If the question “Why are my amazon ads not working?” has ever crossed your mind, you should know that you are not alone. In fact, many Amazon sellers don’t start off on the right foot when creating Amazon advertising campaigns. Some sellers might get notifications such as “your offer is not eligible for advertising” or maybe the running ad is not hitting the desired target. However, the item is being sold perfectly outside the advertising space. If this is your case as well, keep on reading as we will show you how you can optimise Amazon PPC campaigns and which 3 common issues are making your Amazon ads less profitable and why.
Reaching potential clients who are already considering making a purchase by advertising on Amazon has become an inevitable strategy for Amazon sellers. Advertising sales have generated Amazon over 37 billion U.S. dollars in 2022 and it is expected to represent 10.2% of total digital ad spending worldwide in 2023. These numbers show how thriving the ad industry is for Amazon and how brands and retailers have no intention to stop promoting their products on this platform.
But, what does this mean to you?
Since more and more online merchants are willing to pay for ads, more competition arises as well. This is why nothing is worse than wanting to promote your products on Amazon, the world’s biggest online retailer, and finding out that your investment is not generating enough sales. As with many other marketing tactics, advertising on Amazon per se is not the problem, but how it is done.
Amazon ads optimisation starts with the performance of your ad impressions because if only a few people are being reached it is very unlikely for your ads to generate a significant amount of sales.
The question you should ask yourself first is:
How many potential customers are seeing my PPC ads on Amazon and why?
If the answer is not satisfactory, here are some suggestions that can help you increase your impression rates:
Example of Sponsored Products on Amazon
Another issue with your Amazon ads campaigns is low CTR. If you are still asking yourself: “Why am I getting hardly any clicks on my Amazon PPC campaign?”, then you need to rework your Amazon advertising campaign strategy. This issue can only be adequately fixed once your impression rate is improved.
These are the main improvements you can implement in order to increase your CTR on your PPC campaigns:
Last but not least, are low conversion rates. This issue may or may not be a reflection of both issues mentioned above but it is the most important factor to keep in mind. Although Amazon shoppers might see and click on your product ad, there might be some elements lacking once they enter the product page which make them exit without purchasing.
Here are some good practices to follow if you want to generate more revenue with your Amazon PPC ads:
In the previous text, you have learned how to effectively tackle the 3 main issues that Amazon sellers are faced with when advertising on the platform: low impressions, low CTR, and low conversion rates. Although some solutions require manual work, others, such as the Buy Box ownership and competitive pricing can be achieved through pricing solutions such as Netrivals (Lengow Company).
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