Featuring Andy Craig - EP - 230
In this blog, we're diving deep into Amazon advertising with our special guest, Andy Craig, Founder and CEO of AdHabit, a leading agency specializing in PPC optimization.
Before we unravel the nuances of Amazon ads, let's hear a bit about Andy's journey. Andy, who transitioned from an engineering background to founding AdHabit, started his e-commerce journey as a seller in 2020. His passion for advertising grew rapidly, leading him to establish AdHabit, where he now helps numerous brands grow through strategic advertising campaigns.
One of the key topics we're exploring today is the underutilization of ad types like Sponsored Brands and Sponsored Display. Ethan points out that during audits, he often finds missed opportunities in retargeting and brand enhancement through these channels. Andy emphasizes that leveraging these ad types effectively can significantly boost brand awareness and drive sales, debunking the misconception that they are only suitable for larger brands.
In 2024, Ethan raises a critical point about the common mistakes that advertisers, particularly newcomers, make with Amazon ads. Andy shares insights from his experience, highlighting the pitfalls of overly broad targeting and inadequate budget allocation, which often lead to high ACoS and missed opportunities on high-value keywords.
Addressing another crucial aspect, Ethan and Andy discuss the effectiveness of day-parting in Amazon advertising. Andy stresses the importance of data-driven decisions over arbitrary day-parting strategies, advocating for a nuanced approach that considers campaign performance and consistency.
Switching gears, the conversation moves to launch strategies on Amazon. Ethan probes Andy on the optimal campaign types and keyword strategies for product launches. Andy suggests a balanced approach, focusing on Sponsored Products initially and gradually incorporating Sponsored Brands based on performance metrics and client objectives.
A key takeaway from the discussion is the significance of customizing ad creatives to align with specific search terms. Both Ethan and Andy agree that tailoring visuals and messaging to match user intent can significantly enhance click-through rates and conversion rates, illustrating the importance of continuous testing and refinement.
Diving deeper into ad types, Ethan and Andy delve into the nuances between Sponsored Brands and Sponsored Display. Andy shares his preference for Sponsored Brands due to their strong performance in driving conversions, while acknowledging the evolving landscape and potential of Sponsored Display, especially with video ads gaining traction.
A critical question often asked is how to allocate budgets across different ad types—Sponsored Products, Brands, and Display. Andy advocates for a flexible approach, aligning budget distribution with client goals such as revenue generation, brand awareness, or keyword ranking, ensuring each campaign type serves its strategic purpose.
Wrapping up the podcast, Ethan and Andy speculate on the future trends in Amazon advertising for 2024 and beyond. They anticipate advancements in AI-driven ad management tools, continued growth in video ad formats, and a shift towards more personalized advertising experiences tailored to individual customer preferences.
And for a special treat to all vloggers out there, watch our latest YouTube podcast episode on scaling your Amazon business to Shopify for must-know tips and insights!
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