Complete Beginner’s Guide to Advertising on Amazon

With more than 200 million people browsing Amazon's websites every month, it's the biggest online retailer around the globe. It is the 800-pound gorilla of shopping online. It makes sense to have your product prominently displayed to all of these customers.

Unfortunately, so does everyone else. For the US alone, Amazon US lists over 600 million items. This means that you must discover a way to get your product on the radar of all the potential buyers or else your competitors will.

Enter Amazon Advertising, (formerly called Amazon Marketing Services or AMS.) It was launched in 2012 and the Amazon Advertising platform allows you to have your products displayed in the world's most popular online marketplace. This helps increase branding awareness and visibility for your products and ultimately, the goal in increasing the sales. There are three types of advertisements available that are Sponsored Brands (formerly called Headline Search Ads) and Sponsored Product Ads or Product Display Advertisements. Together, they can help your sales explode!

Are you keen to learn the more details about Amazon advertising? Then keep reading. If you'd prefer to find an experienced Amazon agency to run your ads and your store and campaigns, we'll help you understand how a partnership might be like.

Advertise Worldwide

Since its introduction in 2012, Amazon Advertising has been expanding geographically as well in terms of the products. It is now accessible to all countries in which Amazon is present including:

For the products, Amazon allows products in the following categories to be advertised (this is not a complete list; books are also eligible to be sponsored and for Product Display advertisements within Amazon's US).

While Amazon continues to expand the reach of their ads however, it's not yet accessible to all products or all countries. For instance, you can only use Amazon Advertising only if you're an Amazon seller. Third-party sellers were admitted to Amazon Advertising in 2017, finally , Amazon allowed a new category of customers to use the platform. However, they were able to access an abridged version of advertisements via Seller Central. Seller Central platform.

Who Can Qualify For Amazon Advertising?

Amazon Advertising is currently available to all users with an Seller Central account, however to fully utilize its potential, you'll need an Vendor Central account. This allows you to sell your goods on Amazon and also create any type of advertisement.

What Is The Difference Between A Vendor And Seller Account?

The main difference between a Seller account and a Vendor's is that Sellers sell, list prices and sell their products by themselves, while Vendors sell their items to Amazon who then offers them for sale to its customers.

Another distinction is that customers who purchase Vendor products will be able to see the "Sold by Amazon" notification on the product's page. This will increase their confidence in the product and lead to increased sales.

Also, vendors are able to are able to avoid Amazon seller fees , like charges for referrals, fulfillment as well as having an account. Instead they pay a modest monthly fee that permits them to sell unlimited items. The cost also covers fulfillment via Amazon as well as gift wrapping options.

The biggest difference is that vendors also benefit from the entire marketing possibilities offered by Amazon Advertising

How Does Amazon Advertising Work?

Amazon Advertising works the same way as other online ads--through the use of a fast bidding system. Every time Amazon decides on which ads to show on a particular webpage, many Ads are competing in the background. Budget is just one factor in determining the winner, since Amazon also utilizes an algorithm to determine the most lucrative Ads.

After your Ad is selected and displayed, it will be shown on the search page of Amazon. Pay each time someone clicks your Ad. This method, known as Pay-Per-Click (PPC) offers the benefit that you can show your Ad at any time you want to increase your brand's visibility. But, if you fail to focus your ads correctly and barely people click on it, Amazon will reduce its rank and show different Ads instead, regardless of the amount you bid. This is the reason a typical complaint about Amazon Advertising is, "Amazon never displays my Ad."

Targeting Your Audience

Because you pay Amazon for each time someone clicks your Ad and also when you make an offer, Amazon is rewarded for an effective marketing campaign. It is in Amazon's as well as your own interests that you conduct the best campaign possible.

To maximize clicks and gain the most value from your Ad it is essential to make your message as relevant as you can. An audience that is keen on your product will be more likely to click the Ad more frequently. It's a win for everyone, even Amazon. However, it can be difficult to identify the right market to promote your products.

Targeting can be achieved through three different ways. You can:

• Choose a few keywords. If people search for them then your Ad will appear in the list of those who bid for display.
• Choose from a range of categories or interests. Instead of choosing individual items to target, targeting by category lets advertisers reach out to items that fall within similar categories or customer's interests. This lets you reach potential customers based upon their preferences in shopping, and expose yourself to a broad public.
• Then, choose similar products. If someone opens the product's page that you have created, your Ad will appear on the right side of that product's page of details.

3 Types Of Amazon Advertising Ad Campaigns

After you've narrowed down your audience, you'll be able to choose among a range of different types of ads to present them to:

Amazon Sponsored Brand Ads (Formerly Headline Search Ads)

Amazon Sponsored Brands ads (formerly Headline Search Ads) let companies promote three or more goods and direct visitors to one of these locations:

• This is the Amazon Store is a great place to sell your business
• Any page that highlights the products you sell or services on Amazon (i.e. an Amazon brand page)
• A customized landing page for Amazon, e.g. a best-selling product.

Like the name implies, Sponsored Brands Ads are displayed when you type in a search term in the highest of Search Results page (marked in green):

It is evident in the previous example how Amazon showcases its own advertisements. In fact, depending on the product, there may be occasions that your product will need to beat Amazon itself. In reality, Sponsored Brands aren't suitable for all since third-party sellers must to be admitted to the Brand Registry program in order to be eligible.

Amazon Sponsored Brands is particularly beneficial for building brands. Their size and location on the page make sure they're seen, and the fact that they can be linked to a website page for your brand will allow you to promote your entire business instead of promoting a specific product on its own.

People who click Sponsored Brands Ads will likely be to be at the start of their buying process It is therefore recommended to redirect them to the Brand page , where they can browse a range of products that are branded on the page.

Amazon Sponsored Brands is particularly efficient for building brand awareness. Their size and location on the page make sure they're seen, and the fact that they can be linked to a website page for your brand lets you advertise your entire brand instead of just a single item by itself.

People who click Sponsored Brands Ads are most likely to be to be in the middle of their buying process and it is recommended to direct them to the Brand page , where they can browse a range of items on a brand page.

Amazon Sponsored Brands are excellent for promoting a variety of items. Because you can show up to three items which allows you to promote many different kinds of them, e.g. from the cheapest to the most expensive. It means that ads are also cost-effective because you have three times the amount of ads for the price of one.

The greatest benefit of these ads is their location: as they are at the top of the page, there's virtually no chance that your Ad is going to be ignored or omitted by shoppers particularly since you can customize your own Ad text to grab the eye of a potential buyer.

Additionally, their target is perfect: your ads are only displayed on screens of those who are actively looking for the type of product that you sell, meaning that you are very likely of turning these leads into sales.

Amazon Sponsored Product Ads

The most effective and widely used advertisements are the Sponsored Product Ads. If you search on Amazon you'll find in the results a few products identified as "Sponsored." These are items that Amazon believes might be appealing to you in relation to subjects or keywords. Sponsored items can be an effective way to promote your products to the correct people.

If a customer clicks your advertisement, they're directed to your product's detail page and away from your competitor's page. This allows you to identify your competition and guide prospective customers away from them and to your pages. Your competitors have probably already done this in particular because Amazon allows you to choose certain items.

To make use of Sponsored Products Ads, define keywords and bids. Then let Amazon perform its magic by display your Ad in search results pages. They can be displayed above below, above, or inside the results of a search on desktop computers. On mobile devices, they may be displayed above or below the results. Sponsored Products Ads also appear on the product's detail pages.

But, the sheer number of items listed here diminishes its efficiency as a marketing tool. In the picture above you'll have noticed in the upper-right corner of the screen the counter that reads page 1 out of 69. This means that your prospective customers may not even be able to look at your advertisement.

Amazon Product Display Ads

To ensure that a customer gets to see that your Ad, Amazon has introduced the third type of Ad that is known as the product display Ad. It is displayed in the lower right corner of the product's listing just below"Add To Cart" "Add to Cart" area. This is an ideal location since it's the final advertisement that a potential buyer will see prior to actually purchasing something.

In contrast to Sponsored Ads that contain a variety of items, Product Display Ads only contain one product which gives you a more control over the Ad location.

An excellent way to make use of Products Display Advertisements is cross-promotion of own products. Display one of your advertisements on all page of your website. This Ad can be used to guide buyers to higher quality, more costly versions of your goods.

Another method to make use of these is to target certain products that your competitors sell. This is the last chance to inform the customer, "Before you buy that product, you may wish to check out mine, too." Give customers an improved product at an affordable price. Because your competitors are likely already doing the same in your place, you might be tempted to increase the bids to ensure only your products are displayed on your site.

Additionally, those who have visited the product that you advertise with Product Display ads will get targeted by Amazon through their newsletters, which can increase your Ads' effectiveness.

How Do I Know If My Ads Are Working?

The evidence is in the food and drinking Watch your sales rise! However, Amazon also offers a useful measurement known as ACoS (Average Cost of Sale). This tells you the amount each sale will cost you.

Lower your ACoS, more profitable: If you're selling a product that is priced at $10 and you're investing that money in ads You will get the ACoS at 100%--i.e. you're spending as much as you earn. But, if you spend $1 on ads, you'll have an average ACoS rate of 10%, and a great return on investment of 90 percent.

This is made possible thanks to Amazon's metrics. To assist marketers, Amazon includes monthly datathat allows you to categorize sales by dates. This will improve the data available which allows to better test your ads.

Use SellerApp's Amazon ACoS Calculator to calculate amount each sale will cost you.

Reduce ACoS On Amazon [Decrease High ACoS!] - Amazon PPC Tip 

Choose The Right Kind Of Ad For Your Needs

Contrary to what many believe that the process of working Amazon Advertising is an ongoing process. You don't simply create campaigns and then put it away.

In the beginning, you create your campaigns based on the requirements of your business. Each kind of Ad operates in different ways therefore, you can combine all three types offered to make use of the full potential that are available through Amazon Advertising.

• Utilize Sponsored Brands to help build your brand. So, users will see your logo, name and samples of products when they are searching for products similar to your brand. This is especially beneficial when you have a variety of products that you wish to advertise by putting at least three at the top of the search results.

• Utilize sponsored product ads to make sure that your items do not only show up first on search results pages, but also are displayed on the pages of your competitors which will steer customers away from your competitors.

• Additionally, you can use Product Display ads to promote your products by cross-selling them by directing customers towards your higher-priced products. Use them also to redirect shoppers away from the competitor's product pages to your own pages.

After you've developed your campaigns, it is essential to keep adjusting your bids, campaigns and keywords in order to meet your goals and increase your efficiency. Amazon gives you valuable metrics as well as the information you require campaigns report on the amount you spend on each Ad and also how it is performing on a per-user level.

All you have to do is to monitor this information and tailor your campaigns according to this data, and tweaking them frequently. Incorporate new keywords with high performance to your campaigns. You can also conduct A/B tests to find which ones work best.

You've created a wonderful product. Now, you need to get it to most people you can. Amazon allows you to focus on the right customers: those who are actively seeking for a similar product to yours. Since you pay only for the number of clicks you Ads get, Amazon Advertising is one of the most cost-effective methods to build your brand and growing traffic to your products pages.

The three kinds of Amazon Ads that are offered have the benefit of targeting consumers at every stage of the sales funnel (which defines what a buyer starts to do from the moment they arrive at Amazon until they purchase a product) sponsored brands Ads draw the attention of a buyer from the beginning and then sponsored Products and Display ones draw attention to your product. Display ones guide the shopper to your product as well as on to your Cart page.

It is possible to concentrate on your strengths creating the best product. We get it. However, you must also market it. The best method to start using Amazon advertising is to partner together with an Amazon agency who knows how to handle everything from listing of products to Amazon advertisements.