The purpose of advertising on Amazon is simple: increase traffic and conversions. But the approach you’ll need to take to get those conversions isn’t always simple.
Your Amazon advertising strategy is based on current ad data and performance results, like your return on ad spend (RoAS). At a minimum, your RoAS number tells you how well you’re maximizing your ad spend. The problem is the RoAS you’re getting from Amazon or an advertising agency isn’t always accurate.
Understanding True RoAS
To understand why true RoAS is helpful to brands, you need to understand how Amazon and other agencies calculate and present your RoAS.
The key to growing your brand and maximizing your ad spend is to drive incremental traffic, rather than cannibalizing the success you’ve already achieved. For example, if you’re already ranking high organically for the keyword “probiotics for women,” paying for sponsored ads to win that keyword is cannibalization.
The RoAS score you would receive from Amazon includes that level of cannibalism, inflating the number and causing you to pay more on ad spend. The best ads drive incremental growth instead of cannibalizing organic sales.
At Pattern, we’ve created acceleration software to make sure brands are getting their “true RoAS.” Pattern’s patented tool applies artificial intelligence to advertising, maximizing incremental growth and true return on investment.
Check out one of our free patented tools, Digital Shelf, here.
Our software helps brands optimize their efforts by providing:
- Live and updated information on where your brand is and isn’t organically ranking
- Keywords that you should or shouldn’t be paying for as part of a larger performance growth strategy
If your ranking improves in one area, ad spend will automatically decrease for those words or phrases until the software detects a drop in ranking, signaling that your ad spend should go up again. This dynamic ad spend monitoring optimizes brands’ incremental growth and improves true RoAS.
Improve Your Amazon Ad Strategy with Pattern
Knowing your true RoAS is key to improving your Amazon performance. Advertising agencies and marketplace account managers often give you an inaccurate RoAS ratio or value, which incentivizes you to spend more on advertising to increasing your spend and their revenue.
Pattern, a 3P partner on Amazon and other marketplaces, structures our brand relationships as a partnership. Because we purchase brands’ inventory, we have stake in your success—when you win, we win. We want to help you succeed on Amazon by maximizing your ad spend through our data, revolutionary technology, and expertise. Accurate and transparent data and reporting will help improve your advertising strategy to drive more traffic to and conversions on your products, which will lead to your success long-term.
Ready to finally know your true RoAS? Contact us.