Amazon is one of the giants in e-commerce marketplaces. Amazon’s leading position goes hand in hand with high competition among Amazon sellers. Therefore, amazon advertising is growing, and sellers need a strategic and flexible advertising plan to bring them the best possible ROI.
Amazon’s advertising platform allows your products to get featured on the world’s biggest online store, which can help with brand awareness and product visibility to boost sales. For a more detailed understanding of amazon advertising. Firstly it’s similar to how Google search works; when you type in a keyword in the amazon search box and results appear, some of the top results will be sponsored posts. These are considered amazon ads marked with subtle “sponsored” or “ad” text like the image below. Secondly, advertisers who desire to gain more visibility for their products on amazon can pay for these positions by bidding on specific keywords, which will lead to higher visibility in the amazon SERPs. Advertisers will be charged whenever a shopper clicks on their ad. Moreover, amazon’s advertising platform is like the amazon version of AdWords.
Benefits of Amazon Advertising
Advertising on Amazon raises the visibility of products in searches on Amazon pages. On the other hand, this leads to progress in search rankings for your product page and, therefore, results in better sales opportunities.
As we have observed over time, people are shifting toward online shopping as it does not require any physical movement at all. They demand a fast and less time-consuming way of getting the required product. That’s where advertising on amazon can give you leverage over the competition by giving importance to the fact that your product ships quickly.
Product recommendations play a crucial role in boosting conversions/sales; if your product appears among the top products in this section, it gives you more exposure; thus, appearing there improves your chances of raising sales and ranking higher.
The more the customer gets aware of your product through Amazon ads, the more it becomes easier for them to find the product. Likely resulting in an increase in conversions rates, advertising on Amazon can give you more exposure that will result in your benefit.
Visitors driven from advertisement pages generally aim to engage more with a website and stay there for a more extended period. That is the end goal of every online business owner; this significantly increases traffic to your website/product page, increasing sales.
One of the perks of advertising on Amazon is that it lets you create ads that you can share among customers’ friends and followers on social media platforms such as Facebook, Twitter, etc. Indirectly, it allows product promotion through social media, making it a major benefit.
Amazon’s Advertising Model
Basically, amazon advertising is a pay-per-click model that varies from other marketplaces. Like, promoted listings on eBay support the pay-per-sale funding model.
Relationship Between Ads and Organic Search on Amazon: There’s a relationship between ads and organic search on Amazon. The platform aims to make sales by showing high-converting and top-selling products relevant to the query. Therefore amazon prioritizes the products with the potential to sell the most. For example, products with good sales and feedback history.
Likewise, when sales and feedback improve, products rise in organic rankings.
Types of Amazon Ads
Here, amazon sellers have a variety of ad formats and placements to choose from, e.g. Amazon Sponsored Product, Sponsored Brand, etc.
Following are the types of Amazon Ad,
Sponsored Products
Sponsored Product ads are one of the most effective and used pay-per-click advertising campaigns. Most like the general PPC ads you would run in Google or Bing. If you run a search on Amazon, you will notice among the results some products marked as “Sponsored.” Such type of ad uses keyword and product targeting to advertise specific, individual products and appear alongside other products on the search results page or in a carousel on a product detail page. Sponsored products can be a great way of promoting your product to the right audience.
When customers click on your ad, they are directed to your product detail page and away from a competitor’s. That lets you target your competitor and drive potential customers away from them and onto your pages. It might be possible that your competitors are probably doing this already, especially since Amazon lets you target specific products. To use Sponsored Products Ads, you set up keywords and bids and let Amazon work its charm, displaying your Ad on search results pages. These can appear top, below, or within the search results on a desktop or mobile.
Sponsored Brand ads
Next comes sponsored brand ads, formerly known as headline search ads. These are also pay-per-click ads that use keyword targeting, but instead of advertising one product at a time like Sponsored Product ads, Sponsored Brand ads showcase a few different products at a time. They appear in the search result pages as headline banner ads consistently above the result listing. These ads are cost-per-click and lead searchers to any specified page on Amazon.
Effective for brand building, ads size and position on the page guarantee they are noticed, while its link to a brand page lets you promote your entire brand rather than a single product alone. It’s cost-effective as it allows you to promote a range of products. You can display up to three products. For example, products ranging from inexpensive to expensive ones.
Furthermore, the best part about them is their placement: since they appear at the very top of a search page, there is no chance your Ad will be ignored or missed by customers.
Product Display Ads
These ads are also pay-per-click ads that lead to the product detail page. Yet, unlike the previous two ad types, these ads are only available to vendors. If you’re not a registered vendor with Amazon, you are not eligible to run these ads.
Shoppers are directed to the products detail page and are also priced by a cost-per-click method. These ads appear on a product’s detail page, on the right or at the bottom of the search results, on customer review pages, read all reviews pages, on top of the offer listing page, and on Amazon-generated marketing emails.
Video Ads
Amazon Video Ads lets advertisers run a video with a duration of 15-second or less on screen. The video automatically starts playing without audio (muted) when the device screen is turned on. Customers may need to tap on the video to unmute it. Sponsored Brand Video ads instantly grab a customer’s attention. These videos are embedded around related product listings when a customer begins their search. Customers can easily watch these demo videos to learn about the product and brand before purchasing. This creative execution is available across Amazon’s websites, mobile apps, and Fire tablet wake screen.
Amazon Native Ads
Native Shopping Ads provides you with an opportunity to improve your user experience and increase the earning potential of your website. They feature interactive designed ads that blend in naturally with the look and feel of your web page or content to create a more compelling visitor experience and shopping opportunity.
Amazon Stores
Last but not comes the Amazon store; it’s a do-it-yourself solution for vendors and sellers to provide customers with a unique online shopping experience. Sellers can create an Amazon Store and allow customers to view a collection of a brand’s products on both desktop and mobile platforms. Using this free service, you can create single or multi-page brand stores that support interactive media and content promoting your products.
Amazon Stores are open to brands that sell through Vendor Central or brand registered merchants using Seller Central. The simple self-service interface allows anyone to create a store, regardless of website experience. After you’re done creating an Amazon Store, you’ll get a unique URL to share with your customers, allowing you to showcase your brand and whatever products you want to.
Final Thoughts
After all is said & done, we are aware that e-commerce is a consistently growing industry over time. Increasing competition is driving more digital ad spending in the marketplace.
Likewise, Amazon’s advertising business is also growing as it expands its ad products across its networks. Advertising on Amazon comes with both opportunities and challenges. As a result, sellers need a strategic and flexible advertising plan to stand out in a crowded market.