amazon paid advertising

If you are an e-commerce business planning a strategy to crank up your sales then all you have to do is this: Take advantage of Amazon’s paid advertising platform!

Here’s why:

Amazon is one of the most top-tier advertising platforms available today for sellers. With more than 197 million people visiting each month, it is the ultimate hotspot of customer purchasing data.

What does this mean for businesses? A massive opportunity to target customers and make plenty of sales.

So taking advantage of paid Amazon ad campaigns will definitely the way to go if you want to generate some good revenue and get an edge over your competitors.

But before you start leveraging them, you should make yourself familiar with Amazon’s advertising platform and the different types of ads it provides.

Let’s dive in!

What is Amazon PPC Advertising?

The Amazon Advertising Console within Seller Central is Amazon’s paid marketing platform for sellers.

Known previously as Amazon Marketing Services (AMS), it allows sellers to market their products using PPC ads for which they are charged only when someone clicks on their ad. That’s why these ads are called PPC or ‘Pay-Per-Click’ ads.

These ads help generate plenty of revenue for both sellers and Amazon which is why they have gained significant popularity in the last few years.

How Amazon Paid Advertising Work?

To understand paid ad campaigns and how paid ads on Amazon work, you must first understand how Amazon ranks products for each search query.

Whenever people search for a product on Amazon, they input a set of search keywords.

These are either short in length (also called short-tail keywords) or longer (known popularly as long-tail keywords ). Both of these depend on the intent of the buyer.

how amazon paid advertising works

Millions of searches are performed on Amazon every day which might consist of the combination of these keywords.

Whenever buyers search for products, Amazon compiles a list of products in the search results.

In the results page, some products appear exclusively on top while others are ranked below them.

The products that show on top are actually paid ads while the ones below them are ranked organically. These paid ads also show up on other strategic places like below the organic search results or on the right side of the page.

(You can distinguished paid ads from organic results by finding the ‘Sponsored’ mark above their listing title.)

Due to the ranking position of these product ads, a significant number of buyers click on them and are taken to the listing page of that product where they make a purchase.

In this way, paid ads help sellers generate more revenue than those who use organic strategies.

How are Amazon Ads Different from Google Ads?

Though the two follow the same model of PPC, Amazon PPC campaigns are different than Google ad campaigns.

Here are a few differences between the two:

  • When it comes to auto ad campaigns, Amazon Sponsored ad campaigns are generally stable than their Google counterparts.
  • Amazon ads are generally targeted for customers at the bottom of the sales funnel whereas Google ads can be used for customers at the top and well as bottom of the funnel.
  • Amazon ads are ranked based on the profits they make whereas Google ads are ranked based on their CTR.
  • The purpose behind Amazon ads is to make direct sales whereas Google ads can be used for different purposes such as increasing traffic, generating leads, etc.
  • Amazon ads redirect you to respective product listing pages within Amazon compared to Google ads that take you to different websites.

As you can see, Amazon ads are pretty sales-oriented compared to Google ads, this makes them ideal for e-commerce businesses whose goal is to just sell their products.

Different types of Amazon Ads

Great! Now that you know how Amazon advertising works and the difference between Google and Amazon paid ads, let’s understand each ad type in detail.

Knowing them will help you pick the right ad for your campaigns and increase your marketing performance on Amazon.

●        Sponsored Product Ads

Sponsored Product ads are the most commonly used ads on Amazon. These ads are keyword-targeted and help you drive your customers to your product listing page once they click on them.

Setting up these ads is also pretty easy. All you have to do is choose the product you want to advertise, use relevant keywords to target, set up a budget, and run the campaign.

Once done, Amazon starts showing your ads to relevant audiences.

You can choose from a different set of keyword match-types such as exact, phrase, or broad.

Where Do They Appear?

amazon sponsored product ads

Sponsored Product ads appear in different places. They are commonly seen at the top and bottom of Amazon’s search result page and also on product detail pages.

They can also appear on the right side of the search results page.

Benefits of Sponsored Product Ads

There are plenty of benefits to using Sponsored Product ads for your Amazon PPC campaigns. Here are a few:

  • Great for driving click-through rates and conversions.
  • They look less like ads and more similar to organic search results making them hard to detect.
  • Comparatively cheaper than Google ads.
  • Helps you rank your products on top of organic results to sell products faster.

●      Sponsored Brand Ads

Sponsored Brand ads (previously known as Headline Search ads) are another type of keyword-targeted Amazon PPC ads. They feature a brand logo, custom headline, and support up to a list of three products which you can promote.

They can be set to automatic or manual bidding and allow only two set of keyword match-types: exact and phrase.

Also, Sponsored Brand ads offer the most amount of customizations. You can use them to redirect your customers to your product listing page and even the Brand Store page. You can also change your copy and images.

Where Do They Appear?

amazon sponsored brand ads

Sponsored Brand ads appear at the very top of the search results, even above Sponsored Product ads. This is why they are also called Amazon banner ads.

Apart from that, they also appear on the left-hand side and bottom of your search results.

Benefits of Sponsored Brand Ads

Sponsored Brand ads come in handy for more brand-centric promotions or for driving sales faster than generic ads. Some benefits of Sponsored Brand ads include:

  • More customization options.
  • Great for driving brand awareness.
  • Lets you target up to three products.
  • Ideal for selling seasonal items.

●      Product Display Ads

Product Display ads are a bit different than other types of ads. They are CPC display ads used for targeting similar products, interest groups, and other suitable categories.

They are perfect if you want to do interest-based/product-based targeting or just increase your listing page’s visibility.

They can also be used to target customers at the bottom of the sales funnel.

Where Do They Appear?

amazon product display ads

Product Display ads appear in several places such as product listing pages, search result pages, customer review sections, on top of offer listings, and even in Amazon’s marketing emails.

Benefits of Product Display Ads

Product Display ads have their own set of advantages. Depending on your campaign they can help you:

  • Target your products on your competitor’s listing page.
  • Increase the visibility of your listing pages.
  • Drive traffic to your product listings.
  • Boost your brand awareness on Amazon.
  • Target customers on and off Amazon.

●      Amazon Video Ads

Amazon Video Ads are the latest addition to Amazon’s advertising arsenal and give you plenty of creative freedom to promote your products.

These ads autoplay whenever a user comes across them in full view. They are muted by default and visitors can activate the sound by clicking them. They can also be expanded and viewed in full screen.

They come with plenty of customization options that include several CTAs, custom background images, the ability to use an optional logo, along with other options.

You also get access to Amazon’s analytics tools and Audience Insights which you can use to monitor your campaigns and optimize your video advertising strategy further.

Where do they appear?

amazon video ads

Source

Amazon Video Ads mostly appear on Amazon product listings and can be viewed from tablets, desktops, and even mobile devices.

Benefits of Amazon Video Ads

Amazon Video Ads (used with other Amazon ads) can drastically increase your marketing performance on Amazon. Here are some advantages of using Amazon Video Ads for your campaign:

  • Plenty of customization options with custom background features and call-to-actions.
  • Perfect for brand storytelling and generating awareness.
  • More engaging than other types of ads.
  • Effective for products that involve creativity.

Final Thoughts

As you can see, Amazon advertising is vast and offers sellers endless opportunities to leverage in their marketing strategy.

With plenty of options available, you can pick the ideal ad type to suit your campaign’s objective. Considering the benefits of each, you can also incorporate two or more ads in your campaigns and drive a stupendous amount of sales in less time.

What’s more, with Amazon’s own insights and analytics tools you can monitor your campaigns and optimize their performance even further.

However, setting up Amazon campaigns and running ads all by yourself can get challenging at times, especially if you’re not targeting the right audience and keywords.

You may also waste a significant amount of your budget when experimenting with these ads.

This is why partnering with a specialized Amazon advertising agency is always the way to go. They have in-house Amazon marketing experts and all the right expertise to help you with your Amazon marketing campaigns.

And we’re one ourselves.

We are a specialized digital marketing agency having a dedicated Amazon marketing team that can help you grow your business on Amazon. We have worked with reputed brands and have helped uptick their sales on Amazon.

 

Feel free to get in touch with us and we’ll help you with your requirements.

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