This article is based on insights shared during the eCommerce Nurse podcast hosted by Carina McLeod, featuring guests Martin Heubel from Consulterce and Rob Murray from eCommerce Nurse.
When Amazon vendors face challenges during annual terms negotiations, ramping up advertising can be a powerful tool to sustain sales and visibility. Strategic ad spend ensures products remain visible, even when other factors threaten to disrupt sales.
Why Advertising is Essential
During negotiations, vendors often experience punitive actions such as traffic redirection or suppressed listings. Investing in advertising helps counteract these issues by driving traffic and maintaining visibility. Advertising also supports sales momentum, which is crucial for protecting product rankings.
Key Advertising Strategies
- Targeted Campaigns: Focus on high-converting keywords and audience segments to maximize ROI.
- Diversify Ad Format: Utilise sponsored products, display ads, and video ads to reach a wider audience.
- Monitor Performance: Use analytics tools to track campaign effectiveness and adjust strategies as needed.
- Weight Ad Spend: Focus ad spend on higher NetPPM items to ensure average NetPPM is kept on track throughout the whole year.
Benefits of Accelerating Ad Spend
- Maintain Visibility: Ads ensure products stay in front of customers, even when organic traffic declines.
- Drive Demand: Increased visibility leads to higher sales, offsetting potential revenue losses.
- Support Negotiations: Strong sales performance provides vendors with leverage during discussions with Amazon.
Tips for Success
- Budget Wisely: Allocate resources to campaigns with the highest potential for return.
- Test and Optimise: Continuously refine ad content and targeting to maximise effectiveness.
- Align with Strategy: Ensure advertising efforts align with overall business goals.
By strategically increasing ad spend, vendors can mitigate risks, maintain their competitive edge, and navigate the challenges of annual terms negotiations effectively.
For more defensive sales strategies that support 1P vendors during annual terms negotiations, see links below:
Why Do Amazon Vendors Need to Be Planning Defensive Sales Strategies Ahead of Their Annual Vendor Negotiations?
Mastering Amazon Vendor Negotiations: How a 1P/3P Hybrid Strategy Can Protect Your Sales and Rankings
Stabilise Sales During Amazon Vendor Terms Negotiations: The Power of Subscribe and Save
At eCommerce Nurse, we specialise in crafting tailored strategies to drive long-term growth for Amazon vendors. From account and ads management to data insights, product optimisation, copywriting and design, our team is here to help. Let’s discuss how we can support your Amazon journey—reach out today!
