Amazon Brand Defense Campaigns
Why You Should Bid for Your Own Brand
Bidding on branded keywords with Amazon Sponsored ads is a great way to create a unique brand experience and connect with your ideal customers.
PUBLISHED OcTober 2019
One of the most common questions that we get asked from sellers is, “Why should I pay for ads if my customers are searching directly for my brand and will buy through my organic listing?”
This is a great question, and as a spoiler, we definitely recommend advertising for your own brand on Amazon. This article will break down a few reasons why we recommend bidding on your branded keywords and setting up brand defense campaigns.
Reason #1: Expanding Your Brand Presence
One great opportunity from bidding on your own brand is that it allows you to expand your brand presence. This includes cross-selling your own products or upselling your products if you’re selling complementary products. If a product within your brand is underperforming and getting fewer impressions, setting up branded keywords targeting this specific product can help to boost impressions and thus increase sales over time. Amazon released a case study that highlighted that brand campaigns were 41% more effective for driving brand awareness and 34% more effective for driving purchase intent. As such, bidding on your own branded keywords helps customers find exactly what they’re looking for while also learning more about your brand and products.
Reason #2: Protecting Loyal Customers From Competitors
When a customer searches on Amazon, they will be shown a list of products which contain both paid and organic listings. Typically, the top couple of listings will be Sponsored Ads followed by the top organic listings. While as advertisers and sellers, it’s easy for us to identify ads on Amazon, this is usually not the case with shoppers. Many shoppers are not aware that there are ads on Amazon and cannot differentiate between an advertised listing and an organic listing. Personally, we’ve encountered this quite a bit during our day-to-day conversations with shoppers.
Overall, this isn’t an accident that many shoppers don’t recognize ads since Amazon has set up their advertising to have the same format as organic listings. Having ads that blend into the page can help improve the shopping experience and lead to better conversion rates on ads. Better ad conversion rates mean that ads have a better return, which results in advertisers spending more on ads and Amazon making more money. Both Headline Search Ads and Sponsored Product Ads own the primary real estate placements on the search results page. Using data directly from Amazon, Search Engine Journal reported that 35 percent of customers click on the first product listing on a page and that the top three product listings account for 64 percent of the clicks. If the top two listings are usually sponsored ads, these ads incur a considerable amount of the total traffic.
As a seller, your goal is to own the top placement on the search results page. As shoppers usually click on the first few listings (whether organic or paid) once the product closely matches their search term. Therefore, owning the top placements can result in high clicks and high sales. It is a common strategy for advertisers to bid on their competitor’s branded keywords. If you’re not bidding on your brand, you could lose top placements to your competitors and therefore lose sales. This is where setting up brand defense campaigns can help you own the top real estate within the search results page and prevent competitors from stealing your sales.
One key thing to highlight when bidding on your brand is the relevancy factor and how this affects your cost per click (CPC). Surprisingly, brand bidding is not very expensive.
Amazon is all about the customer experience, so when they decide what ads to show, the ad’s relevancy is a huge factor. If someone searches for your brand, your ad will be much more relevant than a competitor’s ad. As such, Amazon allows you to own the ad placement at a lower cost than your competitor. Since shoppers are searching directly for your brand, their purchase intent is usually higher, therefore increasing your conversion rate. As such, we’d typically see a good return from branded campaigns due to increased impressions, lower CPC, and higher conversion rates.
Reason #3: Organic Rankings Can Be Impacted By Not Advertising Branded Keywords
In other articles, we’ve covered many of the outside benefits of Amazon Advertising and how this can impact your organic rankings. One of the critical factors for ranking for specific keywords is your conversion rate and sales history for those keywords.
If your competitor starts converting multiple people who came in search of your brand, it can improve their organic rankings for your brand’s search terms, further diluting your brand on Amazon. Maintaining organic rankings on Amazon is a long-term play, and giving up momentum by not running ads can give up ground to your competitors that can be difficult to get back. As such, running ads to maintain as many placements in the search results is an excellent way to go.
If you’re still not convinced why bidding on your own branded keywords is important, we’d recommend doing an initial analysis to see if this works best for you. With the analysis, you can set up a brand defense campaign. Allow this campaign to run for two weeks and then review your total sales. Review total sales before and after brand advertising and assess the level of increase or decrease in sales versus your advertising spend. This test should help you determine if branded campaigns is a good strategy for your business.
Nevertheless, brand bidding on Amazon is a winning strategy for most brands. While this might come at an extra cost, if you are brand registered and would like to expand your brand presence, the pros could outweigh the cons significantly.