Recently, our CEO Andrew Banks spoke with a brand who were thinking of cutting their Amazon Ads to see whether it would generate more profit.
While the entrepreneur in him admitted the idea of testing and stopping advertising might appear intriguing, Andrew was the first to point out that Venture Forge’s vast Amazon expertise meant he actually felt very differently.
While stopping advertising might save money in the short-term, the longer-term impacts are pretty terrifying – and worse of all, will take even more investment to recover from.
But why do we say this? We just need to revisit the 3 undeniable benefits of Amazon Ads.
Amazon Ads are critical to… boost your visibility
An effective Amazon Ads strategy doesn’t just drive sales, it also significantly elevates your product’s visibility – which in turn leads to better organic rankings.
Creating what Andrew calls a “virtuous cycle of growth”, removing any element that’s contributing to your sales velocity will – quite simply – have a compound impact on your overall sales.
Amazon Ads are critical to… long-term Sales Growth
Various studies (and our own extensive first-hand knowledge!) have shown that brands who invest consistently in Amazon Ads see sustained sales growth over time – growth which then far outweighs their initial outlay.
Amazon Ads are critical to… growing and protecting your Market Share
As Andrew says, any good advertising strategy should contain defensive and offensive elements that are designed to protect your own sales, while taking sales away from your competition.
Stopping all your advertising spend means you’re pulling your attempts to both protect and grow your brand’s market share.
(Do we even need to say that this is a terrible idea?)
TLDR: Don’t pull the plug on your growth and market presence
In short , stopping your Amazon Ads is a move that can jeopardise your visibility, stifle your long-term sales growth and relinquish your hard-earned market share to competitors.
As Andrew has aptly highlighted, the costs and efforts required to recover from such a decision are substantial and often outweigh any perceived short-term savings.
So, before you consider cutting your Amazon Ads, remember the three critical benefits they bring to your brand’s success.
In the competitive landscape of Amazon, continuous investment in advertising is not just a strategy; it’s necessary to secure sustained growth and Amazon dominance for your brand.
What next? Speak to our award-winning experts to revitalise your Amazon Ads strategy and boost your ROI to all-new heights.