How to advertise on Amazon

Amazon customers have access to over 600 million products found on their website. It sounds like this attribute is only advantageous for the buyers, but can be a setback for customers looking to sell their product on Amazon. Well, that’s where you are wrong. 

Your products have a shot, so long as they have excellent quality and demand. All you need is a little Amazon advertising magic to get into the top of the search results.

Amazon Advertising is Reaching New Heights

Expanding your business by putting your products on Amazon has never been more enticing because Amazon is experiencing massive growth. In fact, Amazon’s ad income alone rose to 3.6 billion. That puts it in league with Facebook and Google, the paid ads heavyweights. 

Here are some statistics that will convince you to jump on the bandwagon and promote your products on Amazon:

  • A study by Huge Commerce states that 54% of online customers rely on Amazon first and foremost before checking other websites.
  • According to CPC Strategy, 72% of buyers discover brand-new products by checking out various products on Amazon.
  • Retail dive uncovers that 90% of online buyers go to Amazon to compare rates. 

These data are a testament to the fact that Amazon is an online shopping authority. If an individual is not using the platform to find a product, he or she relies on it for research. Either way, people frequent Amazon to fulfill either of their shopping needs. 

The best way you can get all of these intentional and wandering customers is to promote your products.

Amazon’s List of Advertisement Requirements

However, before starting, you need to have a good understanding of Amazon’s requirements. Each one should be met.

You will need the following to market your product on Amazon:

  • An active seller’s account.
  • Can ship to all US locations
  • Sponsored Product Listings only qualify for the Buy Box

What’s the Buy Box?

It is a box that allows online shoppers to add products to their carts. However, not everyone has a buy box. If there are plenty of sellers offering the same product, there will be a bit of competition. They will need to compete to get a hold of the Buy Box on their page.

Benefits of Amazon Advertisements

To be candid, there are plenty. It would require a lengthy write-up to relay all the points, so I just highlighted some of my favorites. 

Generally speaking, Amazon is advantageous for business because you are reaching out directly to buyers, not mere browsers. On Google, people who look up products online are at the earliest point of their buying journey. Amazon searchers already have the intent to purchase. 

Thus, spending more of your advertising budget on Amazon ads generates more income and is well worth your while.

One other reason is the chance of increasing the odds of product discovery. When you win a keyword, you can attract more page views compared to a non-sponsored listing. Amazon allows you to control your performance by giving you the ability to change your keywords and budget allocation anytime, anywhere. You can even pause and start over with your campaign.

Lastly, there are various advertisement types to choose from. Each catering to different strategies, depending on your preference.

If you are after brand awareness, you can appreciate the perks and results generated by Headline Search Ads. Meanwhile, businesses that are trying to keep up with competitors might need more Product Display Ads.

Sponsored Products

You have probably encountered Amazon Sponsored Products in the past. These are the images you see on the website’s different areas, particularly in the search results page. It looks a lot like regular product listing, which is actually a slight advantage. 

While they seem like a regular product listing, they stand out from the crowd. There is a clear, definite label that says sponsored on top. And as an online buyer, you feel more reassured buying from a business that can afford to put their product up for promotion. It strongly suggests legitimacy. 

How to advertise on Amazon

Amazon Sponsored Products have very recently started popping on the website’s “Add to Cart” page when a customer is about to purchase a product related to what you are selling.

To give you an idea of how Sponsored Products work, think of Google’s PPC (pay-per-click) ads. You only get charged when a customer clicks on your sponsored post. Another Google Ads similarity is that Amazon also uses a bidding system for a seller’s keyword-based marketing approach. Needless to say, the more in-demand keywords have more value.

According to Amazon, it is wise to use Sponsored Products ads to promote new offers, unique selections, clearance products, and end-of-season promos. Simply put, it helps improve product exposure. You can even use it to boost offers with low views.

On a bit of a downside, however, Sponsored Products ads can cost you an arm and a leg, which is why not all businesses go for it.

Vendors should submit the following to partake of Sponsored Products ads

  • 3 Amazon Standard Identification Numbers (ASINs) per product
  • Customized content
  • Customized landing page link

Advantages of Sponsored Products: Your reach expands. Keyword management, through bidding or targeting, puts you on top of the game because it allows Amazon to link your ads with important keywords.

The Key Targets: Customers deciding to purchase, but aren’t sure yet.

Cost: Lowest CPP or cost-per-click is 2 cents. It requires a daily budget with a minimum of $1.

Sponsored Brands

These are formerly known as Headline Search Ads. These are more appropriate for brand owners looking to endorse their brand and product portfolio. These ads have been available to Amazon Vendors for quite some time. Still, they have only been available to third-party sellers quite recently in Seller Central. 

If you are curious about what they look like, they are the banners that appear above results listings on the website and mobile app. They are easy to spot, so they are likely a valuable and robust marketing tool.  

Sponsored brands also work on a CPC, driven by keywords, and can send clients to a specific Amazon webpage, such as an AMS brand page, a popular product, or a custom-made URL.

Amazon updated Sponsored Brands in 2019. Some of the added upgrades are:

  • Addition of plenty of broad matches options, such as synonyms, plurals, and related keywords.
  • Broad matches modifiers
  • New carousel format for products on mobile devices
  • Automatic selection of the most significant ASINs from your landing page or shop
  • Negative keyword targeting

Advantages of Sponsored Brand Ads: You can select where customers are directed to. In fact, you can make your own custom-made landing page. No other Amazon advertisement type offers this kind of customizable feature. Moreover, a Sponsored Brand Ad provides further flexibility by enabling you to choose images and copy. You can express your copywriting skills and be imaginative. Lastly, you can use Sponsored Brand Ads for marketing multiple items simultaneously.

Best Suited For: Spreading brand awareness.

Cost: Lowest CPP or cost for every click is.10 cents. It requires a minimum budget of $100. 

Sponsored Display Ads

This is one of the newest Amazon Ads, also known as Product Display Ads. Upon unveiling in September 2019, Amazon explained that the original advertisement type is an upgrade to former Product Display Ads. All the existing campaigns were automatically upgraded to the new version without necessary actions from the marketers. 

This new ad type can help adjust targeted customers. Additionally, you could also see these ads outside Amazon SERPs. They extend all the way to Amazon’s advertising network, which includes Amazon.com and other partners. 

Sponsored Display has a sophisticated technology that automatically assesses an Amazon shopper’s interests, views, categories, and products. 

However, you might want to wait a little longer because Sponsored Display ads still currency in beta-testing modes. Only professional sellers included in the Amazon Brand Registry and other vendors and companies that do business with US clients that supply items on Amazon.

Advantages of Sponsored Display Ads: Amazon enables you to retarget customers, and the ads display goes beyond Amazon.com. The Shop Now button directs clients to your Amazon’s detail page.

The Key Targets: Consumers that are thinking of buying, but are still in cross-examining products. 

Cost: There is a default campaign budget of $100.

Video Ads

You probably already know how fierce the competition is on Amazon, so you need to find a way to stand out – fast. One of the quickest solutions to that is to upload video ads. 

If you are scratching your head because you haven’t seen a lot of videos in Amazon ads, this is the exact reason why you should. You can run video ads not only on Amazon.com, but also on Amazon devices such as FireTV, and IMDB.

If you have questions about how to get started, there are Amazon video ad consultants that can help you out. 

Advantages of Video Ads: You’ll stick out like a sore thumb, but positively. You will definitely draw in clients, while also giving your brand a clean and polished appearance. Moreover, you can make your campaigns more interactive with beautiful images and smart copies.

Best Suited For: Companies with enough budget to buy marketing. Brands that have tried video marketing, and it worked for them!

Cost: Running video ads require a serious forethought because you need about $35, 000 to start a standard campaign.

Producing Your First Campaign

Good news for you — it does not require a lot from the advertisers. Moreover, the process is almost the same for all ad types. So, let’s talk about the most popular of all – Sponsored Product ads.

First thing’s first, log in to your Seller account and choose Campaign Manager, which you will find at the Advertising drop-down. Once you are there, a prompt will appear for you to set up your campaign budget and its duration.

This part is rather direct, but you need to overview the monthly budget and expected timeline before the setup process. From there, you can choose between Automatic Targeting, which Amazon uses to generate keywords for your, or Manual targeting.

Afterwhich, Amazon will ask you for a name to label your ad group. Don’t forget that Amazon allows advertisers to utilize multiple ad groups under the same campaign. Ensure that the names you choose are easy to tell apart. 

You then move onto the next part, asking for the selection of items you wish to promote. Bear in mind that you only get one product per campaign

Next, you need to define the keywords that you need for your campaign and allocate a budget for each one. You can use what you input here to gauge how many clicks you will get in a day. For instance, if you have allotted a $20 budget for one day and each keyword bid is for a dollar, 20 clicks will be your optimum CTR or click-through rate for that day. Amazon will give you a list of recommended keywords after inputting your budget. Still, you are more than welcome to present your own set of keywords. 

Just click “Save and Finish”, and you are done! Simple, right?

How to Have a Successful Campaign

To be honest, even if the process is easy to digest, advertising on Amazon can be mentally exhausting. But you are in luck! I have come up with a few guidelines that can make things run smoother for your campaigns and get your brand ahead of the game.

1. Don’t overlook the value of Automatic Targeting.

At Sellics, they run automated and manual campaigns simultaneously. I understand your sentiments about knowing what’s best for your business. However, to make it easy for you to kickstart your campaign, you can go for an automated first. See which terms have resulted in more sales, so you can include them in your manual campaign.

2. Showcase your creative side.

Don’t be stiff when it comes to your ad copy, especially when it comes to Product Display ads or Headline Search. It is high time to let your brand personality show. Don’t depend on standard listing terminology. Instead, use appealing messages to capture your customers’ attention and make them click on your ad.

3. Utilize Amazon Reporting Tools, most specially Conversion and Click-Through.

Amazon Marketing Services (AMS) help track campaign metrics, which are vital in determining your campaign’s success and monitor your expenditure. Through it, you can check out your advertisement clicks, the amount spent on total advertising, and the overall amount made. One of the performance measures that require your attention is the Average Cost of Sales or ACoS. It identifies the number of advertising costs and divides it by the total generated sales.

ACoS is perfect in generating total revenue. Bear in mind that conversion rate and click-through will give you insight on how your products and pricing are faring well with your Amazon competitors. When you realize that your listing is not performing as well as you expect it to, you can start experimentation. Change the price, assign a new keyword, or revise your copy. The best part is that with these tools, you can do something about your ads instead of just sitting back and watching them fail.

4. Only select keywords suitable for your budget.

For the case of many, budget restrictions are an issue. There is no point shooting for the moon when it comes to choosing your keywords. If you shoot for the right stars right away, you can land your target audience. If you don’t have enough funds to win competitive keywords, then focus on lower traffic keywords. With smaller traffic keywords, you can’t get the same number of impressions. However, if you choose the right keywords that belong to your niche, you still attract the audience you need.

5. Switch things up with all Amazon Ad types.

As the saying goes, variety is the spice of life. So don’t confine your advertising and marketing efforts in just one type of Amazon campaign. Try each one, so you can say for yourself which ad types benefit your business the most. Amazon Ads differ in their own particular way, so each one might give off many positive results that can move your company forwards.

6. Take advantage of Adjust Bids by Placement.

One of the best ways to maximize your Amazon advertising campaign is by using Adjust Bids by Placement, formerly known as Bid+. It increases the odds of your advertisement, popping up at the top of Amazon’s SERP. Of course, you can’t use it for all your ads. You can only use it for advertisements with the potential to appear on top. Call to mind that this feature can intensify your quote increase to up to 900%.

7. Write your product’s number one benefit in Sponsored Brand Headlines.

Amazon tips advertisers to headline your products’ edge in the title area of your Sponsored Brands Campaign. Amazon shoppers can only view the product image and the headline, not the description. Why not make things easier for your potential customers and more effective for your brand? Indicate the top advantage in the headline and watch customers swarm like bees.

Suppose you have no idea how to identify your item’s top benefit. In that case, you could get into your customer’s shoes, identify their pain points, and discern for yourself how your product can attend to these pain points. Once you have finished the list, choose one that speaks to you the most.

Amazon Advertising Frequently Asked Questions

If you still have doubts, here are some commonly asked questions that can clear things up for you.

Q: Why do marketers assume that Amazon advertising results in a clearer ROI than other advertising measures?

A: Simply put, Amazon is at the center of the buyer’s journey. Amazon shoppers browse the platform with the clear intent of purchasing.

When you advertise on Amazon, you take advantage of this fact. You are running your ads as people browse for a similar thing. By contrast, running ads on search engines will require an extra move. You need to redirect the viewer to your website before making a purchase. Moreover, people who see ads on search engines are probably at the early stage of the consumer’s buying journey.

Q: If that’s the case, why are some marketers hesitant in running Amazon ads?

A: Marketers who are still not convinced of the benefits of Amazon Ads are worried that Amazon is pitting against them.

Advertising on Amazon is not dirt cheap. Many marketers have shelled out plenty of funds to run ads on the platform, only to discover afterward that their ads pop out under Amazon’s very own promotions.
Amazon runs its own ads, so its business will always be its priority over yours. Consider it as your competitor, if not the biggest one. If you are willing to shake this off, promoting on the platform won’t be an issue.

Q: Am I allowed to use negative keywords?

A: Of course, by all means. However, you will need the help of specific tools to help you identify these negative keywords. Afterwhich, you will still have to weed out keywords that have nothing to do with your products.

Additionally, you need to utilize search term query reports. Some keywords generate more than 15 clicks and still don’t convert the lead to a sale. Steer clear of them.

Q: What’s the cost of advertising on Amazon?

Usually, Amazon ads are cheaper than Bing or Google Ads. Although they also follow a cost-per-click arrangement. Practical ECommerce states that a standard CPC of an amazon ad would be under $0.35.

According to Amazon, $0.02 is the lowest CPC for Product Display Ads. You also won’t be charged more than what you bid for every click.

Q: How do self serve ads differ from Premium ads?

Self-serve ads work similarly to Google Search ads. You can see them on the search results page. About 76% of online consumers use the search bar when searching for a particular product. Self-serve ads cater to this population.

Premium ads, on the other hand, can be seen all throughout the Amazon website. You can see them as a sidebar advertisement or a visual banner.

Q: Last but not least, does Amazon advertising really work?

It depends. If your products are only available online, Amazon advertising will do your business a world of good. It is a straightforward approach that widens your reach while simultaneously increasing your product’s page views. If you are a bit wishy-washy to give it a shot, there is an option to test an item before committing to it.

One of the best reasons Amazon advertising campaigns are worth a try is that it is an excellent way to naturally improve your ranking. Not to mention, you also deepen your product’s sales history.

Wrapping Up

Is Amazon the best way to start your advertising? Maybe! There is no harm in trying, so just choose an ad type, set your keywords (Amazon itself can help you out!), and that’s it. You just watch how the magic happens. If you are not pleased with the initial results, you could tweak your ads without a problem! Don’t beat yourself up for it because it’s part of the process. Allow for a learning curve. The most significant part is taking the first step.

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