Advertising on Amazon in 2021
Amazon is the largest marketplace. Amazon is so beloved by online shoppers, that many of them won’t even consider buying products off the site.
Amazon’s dominant position is closely linked to the high level of competition among Amazon sellers. Amazon Advertising is growing. Sellers need to have a flexible and strategic advertising plan that will give them the highest ROI.
Amazon Advertising
Amazon advertising is a service that functions similarly to Google’s pay-per-click ads. Sellers only pay when customers click on the ads (regardless if the item sells).
Amazon’s ads business continues to grow at an impressive pace as it diversifies its product offerings across its ecosystem. Amazon DSP (Demand Side Platform), allows sellers to programmatically purchase display and video ads at a large scale. They can target audiences on Amazon.com Fire TV Sticks and IMDb.com.
Amazon Advertising Benefits
Amazon advertising comes with many advantages:
- Advertisers want a brand-safe, high-quality environment
- Reduce the sales cycle
- Enhancing sales history and product visibility
- Increasing brand awareness
- Gaining valuable insights into changing consumer behavior and optimizing campaigns to reach a broader audience
- You can find tons of information about your shoppers and their shopping habits.
- Learn the best ways to get customers in a certain time
- Being able to track your results and make a data-driven decision.
Amazon’s Advertising Model
Amazon Advertising uses a pay-per-click (PPC), which is different from other marketplaces such as eBay. eBay promotes the pay-per-sale (PPS) funding model through promoted listings.
Relationship between Amazon Ads and Organic Search
Amazon ads are interconnected with organic search. Amazon’s goal is for the platform to sell high-converting, best-selling products that are relevant to the query. Amazon will prioritize products that are most likely to be sold, i.e. Products with a good track record of sales and positive feedback.
Organic rankings rise when there is more feedback and sales.
Amazon Ads: Types
Amazon sellers have many options when it comes to ad placements and formats. Amazon Sponsored Product, Sponsored Brand, etc. You can find out more about the given ad types below.
Sponsored Products
Sponsored Products refer to the product listings that are displayed on search results pages and product detail pages. These are pay-per-click, targeted display ads that target specific products.
A reporting tool allows you to measure the effectiveness of your sponsored product ads. It displays clicks, spends, sales, and advertising costs of sales (ACoS).
Sponsored Brand Campaigns
Sponsored brand ads allow you to promote keywords-targeted ads for multiple products, above, below, and alongside search results. These campaigns are based on an auction-based, pay-per-click pricing model. The shopper can be directed to either your Amazon Store or to your custom product page.
Your ads can feature up to three different products. You can customize and test your ads’ headline, image, and landing page.
Product Display Ads
Product Display Ads, which are pay-per-click ads, have the primary goal of upselling or cross-selling to your customers. This inventory is not available to only those who sell on the platform, but all advertisers can access it. This category is broken down by Amazon into three categories: custom, video, display.
Display ads are found on product detail pages and customer reviews pages. They also appear at the top of the offer listing pages and below search results. They can also be found in abandoned cart emails and follow-up emails.
Video Ads.
Video ads can be placed on Amazon.com, IMDb, Amazon devices such as Fire TV, and other properties. You don’t need to sell products to buy Amazon video ads.
Amazon Stores.
Amazon allows users to promote their brand or product on their multi-page Amazon Store. Brands can get an Amazon URL, and view traffic analytics.
Check out this video to know more about the Amazon store.
Amazon Native Ads
Amazon Native Ads are available for brands to place on their website. These can be search ads, recommendation ads, or custom ads.
The Amazon Advertising Plan: In a Nutshell
Set your goals, Amazon allows you to align your goals with your targets, e.g. If you are determined to drive more sales, your Advertising Cost of Sales can be your success metric.
Choose the right products to promote. The best chance of sales conversions is with the most popular amazon products and those that are affordable.
Make sure your product pages are clear, concise, and persuasive. Use descriptive titles and provide relevant information about the product. High-quality images are also included.
Want to create high-converting Amazon product listings? Check out this detailed amazon product listing guide.
You should plan, execute, and then test what works. Experiment with different ad formats, keywords, target demographics, content, etc. Next, allocate the remaining budget to the most profitable area.
Keep an eye out for changes on Amazon. There are always updates and changes. Trends are constantly changing and gaining popularity. You must be flexible, even if your current campaign works well.
Look for markets that have lower competition, lower CPCs (cost per click), and better returns on advertising investment. These markets can include international ones where online sellers may not be able to provide specific products or meet local demand.
Amazon advertising presents both challenges and opportunities. To stand out in a crowded marketplace, sellers must have a flexible and strategic advertising strategy. Sellers must also be flexible to adapt to the rapidly changing marketplace.
