Introduction
Selling on Amazon can be an obstacle course. Amazon advertising is a crucial lever for visibility and sales. However, over-reliance can be detrimental to profitability. This article explores the strategic transformation of a leader in the gaming industry, who managed to balance visibility, sales volume and profitability despite an initial heavy dependence on Amazon advertising. Its goal: to making money on Amazon.
Sommaire
Initial situation and issues
The customer, a major player in the gaming industry, depended heavily on Amazon advertising. In fact, it accounted for 75% of its sales. This strategy had a negative impact on profitability, despite high sales. In other words, it had a very high TACOS. The objective was to reduce this dependency while increasing profitability and maintaining sales volume.
Our advice :
To understand how to making money on Amazon, it’s crucial to accurately measure your dependence on advertising and its impact on sales and margins. Analyze advertising costs and identify areas where you could reduce spending without compromising visibility. This initial assessment provides a solid basis for reshaping your advertising strategy.
Our strategy
The transformation began with an in-depth audit of existing campaigns to identify the best-performing keywords and ads. A review of product sheets was undertaken to improve conversion rates. In addition, we reduced the number of targeting options to focus on the most relevant keywords. The diversification of Amazon ad types, mixing Sponsored Products, Brands and Display on the same targeting, was a key pivot. This reduced advertising dependency while increasing visibility. We’ll take a closer look at the results in the next section.
Our advice :
Once the initial situation has been assessed, the next step is to carry out an in-depth audit of your conversion and advertising campaigns. Identify the best-performing keywords and ads, and eliminate or improve those that are underperforming. At the same time, optimize your product sheets to ensure that they are compelling and correctly indexed, thus increasing their visibility and attractiveness. Diversification of ad types is also crucial. Don’t rely solely on one type of advertising, but strategically combine Sponsored Products, Brands and Display. This approach reduces risk and improves the overall visibility of your products.
Once these changes have been implemented, it’s essential to monitor results on an ongoing basis. Observe the evolution of advertising’s share of the marketing budget and its impact on profitability. Be ready to adjust your strategy according to results and market trends. Analyzing sales, traffic and conversion data is crucial to understanding the effectiveness of your advertising strategies and making informed decisions.
Results
