Amazon Insights for Premium Brands
Advertising tactics for unlocking success on Amazon
Amazon is an incredibly powerful, yet underutilised platform for premium and luxury brands. The marketplaces innovation and ease of access has fundamentally changed how consumers discover, engage with and purchase premium products. While premium brands had previously been cautious about embracing mass-market platforms like Amazon, concerned about diluting their exclusivity and luxury feel, the reality of modern e-commerce is that Amazon is no longer a “potential addition” to an e-commerce strategy, it is an essential.
However, competition is rife and a strong digital advertising strategy is imperative for brands looking to succeed in the marketplace. While there is opportunity to amplify visibility on Amazon, the challenge is navigating the fine line between taking advantage of Amazon’s reach, and preserving the exclusivity that defines their premium identity.
This blog addresses that very challenge. We will explore how premium brands can use Amazon’s vast tools and strategies to achieve success. From tailored ad creatives that reflect luxury branding to niche targeting of specific customer bases, balancing visibility with exclusivity, we’ll walk through some actionable approaches to thriving on Amazon without compromising your brand's premium ethos.
Tailoring Ad Creatives to Align with Premium Branding
For luxury and premium brands, advertising isn’t just about selling a product - it’s about communicating a lifestyle. When creating ad campaigns on Amazon, it’s essential for these brands to tailor their ad creatives in a way that showcases their premium positioning while also using the platform's specific ad formats. Here’s how this can be done:
High quality visuals - Only use professional, high-resolution images that showcase the finest details of the product and that reflect a premium aesthetic. Aim for a polished, editorial feel that resonates with premium customers. For example, a gourmet food brand can use images that showcase the finer details of their offerings in closeups.
Storytelling - Tell a story about the product, the brand’s origin, or the inspiration behind the design. Highlight your USPs such as craftsmanship, exclusivity or origin and create narratives around aspirational lifestyles, like how the product elevates everyday life. For example, a luxury skincare brand could highlight the science-backed innovations behind their formulas or how rare their ingredients are.
Messaging - Use carefully chosen language and tone, reflective of your luxury brand. Instead of focusing solely on features in your descriptions and ad copy, emphasise prestige and exclusivity. Avoid "affordable" or "value" language in favour of terms like "limited-edition," or "iconic."
Amazon’s video ads - Create high quality, high production value, immersive experiences that resonate with luxury shoppers. You can showcase a product’s creation process, or highlight lifestyle contexts where the product is used. For example, a premium alcohol brand could use a cocktail making video using their products.
Strategies for Targeting Premium Shoppers
Targeting premium shoppers on Amazon requires a strategic approach beyond traditional ad targeting. These consumers are not just looking for products - they’re looking for exclusivity, quality, and a seamless shopping experience. Premium brands can utilise Amazon’s advanced advertising tools to effectively engage with this audience by:
Appealing to premium shoppers’ values - Use messaging to emphasise sustainability, origin, craftsmanship and innovation in both your PDPs for Sponsored Products Ads, and your advertising creatives for Sponsored Brands and Display. Highlight features or benefits such as eco-friendliness, ethical sourcing, cutting edge technology. Showcase your brand's history and craftsmanship through videos or custom creatives.
Focusing on luxury keywords - Bid on highly relevant, niche keywords that reflect luxury shopping behaviour. You can use Amazon’s Search Terms Report to identify high-converting luxury-related keywords that align with your products and audience e.g. “limited-edition gin”, “luxury skincare”, “artisan gift hamper”.
Optimising ad types and placements - Use TOS multipliers for key premium related terms for your Sponsored Products ads to secure top real estate on the search results page. You can also use Sponsored Brands ads for high value placements on the search results page for top searches, and to take up more share of voice (SOV). Use competitor ASIN targeting in PAT campaigns to target direct competitors to steal market share. Use Sponsored Display (and potentially DSP if budgets allow) to target affluent audiences while they browse related high-end categories or competitor brands.
Retargeting affluent shoppers - Use Sponsored Display ads to re-engage customers who have browsed your Amazon brand store or product pages but didn’t complete a purchase, or previously purchased similar or complementary high-end products. Highlight exclusivity in your retargeting ads, such as limited stock availability or VIP offers for returning customers.
Building campaigns around premium shopping occasions - Premium shoppers often shop during specific occasions that align with luxury gifting. For example, for holiday seasons, use your advertising to highlight exclusive gift sets, luxury packaging, and limited edition seasonal collections. For milestone events like weddings or anniversaries, position your products as meaningful gifts.
Analysing and adjusting - It is vitally important to monitor performance metrics to ensure campaigns are reaching and resonating with the right premium audiences. For example, A/B test your ad creatives to find the messaging and visuals that most appeal to affluent buyers. Refine your targeting criteria over time to focus more heavily on customers who have previously purchased high-value items, ensuring you are bidding on the right terms targeting the right shoppers, at the right times.
Balancing Visibility with Exclusivity
The challenge of maintaining exclusivity while leveraging Amazon’s massive reach is very real. While visibility on Amazon can unlock a significant new audience, it’s crucial to preserve premium perception. To best manage this balance:
Use Amazon brand stores - Create on-Amazon stores that feel like an online boutique, offering specially curated collections and categorisation, and a branded shopping experience.
Limit product availability - Launch limited-edition collections or exclusive items available only on Amazon to differentiate from your other sales channels.
Maintain premium pricing - Resist the urge to compete on price. Instead, reinforce your value by maintaining premium pricing aligned with your brand’s luxury positioning and other channels. Avoid offering excessive discounts, which can undercut your exclusivity.
Enhance your post-purchase experience - Premium buyers value exceptional service. Promote follow-up services, such as warranty extensions, repairs, or product customisation. Include personalised inserts with Amazon traditional packaging for a more premium feel. You can also use Amazon Customer Engagement tools to send personalised thank-you messages or invite customers to join exclusive mailing lists for future VIP offers.
In summary, Amazon offers a unique and opportunistic landscape for premium brands, but success lies in crafting campaigns and experiences that merge Amazon’s reach advantages with an air of exclusivity. Want to know more about how to succeed as a premium brand on Amazon? Get in touch with us at zeal@zealagency.co.uk or at www.zealagency.co.uk.
