Strategies for Advertising on Amazon: A Funnel-Based Approach Explained
If we consider the buyer’s journey a road, advertising is our GPS, guiding customers from awareness to their final destinations: purchase and loyalty. If used the right way, the journey will be smooth sailing, constantly attracting new customers while maintaining good relationships with existing ones—a testament to our advertising strategies.
The buyer’s journey synonym is also known as ‘marketing funnel’ because it looks like a funnel when represented visually. It narrows down as it goes through each stage, making selections on each part of the journey based on customers’ needs and how well the brand is advertised. Each funnel stage is interconnected—neglecting one part weakens the entire strategy.
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Expanding on the Buyer’s Journey and Advertising’s Role
If we think of the buyer’s journey as a road trip, advertising acts as our GPS, guiding potential customers from the very beginning of their trip all the way to their final stop – purchase and loyalty. When done right, this journey feels seamless, attracting new travelers while keeping our frequent riders coming back for more. It’s not just about the sale; it’s about building lasting relationships that reflect the strength and precision of our advertising efforts.
The buyer’s journey is often called the ‘marketing funnel.’ This term comes from how the process looks visually – wide at the top and narrowing as potential customers move closer to making a purchase. Each stage represents a selection process, gradually filtering down to the most engaged and relevant buyers. Just like a funnel, every part plays a role; if one section is weak, the entire process can break down, making it essential to address each stage with equal attention.
The Awareness Stage – Casting the Net Wide
At the top of the funnel is awareness. This is where we extend our reach to as many potential customers as possible. The goal here is simple: introduce our brand and products, highlight what problems we solve, and let people know we’re here and ready to help. Think of it as waving a big sign that says, “Hey, check us out!”
To capture attention, we leverage tools like Sponsored Display and Amazon DSP. These tools allow us to create engaging ads that reach audiences both on and off Amazon. With visually appealing images, videos, and catchy taglines, we place our brand in front of the right people. Targeting options like lifestyle, life events, and interest-based audiences let us reach niche segments – for example, marketing a supplement brand to health enthusiasts or promoting maternity products to soon-to-be parents reading pregnancy blogs.
Amazon DSP plays a critical role here. It offers unparalleled control, allowing us to segment audiences based on first-party data from Amazon. This means we can refine our targeting by demographics like age, gender, income, and occupation. For example, if we’re marketing skincare to women over 50, we can zero in on that group. Or, if we’re aiming higher, we can broaden the scope, capturing related buyers such as daughters or spouses looking for gifts.
Blending Sponsored Brand campaigns with custom creatives and broad keyword targeting (like ‘vitamins and supplements’ or ‘maternity essentials’) ensures our brand appears to those casually browsing. These users may not be ready to buy yet, but planting the seed of awareness ensures we’re top of mind as they continue their journey.
The Consideration Stage – Nurturing Interest
As we move down the funnel, the audience narrows to those actively considering options. At this stage, potential customers know they have a need, and we’re here to show them why our product is the right fit. It’s about reinforcing our value and keeping our brand front and center.
Sponsored Display and Amazon DSP allow us to directly engage with in-market shoppers, retarget past visitors, and even place our products on competitors’ listings. This strategic positioning ensures we stay relevant and remind customers of the benefits we offer.
For instance, if we’re marketing a fruit and veggie supplement, we can target:
Sponsored Brand and Sponsored Product ads complement these efforts by targeting high-intent keywords and competitor products. This dual approach allows us to remain visible during key decision-making moments.
The Purchase Stage – Sealing the Deal
At the bottom of the funnel, we’re targeting customers ready to make a purchase. This is the point of highest intent, where they’re actively searching for solutions and are closest to converting. Our job is to make the final push.
Sponsored Products and Sponsored Brands are critical tools here. By focusing on high-intent keywords such as specific product terms or branded keywords, we ensure our product appears in relevant search results, increasing the likelihood of a sale. For example, targeting terms like ‘fruit and veggie supplements’ or ‘maternity leggings’ directly connects us to ready-to-buy shoppers.
Additionally, brand terms come into play. However, the strength of our brand search volume depends heavily on how well we’ve driven awareness and consideration. If we’re not consistently feeding the top and middle of the funnel, brand demand at the purchase stage may fall flat.
The Loyalty Stage – Cultivating Repeat Business
The journey doesn’t stop at purchase. For many brands, loyal customers are the cornerstone of long-term success. Those who have purchased from us once are often the easiest to sell to again, especially if they had a positive experience. Nurturing this loyalty keeps our business thriving.
Sponsored Display and Amazon DSP continue to play a role by allowing us to remarket to past customers. We can encourage repeat purchases, cross-sell complementary products, or introduce them to new offerings within our brand.
Amazon’s Brand Tailored Promotions also offer a powerful way to drive loyalty. With this tool, we can craft exclusive promotions for our top spenders, most engaged followers, and promising prospects. Additionally, we can target specific segments like cart abandoners or at-risk customers, helping move them from consideration to purchase or reinvigorating their interest in our brand.
By addressing each stage of the buyer’s journey, we create a full-circle experience that not only drives sales but builds long-lasting relationships. The more refined and personalized our approach, the smoother the journey becomes – for both us and our customers.