A Seller’s Guide to Mastering Amazon Advertising

In today’s fiercely competitive Amazon marketplace, effective advertising is not just an advantage, it’s a necessity for sellers. The problem of ever-increasing competition is further exasperated by the challenge of diminishing organic discoverability, making effective advertising strategies more crucial than ever. This blog post is designed to guide you through the basics of Amazon’s pay-per-click (PPC) advertising. Whether you’re a seasoned seller or just starting, understanding how to leverage Amazon’s advertising tools is key to elevating your products’ visibility and driving sales. Here, we’ll explore the various ad types, targeting techniques, and Ad formats to maximize your advertising impact and navigate the Amazon marketplace with confidence.

What is Amazon Advertising?

Amazon Advertising is a digital marketing service offered by Amazon that allows sellers and brands to promote their products directly on the Amazon platform, using various ad advertising solutions like sponsored products, sponsored brands, and display ads to target potential customers. Using these tools, a seller can advertise their products to boost product visibility and increase sales.

Amazon Advertising offers many solutions for sellers, and they can be differentiated using different ad types, display locations, targeting options, tracking, and optimization tools.

How to advertise Amazon Products?

Advertising an Amazon product is simple, All you need is an active seller account and an eligible product (product categories like adult-themed products, used products, and closed categories do not qualify for advertising). To create an advertising campaign, get started by visiting the Campaign Manager.

Any seller can create Sponsored Product Campaigns; however, other campaign types, like Sponsored Brands & Sponsored Display, are available only to the brands registered with Amazon Brand Registry.

We will now learn about the various types of Amazon Advertising solutions available to the sellers.

Sponsored Products

Sponsored Product ads are shown according to buyer intent for a particular product type. The Sponsored Product Ads are displayed on search engine result pages (SERPs) and product detail pages on Amazon. These ads appear similar to organic search results but are labeled “Sponsored”.

Ad Cost Type

Sponsored product ads are cost-per-click (CPC) ads, meaning the advertiser pays only when a customer clicks on the ad.

Ad Format & Customization Options

While using Sponsored Products, an advertiser does not have control over the display customization. The Ad layout is managed by Amazon using the product data available on the product detail page.

Where are Sponsored Product Ads displayed?

Sponsored product ads are displayed throughout the search page on Amazon. They appear at the top of search results and between organically ranked product listings. The ads also show up on related product pages. These Ads appear on both desktop and mobile. The appearance of an Ad depends upon various factors like ad relevance and the bid amount; the higher the bid, the more likely your ad will be displayed.

Ad Targeting Options

There are primarily two types of targeting options available to advertisers, and they can be either Manual or Automatic targeting.

In Manual targeting, the advertiser can manually set the keywords and define the targeting accuracy, which can be a broad, phrase, or an exact match.

In Automatic targeting, Amazon’s algorithms determine the niches and keywords on the product listing page data and customer engagement with product pages. Furthermore, Automatic targeting also allows an advertiser to control the display of ads through the following match options:-

• Close match refers to the display of Ads on SERPs of search terms that are closely matched to the product being advertised.
• Loose match refers to the ads displayed on search result pages of loosely matched terms and product pages.
• Substitutes are the ads displayed on product pages of similar products.
• Compliments refer to the display of Ads on complimentary product pages, like an Ad for crib bedding on the baby crib product page.

Sponsored Brands

Sponsored Brands also appear in search result pages; however, they are more customizable than Sponsored Products as they feature a brand logo, a custom headline, and multiple products. These ads appear in relevant shopping results and help drive brand discovery. Sponsored Brands are available to professional sellers enrolled in the Amazon Brand Registry. To learn more details about this campaign type, visit the Sponsored Brands Guide for Amazon Sellers.

Sponsored Brand Ads help increase brand awareness and visibility on Amazon. These ads can also drive traffic and sales to specific products, making them valuable for promoting new or high-margin products.

Ad Cost Type

The Ad cost type depends upon the ad format of Sponsored Brands. It can be either CPC or Cost per 1,000 viewable impressions (VCPM).

Ad Format & Customization Options

Sponsored Brand Ads are customizable, allowing an advertiser to take the shopper to the brand storefront or product pages. Sponsored Brands have the following Ad formats:-

• Product Collection: Promote multiple products on a landing page. The landing page can either be a subpage in the store or automatically built by Amazon based on the select products.
• Store Spotlight: Drive traffic to the Brand Store. Amazon requires that the store must have at least four subpages. Use Amazon Storefront design service for a professionally designed store to achieve maximum return on ad spend.
• Brand Video: Promote a brand or product using video Ads. The video quality must be good, with a run time between 6 – 45 seconds.

Where are Sponsored Brand Ads displayed?

Sponsored Brand Ads appear on top of, alongside, or within search result pages. Ads may appear on both desktop and mobile.

Targeting Options

A sponsored brand campaign can use any of the following ad targeting options:

• Keyword Targeting: Makes your ads appear based on the shopper searches.
• Product Targeting: Choose specific products, categories, brands, or other product features to target your ads.

Sponsored Display

Sponsored Display is a self-service display advertising solution that allows creating and displaying ads to shoppers across the purchase journey, on and off Amazon. These display ads appear in the Amazon marketplace, Twitch, and other websites. Only professional sellers with brands registered with Amazon Brand Registry can create Sponsored Display campaigns.

Ad Cost Type

Sponsored display ads have three Bid optimization options, each with its ad cost types.

• Optimize for Conversions: A Cost-per-click (CPC) Ad cost type wherein Amazon optimizes the bids for higher conversion rates. 
• Optimize for Page Visits: A Cost-per-click (CPC) Ad cost type wherein Amazon optimizes the bids for more page visits.
• Optimize for Reach: A Cost per 1,000 viewable impressions (VCPM) cost type, wherein Amazon algorithms optimize bids for higher viewable impressions. This optimization is best suited to drive brand or product awareness by showing your ad to relevant audiences to maximize reach.

Ad Format & Customization Options

Sponsored Display Ads are customizable and have two ad formats. The ad can either be an image or an auto-playing video.

Where are Sponsored Display Ads shown?

These ads are displayed above the search page, Amazon Home page, product display page, Twitch website, and other websites.

Targeting Options

With sponsored display ads, sellers get two types of targeting options which include:

• Contextual Targeting: Choose products and categories to target your ads.
• Audience Targeting:  Choose which audiences you want to see your ads.

FAQs

Where to advertise Amazon products?

The most effective platform for advertising Amazon products is Amazon itself, due to its vast customer base and the high purchase intent of its users. Amazon offers a range of targeted advertising solutions, such as Sponsored Products for individual product promotion, Sponsored Brands for showcasing a collection of products, and Sponsored Display Ads for broader reach. These ads are particularly powerful as they reach customers who are already in the mindset to shop.

Additionally, Google Ads are great for reaching users in the research phase, while Social Media Platforms excel in building brand awareness among specific demographics. Choosing the right mix of these platforms depends on your product and target audience for optimal results.

What should be the daily advertising spend on Amazon?

When deciding on a daily advertising spend for Amazon, it’s essential to align your budget with your business objectives and the specific life cycle stage of your products. A practical approach is to start with a modest budget, perhaps in the range of $10 to $50 per day. Focus on key metrics, particularly the Return on Ad Spend (ROAS), to ensure your spend aligns with sales efficiency. Be prepared to adapt your budget for seasonal trends or product launches, balancing sufficient investment to capture demand while maintaining a positive ROI. Regularly reassess and tweak your spending based on these insights for optimal results.

How do I pay for Amazon Ads?

Amazon sellers can pay for advertising through credit cards or available funds in the seller account. You can change the payment method by signing in to Seller Central, navigating to settings → account info tab → and clicking Charge Methods for Advertising to select a desired payment method.

Can a seller survive on Amazon Marketplace without advertising?

New sellers can’t become successful without advertising. Existing sellers with established product lines can sustain momentum without advertising; however, to maintain the Product Best Seller Ranking, they will have to support the sales through Amazon advertising.

In conclusion, mastering Amazon advertising is a crucial step for sellers aiming to thrive in the competitive Amazon marketplace. By understanding and utilizing the various ad types, targeting options, and strategies discussed, sellers can effectively increase their visibility, drive sales, and grow their brand on Amazon. Embrace these techniques to harness the full potential of Amazon advertising, and take your business to new heights. For those seeking further guidance or looking to maximize their advertising efforts, consider exploring the services of a professional Amazon Marketing Agency for tailored support and expertise.