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Introduction
When it comes to Amazon advertising, different product stages require different strategies. Whether you’re launching a new product, managing a stable product, or trying to maximize profits, ThinkAd’s intelligent platform adapts to your goals. This article will walk you through the optimal strategies for launching new products, handling products with fewer reviews, and managing stable products, with insights on aggressive and normal launches, and optimizing for sales or profit.
Strategy for Launching New Products
When launching a new product, visibility is everything. New products require aggressive strategies to get noticed. The ThinkAd platform automatically optimizes bids based on performance, helping you reach potential customers quickly and efficiently.
Bidding Strategy: Start with Auto Campaign (Dynamic Bids – Up and Down) to be more aggressive when the likelihood of conversion is high. This ensures your product gets maximum visibility while adjusting to real-time performance.
Target ACoS: Set a higher ACoS (Advertising Cost of Sales) during the launch phase to prioritize visibility over immediate profitability. Early on, the goal is to gain traction, not immediate ROI.
ThinkAd Features:
Keyword Harvesting: Identify high-performing keywords and move them into exact match campaigns for better control as the product gains traction.
❗❗❗However, we do not recommend using the Keyword Harvesting feature immediately after launching your product. During the early stage, Amazon is still testing your product’s placement. It's best to wait until your product has a clear position in organic search and consistent organic sales. This indicates that Amazon understands where to place your product, making Keyword Harvesting more effective.❗❗❗
Irrelevant Words: Automatically exclude irrelevant keywords to avoid wasting your ad spend.
Wasted Spend: Automatically stop paying for poorly performing search terms that aren’t converting into sales, ensuring you focus your budget on keywords that drive value.
🚨 Note: At this stage, Conversion Rate (CVR) is the most important factor. Amazon heavily weighs conversion rate when determining a product’s organic growth, so maintaining a high CVR is critical. Thanks to ThinkAd's platform, you can configure these settings to prevent a drop in CVR and protect your organic ranking. If your CVR drops during this critical phase, future growth will be significantly harder. Keeping a healthy CVR will lay a strong foundation for long-term success.
Additionally, we do not recommend starting advertising until the product has gathered at least 20-30 reviews. Reviews are essential for building trust with customers and improving conversion rates. Advertising before reaching this threshold could result in wasted ad spend and poor performance.
Strategy for Products with Less Than 10% of Best Seller Reviews
At this stage, your product is ready for a more advanced approach, including building a professional Semantic Core. With ThinkAd’s Semantic Core Creation feature, you can create a complete and optimized core with just a few clicks, ensuring your product is targeting the right search terms from the start.
Bidding Strategy:
Use Dynamic Bids – Down Only to reduce risk and keep costs manageable, especially when competing in a category with well-established products. This strategy helps you avoid overspending on clicks that are less likely to convert.Target ACoS:
Set a reasonable ACoS that focuses on capturing sales without stretching your budget too thin. The goal is to grow your reviews while maintaining manageable advertising costs, ensuring that your campaigns remain efficient.ThinkAd Features:
We recommend using ThinkAd’s full suite of features to maintain clean and efficient campaigns:Ignore List: Automatically pauses targets that don’t have enough traffic to justify spending, helping to prevent wasting resources on low-performing targets.
Wasted Spend: Stops spending on search terms that aren't driving conversions, ensuring your budget is used effectively.
Keyword Harvesting: Moves high-performing search terms into exact match campaigns for more targeted control and better performance.
Irrelevant Words: Automatically negates keywords that aren’t relevant to your product, keeping your ads focused on high-quality traffic.
We suggest setting your advertising to Auto Mode, allowing our software to handle the optimizations for you. ThinkAd will automatically manage these features and ensure your campaign stays aligned with your goals, maximizing results while minimizing wasted spend.
🚨 Note: Don’t worry if your campaigns end up with fewer than 10 active targets at this stage - this is completely normal. Amazon’s internal algorithms will use their data to better understand "who you are" and help your product continue growing in organic ranking within relevant search results. Your focus should be on maintaining a healthy ACoS and gathering reviews, both of which are crucial to long-term success.
Strategy for Stable, Established Products
For products that have been on the market for a while and are performing well, the goal is to maintain steady growth while protecting your margins. At this stage, you’ve likely gathered enough data to optimize efficiently, allowing for a more hands-off approach while keeping your product’s performance steady.
Bidding Strategy:
Use Dynamic Bids – Down Only to protect your margins by lowering bids when conversion likelihood is low. This ensures that you maintain visibility without overspending, as your product’s demand has stabilized and aggressive bid adjustments are no longer necessary.Target ACoS:
Set a moderate ACoS goal based on your product's current performance and historical data. This will help you balance visibility and profitability, allowing for steady growth while protecting margins.ThinkAd Features:
Customers at this stage are ready to move to Auto Mode, where ThinkAd takes full control of optimizing bids and managing campaigns risk-free. Our platform will ensure that campaigns are run efficiently, taking into account real-time data to make automatic adjustments.
Additionally, we recommend setting up a professional Semantic Core using ThinkAd’s Semantic Core Creation feature. A well-built semantic core ensures that your campaigns target the most relevant keywords, further driving consistent growth while maintaining profitability.
🚨 Note: Bidding strategy: Fixed Bids can work well here as the product has likely stabilized in terms of demand, and you may not need aggressive adjustments.
Strategy to Optimize for Profit
For mature products, optimizing for profit is about finding the sweet spot between ad spend and return on investment (ROI).
Bidding Strategy: Fixed Bids work well when your product is already well-positioned in the market. You can maintain consistent ad spend without overshooting your budget.
Target ACoS: Aim for a low ACoS to maximize profit margins. Prioritize profitability over rapid sales growth.
Strategy to Get the Best Seller (BS) Badge
Achieving the Best Seller badge requires a focused, aggressive approach to increase sales velocity and maintain strong performance over time. The goal is to drive enough conversions to consistently outperform competitors and secure the badge in your category.
Bidding Strategy:
Use Dynamic Bids – Up and Down to aggressively bid when the likelihood of conversion is high, ensuring maximum visibility for your product. This strategy will help you win high-converting searches and push your product ahead of competitors.Target ACoS:
Set a high ACoS goal during this stage to prioritize sales volume over immediate profitability. The objective is to drive rapid sales growth, even if it means sacrificing profit in the short term to gain market share and secure the Best Seller badge.ThinkAd Features:
Use Auto Mode to manage your bids and targets efficiently, allowing ThinkAd to automatically optimize your campaigns for sales growth. With Wasted Spend and Irrelevant Words, the platform will ensure that only high-performing search terms remain active, preventing wasted budget on poor keywords.Additionally, ensure you create a professional Semantic Core with ThinkAd’s Semantic Core Creation feature to target the most relevant and high-traffic keywords. A solid semantic core is essential for maximizing visibility and sales during this aggressive growth phase.
Ignore List is crucial in this strategy as well, pausing low-traffic and underperforming keywords to concentrate your ad spend on the most valuable targets. This ensures that your campaigns stay streamlined and effective as you push for the Best Seller badge.
🚨Note: Pursuing the Best Seller badge is a short-term aggressive strategy, and it’s essential to closely monitor your conversion rates.
Article last updated October 2024. If you find this information to be out of date, please contact [email protected].