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How Can Amazon Advertising Help You Increase Your Organic SERP Ranking?
The ultimate goal for every Amazon seller is to be at the top of organic search rankings. However, accomplishing this exclusively through organic means is frequently difficult. Many merchants use sponsored ads to boost traffic to their listings. But does depending on marketing guarantee you’ll never reach the top organically? Is it worthwhile to spend on advertising campaigns in the hope of improving your organic rankings?
In this post, we’ll look at how Amazon ad spending affects organic rankings and how you can use it to your benefit.
Recognising the Distinction Between Organic and Ad Sales
To help you show off your products to potential buyers, Amazon offers a variety of ad formats, including sponsored products, sponsored brands, and sponsored displays. Pay-per-click advertising means that you are charged by Amazon each time a user clicks on your advertisement. Conversely, organic sales come from your listing naturally appearing on Amazon’s search results pages. Your product’s organic position on Amazon is determined by the A9 algorithm, which takes into account many aspects such as keyword optimisation, sales velocity, Best Seller Rank (BSR), reviews, ratings, and more. Organic sales don’t require you to pay advertising fees like ad sales do, but you still need to optimise your listings to appear higher in search results.
Researching keywords, optimising product titles and descriptions, employing A+ content, gaining more reviews and ratings, choosing Amazon FBA, and other tactics are some ways to improve your organic position.
Amazon ad sales and organic sales are primarily differentiated by their immediacy and control. Ad sales can increase visibility, traffic, and sales right away, but they do require constant monitoring and investment. However, organic sales need patience and consistent work and contribute to long-term brand reputation, increasing share of voice, customer loyalty, and cost reduction.
Strategies to Foster Organic Growth with Sponsored Ads
Now that you grasp the significance of sponsored ads in propelling organic growth, here are several strategies to leverage sponsored ads effectively:
Identify high-growth keyword opportunities
Conduct thorough keyword and competitor research to pinpoint high-volume category keywords where your product currently lacks visibility. Utilise tools like reverse ASIN tool to effortlessly identify these lucrative keywords. Once identified, bid aggressively on these keywords to stimulate conversions. As sales accumulate, signalling relevance to Amazon’s A9 algorithm, your product’s search ranking will naturally improve.
Choose Your Organic Growth Success Metrics
While prioritising high bids on high-volume keywords, concurrently define metrics to gauge the overall impact of your advertising efforts on both revenue and organic growth. Here are key metrics to track:
- Organic Rank: Assess how well your product ranks organically on the Amazon SERP for specific keywords. Monitor any improvements in organic rank over time, especially in response to paid advertising efforts.
- Sponsored Rank: Monitor the positioning of your sponsored product ads on search results pages. If your ad rankings decline amidst other search results, consider increasing bids to secure higher placements.
- Organic Sales: Measure the revenue generated from organic purchases of your product. As your organic rank improves, aim to see a corresponding increase in organic sales.
- Share of Voice: Gauge the proportion of total impressions for a given keyword that your product captures. A higher share of voice indicates greater visibility and enhances the likelihood of organic sales.
By strategically aligning sponsored ads with organic growth objectives and closely monitoring key metrics, you can effectively enhance both your paid and organic performance on Amazon.
Top of Search Share of Voice: This measure shows the percentage of total impressions that your product receives at the top of the search results page for a particular keyword. 80% of clicks come from the top of the search results, so tracking any increase in your share of voice at this prominent spot is essential on Amazon.
Total ACOS (PPC + Organic Sales): This measure shows you how much of your overall income, including both PPC and organic sales, is allocated to advertising. Aim for a drop in your overall ACOS as you increase organic sales and maximise advertising efficiency.
Best Seller Rank, or BSR, measures how well your product is performing on Amazon in comparison to other products in its category. Increasing sales velocity has a major impact on BSR, which in turn improves organic ranking.
Brand Keyword Search Volume: This indicator displays the number of customers that search for your brand name on Amazon, providing information about brand awareness and customer loyalty. This information may be accessed via Brand Analytics on your Seller Central dashboard.
External traffic refers to visitors to your product page from sources other than Amazon, such as social media or external advertising initiatives. Use Amazon Attribution, a free advertising tool, to evaluate the efficacy of external marketing campaigns and make data-driven decisions.
Conduct time-specific advertising tests to uncover new prospects for growth and improve organic ranking. You may improve your plans by separating variables and studying how they affect sales performance and organic ranking.
Experiment: Increase the daily budget.
Try This: Raise Your Daily Budget
Increase your daily spending on high-performing keywords for a predetermined amount of time. This increases visibility and sales velocity by prominently displaying your product in search results. An increase in sales velocity has a favourable impact on organic ranking.
Case Study: With 80% of sales attributable to brand keywords, one of our clients used sponsored brand advertising primarily to increase brand awareness. We determined three top-performing PPC keywords in order to reduce overall ACOS and improve organic ranking for high-performing keywords. After launching a new campaign and raising the daily budget from $30 to $100, we saw a significant increase in BSR in the “Sports and Outdoors” category in just two months, going from 11,332 to 4,229, along with a 34% increase in organic ranking.
Implement Bid Multiplier for Top-of-Search Placement
Utilise Bid Multiplier to elevate bids for top-of-search placement, directing increased traffic to your product detail page. Given the higher click-through rates and potential sales at the top of search results, this strategy fosters a self-reinforcing cycle—heightened sales from augmented visibility further bolster organic ranking, resulting in amplified visibility and sales. This symbiotic process is known as the advertising flywheel.
Increase your target ACoS.
Another approach to bolstering organic ranking entails elevating your target ACoS (advertising cost of sales). By temporarily accepting a higher ACoS, you can aggressively bid on pertinent keywords for your products. This strategy spurs more clicks, conversions, and sales, thereby augmenting organic search ranking. This tactic is particularly advantageous for products in the early stages of growth.
For instance, we applied a similar strategy for one of our clients, escalating the target ACoS from 28% to 150%. In just three months, we witnessed an 87% surge in organic sales, accompanied by an enhancement in share of voice from 0% to 22%.
Furthermore, you can bolster sales by running product-targeting ads on your competitors’ products and categories where you possess a competitive advantage, such as lower prices, superior ratings, or better reviews. This tactic diverts their shoppers to your listing, amplifying sales velocity and organic ranking.
Build brand awareness through brand ads.
Enhance brand awareness to drive direct traffic on Amazon. Augmented brand visibility encourages customers to search on Amazon using your brand name, facilitating organic product discovery. Additionally, bolstered brand loyalty augments customer lifetime value and enhances revenue generation per customer. Sponsored brand ads offer a potent avenue for targeting relevant keywords and fortifying brand awareness. In competitive niches, running ads on your brand keywords deters competitors from seizing ad space.
Drive Traffic Off Amazon
While Amazon is a pivotal platform for product marketing, leveraging external channels such as social media, Google Search, and email can augment traffic to your Amazon listing. Although Amazon doesn’t explicitly correlate external traffic with enhanced organic ranking, the logic is sound. External traffic inflates conversion rates and bolsters sales velocity, thereby fortifying organic ranking.
Here are several methods to channel external traffic to your listing:
Social Media Advertising: Launch targeted campaigns on platforms like Instagram and Pinterest, funnelling users to your Amazon product listings. This strategy exposes your product to a new audience segment and enhances conversion rates.
Establish collaborations with micro and nanoinfluencers to get product endorsements on their social media accounts. These lesser-known influencers frequently have the highest engagement rates, which increases traffic to your product listings and brand store significantly.
Natural Content Promotion:
Make an investment in natural content marketing campaigns, such as writing blog entries and social media updates. Although organic content marketing takes time, it has a significant return on investment for your company over time since it builds audience trust and engagement.
Enrol in the current programmes offered by Amazon:
Use Amazon’s growth initiatives to drive more relevant visitors to your product listings.
Create shoppable photos and videos for Amazon Posts, which appear at the bottom of relevant product listing pages. Access to Amazon Posts through brand registration makes it easier to interact with consumers who are unfamiliar with the brand and increases organic traffic at no extra expense.
Amazon Live: Use Amazon Live to interact with customers in real time and promote your products. Stream live content to brand shops, the Amazon site, and other prominent locations with the Amazon Live Creator app. Note: Setting up a brand account on Amazon is required.
Amazon Influencer Programme: Tap into the Amazon influencer programmeme, an extension of the Amazon Associates programmeme, empowering influencers to curate their storefronts and earn commissions from product recommendations. Collaborate with influencers to review your products, expanding your reach and augmenting organic sales.
Measure Organic Success and Iterate Based on Results:
Effective measurement of organic growth success metrics is imperative for continual improvement.
- Total Advertising Cost of Sales (TACoS): Assess TACoS to gauge the impact of Amazon advertising on organic ranking. A gradual decrease in TACoS signifies burgeoning organic sales. However, during product launch or growth stages, both ACoS and TACoS may increase as organic traction is nascent. Over time, TACoS should diminish as the product matures.
- Keyword Rankings: Monitor product rankings for high-performing keywords. Ascending organic rankings indicate the efficacy of advertising campaigns in driving organic visibility and sales. Regular tracking enables informed iterations and optimisation strategies.
Final Thoughts
Any seller’s primary goal is to increase organic product sales.
As a result, you need to understand how Amazon advertising influences your organic ranking.
Different products and businesses will have different requirements; therefore, you must carefully consider what to prioritise in order to build your firm.
