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Amazon Ads 101: What Beginners Need to Know
Amazon is undoubtedly an eCommerce giant, and advertising on the platform with Amazon Ads is key for sellers looking to grow their business. In 2021 the company makes up 41% of the U.S. eCommerce market. They are set to make over $26 billion in ad revenue and are expected to increase more each year. Beyond its larger-than-life status, it’s one of the few authoritative websites that offers ad opportunities that don’t compromise the user experience. Since shoppers like to visit Amazon to “shop ‘til they drop”, the focus should be on increasing the spotlight on your products and standing out from the saturated marketplace.
Amazon is also extremely thorough with its market’s interests and buying journey. This gives the platform the potential to become a powerful marketing channel to utilize or explore when expanding. If you’re already on your way to building an online presence using social media marketing or search engine optimization, then making the most of Amazon Ads and what it has to offer should be your next course of action in eCommerce.
We’re sure we don’t need to convince you why you should advertise on Amazon. But if you’re unsure on how to break into one of the largest online ad networks, then we’ve put together this beginner’s guide to all things Amazon Ads just for you.
What are Amazon Ads?
Browsing through Amazon’s marketplace to find products you need is very similar to typing in a query on a search engine like Google. In fact, it would be safe to say both Amazon and Google respond to search queries in a similar fashion.
People usually type in keywords relevant to the products they’re looking for, and Amazon’s search results put sponsored posts that meet those criteria at the top. Being at the top means more visibility for your products and store.
Advertising on Amazon isn’t a one-dimensional act— it’s a multi-layer marketing channel that can provide tailored content and a wide arsenal of customizable tools to help retailers market their businesses.Generally, Amazon supports these different forms of advertising, all of which have their unique purposes:
How Do You Get Your Products on Top of Amazon’s Search Results?
Taking center stage of Amazon’s search results is no easy feat, but you can significantly propel your store ahead of the competition by paying for a higher position. That’s why using sponsored ads is one of the go-to advertising formats in Amazon since it offers faster results for your business.
In a fast-paced eCommerce landscape, being quick to draw the customer’s attention is key to attracting more sales opportunities. All three forms of PPC advertising aim to gain visibility on your business, but they do offer distinct advantages:
● Sponsored Products - One of the most common types of Amazon PPC used for individual product listings, this method focuses on a cost-per-click (CPC) strategy when boosting attention to your products.The CPC strategy allows you to showcase your products to a wider audience through various forms of targeting, and you only pay when someone clicks on the ad to come to your product page. Amazon reported that within the first year of launching Sponsored Product campaigns, ASINS saw an average weekly increase of over 40% units sold.
Sponsored Products appear everywhere throughout the customer’s journey on Amazon, so it’s no surprise that it’s one of the best choices to extend your market reach. It also gives you more control over your marketing spend and allows you to measure your campaign’s performance for future pointer
● Sponsored Brands - Also known as “headline search ads,” Sponsored Brands typically invite top-of-the-funnel customers. These are the people who have recently discovered Amazon and are just taking their first steps on the buying journey, so they’ll need more details about the store before clicking on your bait.
This form of ad mainly focuses on brand awareness and increasing brand loyalty. Due to its customizable features, it encourages repeat business by sending customers to your store and not an individual product under your brand.
Sponsored Brands aims to introduce the best store in the market, which means its ads often come with a tailor-made headline, brand logo, and relevant copy to boost the newcomers’ awareness.Therefore, Sponsored Brands are the right way to go for stores aiming to create a branded shopping experience on Amazon.
● Sponsored Display - Many competitors offer similar products and services, but that shouldn’t stop your brand from convincing curious customers to give your store a shot. If you’re on a mission to influence customers with specific interests, Sponsored Display ad types allow you to target audiences with a distinct viewing history to shed light on your relevant offer.
Sponsored Display presents your products or services on Amazon product detail pages to capture interest and come into the limelight. They follow the buyer on and off Amazon to showcase your products based on their search history. This makes it a critical part ofAmazon PPC since it primarily focuses on increasing your authoritative presence amidst the fierce competition.
While the above ad formats work wonders to bring grab buyers’ attention and increase sales, there are other ways to advertise on Amazon𑁋from using Amazon Audio Ads, Amazon Posts, Amazon Live, Amazon Video Ads, and more. Even though Amazon provides a wide range of ad types to choose from, most of these are triggered based on the same need: keywords.
What to Know About Amazon Keyword Bidding
Amazon’s abundance of advertising channels typically leverages keywords to perform to its full potential. After all, most shoppers use keywords to look for products, so your campaigns will be lost without any keywords to guide your tactic’s direction.
With that in mind, Amazon Keyword Bidding is another crucial advertising method that charges sellers like you on a per-click basis, similar to PPC advertising. Bidding on the hottest keywords can help increase your “ranking” on Amazon’s search results since it puts your product listings in front of interested customers.
This happens when your bids match the current bid price of the keywords. This entire setup works on automation, and all you need to do is define your bids for keywords in advance. However, keeping track of the bids regularly and altering them to rank on top can help you topple your competitors and gain better results. In that regard, there are three types of keyword matches you should consider:
● Exact - keywords that exactly mirror the customers’ search terms word for word, including the details like its description, same orders, and more. For example, the keyword running shoes will match with search terms like running shoes or running shoe but not for words like running shoes for women.
● Phrase keywords that share the same components but don't necessarily have to match the sentence word for word. For example, the keyword running shoes will match with search terms like discount for running shoes or running shoes for women but not with shoes for running.
● Broad - a list of generic keywords with similar components, but search results can still match keywords with additional words. For example, the keyword running shoes will match with search terms like shoes for running and buy running shoes but not with shoes for walking.
Of course, the challenge comes with outbidding your competitors, so it’s not always about targeting the most “branded” keywords. Consumer interest and data are always shifting, so staying on top of your keyword bidding performance can do wonders in driving your campaigns’ success on Amazon.
The best way to do so would be to focus on keywords that you would probably search as an end-user to look for a product. Using long-tail keywords in exact match type like shoes for running marathon or different variants of one keyword in phrase match like running shoes, shoes for running, flexible running shoes, etc. can be a good way to tie the loose ends. If you’re looking for tool to guide this process, utilizing software like Simpliworks allows you to launch PPC ads in seconds with keyword research and regular tracking done for you.
Sponsored Advertising on Amazon: The Beginner’s Journey on Marketing on the World’s Biggest eCommerce Platform
The convenience, affordability, and accessibility of Amazon make it the prime space for thriving as an online retailer. There is a missed opportunity to succeed if you’re selling on Amazon but not advertising on the platform. To unlock the potential of having access to a global audience, your business needs to fine-tune its advertising strategy to draw in more shoppers.
The guide above focuses on Amazon Advertising’s top three methods: Sponsored Products, Sponsored Display, and Sponsored Brands, all of which are designed to boost your product listings’ visibility in some way or another. When you utilize these three heavy-hitters of PPC advertising on Amazon, you’re setting your business up to flourish in the short and long term. Successful PPC advertising will help increase your sales, which will in turn improve your organic ranking on Amazon. Amazon recognizes that your products are selling under certain keywords and will increase your ranking as your sales history becomes more robust. It’s a win-win situation!
While these three ad types are the most common and easy-to-setup, experimenting with different formats can also give you valuable insights that help in making your strategy more effective. Additionally, combining all methods can be another tactic that blends the best of three worlds and shows great results.
After all, tailoring your strategy heavily depends on your findings on what works with your audience. In a platform that supports businesses and their uniqueness, it’s up to you to tailor your advertising experience and create campaigns that maximize your specific goals.Of course, you don’t necessarily need to improve your advertising strategy on your own. If you’re not sure how to incorporate an Amazon ad plan to your current operations, there are tools available to help the process. You’re not alone here!
Are You Looking for Ways to Boost Your Amazon Sales?
Working with a professional can give you an edge over your competitors and boost results, so if you feel lost with your campaigns, utilizing software companies like Simpliworks can help you make the most of Amazon with interactive tools, keyword tracking, real-time analytics, and more.
Managing an Amazon business involves wearing many hats, but balancing all responsibilities will only leave your store behind in a fast-paced market. Visibility is one of the driving factors that generates results for your marketing efforts, so utilizing tools like Amazon campaign optimization software from Simpliworks can improve your sales all in a single click. With Simpliworks’ 1-click campaign launcher, you can start running Amazon ads in seconds and see growth in as little as two weeks.
We make PPC simple and scalable with machine learning and keyword automation, so get in touch with us today and see how our features provide an agile way to advertise your campaigns. Save time eliminating keyword research, build winning campaigns, and sell your products faster with Simpliworks. Connect with an agent today and help us take your Amazon account management to the next level!