Ah, Amazon. It seems like it’s taken over the globe. We can get virtually anything we want with two day Prime shipping. But, wait, what about Prime Now. Yes, let’s ensure I get my vegan cookbook in under two hours. Talk about extreme, but talk about effective. Amazon has us by the ‘you-know-what’ and we as consumers can’t get enough.
The good news is, we can use that devotion and loyalty to our advantage. Since Amazon knows what people are buying and how they’re doing it, why aren’t you advertising on Amazon to get more eyes on your products? You may already be all over Google Paid Search, Facebook, and Instagram and there’s no better time to break into one of the largest remaining online ad networks.
We’ve created this guide that shows you how to Advertise on Amazon
What Are Amazon Ads?
When you type in a keyword in the Amazon Search box you’re presented with products related to your search. By the way, this is where 80% of customers shop, on the first page of the results. Only 20% make it past page 1. Now back to that search page, any products you see with the words “Sponsored” written by them are considered Amazon ads. Some will be inline with your search results and some will be on the top of your search results. We’ll get to the different types of ads later.
Advertisers who want to gain more visibility to their products on Amazon can pay for these positions by bidding on specific keywords related to their product. This will lead to higher visibility in the Amazon SERPs. The benefit to the advertiser is that they will only be charged when a shopper clicks on their ad. This is why the Amazon Advertising platform draws many comparisons to Google AdWords.
Amazon ads can also appear on individual detail pages (product pages). For example, when looking at the sunglasses below, you can see an ad for two-pack of sunglasses right below.
As you scroll down the page, you’ll find even more ads!
The beautiful thing about Amazon ads is that these aren’t the only type of ads you can create. We’ll get into the three different types of ads in this guide.
Should I Advertise on Amazon?
Do you sell a product online? If the answer is yes, then yes, you should be advertising on Amazon! It’s another layer of eyes on your products and potential new customers.
If you’re hesitant, we recommend starting small with a product that you already know sells well online. For example, if you sell winter gear and you know your snow pants are your top selling products, then start with an ad for your best selling snow pants. Once you’ve built some traction on Amazon Advertising, then you can start to incorporate the rest of your product catalog.
If you’re still on the fence, another compelling reason to advertise on Amazon is that if you’re doing Amazon PPC, your organic Amazon rankings will likely improve as well. Amazon sellers know that sales history is a very strong ranking factor. If a product sellers better, then Amazon will place it higher up in the ranking of search results.
So it’s possible to not only boost product sales but your organic ranking of your products on Amazon!
Amazon Advertising Costs
So, what’s the costs?
The thing is, it differs. One product category may have a completely different costs than another. For example, we noticed that the average costs among our clients increases from about June to August and back up again from November to December. However, throughout the calendar year, we see an average CPC of just under $0.90.
Types of Amazon Ads
When it comes to ad creatives and types, Amazon has come up with some great options! There are three main types of ads you can configure, which are Sponsored Product Ads, Sponsored Brand Ads (formerly known as Headline Search Ads), and Product Display Ads. The latter can only be done if you’re a 1P seller (first-party vendor through Vendor Central). If you’re a 3P seller (third-party seller through Seller Central), then you can use the first two options when creating your ad types.
What if you don’t know what type of seller you are considered? 1P sellers are by invitation only and the rest are considered 3P sellers.
Sponsored Product Ads
Sponsored product ads run similar to the Google Shopping Network. These are ads that almost look like the rest of the products you’ll see on Amazon.
You create a campaign with specific keywords related to your product. These keywords can be set as broad, phrase, or exact. From there, customers will see your ad through an impression. You won’t be charged until a customer clicks your ad and goes to the detail product page.
Sponsored products ads are displayed across a variety of places across Amazon to make it easier for customers to find your products. They may appear in desktop, tablet, and mobile and app placements. They can appear top of search, middle of search, bottom of search, and on on detail pages after product information (“sponsored products related to this item” section)
Sponsored Brands Ads
Sponsored brands ads display at the top of the search results page as a headline banner ad, like the example below. These are attention grabbing and valuable real estate on Amazon. Sponsored brands have more customized options from setting your own headline text and your own brand image. Once a customer clicks on the ad, you can send them to either your brand store (if you have one) or a custom landing page within Amazon that displays all the products you’re offering. You must promote 3 or more products together in order to create this type of ad.
You’re probably already thinking it, these ad types allow a lot of creativity and are a great way to showcase your brand or even capture seasonal patterns in your business. These ads also use the same cost-per-click method.
Product Display Ads
Lastly, we have product display ads that work a lot different than the two already mentioned. Again, this type of display ad is only available to 1P sellers Amazon’s Advertising Console. Also, PDA (product display ads) have a uniqueness to them. These ads are not keyword targeted, but rather interest or product targeted display ads. So, they display on product detail pages through similar interest or through specific ASIN targeting. Don’t worry, these also use the cost-per-click method.
We love using these at Laser Sight Digital because we can choose to defend our turf (set up PDA campaigns on our client’s ASINs) or we can conquest (go after our client’s competitors). These ads appear to the right or at the bottom the product information on the product detail page.
Now you’ve got yourself the complete guide on how to advertise on Amazon this year. Along with an informed Amazon Advertising strategy, you’ll be able to join the masses who are growing their business each year on Amazon’s platform. Here’s a tip, use the Amazon Early Reviewer Program to get ahead of your competition and gain more reviews to help your Amazon PPC efforts!