Unlocking Success with Amazon Advertising

Amazon, one of the biggest markets, is a popular destination for online shoppers. Shoppers who are loyal to Amazon won’t even consider buying from any other platform. Thus, Amazon is a great place for sellers hoping to build a brand name. However, it is important to consider that Amazon’s popularity also indicates high competition among Amazon sellers. As Amazon Advertising continues to expand, sellers require a well-thought-out and adaptable advertising strategy to maximise their return on investment (ROI).

Amazon Advertisement, known as AMS or Amazon Marketing Services previously, is a pay-per-click service on Amazon where sellers pay when shoppers click on ads.

Amazon’s advertising division is experiencing rapid growth, particularly in expanding its product offerings across its ecosystem. The introduction of Amazon DSP (Demand Side Platform) enables sellers to purchase display and video ads programmatically on a large scale, targeting audiences across various Amazon platforms such as Amazon.com, Fire TV Sticks, IMDb.com, Kindles, Freedive, as well as on third-party sites, apps, and platforms.

Benefits of Amazon Advertising

The benefits of Amazon Advertising are:

Providing advertisers with the secure, brand-friendly environment they desire
Shortening the sales process
Enhancing sales records and product exposure
Boosting brand recognition
Obtaining valuable insights into evolving consumer behaviours and refining campaigns to reach specific demographics more effectively
Access to extensive data on shopping habits and customer profiles
Understanding the most effective customer acquisition strategies at any given moment
Monitoring outcomes and making informed decisions based on data

Amazon Advertising can be divided into two categories:

Self-Service Amazon Pay-per-click (PPC) ads
- On-Amazon Ads
Managed-Service Amazon Demand-Side Platform (DSP)
- On and Off–Amazon Ads

PPC ads are mainly for professional sellers and Amazon sellers who have their brands registered and wish to reach more customers. It is also the most common ad platform, including Sponsored Products, Sponsored Brands, and Sponsored Display ads (let’s come back to this later). Moreover, sellers who have their brand enrolled on Amazon have access to Amazon Stores, Amazon Attribution, and Amazon Live.

Amazon DSP is an option that is available to agencies and advertisers. Setting up Amazon DSP is more of a hassle than setting up PPC ad campaigns. For one, it is more expensive, costing at least $50,000 and it also requires one to contact an Amazon Advertising account executive.

One might wonder, what is Amazon PPC? In PPC or Pay-per-click, Amazon charges sellers every time a customer clicks on an ad. The platform provides a user-friendly advertising interface for third-party sellers, enabling them to create various PPC ad campaigns easily. Factors such as ad type, chosen keywords, and market competition influence the cost of these ads.

It’s no secret that competition on Amazon is continuously increasing, leading to the expansion of Amazon’s advertising sector. Over the past year alone, Amazon’s ad revenue has grown by 32%, soaring from $21 billion to $31 billion.

PPC ads are highly favoured by Amazon sellers and brands of all scales, with 79% of first-party vendors and 71% of third-party sellers utilising at least one form of Amazon PPC.

Amazon advertising plays a crucial role, especially when launching new products. Through straightforward keyword- or product-targeted campaigns, PPC ads offer an extended audience reach, propelling the product’s visibility to the forefront of search results.

With a top-notch product, compelling visuals, and a well-optimised listing, converting ad clicks into sales should be seamless. These ad-generated sales contribute to bolstering organic rankings for each high-performing keyword, further amplifying overall sales performance.

Let’s understand the types of advertising solutions in depth now.

Amazon Sponsored Products

Sponsored product ads are the most basic and the most effective ad type available on Amazon.

Here are several compelling reasons to integrate Amazon-sponsored ads into marketing strategy:

They feature prominently throughout the purchasing process, making them highly advantageous for sellers.
Their conversion rates typically outperform other types of advertisements.
They are prominently displayed on Amazon’s search engine results pages (SERPs), blending seamlessly with organic listings for easy customer discovery.

Sponsored Brand Ads

Amazon-sponsored brand ads are prominently displayed at the top of search results pages, alongside, and within search results, ensuring they are among the first elements seen by customers searching for a product. These ads serve to introduce customers to a brand, its offerings, and the brand store on Amazon. When utilised effectively, they enable sellers to reach new audiences, enhance product consideration, and boost brand visibility.

These ads allow sellers to showcase their brand logo, a customised headline, and up to three products. To utilise Amazon-sponsored brand ads, sellers will need:

An active seller account registered under the Amazon brand registry
A distinctive Amazon store
High-performing products

Amazon Sponsored Display

Amazon-sponsored display ads are cost-per-click (CPC) advertisements crafted to facilitate remarketing efforts effectively. These ads allow sellers to showcase their products to customers who have previously viewed the items or similar ones. Leveraging customer demographics, sponsored display ads target specific audiences based on their shopping habits.

Sponsored display ads usually have lower conversion rates in comparison to Sponsored brands and Sponsored product ads as the ads are not displayed on the Amazon search results page.

Amazon PPC campaigns can be leveraged in the following ways:

Enhance the shopping experience: In the competitive landscape of Amazon, it’s crucial to differentiate a brand. Utilising Amazon marketing services can help craft engaging shopping experiences for customers, enhancing the brand’s visibility and appeal.
Gain insights and optimise listings: Optimising product listings is essential for increasing conversion rates. By analysing data from ad campaigns, can help identify high-converting keywords with lower advertising costs and integrate them into the listings. Improving key elements such as product titles, descriptions, and Q&A sections can attract and retain a loyal customer base.
Provide convenience: Customers value convenience when shopping online. As an advertiser, offering added convenience can set a seller apart. Creating unique stores, landing pages, and hassle-free return policies enhances the overall shopping experience, leading to increased customer satisfaction and loyalty.

Amazon advertising is a game-changer for any seller and brand; it is after all one of the biggest reasons why small businesses scale up fast. For more information, get in touch with Amazon Advertising Australia. The agency’s Amazon Account Management Services will help to stay on top of the game.