Amazon advertising provides businesses with a powerful platform to reach millions of potential customers. It also empowers brands to increase visibility, drive traffic, and boost sales in a competitive marketplace.
Brief Overview of Amazon Advertising
Advertisers can reach many potential customers and boost sales with Amazon Ads. Additionally, through a variety of ad formats, including Sponsored Products, Sponsored Brands, and Sponsored Display ads, Amazon Ads helps businesses achieve specific goals. Each format is designed to either increase product visibility, or build brand awareness, and ultimately drive sales.
However, Amazon advertising comes with challenges. Here are some key difficulties advertisers face in today’s competitive market:
Challenges of Amazon Advertising
Amazon advertisers face significant challenges. These challenges include high competition, complex budget management, difficulty tracking ad performance, optimizing keywords for visibility and relevance etc. Effective strategies and tools are essential to navigate these challenges and achieve successful advertising outcomes.
1. Keyword Optimization:
Finding the perfect keywords can be a challenge, particularly for popular products or specialized markets. Businesses need to do their homework on keywords and keep adjusting their approach to get the most out of their ads.
2. Ad Performance Tracking:
Monitoring and analyzing ad performance metrics is essential for optimizing campaigns and maximizing ROI. Sellers need to track metrics such as click-through rates, conversion rates, and ACoS (Advertising Cost of Sales) to identify areas for improvement and refine their advertising strategies.
Unlike Google Ads, which lets you easily compare campaign, ad group, or keyword performance over time, Amazon Ads lacks this feature. To fix this, we at Karooya have created a compare-performance feature that uses historical data to help you compare metrics like CTR, ACoS, conversion, spend, and total sales.
3. Ad Campaign Management Tools:
Using ad campaign management tools and software can make advertising easier and help sellers manage and improve their campaigns efficiently. However, choosing the right tools and learning to use them effectively can be challenging for some sellers.
Karooya’s automation tools for Amazon Ads can help you quickly and easily lower your advertising costs and increase your ACoS. If you’re too busy to optimize your account, we can handle it for you.
4. Fakes and Counterfeits:
Fake products on the platform can harm trust and hurt sales for real sellers. Sellers often express frustration about the time and effort needed to report and remove these counterfeit listings.
5. Competition:
The Indian e-commerce market is booming, with fierce competition among sellers and advertisers. This can drive up advertising costs and make it challenging for new entrants to gain traction.
6. Limited third-party tool integrations:
Some third-party Amazon Ads management tools might not fully support features specific to the Indian marketplace. Make sure to research any tools you plan to use to ensure they meet your needs for the Indian market.
7. Attribution Challenges:
Tracking sales and conversions to specific ad campaigns on Amazon can be complex. Multiple touchpoints influence a customer’s purchase, making it hard to pinpoint the exact impact of your ads. Using advanced attribution models and tools can help clarify this.
Karooya’s tool for Amazon attribution provides keyword-level assistance, helping advertisers identify keywords that perform well and drive sales.
8. Match Type Fluctuations:
Amazon’s keyword match types can change in performance due to algorithm updates or user behaviour changes. This means you must regularly monitor and adjust your keyword strategies to keep your campaigns effective.
You might want to know how to Use Match Type Campaign Strategy for Amazon Ads
Key Struggles for Amazon Advertisers
1. Keyword Targeting Challenges:
- Transliteration and Vernacular Languages: Indian shoppers often search in their own language or use English words spelt phonetically. This can make it tricky to find the right keywords to reach them.
- Focus on “Brand + Product” Searches: In India, shoppers often search for brands along with the product name. Regular keyword targeting might miss these searches.
2. Negative Keyword Issues:
- Limited Hindi Support: The negative keyword feature might be less developed for Hindi and other regional languages than for English. This can make it harder to exclude irrelevant searches.
- Competitor Brand Names: Due to the high competition in the Indian market, strategically excluding competitor names as negative keywords can save you money.
3. Bid Adjustments:
- Limited Time Targeting: Unlike some ad platforms, Amazon doesn’t let you fine-tune bids by exact times. This makes it harder for advertisers in India to reach customers when they’re most likely to buy.
- Device Bidding: Optimizing bids for mobile vs. desktop searches might be less flexible compared to other platforms. This can be an issue since many Indian consumers shop on mobile and need different bid strategies.
4. Seasonality and Festival Targeting:
Indian shoppers buy more during festivals and holidays. but advertisers have limited ways to target search ads during these busy times. making it hard for advertisers to reach these ready-to-buy customers.
5. Copy Length Restrictions:
When it comes to Headlines and Descriptions, search ads on Amazon are limited in character count. This makes it tough to stand out and explain why your product is the best, especially if you need to translate the message into different languages.
6. Product Title Optimization:
On Amazon, product titles are key for ads to show up in searches. It’s not like other search engines where you directly control ad content. Finding the right English keywords is important, but translating them into other languages can be tricky. There’s not enough space to fit everything you want!
Take Away
Amazon advertising offers great opportunities to boost visibility and sales, but it also comes with challenges. By tackling competition, budget management, performance tracking, and keyword optimization with strategic planning, advertisers can improve their ad performance and achieve better results in a competitive market.
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