Optimizing Full-Funnel Ad Strategy: Diversifying Amazon Ads

July 8, 2024
by SPINS E-commerce Solutions Team

Understanding Full-Funnel Amazon Advertising Strategies

Maximizing the effectiveness of Amazon advertising involves more than just listing products; it’s about navigating a complex ecosystem ripe with diverse advertising opportunities. Adopting a full-funnel ad strategy on Amazon is essential for brands looking to engage customers across every phase of their purchasing journey. By leveraging various ad formats strategically, brands can effectively raise awareness, foster consideration, and drive conversions.

What is Full Funnel Amazon Advertising?

The full-funnel approach on Amazon comprehensively addresses every stage of the customer journey: awareness, consideration, and conversion. This strategic approach involves leveraging a variety of ad formats to attract, engage, and convert customers effectively. Here’s a detailed breakdown of each funnel stage and the key ad types tailored to maximize impact:

Awareness: At this stage, the focus is on introducing the brand to a broad audience. Utilizing Amazon DSP (Demand-Side Platform) and Sponsored Display Ads proves effective, allowing precise targeting based on consumer behavior and demographics.

Consideration: Customers in the consideration stage are familiar with the brand but are still exploring options. Sponsored Brands and Sponsored Display Ads play a crucial role in maintaining brand visibility and consideration.

Conversion: The conversion stage is where customers make purchasing decisions. Sponsored Product Ads, prominently featured in search results, are pivotal in driving direct conversions and closing sales.

By strategically aligning ad formats with each stage of the customer journey, brands on Amazon can optimize their advertising strategy to maximize engagement and ROI.

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7 Key Amazon Ad Types

  1. Sponsored Product Ads: These ads appear in search results and on product detail pages, making them ideal for driving conversions. Sponsored Product Ads are highly visible, providing direct pathways for customers to find the Brand’s products.
  2. Sponsored Brands Ads: Positioned at the top of search results, Sponsored Brands allows you to showcase your brand logo, an engaging lifestyle image, a custom headline, and multiple products. This touchpoint is perfect for building brand awareness and driving consideration.
  3. Product Display Ads: Sponsored Display Ads can be displayed on and off Amazon, providing a broader reach. They are particularly useful for retargeting customers who have viewed the Brand’s products but haven’t purchased them.
  4. Sponsored TV(Beta):   Sponsored TV helps connect the Brand with new customers. Powered by Amazon shopping & streaming signals on streaming TV services like Freevee, Twitch, and other Streaming TV publishers. Amazon Ads can also help produce TV-quality video ads via their creative services.
  5. Amazon DSP (Demand-Side Platform): Amazon DSP allows for programmatic advertising across Amazon and third-party sites. This touchpoint is powerful for awareness and retargeting campaigns, offering extensive targeting options based on customer behavior and demographics.
  6. Video Ads: Video content is engaging and memorable. Amazon’s video ads can appear in search results or product detail pages, providing a unique way to showcase the brand and its products.
  7. Amazon Live and Influencer Collaborations: Amazon Live is a platform where brands can host live streams to showcase products, offering a unique way to engage with customers in real-time. Collaborating with Amazon influencers can also extend the Brand’s reach to their established audiences.

Optimizing a Full-Funnel Strategy

To optimize a full-funnel ad strategy on Amazon, we encourage brands to consider the following:

Audience Segmentation: Identify different audience segments based on shopping behavior, interests, and demographics. Amazon’s DSP offers robust targeting options, enabling the Brand to create precise campaigns.

Ad Placement: Utilizing a mix of Sponsored Product Ads, Sponsored Brands, Sponsored Display Ads, and Amazon DSP, helps reach customers at various touchpoints throughout their journey.

Retargeting: Implement retargeting campaigns to re-engage customers who have interacted with the brand but haven’t yet made a purchase. Sponsored Display Ads are particularly effective for this.

A/B Testing: Test different ad creatives, headlines, and call-to-action phrases. This helps identify what resonates with the Brand’s audience and drives better performance.

Data-Driven Insights: SPINS uses Amazon’s advertising reports and analytics tools to track campaign performance and adjust strategy based on data-driven insights to maximize ROI.

Diversifying Amazon Ad Dollars

While Amazon offers a range of advertising options, relying solely on one type can limit your reach and effectiveness. Here’s why we believe that diversifying your ad dollars is crucial:

Reduced Risk: If one ad type underperforms, the Brand has other campaigns generating results. Diversifying helps spread risk and ensure consistent performance.

Extended Reach: Different ad formats reach different audiences. By diversifying, the Brand can tap into a broader customer base.

Enhanced Customer Experience: A varied ad strategy creates a more engaging customer experience. By showing ads at various stages of the funnel, the Brand guides customers through their journey in a more personalized way.

Increased Brand Visibility: A mix of Sponsored Products, Sponsored Brands, and Amazon DSP campaigns increases the brand’s visibility across Amazon’s ecosystem, making it easier for customers to find and remember the Brand’s products.

Learn how SPINS Amazon Growth Solutions can guide your data-driven strategy, put plans into action, and ensure your business grows in a highly-competitive market.

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Craft a Comprehensive Amazon Advertising Strategy

SPINS believes optimizing and developing a full-funnel ad strategy on Amazon requires a holistic approach. By segmenting audiences, diversifying ad formats, and using data-driven insights, the Brand can create a powerful advertising campaign that drives awareness, consideration, and conversion. Diversifying Amazon ad dollars ensures the Brand maximizes reach and reduces risk, leading to a robust and effective advertising strategy that reaches customers at every stage of their buying journey.