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Amazon Advertising

How to Lower Amazon Advertising Costs & Create Loyal Customers (2023)

In this post, we discuss how to lower Amazon advertising costs & create loyal customers in 2023.

There are many ways to cut costs when you’re selling on Amazon, but there’s one that cuts costs and increases your sales as well.

Amazon Advertising

The Strategy is called Remarketing or Retargeting.

You can do it using Amazon Sponsored Display and Amazon DSP. You can also do it in other ways, but here, we’ll focus on these two methods.

This is so powerful because most customers don’t convert the 1st time they see your ad or your product offering.

  1. This is a crucial strategy if you’re selling a more expensive product that requires more thinking and comparison.
  2. Also, if you’re selling consumables like a drink, skincare, etc., you need to anticipate that customers will purchase again. 

With this, you’ll understand your customer journey and see why they just viewed without buying, just added to the cart without buying, and so much more.

More importantly, if you nail this strategy, you’ll create loyal customers who might do the advertising for you through word of mouth.

With this low-cost strategy, you can do so many tweaks as they’re already a warm audience that just needs a little more push.

Get to know the strategies below.

Amazon Advertising

Amazon Sponsored Display

As a part of Sponsored Display audiences, advertisers are now able to use purchase remarketing to help:

1. Drive Brand Loyalty through Repeat Purchases

Help drive repeat purchases by remarketing to audiences who have previously purchased your brand’s products. 

For example, a beauty brand could advertise their 7-day pack of sheet masks to shoppers who bought a single sheet mask using a 30-day lookback window. 

You can pair your campaigns with custom image creatives to help convey your unique brand narrative while connecting with existing audiences.

2. Cross-sell Complementary Products

Help drive product consideration by cross-selling your products to audiences who have recently bought other related/complementary products. 

For example, a brand that’s focused on selling electronic accessories, such as headsets and webcams, can now reach shoppers who have recently purchased a new computer within their preferred lookback window (e.g., in the past 14 days)

3. Reach New Audiences

 Help discover new audiences by reaching audiences who have previously purchased from other popular categories and brands as you launch new products to market or seek to improve the visibility of existing products. Custom creative headline and logo features can help you stand out when engaging new audiences, while dynamic badging allows you to augment markdowns and leverage high-traffic promotional periods. 

We’ve observed that dynamic badging can help you drive up to +42% ad click-through rate.1 Finally, as you reach new audiences, you can quantify your efforts by using  a suite of new-to-brand metrics.

Key Features

  • Mix and match up to 20 audiences within a Sponsored Display ad group—including views remarketing, purchases remarketing, and Amazon audiences.
  • Help reach audiences who have purchased from specific categories/browse nodes on Amazon, with the ability to refine your selection based on brand, price, star rating, and other filters.
  • Easily remarket to audiences who have purchased your promoted products, as well as other related or complementary products.
  • Select your preferred lookback window for each audience when using views and purchases remarketing
  • Show ads on Amazon—including on prominent detail page and home page placements—off Amazon and on Twitch to reengage audiences throughout the entire shopping and entertainment journey
  • Specify bid amounts and see performance metrics for the audience selected
  • Select one or multiple products to advertise
  • Customize creative using headlines, brand logos, or custom images

Amazon Advertising

This is especially true if you have Amazon DSP. DSP stands for Demand-side platform— an advertising platform that lets advertisers buy display and video ad placements across the online platforms- both on and off Amazon.

The DSP allows you to target your campaigns based on many different factors. 

  • Behavioral targeting allows you to target customers based on their browsing activity behavior like web searches, frequently visited sites, and purchase history over the past 30 days. 
  • Contextual targeting refers to relevant ads shown while people use the Internet.
  • Lifestyle targeting targets people who have very specific buying patterns from a certain category such as sports and outdoor. 
  • Remarketing allow you to show ads to people who have previously visited your site or clicked on one of your ads—whether they do it while they’re browsing Amazon or not.
  • Audience Lookalike target consumers whose browsing and purchasing behavior are similar to your current customers 
  • Advertiser Audiences uses your own data to target consumers that have already interacted with your brand.

To make things simple, just do a 1:1 strategy per campaign. For example, for a Sponsored Display campaign, you can start with just “views remarketing,” let’s say for “premium running shoes.” 

By implementing these strategies, we hope you can lower your Amazon advertising costs and create loyal customers.

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