¶ Advertising strategy
Depending of the stage your account is, current and expected market conditions, advertising will require different approaches. There are three broad strategies that advertisers can implement.
- Expansion
- Optimization
- Hybrid
¶ Expansion
We increase overall ad budget, create new campaigns with different targeting options; we expand the keywords lineup in the campaigns, place more aggressive bids, and we are going strongly against competitors. The main goal of these activities is to increase the sales velocity of the products, bring more traffic to the product pages and by that increase sales. The main KPI's to follow in this strategy are:
- Sales
- Impressions
- Clicks
- Click-through rate
- New-to-brand sales
¶ Optimization
- Usually optimization follows after the expansion. The goal is to increase efficiency. We have accumulate data and after in dept analyzes we start to tune down things. We are pulling out of the bidding of nonprofitable keywords and ASIN's by lowering the bids, adding them as negative or pausing them. Main KPI's to follow are:
- Spend
- ACoS
- Conversion rate
- Cost per acquisition
¶ Hybrid
- With this strategy our goal is incremental growth. We have stable MoM performance, and we are constantly looking for opportunities to grow within the established budget and ACoS targets. This could be by pushing new products, support sale of products with active promotions, or expanding in different market segments for limited number of products. Main KPI's to follow are:
- Spend
- Sales
- ACoS
- Orders