With more than 300 million active users and over 2.5 million active sellers, it’s clear that Amazon is a highly competitive marketplace. Advertising on the website can help eCommerce businesses differentiate themselves from their competitors.
Amazon Advertising offers various ad types that cater to different advertising goals and budgets. You can leverage these options to reach your target audience, optimize their campaigns, and drive more sales.
Here’s a comprehensive guide to Amazon advertising that can equip you with the means and information you need to succeed on the platform.
Amazon Advertising Benefits for eCommerce Businesses
Perhaps the most significant advantage is the potential for increased visibility. With millions of active users on Amazon, advertising on this platform puts your products in front of a vast audience. It also offers high targeting capabilities, allowing you to reach customers most likely interested in and purchasing your items.
Types of Amazon Advertising
Amazon offers several different advertising options, each with unique features and benefits. The most popular types of ads include the following:
Sponsored Products
Sponsored Products are the most popular form of Amazon advertising, and you use them to promote individual product listings.
They appear as sponsored listings within search results, and you can target them using keywords or ASINs (Amazon Standard Identification Numbers). Sponsored Products have a cost-per-click (CPC) model, where advertisers only pay when customers click on their ad.
This type of advertising is ideal if you want to increase visibility for specific items to drive more sales.
Sponsored Brands
The platform displays Sponsored Brands ads at the top of search results. It includes a company logo, a custom headline, and product listings. They allow businesses to showcase their brand and products and drive more traffic to their Amazon store or specific product listings.
Sponsored Brands also have a CPC model. You can consider running these ads to increase brand awareness and drive more sales across your portfolio.
Sponsored Display
Sponsored Display ads appear on and off Amazon and use display targeting to reach customers. They can target buyers who have viewed similar products or recently searched for related items.
This type of advertising has a CPC or a cost-per-thousand-impressions (CPM) model. CPC is where advertisers only pay when a customer clicks on their ad, while CPM is when your appears in searches several times.
Sponsored Display ads are helpful if you want to target customers who are in the consideration phase of the buyer’s journey.
Video Ads
Video Ads appear in multiple formats, including in-stream and out-stream video, and can be a powerful way to showcase your goods. You can target them based on customer interests or demographics. These ads can be a good way to engage consumers and increase brand awareness.
These ads have a CPC or CPM model.
Amazon DSP
Amazon DSP is an advertising platform allowing businesses to programmatically buy display and video ads. These tools mean you can use automation software to target customers based on their interests, demographics, and behavior on and off the site.
It also allows you to track the performance of your campaigns and optimize them in real-time. Consider using this platform if you’re seeking to scale your advertising efforts and target customers at every stage of the buying journey.
Creating an Amazon Advertising Campaign
Creating an Amazon Advertising campaign is a straightforward process and includes these steps:
- Choose the type of advertising you want to use (Sponsored Products, Sponsored Brands, Sponsored Display, Video Ads, or Amazon DSP)
- Set your campaign goals, such as increasing sales or driving traffic to your website
- Select your targeting options, including keywords, demographics, and product categories
- Set your budget and bid for ad placements
- Create your ad, including images or videos and compelling ad copy
- Submit your ad for approval
- Once approved, launch your campaign
- Monitor your campaign’s performance and adjust to optimize for better results
Advanced Amazon Advertising Strategies
While the basics of Amazon Advertising are relatively straightforward, some advanced strategies can help businesses take their advertising efforts to the next level.
One of these strategies that you can use is advertising automation tools. Amazon’s software allows you to automate your campaigns, saving time and increasing efficiency.
For instance, Sponsored Products automatically uses machine learning to adjust bids for the best ad placement. Similarly, Sponsored Brands video automatically creates ads from existing product images and other content, saving time and resources.
Another strategy is to leverage the site’s advertising data to inform other aspects of your business. You can gain a beneficial understanding of customer behavior and preferences by analyzing advertising metrics such as click-through and conversion rates.
You can then use the data to inform pricing decisions or to develop new products that better meet customer needs. It can also help you identify trends and opportunities in the market, allowing you to stay ahead of the competition.
Maximize Your Advertising Efforts
Advertising on Amazon’s platform can be an excellent way for eCommerce businesses to increase their visibility and attract customers.
By choosing the right type of advertising, setting up effective targeting options, and monitoring campaign performance, you can maximize the effectiveness of your efforts. Access to automation tools and leveraging advertising data is also beneficial to take your actions to the next level.
Remember these tips; soon, you can increase your revenue and build a community of loyal followers.
