How does Amazon Advertising Boost Organic Search Ranking?

The primary objective for every Amazon seller is achieving organic top-of-page placement, but not everyone realizes this aspiration. Consequently, sellers turn to Sponsored Ads for listing traffic. Does this imply organic top-ranking is unattainable? Is the investment in advertising campaigns, anticipating an organic boost, justified? This blog elucidates the impact of Amazon ad spending on organic ranking and unveils strategies for leveraging it to your benefit. Let’s explore the details!

Difference Between Ad Sales and Organic Sales

Amazon provides a variety of ad options, including Sponsored Products, Sponsored Brands, and Sponsored Displays, to promote your products to potential customers on the platform. When a user clicks on your ad, you incur a fee to Amazon.
Conversely, organic sales typically stem from your natural ranking on Amazon’s search results pages, influenced by factors such as sales velocity, keyword optimization, BSR rank, reviews, and ratings.While no advertising fees are required for organic sales.

Optimizing your pro duct listings is crucial for achieving a prominent position in search results. Strategies such as keyword research, product title and description optimization, A+ content, garnering more reviews and ratings, and opting for Amazon FBA can enhance your organic ranking.
The main difference between Amazon ad sales and organic sales lies in their immediacy and control. Ad sales offer immediate visibility, increased traffic, and rapid sales growth, but necessitate ongoing investment and monitoring. Conversely, organic sales contribute to long-term sustainability, brand reputation building, enhanced share of voice, customer loyalty, and reduced long-term costs, albeit requiring significant
effort and patience.

Paid or Organic Sales : Which is Beneficial ?

This is not the right question to ask in the first place.
Don’t see organic and paid sales as competitors, think of them as working together to boost your overall sales.
Brands that blend paid ads with organic ranking experience the highest increases in both traffic and conversions.
Consider organic and paid search as a powerful team, much like Batman and Robin. Despite their distinct skills and personalities, they achieve better results when working together.

How Sponsored Ads Impacts Organic Ranking ?

The Amazon A9 Algorithm takes into account various factors, including clicks, conversion rate (CVR), sales velocity from sponsored ads, verified reviews, and other parameters, to improve a product’s organic ranking. However, achieving organic clicks and sales can be especially challenging for new brands or when introducing a new product to the market.

Relying solely on organic sales and customer reviews to gradually enhance search ranking may take years, particularly if the product is positioned on the 20th page of search results. With 70% of shoppers not venturing beyond the first page of Amazon’s search engine results page (SERP) and the top three products typically capturing 64% of all clicks, generating organic sales becomes even more difficult.

Hence, the most effective strategy is to conduct advertising campaigns to elevate your products to prominent positions on Amazon’s SERP and drive sales.

Drive Organic Growth with Sponsored Ads

Now that you understand why Sponsored Ads are important to drive organic growth, here are a few strategies to drive organic growth with Sponsored Ads

1. Identify High Growth Keyword Opportunities

Conduct research on keywords and competitors to discover high-volume category keywords where your product lacks visibility. Utilize the Keyword Research and reverse ASIN tools for easy identification. Aggressively bid on these high-volume keywords to enhance conversion rates. As sales increase, your product’s search ranking will improve, signaling Amazon’s A9 algorithm about its relevance.

2. Choose Your Organic Growth Success Metrics

While bidding high on the high-volume keyword, simultaneously identify metrics that will give you a full picture of your advertising impact on your total revenue and organic growth.

3. Few Metrics to Track

Organic Rank:It shows how well your product ranks organically on Amazon SERP on a given keyword. You should track if the organic rank of your product improves over time with paid advertising.
Sponsored Rank:It shows where your Sponsored Product Ads rank on the search results. If the ranking dips to the rest of the search, then increase bids to get it to the top of the search placement.

Assess Organic Performance & Adjust as Needed

Improvement relies on measurement. It’s crucial to monitor your organic growth metrics. The Total Advertising Cost of Sales (TACoS) is a primary gauge of Amazon advertising’s impact on organic ranking. A decreasing TACoS suggests growing organic sales.

During product launch or growth stages, ACoS and TACoS may increase due to a lack of an organic footprint. As the product matures, TACoS should decline. Additionally, monitor product ranking for high-performing keywords. A rising organic rank signifies the effectiveness of your advertising campaigns.

Conclusion

The primary goal for any seller is to boost organic sales. Understanding how Amazon advertising impacts your organic ranking is essential. Different products and businesses have varying needs, necessitating careful planning to prioritize growth.

We’ve shared some effective strategies that yielded positive outcomes for our clients. If you wish to implement similar approaches to enhance your organic ranking and overall revenue, addMatrix advertising experts are ready to assist you. We’ve successfully aided brands like Daawat and Alpino in developing organic growth strategies, and we can do the same for you!

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