Achieving Target ROAS on Amazon: A Full Funnel Approach
Mar 9, 2024
auto_awesome
Learn how to achieve target ROAS on Amazon by adopting a full-funnel advertising strategy. Dive into five key campaign types: Awareness, Rank, Efficiency, Branded, and Auto. Discover specific KPIs for each type and strategic budget allocation tips. Continual optimization is key for comprehensive growth.
15:03
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
A diversified approach to campaign strategy is critical for achieving target ROAS, mirroring successful investment portfolio management.
Specific KPIs tailored to different campaign types provide a clearer measure of success as opposed to ROAS alone.
Deep dives
Slicing and Dicing Budgets: Achieving Target ROAS Through Campaign Breakdown
The podcast discusses the importance of slicing and dicing budgets into five distinct categories to effectively achieve target ROAS. These categories include Awareness, Rank, Efficiency, Branded, and Auto, each serving specific purposes in the advertising strategy. By strategically allocating budget percentages to these categories, advertisers can ensure a full-funnel approach and cover various aspects of the advertising portfolio to drive long-term growth.
Awareness Campaigns: Focus on Impressions and Click-Through Rates for New Product Discovery
In the awareness campaigns, the main focus lies on creating impressions and improving click-through rates to introduce products to customers. By targeting placements where customers discover products under specific keywords, the goal is to attract initial interest and increase brand awareness. Metrics such as impression share and bid optimization are crucial in these competitive placements, allowing brands to engage customers and initiate the customer journey through effective discovery tactics.
Efficiency Campaigns: Meeting ROAS Targets with Non-Branded Product Optimization
Efficiency campaigns form a significant portion of the advertising strategy, emphasizing the optimization towards target ROAS for non-branded products. These campaigns target specific keywords discovered through keyword harvesting tools, aiming to drive sales without excessive spending. By focusing on cost-effective bidding strategies and efficient conversion rates, advertisers can maximize ROI and achieve profitability while ensuring a consistent performance in the long run.
#036 - In this episode of "Better Advertising with Better Media," host, Justin Nuckols dives into the world of measuring Amazon advertising success, with an emphasis on optimizing for target ROAS. However, instead of a sole focus on ROAS, Justin talks about adopting a full-funnel advertising strategy as that breaks down your campaigns into five types: Awareness, Rank, Efficiency, Branded, and Auto.
Join Justin as he explains how to allocate budgets into these five key campaign types, and the distinct KPIs relevant to each category. He wraps up the episode by providing strategic allocation percentages for each campaign type, guiding you on how to structure your advertising campaigns on Amazon and more for comprehensive growth.
Key Takeaways:
A diversified approach to campaign strategy is critical for achieving target ROAS, mirroring successful investment portfolio management.
Advertising campaigns should be split into five key types: Awareness, Rank, Efficiency, Branded, and Auto, each serving unique objectives within the advertising funnel.
Specific KPIs tailored to different campaign types, such as impression share for Awareness or conversion rate for Rank and Branded campaigns, provide a clearer measure of success as opposed to ROAS alone.
Budget allocation across these five campaign types should be strategic and proportional to their relevance and impact on overall performance.
Continual optimization, through keyword harvesting in Auto campaigns and proper negation, is essential for maintaining and enhancing the efficiency of advertising investments.