Three Quick Ways to Improve Your ROAS in Amazon Ads

One of the biggest challenges advertisers face is managing ACoS/ROAS during peak sales periods. With increased ad spending during these times, it becomes more challenging to strike a balance and ensure that we do not erode potential organic sales. However, several effective strategies can be implemented to achieve this balance and maximize ROI. As we approach major sales events each quarter, it’s crucial to be prepared.

As a leading Amazon Advertising agency, we suggest these three easy tips that you can implement today to stay ahead of the game and improve your ROAS:

1. Establish low-bid catch-all (LBCA) campaigns

This campaign type allows your products to serve on targeting that comes in at a high cost. These are not high-volume traffic drivers, but they can have a favorable ROAS while targeting growth.

  • Using Sponsored Products with automatic targeting, set up ad groups for each set of products that share a subcategory or parent category on Amazon.
  • Ensure you negate your brand, brand terms, and products.
  • Set a bid of $0.10 for all targeting options.
  • Use down-only bidding for products with an ASP (average selling price) under $75, or enable up-and-down bidding for products with an ASP greater than $75.
  • If you already utilize LBCA campaigns, consider establishing additional campaigns testing different bids (ex., $0.15, $0.20). Or if you have all products grouped in a single campaign, separating these into smaller groups can improve ROAS.

2. Create remarketing campaigns using Sponsored Display

We prefer using vCPM bidding for most initiatives. However, in some instances, CPC bidding may be more lucrative. In most cases, if your products have an ASP under $100, vCPM can be a better starting point.

  • Utilize the image ad format.
  • Ensure your campaign advertises at least five of your products.
  • Under targeting, use Amazon Audiences, then views remarketing. Bonus: if your product has the potential for repeat orders, add purchase remarketing as well.
  • Remove Similar to advertised products. Amazon adds this by default.
  • Add several lookback windows; if you know your time to purchase, then you can select an accurate lookback window. We recommend adding at least three options to test. Hinge Commerce can also work with you to get this data if you have advertising services with us. Contact us today to learn more.
  • For ad creative, test different combinations. You can leave it generic by default, where all content is sourced from the product page. However, if you have strong brand awareness or a highly competitive category, incorporating at least a brand logo is recommended.
  • Allow this to run for at least two weeks before making campaign adjustments. We recommend having audience bids above $10 and ensuring the overall campaign budget is at least $50+ /day.

3. Pull a Sponsored Ads Search Term Report

In the AMS console, under the Sponsored Products report category (you can also perform this for Sponsored Brands), select the Search Term report type. We recommend using a report period of 60 days for this report to gather enough data.

  • We prefer to format this as a table to sort clicks and filter out ad spend by a particular threshold and low 7-day total sales. A starting point could be $10 or $20, based on a brand’s average acquisition cost to convert a customer.
  • From here, we are looking at the terms that are ultimately causing wasted spend in the account. Review customer search terms and check the campaign it is in. You should then see if there is an opportunity to negate this term in the ad group to prevent further clicks to this phrase.
  • If the phrase is relevant to the product advertised, review other aspects of the campaign. For example, if it’s Sponsored Brands, test new creative types to engage the customer better.
  • Perform this step at least bi-weekly or weekly.

    These strategies are just the beginning of what Hinge Commerce can do to improve your ROAS and generate more sales for your brand. As a leading Amazon Marketing agency, we have a wealth of experience managing ACoS/ROAS for our clients on Amazon AMS during peak sales periods. Our team of experts has helped numerous brands achieve their marketing goals and maximize their ROI through effective and innovative strategies.

    If you want to take your Amazon advertising to the next level and stay ahead of the competition, we recommend contacting us today. We can perform a comprehensive audit of your current campaigns and identify other opportunities to drive more ad sales for your brand.

    Our approach is data-driven and customized to your specific needs and goals. We take a holistic approach to managing your Amazon advertising, considering factors such as your product assortment, pricing strategy, and competitive landscape. With our help, you can achieve better results, improve your ROAS, and boost your sales.

    So why wait? Keep your competitors from gaining an edge during the upcoming peak sales periods. Contact Hinge Commerce today and let us help you take your Amazon advertising to the next level. Our team is dedicated to delivering exceptional results and helping you achieve your goals.

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