wants to promote and boost high performers. So, to get more traffic, drive revenue, and spend your ad dollars in a smart way, you’ll need to “show” Amazon’s algorithm that your product is worth promoting in the first place.
Pattern’s ad strategy takes a particularly deliberate approach to tracking and feeding this virtuous cycle. Your listings’ success in conquesting each keyword leads to more growth, lower costs, and better listing rank over time—as your Sponsored Products get higher traffic and perform better over time, you’ll start rising in rank over your competitors and be able to reduce your overall spend on ad placements. As your brand continues to win conquests over your competitors, you’ll get even more traffic, and the cycle continues.
Give You a High ROI
When executed correctly, Sponsored Ads on Amazon are one of the smartest and most cost-effective ways to drive traffic to your product listings. For a snapshot of the value, here’s how Amazon ads compare to Google:
- Amazon ads return an average of 10% conversion, as opposed to Google ads, which convert at 3.75%
- 54% of product searches happen on Amazon now, rather than Google.
- The cost-per-click (CPC) is significantly lower for Amazon ads—$0.96, as opposed to $2.69 for Google’s display ads.
What this tells us is that spending money advertising on Amazon, rather than on Google or other channels, has a twofold benefit: products are more likely to get in front of consumers who are in the mindset to buy, and you’re able to save on your overall ad costs by getting more bang for your buck with every click.
Capture Top Search Area
Sponsored products are taking up more and more real estate on Amazon’s search results. You can see as many as four sponsored listings before the top organic results for any given search, giving brands without an ad strategy a significant disadvantage in winning consumer attention.
Our teams have learned that 80% of sales go to listings with the highest placement on search, and it’s a key aspect of our Sponsored Products strategy for brands. Advertising the right amount on top of search placements is a balancing act to make sure you're leaning in the right amount to maximize results. If your organic listings aren’t already primed and fully optimized for top keywords your consumers are searching with, Sponsored Product ads should be at the top of your list for strategies to win their eyes and traffic to your listings.
Because they show up at both the top of search and rest of search, they can get the attention of your best audience—consumers searching for products like yours with the intent to purchase now.
Win Traffic from Competitor Listings
Sponsored Product ads can also appear on the listings of products related to yours—in other words, your competition. As a consumer scrolls through a listing and isn’t finding what they’re looking for, you can be poised in a perfect position to capture their interest and bring them to your listing instead.
This traffic is particularly valuable—besides being ready to buy and actively looking for a product like yours, these consumers have the potential to switch brand loyalty from your competitor to you.
Optimize Product Listing Traffic with Pattern
Building an effective Amazon ad strategy can be a daunting task for many brands, but it doesn’t have to be. By partnering with an ecommerce accelerator like Pattern, you can get the full benefit of true Amazon expertise without having to learn and do it alone. We have all the global resources brands need to succeed, including expert teams and proprietary technology. We help you drive the right traffic to your listings, at the right time, to improve your revenue and performance on Amazon.
Find out how Pattern can help you grow your traffic and revenue on Amazon. Contact Pattern.