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How to Optimize Your Amazon Ads in the Lead-Out of the Holiday Season

Holiday shopping behavior has changed drastically in recent years, and brands are struggling to predict how successful their holiday campaigns will be in 2023. But despite these challenges, eCommerce brands have been gifted with many growth opportunities.

As global supply chain issues begin normalizing, brands are now focusing on advertising best practices amidst high inflation. According to the U.S. Bureau of Labor Statistics, the consumer price index is projected to be 8.2% this holiday season. And with many consumers capping their discretionary holiday spending, it will take more than recycled campaigns to maintain sales numbers.

This blog will detail emerging opportunities in eCommerce advertising, strategies to build genuine connections with your holiday shoppers, and Pacvue’s best tips for Amazon ads.

Emerging Opportunities in eCommerce Advertising

Despite erratic product prices and uncertain consumer behavior in 2022, brands are preparing for any outcome, whether increasing, decreasing, or leveling off consumer spending. By diversifying your budget by spreading dollars across different types of ads, deals, and promotions, you can reduce the risk that comes with heavy investments in one tactic.

As Melissa Burdick, Co-founder and President of Pacvue, told The New York Times, “Folks are really looking for deals this year. They’re shifting what they’re buying to favor lower-priced brands and more necessary items.”

For smaller brands, this is an opportunity to break through the crowd and create a buzz with low-ticket product choices, such as vlogging accessories, plush toys, or clever pet supplies and toys. For brands with bigger budgets, consider focusing on discounts and deals, as promotional incentives are great for:

  • Attracting competitor customers.
  • Driving higher customer retention.
  • Differentiating your products during seasonal sales spikes.

Overall, focus on delivering a positive shopper experience. This ensures customers feel good about their buying experience and are more likely to leave a glowing review or repeat their business after the holiday season.  

Whether you achieve positive customer experiences through creative campaigns, eco-friendly packaging, fast-paced delivery, or something else, the goal is to nurture a bond with your consumers.

Building Connections with Holiday Shoppers

The best-performing brands consistently tell a strong brand story that lets them build on their engagement with customers and keep that relationship going through consistent messaging across their storefronts and social media.

Last year, Pacvue wrote a blog for Amazon advertising, explaining how shopper connections are critical to a successful holiday season in eCommerce. As competition increases, brands must craft a full-funnel approach to ensure increased visibility throughout their customers’ journey on the platform.

Simply put, an effective strategy is two-fold—it helps you find the customers who are hunting for the perfect gift while also assisting customers in discovering your brand organically.  

Shoppers have many channels to find shopping inspiration from, especially with social media influencers, so keep this in mind when creating a campaign.

Remarketing to shoppers who tend to browse early and shop later is another excellent way to improve conversion rates by focusing your approach on those who’ve previously engaged with the brand and shown interest. Advertisers tend to distribute their money into primary techniques, leaving little to no room for secondary tactics like re-targeting. Still, it can give phenomenal returns with a relatively minor investment.

Tips to Optimize Your Amazon Ads

One of the easiest ways for brands to level up their efforts on Amazon is by going straight to the source. Amazon recently launched seven updates to its set of advertising features, and they’re all designed to help businesses of all sizes optimize their campaigns and maximize the ROAS.

Here are two of our favorites:

  1. Amazon’s Sponsored Products ads campaigns now come pre-equipped with core campaign settings, including daily budgets and bidding strategies.
  2. Amazon’s self-serve tool, Sponsored Display, released an enhanced creative offering with video capabilities, helping brands deliver more immersive and visually engaging content.

And there are plenty of other tactics Pacvue users are leveraging, including:

  • Real-time item monitoring: Pacvue Product Center enables brands to monitor item inventory, buy box, and eligibility status in real-time, highlighting root issues and surfacing alerts to pause campaigns or reallocate budget automatically.
  • Competitive holiday intelligence: Category Intelligence from Pacvue identifies which items are most popular for high-ranking search terms – then adds them to existing Sponsored Display Product Attribute Targeting campaigns or creates new seasonal campaigns with higher bids.  
  • Don’t forget about remarketing: Connect with audiences researching or browsing your products later in their customer journey when they’re primed to convert (especially when deals arise). Amazon DSP and Sponsored Display are valuable tools to engage these high-intent audiences.

Despite chaotic behavior, eCommerce has only increased every year thanks to increased prices of everything from necessities like gas and groceries to luxury items. Consumers are shopping on Amazon daily, so there is a large pool of potential shoppers to tap into as long as you employ the right tactics.

To learn about comprehensive bid management and lucrative marketing opportunities, check out Pacvue for Amazon and book a demo today!


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