Optimising Your Ads Strategy

As we step into 2025, the e-commerce landscape continues to evolve rapidly, with Amazon remaining a dominant player. The beginning of the year represents a critical time for a brand to build presence and achieve momentum. Optimising your advertising strategy early in the year is not just a recommendation, it's a necessity for staying competitive and driving long-term success.

In this white paper, we'll explore why early ad strategy optimisation is crucial, highlight key trends shaping Amazon advertising in 2025, and provide actionable insights to help brands start the year strong.

1. Budget efficiency and cost management

January often sees lower competition for ad placements compared to Q4, resulting in:

• Reduced cost-per-click (CPC). A prime opportunity to maximise ROI before competition ramps up later in the year.
• Improved ACOS. Your brand can maintain profitability while building advertising presence.

2. Data driven decision making

The start of the year offers a clean slate to analyse historical data from the previous year. By leveraging performance insights, brands can:

• Identify winning products, keywords, and campaigns.
• Test new strategies with smaller budgets before scaling.
• Utilise predictive analytics tools like Amazon's Brand Metrics to shape your strategy.

1. Increased emphasis on video ads

Amazon's continued investment in video ad formats is reshaping how brands engage with shoppers. Video ads drive higher engagement rates and are especially effective for storytelling and showcasing product benefits.

Toucan tip: incorporate Sponsored Brands Video ads into your campaigns and experiment with short, attention-grabbing videos.

2. Growing importance of DSP

Amazon's Demand-Side Platform (DSP) enables brands to reach audiences both on and off Amazon. In 2025, DSP is expected to play a more significant role due to its advanced targeting capabilities and new features launching.

Toucan tip: utilise DSP to create awareness and retarget potential customers who've shown interest in your product category.

3. AI powered optimisation

AI-driven tools are becoming more accessible, allowing brands to automate campaign management, bidding, and keyword optimisation, but also to assist customers, for example Rufus.

Toucan tip: invest in tools that use AI to analyse real-time performance data and adjust bids dynamically.

4. Sustainability and social responsibility

Consumers are increasingly prioritising eco-friendly and socially responsible brands. Amazon has introduced new programmes like Climate Pledge Friendly to spotlight such products.

Toucan tip: optimise ads to highlight your brand's sustainable practices and certifications, and make use of Amazon content allowing you to display these attributes.

1. Leverage advanced targeting options

Amazon's advertising platform now offers refined targeting options, such as lifestyle and in-market audiences, along with Amazon DSP launching several new targeting options such as fold position targeting, native content placement options and advanced video placement options.

• Use Sponsored Display ads to retarget high-value customers.
• Experiment with contextual targeting to appear in relevant search results.

2. Invest in professional creative assets

High-quality visuals and videos are crucial for capturing attention in a competitive space. Implement as many creative Amazon assets as possible to highlight and showcase a brand and the products.

• Engaging Sponsored Brands Video ads.
• Taking advantage of vertical video placements on listing imagery.
• Eye-catching product images.
• A+ and Premium A+ Content.
• Brand Stores and Brand Stories.

3. Embrace international marketplaces

Expanding to Amazon's international marketplaces is a strategic way to tap into new customer bases and diversify revenue streams. Different markets have unique shopping behaviours, seasonal trends, and keyword preferences.

By tailoring ad campaigns to local audiences and optimising listings with region-specific keywords and languages, you can significantly boost a brand's global presence.

As 2025 begins, the evolving e-commerce landscape, led by Amazon, offers brands a critical opportunity to gain early momentum. Optimising your advertising strategy early in the year is essential for staying competitive and driving sustainable growth.

To thrive, brands must set clear goals, audit and refresh campaigns, embrace advanced targeting options, and invest in high-quality creative assets like videos, premium A+ Content, and storefronts. Expanding into international marketplaces also offers untapped growth potential.

Toucan specialises in helping brands maximise their Amazon advertising strategies through tailored solutions, advanced analytics, and creative excellence. By optimising early and aligning with expert support, brands can capture early-year demand and set the stage for long-term success in 2025.