03 Jan Invest in advertising on Amazon. How much do I invest?

• Investing in advertising on Amazon is essential to improve the positioning of your products, acquire greater visibility and generate more sales.
• Your investment in Amazon Advertising will depend on the goal you want to achieve, the type of product you sell, and the countries in which you offer it.

Amazon is a marketplace where millions of items of all kinds are offered. To be able to sell your products on this platform, you need to get maximum visibility. Standing out from your competitors on Amazon means appearing on the first page for search results related to your products, as 90-95% of sales are generated here.

How do you get your products to show up on the first page of Amazon results? Investing in advertising. Here are the reasons why you should use Amazon Advertising.

Why is it important to invest in advertising on Amazon?

You should always consider investing in advertising as an investment, as it will serve to increase visibility and will have a direct impact on your business by increasing sales. If you don’t have a product that has reviews, positive ratings, and a significant sales volume on the platform, it’s difficult for you to position yourself organically.

Even after you manage to place your product organically on the first page of Amazon results, you’ll still need to create paid campaigns. Through Amazon Advertising, you can help give visibility in a better position that has a significant advantage in the number of sales.

In addition to ranking your items for specific search terms or intents, you’ll be able to advertise within the detail pages of similar products sold by your competitors. In this way, potential customers who have been interested in other better-positioned listings will also be able to discover your product, enter the ad and, finally, convert it into a sale.

How much to invest in Amazon Advertising?

The investment in advertising depends on the visibility and traffic of the space in which you want to advertise. Although to set a specific budget you must also take into account other factors such as the characteristics of your product or the market niche, the more you invest in advertising, the greater the growth of your business on Amazon.

It is important that you multiply your advertising budget for each campaign and for each platform on which you are going to operate. You can start by investing a fixed amount per day per campaign and then adjust according to the trend.

You must set up at least one campaign for each type of product you are going to advertise. Also, if you want to sell it in multiple countries, you need to increase the total spend of your campaigns to allocate the amount you consider to each market.

Keep in mind that the daily budget you set for each Amazon campaign will always be reactivated at midnight. If your ad spend isn’t enough for a product with a certain trend, your budget will quickly run out. The ads will stop showing as the day progresses and the return on investment will not be as expected since you will be in the peak trend hours of search but not in the shopping hours.

If you have a Seller account on Amazon, you can check the daily budget that Amazon recommends for your campaign to stay active all day. Amazon Advertising’s ‘Budgets’ feature allows you to analyze essential KPIs such as spend, sales, orders, or ROAS. But it also gives you important data such as the average time your campaign remains active during the day or the estimate of impressions, clicks and sales that you are losing if the budget runs out.

We encourage you to analyze all of this data and follow Amazon’s budget recommendations. Keep in mind that the more you invest in advertising, the greater the chance that your product will be in the best position during the peaks of the day’s highest level of sales.

At Nozama we have a team specialized in Amazon Advertising that will help you implement profitable advertising campaigns to increase your sales on Amazon. Plus, here’s how to create and manage budget rules.