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Achieving Target ROAS on Amazon: A Full Funnel Approach
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#036 - In this episode of "Better Advertising with Better Media," host, Justin Nuckols dives into the world of measuring Amazon advertising success, with an emphasis on optimizing for target ROAS. However, instead of a sole focus on ROAS, Justin talks about adopting a full-funnel advertising strategy as that breaks down your campaigns into five types: Awareness, Rank, Efficiency, Branded, and Auto.
Join Justin as he explains how to allocate budgets into these five key campaign types, and the distinct KPIs relevant to each category. He wraps up the episode by providing strategic allocation percentages for each campaign type, guiding you on how to structure your advertising campaigns on Amazon and more for comprehensive growth.
Key Takeaways:
- A diversified approach to campaign strategy is critical for achieving target ROAS, mirroring successful investment portfolio management.
- Advertising campaigns should be split into five key types: Awareness, Rank, Efficiency, Branded, and Auto, each serving unique objectives within the advertising funnel.
- Specific KPIs tailored to different campaign types, such as impression share for Awareness or conversion rate for Rank and Branded campaigns, provide a clearer measure of success as opposed to ROAS alone.
- Budget allocation across these five campaign types should be strategic and proportional to their relevance and impact on overall performance.
- Continual optimization, through keyword harvesting in Auto campaigns and proper negation, is essential for maintaining and enhancing the efficiency of advertising investments.
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