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Did you know Amazon's first page features approximately nine sponsored results on average? That’s twice the number of ads Walmart displayed and four times the number Target displayed in a study of 70 search terms conducted in 2020 and 2021 for a company called Profitero.
As the world's largest eCommerce marketplace, Amazon offers a wide range of products to consumers and sellers, and this partly explains its popularity among users.
Whether or not you use Amazon yourself, chances are your customers do.
So, why don't you advertise on Amazon to increase the visibility of your products? If you're already on Google Shopping, Pinterest, Facebook, and Instagram, now is the perfect time to invest in the largest online advertising network for vendors: Amazon.
This guide will help you get started with Amazon shopping ads, with a brief description of each type of advertisement available on Amazon and why they are so important. Below are the details on how you can advertise on the world’s most powerful platform in 2022.
2018 marked the release of "Amazon Advertising" (also known as Amazon Marketing Services, or AMS), a search advertising platform for Amazon sellers and vendors.
Native Shopping Ads deliver highly curated, relevant, and engaging product recommendations in a visually appealing ad format. These ads can be displayed above, below, or integrated into content to deliver a better user experience and increase sales.
Advertisers will be able to buy these positions through keyword bidding to effectively increase the visibility of their products on Amazon, which will result in a higher ranking and better search results.
In the same way that pay-per-click ads on Google are only paid when shoppers click on the ads, Amazon sellers only pay for the clicks they get through shopping ads. Although, there are also ad types that require sellers to pay for impressions and not clicks.
Amazon Sponsored Product Ads work similarly to Google Shopping Ads in another way as well: they feature product images along with the product name, cost, rating, etc. There is also the option to display Amazon ads on individual product pages.
The results of a Labor Day weekend survey of 2,000 people showed that more than 50% of shoppers turn to Amazon when searching for a brand-new item. It's no wonder companies are spending more on Amazon advertising.
As a business owner, though, you should ask yourself which type of Amazon ads your company should run to boost sales and lower Advertising Cost of Sale (ACoS) as much as possible.
There are plenty of advertising types on Amazon that can help you reach, attract, involve, and keep your customers engaged in each step of the sale process. Among these are self-service solutions, PPC ads, DSP ads, and premium managed services offered by Amazon and other companies.
Pay-per-click advertising on Amazon is an auction-based model that requires advertisers to bid on keywords. It gives sellers the option to set up ad campaigns to advertise their products and then charges them every time a customer clicks on one of their ads.
Because Amazon PPC campaigns are auctions, your bid must only be one cent higher than your competitor’s in order to win placement in search result pages.
Amazon PPC ads fall into three categories: Sponsored Products, Sponsored Brands, and Sponsored Displays.
Using Amazon DSP (demand-side platform), you can buy videos, audio, and display ads across the web. Amazon DSP ads allow you to reach your audience outside of Amazon without purchasing an ad placement.
DSP ads are a good option for advertisers who want to build custom audiences. Amazon DSP allows advertisers to create custom segments by combining demographics and activity data from Amazon.
The main difference between DSP and Sponsored Display is that DSP can be used by brands that are not Amazon sellers.
The first time you set up an Amazon shopping advertising campaign, you can choose between self-serve and premium ads. If it’s the first time you hear those terms, read on to learn what they mean.
The term self-serve advertising refers to any advertising medium that allows advertisers to define campaign parameters independently of sales representatives or publishers.
A simple way to explain the difference between self-service ads and premium ads is that self-service ads appear within search results (similar to Google ads), while premium ads resemble Amazon display ads.
Amazon does still show premium ads, but they appear in more visual banners and sidebars. Additionally, they can be displayed on other websites, similar to Google's Display Network.
Practical eCommerce reports that Amazon ads have an average cost per click of less than $.35.
Note that Sponsored Ads are priced so that advertisers receive the maximum benefit. Meaning sellers do not pay anything for the traffic generated by their paid posts. They create their own budget and only bid as much as they can afford.
In general, Amazon per click costs about $0.97, and the value of Amazon ads will depend on your product type, marketing strategy, spending, advertising content, design, and overall product positioning.
When compared with AdWords averages, the cost-per-click here seems pretty reasonable.
Remember that Amazon users have a very high likelihood of actually buying what they are looking at. So you can also leverage Amazon ad spending for your business.
You'll need to be logged into your seller or vendor account before you can advertise on Amazon.
What's the difference between an Amazon seller and a vendor, you ask?
Simply put, vendors are first-party partners, whereas sellers are third-party partners.
The vendors use Vendor Central to sell products to Amazon's retail side, which Amazon then sells to consumers.
On the other hand, Amazon Seller Central allows sellers to sell to customers directly using their own brand name while using Amazon as a marketplace.
Independent sellers can choose a pay-as-you-go pricing option (found in Seller Central) or a pro option if their sales volume is higher. Additionally, as a pro merchant seller, you can let Amazon handle your deliveries, refunds, and sales support, all of which are great benefits!
Vendor Central, however, is an invite-only channel where Amazon will accept direct orders from suppliers (aka you). You must also have products that fit into one or more of Amazon's categories and the ability to make deliveries across the US.
The system is similar to Seller Central, which allows vendors to manage their purchase requests and product information from a single interface. Note that vendors and sellers on Amazon both have access to a selling dashboard and management tools available to them.
Finally, in order to advertise on Amazon, you will need to make sure your products are winning the Buy Box consistently.
You can make substantial profits on Amazon, whether you're a third-party vendor or a first-party seller. What’s important is to use the right advertising strategies to maximize ROI and conversions.
Last year, Amazon sold $31 billion in ads, making it the third-largest online ad company behind only Google and Facebook. It is clear that Amazon is growing its advertising business rapidly, particularly as its ecosystem diversifies.
Having a way to stand out on Amazon is crucial for your business. Your business could be at risk of falling behind the competition otherwise. The marketplace reality is also constantly changing, so you have to remain adaptable.
The Amazon Ads platform allows you to track and optimize your return across your marketing channels, both on Amazon and off. Moreover, brands and products gain visibility through advertising.
Ads show up on product detail pages, within shopping results, or within highly visible placements. Naturally, Amazon sellers gain certain benefits from them, including those listed below.
By increasing product awareness, we are aiming to reach out to a wider audience and make our products more discoverable. You can accomplish this goal using Sponsored Display, which allows you to select appropriate product categories on Amazon and refine your targeting by features, brands, rates, and Prime eligibility.
The more impressions you make, the more brand awareness you will generate. The more people are aware of your brand, the more likely they will buy from it. When consumers need your product again, your advertisement will stick in their minds.
You already have consumers searching the internet for your products. You can take advantage of that with Amazon shopping ads and services.
Online shopping is becoming increasingly popular with customers. In fact, the number of online shoppers in the United States is expected to reach 278.33 million by 2024, as predicted by Statista. It’s clear how this trend offers potential shoppers a way to connect with your brand.
In 2016 Bloomreach found that 55% of consumers began their search on Amazon before buying. Moreover, the number of visitors to Amazon every month exceeds 2.3 billion. Don’t forget that Amazon visitors usually intend to make a purchase.
It’s easy to see how the math works from there.
By using keyword research, you can make sure your products are found online when people are searching for them. People will be more likely to visit your site if you have an attractive call-to-action (CTA). Once you have interested consumers, you can convert them into Amazon Advertising buyers.
It is well known that Amazon sellers can improve their organic SEO rankings by using keyword-rich product titles. Nevertheless, this may not be enough on its own.
Like Google, Amazon also has a specific algorithm for ranking its products on search results pages. This includes identifying the best-selling products with the best search-related customer feedback.
Similarly, adding keywords to your product description, subheadings, and back-end keywords can increase visibility by placing your product in Amazon's search results – however, they are not ranking factors on their own.
An additional benefit of advertising on Amazon is that you will likely get better organic Amazon rankings if you employ Amazon shopping ads.
This is partly due to increased revenue brought about by 'Amazon AdWords,' enhancing its sales history. In case you didn’t know, the sales history of a company is one of the most important ranking factors. Amazon will place more popular products at the top of search results based on their sales.
If you have just launched your product and want to compete with well-established brands, sponsored products could be the best way to achieve success. Visit our blog for more information about finding the startup marketing agency you need.
Since Amazon is primarily an e-commerce platform, it has extensive information about its customers and their buying habits that other PPC platforms lack. That’s also why Amazon knows consumer preferences and shopping processes better than other online retailers.
As a user of Amazon Advertising, you'll be able to access reporting metrics. You or the marketing agency you team up with should review your campaigns and identify shortcomings. Keeping track of campaign performance can help you stay on the right track.
You can easily understand how customers find products, purchase them, and stay connected with your brand with clear reports. Additionally, a number of tools and features — from keyword suggestions to brand-new performance metrics — enable you to put these insights into practice, maximizing your return on investment.
Buying Christmas jumpers and thermoses isn't the only thing you can do with Amazon shopping ads. Using Amazon campaigns, you can get customers to download your app too.
As part of an Advertise Your App campaign, ads can appear on Fire tablet wake screens and within the Amazon Mobile Ad Network, giving you direct access to Android and Fire users.
As a result, thousands of Amazon Fire and Android users are exposed to these ads.
Moreover, Amazon's platform allows you to display mobile display ads, banners, in-app ads, and digital videos. You can increase your click-through rates and generate more profits by adjusting your content and image size for mobile users.
There is a cost associated with every PPC platform, but it doesn't have to break the bank.
Ads and budgets can be controlled and adjusted with Amazon Advertising. Along the way, you will be able to track your progress and make any changes necessary. Overspending or committing costly errors can be prevented once you have a handle on your finances.
Amazon boasts affordable prices on its platform, with bids starting as low as $0.05 per click. Obviously, you can bid higher if you really want to take on your competitors.
Considering the high number of products offered on Amazon, sellers need a competitive edge, and advertising can help. However, setting up Amazon shopping ad campaigns is only the beginning.
As you build your campaigns, you need to continually modify your bids, strategies, and keywords to make them more effective.
Amazon has millions of active accounts in the global market, and businesses can take advantage of them, but only when they use the right strategies. It goes without saying that no two businesses are alike, so every company's target audience is unique as well.
By working with a professional Amazon marketing team, like JM&Co’s marketing experts, you’ll receive the benefits of a customized strategy that takes your brand's unique features and customers into account.
We offer data-driven marketing strategies and diverse expertise in digital marketing to help your business succeed. Our team will help you maximize budgets and build brand recognition efficiently, so you get the best return on investment.
JM&Co marketing agency understands how shoppers engage with products and brands through online discovery, browsing, and purchasing. For more information about our Amazon marketing services, contact us online or give us a call at 202 603-6055.
Businesses using Amazon's selling platform have a variety of options for approaching their buyers.
But how effective are Amazon Sponsored products at generating revenue? Do the benefits of Amazon Advertising really outweigh the costs?
There is a simple answer to that: yes.
You should think about meeting your consumers where they are. For eCommerce companies, that place is - more often than not - Amazon.
The opening of Amazon's online store transformed the world of eCommerce a long time ago; however, the pandemic brought it to its full potential. In the wake of COVID-19, the marketplace capitalized on consumers' need to buy everything online.
It makes sense that Amazon accounted for nearly 50% of all eCommerce purchases in the US in 2021. And after comparing the sales stats of 2022 with that of 2021, it was found that Amazon sold 200 million more units and generated $30.2 billion more revenue.
Consequently, Amazon Advertising enables businesses to connect with millions of Amazon customers by generating buzz about new products, increasing brand awareness, and spreading product knowledge.
With Amazon advertising, your products will appear at the top of the first page, in front of thousands of shoppers, boosting both organic and paid performance. Using this method will result in more clicks, increased sales, and (with quality products) more accurate user reviews!
If you're unsure about how to get started, choose a product that you already know will sell well on the web. You can expand your campaign once you start seeing returns with this ad by adding more brands and racket types.
There are still a number of new features being added to Amazon shopping ads. Nonetheless, it's a great platform for both beginners and experts who want to make money with PPC.
The Amazon Ads platform lets you reach potential customers at every stage of their buying process. If your product is great, your visuals stand out, and your listing is compelling, you'll have no trouble converting ad clicks into sales.
Additionally, those ad sales will help boost your organic rankings for your top-performing keywords, further increasing your revenue.
With increasing competition on Amazon, brands must optimize their advertising strategies to target their audience and grow their reach effectively.
We recommend that your team consider using AMS if they are not already using it. In addition to being a viable alternative to Google and Facebook, Amazon Advertising could be one of the most influential advertising platforms for many businesses.
The right advertising solution can help drive brand awareness, raise awareness about your company, product, or service, and increase sales or loyalty. With our resources, your eCommerce business will find the right advertising solution and achieve measurable results.
If you’d like a recommendation tailored to your needs, complete our online form or call us at 202 603-6055 to speak with an Amazon advertising strategist.
The art is building the right growth campaign. The science is in the results.