Optimizing Ad Spends: How Much should You Invest in Different Types of Amazon Ads?

Transcript:

When I'm doing the account audits, the first thing that I check for is the ad split.

Ad split across Amazon ad product. So simply put, Ad split means what you are spending.

For example, let's say if you're spending 10 lakhs a month, what percentage is going on Sponsored Product, what to Sponsored Brand, Sponsored Brand Video, Sponsored Display, etcetera.

You can further deep dive and calculate your ad split across various categories or various targeting as well, not categories within Sponsored Product, how much you're spending on keywords, how much you're spending on product targeting or maybe automatic targeting etcetera.

And I feel this gets ignored by most of the sellers. If you are a seller and are listening to this. One eye opening fact for you that you can check right now is how much you are spending across Amazon Ads type.

I am sure for at least 95% of the sellers this will be true that 70% of your total ad spends are happening on, or in fact more than 70% of your total ad spends are happening on Sponsored Products.

Very few are doing video, even fewer are doing Display and Retargeting Ads. So you're missing a lot on visibility, a lot cheaper visibility.

You choose to spend or you choose to spend most of your money where everyone else is spending.

So you're ending up competing with a lot of players in your category and it's really obvious that's why your CPC and ACOS are rising month on month. According to me, If you ask me what's the ideal spend split across Amazon Ad types, I would say 40% ad spend in Sponsored Products, 10% in Sponsored Brands, 25% in Sponsored Brands Video and why I'm putting 25% this high percentage.

I have talked a lot about why Sponsored Brand Video is like a better product.

I posted a couple of other audios as well about this. So it's really important to invest in sponsored brand video. You can check those videos out, I'll Link it somewhere in the description.

15% on Sponsored Display Product Targeting and Rest, 10% on Display Retargeting so that you can bring back the customers that have looked at your product previously.

So this will ensure maximum visibility and we'll help you drive maximum conversions across the funnel for you.

People will see that XYZ brand is selling this particular notebook, which has thousands of reviews, right?

So they will trust your brand.

They will trust the XYZ brand, and they will also explore the other options.

If you are advertising your bottom selling products on your top selling, they will be able to see your other products, other product lines, other designs, and they will be open to try that.

I've seen this strategy working on multiple brands, right?

And you can try that as well. So essentially, what I'm trying to say is what you do with your 80% of the products that don't sell will differentiate you as an online brand over the years.