Amazon Ads for Aussie startups: How to compete with big brands

TL;DR

• Amazon Ads help Aussie startups compete with big brands by increasing visibility and driving sales.

• Start small with focused ads targeting the right audience to keep costs low while reaching potential buyers.

• Make sure your product listing is optimized with clear descriptions, high-quality images, and the right keywords.

• Highlight what makes your product special to build trust and stand out from the competition.

• Use Amazon’s reporting tools to track ad performance and adjust your strategy for better results over time.

• Take advantage of lower competition in the Australian market and experiment with different ad types as your business grows.

As an Amazon seller in Australia, it can feel overwhelming to compete with big brands that have large budgets and established reputations. How can a small business stand out in such a crowded marketplace? The answer lies in effective Amazon Ads. With the right strategy, even small businesses can gain visibility, drive sales, and compete on a level playing field with larger brands.

In this blog, we’ll explore how Amazon Ads can help Aussie startups thrive. We’ll guide you through how to determine your advertising budget, what Amazon Ads solutions cost, and the best ways to target your ideal customers.

You’ll also learn how to start small with focused ads, optimize your product listings, and highlight what makes your products stand out. We’ll discuss how to monitor your ad performance, adjust strategies, and take advantage of lower competition in the Australian market. 

How can advertising help my small business?

Advertising can help your small business in many ways, especially when selling on platforms like Amazon. Here’s how it works:

• Increase visibility: Ads help your products get noticed by more people. With Amazon’s large customer base, ads ensure your products appear at the top of search results, making it easier for customers to find you.

• Target the right people: Ads allow you to focus on the right audience. You can target customers based on their interests, keywords, and shopping behavior, ensuring your budget is spent on those most likely to buy.

• Boost sales: Ads bring more traffic to your product listings. The more clicks you get, the higher the chance of making a sale, especially for new products or businesses that are still building their reputation.

• Build brand awareness: Advertising helps customers get to know your brand. Consistent ads build trust and loyalty, leading to repeat sales and positive reviews.

• Track results: With advertising, you can easily see how well your Amazon product ads are doing. You can measure performance and make changes to improve your ads over time.

In short, advertising helps your small business get noticed, grow, and compete with bigger brands more effectively.

How do I determine my small business advertising budget?

Determining your small business advertising budget is an important step in creating an effective marketing strategy. 

• Understand your goals: Start by deciding what you want to achieve with your ads. Are you looking to increase brand awareness, drive more website traffic, or boost sales on Amazon? Your goals will help you decide how much to spend.

• Set a percentage of revenue: A common rule is to allocate about 5-10% of your annual revenue to advertising. If you're a new business, you may want to start with a lower percentage and adjust as you see what works best.

• Know your profit margins: Consider your product’s profit margin when setting your budget. If your margins are high, you may be able to afford to spend more on ads without affecting profitability. If your margins are low, you’ll need to be more conservative with your budget.

• Test and adjust: Start with a small budget and test different ads. Once you see what works, you can increase your budget for the most successful campaigns. Regularly review your spending and adjust based on performance.

• Consider competition: Research your competitors’ advertising spend. While you don’t need to match them, knowing their ad spend can help you stay competitive.

How much do Amazon ads solutions for small businesses cost?

The cost of Amazon Ads for small businesses can vary depending on the type of ads and your budget. On average, small businesses spend between $1,000 to $5,000 per month on Amazon Ads.

• Sponsored Products: This is the most common ad type, and it can cost between $1 to $5 per click. Small businesses typically start with a daily budget of $10 to $50.

• Sponsored Brands: These ads are more expensive, with monthly budgets ranging from $2,000 to $10,000. They’re great for businesses that want to increase brand awareness and drive more sales.

• Sponsored Display: These Amazon display ads are similar in cost to Sponsored Products, depending on how you set up your targeting and budget.

Amazon Ads works on a cost-per-click (CPC) model, so you only pay when someone clicks your ad. Start with a small budget, track results, and adjust as needed to get the best results.

How to compete with big brands

#1 Know your target customers and product niche

Understanding your customers and the specific niche your product serves is key. Big brands often target broad groups, but small businesses can succeed by focusing on a smaller, more specific audience. This allows you to create ads that speak directly to people who are most likely to buy from you.

#2 Start small with focused ads

Instead of trying to compete with big brands on everything, start small with ads aimed at a smaller audience. Choose specific keywords and target customers who are most likely to buy. This way, you can keep your ad costs lower while still reaching the right people.

#3 Make sure your product listing looks great

Your Amazon product listing optimization is important for getting sales. Even if big brands have ads, customers still look at your product title, pictures, and descriptions before buying. Make sure these are clear, informative, and optimized with the right keywords.

#4 Show what makes your product special

Highlight what makes your product different from big brands. Whether it’s better quality, unique features, or eco-friendly packaging, show customers why your product is special. This helps build trust and can encourage them to choose your product over others.

#5 Keep an eye on ad performance 

Always track how your ads are performing. See which keywords and Amazon sponsored ads are working and which ones need adjusting. By monitoring and improving your ads regularly, you can make sure your budget is spent wisely.

#6 Take advantage of lower competition 

The competition is lower in the Australian market compared to bigger markets like the US. Focus on growing your presence in Australia, where you can take advantage of fewer big brands and attract more local customers.

#7 Try more ad types as your business grows

As your business grows, try using different types of ads like Sponsored Displays or Video Ads. These help you reach new customers and remind people who visited your listing but didn’t buy.

#8 Use data to make better decisions over time

Use Amazon’s reports to track how your ads are doing. Look at numbers like click-through rate and return on ad spend to help you make better decisions. Over time, you’ll know what works best for your business.

Ready to take on big brands?

Amazon Ads can be a game-changer for Aussie startups looking to compete with big brands. By understanding your target customers and focusing on niche products, you can create effective ads with a manageable budget. Start small, optimize your product listing, and highlight what makes your product unique to attract more clicks.

As your business grows, you can try different ad types and use data to improve your strategy. Don’t forget to monitor ad performance regularly. With the help of our Amazon experts, you can maximize your ad spend and make smarter decisions to drive long-term success.