In this episode of the Selling on Giants Show: How to Scale with Amazon Ads without Sacrificing Profits, we are joined by Elizabeth Greene, co-founder of Junglr, an agency specializing in Amazon advertising. Elizabeth shares her journey from being a full-time mom to becoming an expert in Amazon advertising. She provides insights into effective ad types, common pitfalls sellers encounter, and the importance of balancing business and personal life. Additionally, Elizabeth discusses upcoming trends in Amazon advertising for 2025, including rising costs and the significance of leveraging first-party data for better decision-making.
Key Takeaways:
✅ Balance growth with profitability: Discover how to grow using Amazon Ads without losing your margins.
✅ Ad Strategy Tips: Learn about leveraging Sponsored Brand and Display ads for optimal results.
✅ Identify Growth Opportunities: Find untapped potential in your existing catalog.
✅ Avoid Common Pitfalls: Learn the mistakes to avoid when scaling and how to overcome them.
✅ Future Trends: Get ahead of the curve with insights on emerging eCommerce trends and what’s next for Amazon Ads.
Key takeaways:
Challenges in Amazon Advertising
- The conversation centers on the trend of prioritizing top-line growth over profitability in Amazon advertising, especially in the wake of the aggregator boom.
- Liz addresses the difficulties businesses face in balancing advertising spend with cash flow management, warning of the risk of unsustainable growth.
- She asserts the necessity for sellers to navigate the challenges of increasing ad spend while maintaining profitability and outlines the role of her agency in this process.
- The discussion identifies the confusion many sellers experience regarding advertising effectiveness and the need for a well-defined strategy.
Identifying Profitability and Goals
- Establish clear top-line goals and understanding constraints, like Total ACOS, when planning advertising strategies.
- Focus discussions on overarching objectives rather than jumping to perceived issues and fixes within advertising accounts.
- Effective communication about desired outcomes allows agency teams to formulate tailored strategies for sellers based on their specific goals and budgetary constraints.
- Common misconception that achieving a top keyword ranking is the sole path to desired sales outcomes, while often alternative methods can be pursued.
Scaling Amazon Ad Campaigns
- Efficiency in scaling Amazon ad campaigns involves evaluating the campaign’s impact on both the overall account and individual product results.
- Insights gained from managing large SKU accounts and the benefit of looking at the sales contribution of each product and campaign in percentage terms.
Key Factors in Optimization
- Optimization essentially involves two actions: increasing or decreasing ad spend by adjusting bids, budgets, and negative keywords.
- Finding an optimal spend level, which fluctuates and requires ongoing assessment to avoid wasting resources is a complex task.
- The primary metric for determining optimization effectiveness is the correlation of advertising impact on sales, emphasizing the importance of understanding individual campaign performance.
- Don’t make swift decisions based solely on high ACOS without considering the broader effects on sales and rankings.
Insights on Cost Management
- Ads Manager/ specialist needs to create careful allocation of ad spend, particularly for campaigns driving significant sales.
- Assess the sales impact when choosing to adjust spend levels, as inefficient ads could still contribute greatly to total sales.
- Avoiding knee-jerk reactions to poor metrics without understanding their overall significance to business objectives.
- Acknowledge the need for nuanced decision-making to effectively balance cost management and sales growth in advertising efforts.
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Links:
- LinkedIn – Personal: https://www.linkedin.com/in/elizabeth-greene-junglr/
- Branded – Linkedin: https://www.linkedin.com/company/junglrllc/