Amazon has transformed the ways we shop. Just like Google knows what you search and YouTube understands your interests, Amazon is the leader who knows what you want and how it can provide it. Nearly 80% of Amazon sellers invest in Amazon advertising to promote their products and attract potential customers.
Whether you are running a large-scale business or launching your first-ever brand on this digital marketplace, it is important to have an Amazon advertising plan in place. But if you don't know how it works, this is what we will help you with. We will cover different types of Amazon ads and suggest advertising plans and procedures in this post. So, let's get started!
- What is Amazon Advertising, and How Can It Help Sellers?
- Types of Amazon Ads
- Benefits of Amazon PPC Ads
- How to Create Sponsored Products PPC Ads?
- How Much Should I Spend on Amazon Ads?
- How to use AI to Improve your Amazon Advertising?
- Wrapping Up
What is Amazon Advertising, and How Can It Help Sellers?
Amazon is the leading e-commerce platform, with 230 million users and 2 million sellers worldwide. Its popularity has also raged competition between the sellers. As the platform continues to grow, it is getting hard for sellers to retain their visibility. They need flexible and effective advertising plans to build their customers.
Amazon advertising, previously known as Amazon Marketing Services or AMS, covers all advertising solutions needed on the platform. It helps businesses create compelling offers to promote their products in the community.
Amazon advertising can help sellers in several ways, such as:
- Boosting product visibility
- Improving brand awareness
- Acquiring buyers' data
- Reducing the traditional sales journey
- Learning new ways of securing customers
- Gaining insights about changing trends and customer behavior
- Optimizing existing ad campaigns to attract customers
Types of Amazon Ads
Amazon sellers have a variety of choices for picking a reasonable ad format for the business. There are two main types of Amazon advertising services, which are further categorized into different branches.
Amazon PPC and Amazon DSP are the main classes of ads on the platform. Let us cover both in detail.
1. Amazon PPC
Amazon PPC is the advertising strategy where sellers pay each time a customer clicks on their ad, no matter whether they buy the product or not. Amazon Pay-Per-Click ad campaigns are easy to set up and use. The charges sellers pay depend on the ad category, targeted keywords, and the niche selected.
Amazon sellers and brands of different scales quite prefer Pay-Per-Click (PPC) ads for listing new products. It helps these items reach a wider set of customers by simply targeting keywords and products.
Different metrics that help assess the success of such campaigns on Amazon include:
- Clicks
- Sales
- Impressions
- Return on Ad Spend (RoAS)
- Advertising Cost of Sales (ACoS)
Whether you are an expert seller or a complete beginner on Amazon, Amazon PPC brings various ad options for you to opt for advertising your product. It has three different types of ad campaigns to help sellers.
Let's go over the types of PPC ads:
Sponsored Products
Amazon-sponsored products are like Google ads or the standard item listings available in the search results. You can decide on the products to advertise on the platform and select relevant keywords by performing keyword research. After completing this process, you can instantly launch your sponsored product campaign. This ad becomes eligible for display when buyers search for the relevant products or keywords.
Sponsored Brand Campaigns
Sponsored brand campaigns help you promote your products while creating brand awareness. It displays keyword-targeted ads of different products together in the search results using the auction-based pricing plan. Also, it can drive potential customers to your customized landing page or Amazon store directly.
With sponsored brand campaigns, you can feature up to three products, including the headline and logo, to represent your brand.
Product Display Ads
Product Display ads are self-service advertising campaigns available to customers on and off Amazon. With this type of advertising, you can reach audiences even outside the platform, like third-party websites and apps. Your display ads appear on customer review pages, product detail pages, and below search results.
The main difference between sponsored brand/products and display ads is that here you target potential buyers based on their preferences, interests, and buying behavior. You can also find whether the customers have visited your page in the past.
2. Amazon DSP
Amazon DSP, or demand-side platform, is an advertising service for agencies and advertisers with a heavy budget. With DSP, you can use audio, video, or display ads to reach customers outside Amazon using its data intelligence capabilities.
To set up Amazon DSP ads, you first need to contact the Amazon advertising account executive, unlike PPC which goes up and runs within a few minutes.
The different types of Amazon DSP campaigns are:
Amazon Video Ads
Amazon Video ads feature multi-language ads on Amazon-owned websites, apps, or devices like Fire TV. It allows brands to share their products and experiences live with the customers in a more realistic and captivating way. You don't necessarily have to be a seller on Amazon to purchase video ad campaigns.
Amazon Custom Ads
Amazon custom ads consist of a combination of different advertising services. It can include all formats of advertisements.
Amazon Audio Ads
Amazon audio ads (beta) allow sellers to target audiences using Alexa's voice-activated system. This paid product placement plan is ideal for screen-free moments, but brands can't select the audio played with their ads.
Amazon Posts
Amazon posts help brands express their stories to relevant customers on the platform. These posts appear on the Android, iOS, and mobile web in the brand's feed or product landing pages. The best thing is that any seller can create these Amazon posts for free.
Amazon Live
Amazon Live helps customers discover your brand and products through live streams. It allows sellers to showcase and demonstrate the product features using the Amazon Live Creator app.
How To Create Sponsored Products PPC Ads?
Sponsored Products PPC ads are the oldest and most straightforward Amazon advertising campaigns. Once you are done with the keyword research, you can quickly launch your sponsored product campaign.
Sellers need to verify certain requirements to qualify for Sponsored Products ads. Here's a list of conditions to consider:
- Your product is "Buy Box" eligible.
- You don't need to be brand registered to create Sponsored Products PPC ads, but having a professional Amazon seller account is a must.
- If you have an individual seller account, you can't advertise products.
If your product passes these tests, you can jump into the creation process. Let's cover the steps you need to perform to create Sponsored Products PPC ads:
- Enter your credentials to log in to your Amazon Seller Central account.
- Navigate to Advertising and select Campaign Manager.
- Scroll down the graphs and click the Create Campaign button in blue.
- From the list of campaigns, click Continue under Sponsored Products.
- Enter the required information on the Create Campaign Page.
- Create an ad group by selecting the products you want to advertise and enter a group name.
- Set your bids by either selecting default bidding mode or advanced targeting groups mode.
- Add negative keywords (optionally) if you don't want your products to appear in a certain category.
- Finally, verify your information and click the Launch Campaign button to activate your ad campaign.
That's it! It normally takes around half an hour for your ads to appear on Amazon.
How Much Should I Spend on Amazon Ads?
One of the important decisions you should make while setting up Amazon ads is finalizing the budget for the campaign. Some sellers prefer allocating a daily budget for the campaigns since it becomes easy to track performance on a daily basis and make required changes.
Practically, there is no hard and fast principle to determine your budget. The best way is to experiment with yourself and observe what works well daily. You can start with a budget as low as $5 to $10 per day. However, the most successful campaigns require an investment between $50 to $100 daily.
You should only spend the amount that you can easily afford to earn maximum profits. If you invest a huge budget on ads and they don't work well, you will lose the amount.
For instance, if you plan to run ads at $10 per day for a week, you will have to pay $70. The frequency with which your ads appear in search results depends on the cost per ad and the success of your bids.
If your ads generate a profit of $50 in your sales, it means these ads were not worth the amount you paid. There could be an issue with your product listings. Therefore, you need to optimize your landing page, set your bidding rates, and adjust your budget accordingly to attract potential customers.
How To Use AI To Improve Your Amazon Advertising?
Amazon offers unlimited avenues for brands of all sizes to showcase their products and maximize their sales. It helps your products reach a wider target audience by telling your story with effective advertising services. But for these ads to work well, you need optimized product listings, which depend on proper keyword research and other optimizations.
Understanding your customers' needs is the first step in selling highly profitable products. Therefore, it is important to discover the trending market terms and know what your target customers frequently search for with keyword research.
Manually searching these keywords can be an exhausting task for professionals and beginners alike. Instead of spending your time and resources on this research phase, you can skip the hassle and jump to the next level with Shulex VOC. Powered through ChatGPT, Shulex VOC helps you quickly do keyword research and competitor analysis and also get intelligent suggestions to optimize listings and much more. In short, Shulex VOC is your companion to leverage AI in improving your listings and Amazon advertising practices.
Wrapping Up
Amazon advertising plays a vital role for sellers in the competitive marketplace. As evident from the above discussion, Amazon PPC ads are easy to set up and launch, while Amazon DSP advertising campaigns bring high-budget options for brands to express their services on and off the platform. Therefore, we will wrap up by recommending you select the advertising service that meets your needs and targets.
