Full-funnel Marketing on Amazon – An effective way to scale up your Sponsored Ads Revenue and ROI

Full-funnel Marketing on Amazon – An effective way to scale up your Sponsored Ads Revenue and ROI

If you are targeting shoppers who are actively looking for a product like yours, then you targeting a very limited number of shoppers out of the 215M shoppers who visit Amazon.com each month (as per Amazon statistics) to discover and purchase new products.

A full-funnel marketing starts much earlier than that. It’s when a customer hasn’t yet realized the need of a product like yours and may be willing to buy it as soon as they discover. And, this is the top of the Funnel called Brand Awareness. For example, while selling dog food, one may not be targeting anything related to cats assuming this would be irrelevant. However, there may be shoppers who have both cats and dogs at their place. So, the brand awareness opens up more opportunities to sell more and helps when you’re stuck at a point where you have all the relevant keywords and target products in your campaigns.

How the Funnel Works?

Amazon always recommends setting up a 5-step funnel for an effective marketing that starts from the bottom.


Step 01: Ensuring your product is ready to buy

From the bottom, the very first step of the Funnel is ensuring that your product is ready to buy. This essentially means ensuring that your product Detail Page is free of spelling errors, there are no content mistakes, is winning buy box, has enough images, reviews, and ratings to stack up against other products in your category. This is helpful to maximize the funnel output and drive purchase. This is recommended first step of the funnel, though, you can start without any ratings as well but, in that case, can’t really expect a good conversion.

Step 02: Drive purchase

Once your product is ready to buy, you can now leverage sponsored Ads to drive purchase. Here, you are targeting customers who have discovered your product but haven’t purchased yet. And, here, you can include your branded terms “including your brand name” while targeting as well as retargeting (called “views”) which is not yet launched in the UK but it is expected to launch end of this year. Retargeting shows your Ads to the shoppers who visited your product detail page or of a similar product in the last 30 days but haven’t purchased yet. While you can use any ad type with this strategy of using branded keywords, recommended minimum are Sponsored Products with keyword targeting using your brand name and Sponsored Display “views” targeting.

Step 03: Stand out in your category (called “owning your aisle”)

As your products are ready to buy with optimized detail page for a better conversion, you can run different Ad types to show your ads and target shoppers who are looking to buy a product like yours. You can target relevant keywords, competitor products as well as complementary and supplementary products. For example, if you’re selling Dog food, then you can target other dog food brands, dog food related keywords, dog food category as well as complementary products like dog treats. This is to mainly target customers who are considering to buy such product to send them to the purchase stage of your funnel. Again, you can leverage all Ad types especially Sponsored Products and Sponsored Display.

Step 04: Build Your Brand to increase consideration

Once you’re standing out in your category, you can increase consideration through video, store page and display Ad creatives. At this stage, you are targeting customers in the consideration stage who have realized they need a product like yours. You can increase consideration more effectively by sending them to your store page where you can include videos and rich content to tell your brand story and show all products on offer to promote cross-selling as well. Besides, sending traffic to your store page may also prevent sending to the Product detail page (you can include add to cart button directly on the store page) where Amazon now offers lots of placements to your competitors to show their Ads. At this stage, you can consider broader targeting as well e.g. customer search terms like “dogs” in addition to dog food (make sure to monitor the performance and adjust the bids accordingly).

Step 05: Brand Awareness to expand your reach

At this stage, you can focus on building your brand awareness by also targeting shoppers who haven’t even realized yet they need your product. Here also, you can leverage all Ad types based on this strategy. If it’s keywords then you can additionally include cat-related ones (with low bids to begin with) as well and maybe other pets as well. Likewise, target other dog-related products/categories, cats-related products/categories…

One recommendation here would be to run separate multiple campaigns based on these strategies to be able to manage them more easily and effectively. You can also leverage portfolios for different funnel stages.