Does Amazon deserve all the hype it gets? If you are going by the fact that Amazon has over 300 million subscribers and over 5 million sellers. The answer is Yes. What’s more? It’s just as easy to sell on Amazon as it is to make a purchase. While it is relatively easy to set up an Amazon business, scaling one is a completely different kettle of fish.
Of Amazon’s over 5 million sellers, only 2 million are active sellers, and only about 82% of these sellers are profitable. There’s cut-throat competition on Amazon, and only sellers who use the right strategy can earn substantially. That’s where Amazon Advertising comes in.
It takes a lot for an Amazon business to run smoothly. Tasks like product research, keyword research, and listing optimization usually get the most attention, but if you do all these right and are not visible, you will make zero sales.
Running Amazon ads is the perfect strategy for visibility on Amazon. If you get your Amazon ads strategy right, you just may be on your way to raking in as much as six figures in sales on Amazon.
What is Amazon Advertising and why are Amazon ads so important? You’ll learn about that in this post if you keep reading.
Related: How to Advertise on Facebook
- What is Amazon Advertising?
- Should You Advertise on Amazon?
- Types of Amazon Ads
- Getting started with Amazon Ads
- Creating a Successful Amazon Advertising Strategy
What is Amazon Advertising?
The Amazon algorithm works like any other search engine. The top results on Amazon are usually sponsored posts; these are Amazon ads.
Amazon lets you purchase ads that appear in searches for keywords that are relevant to your business. In essence, you can still make sure people find your products even if they don’t show up in organic searches.
Amazon uses an advertising model known as Amazon pay-per-click, that allows sellers who want to gain more visibility on Amazon to bid for specific positions by bidding on keywords. Keywords with high search volumes usually convert more and rank higher on Amazon’s SERPs. Once a shopper clicks the ad, the advertiser will be charged.
Related: Amazon Advertising Strategy: 6 Advanced Tips to Increase Sales
Should You Advertise on Amazon?
Sellers usually cancel out the option of Amazon Advertising once they take account of the costs, but this is the worst mistake any seller can make. If you want to succeed on Amazon, an Amazon advertising strategy is a must-have.
Your business will incur additional expenses if you purchase Amazon advertising. As long as you create your campaign properly and choose the right keywords, you will generate a positive return on investment (ROI) and greatly increase your sales.
So why should you advertise on Amazon? These are a few reasons why you should consider Amazon ads:
Gain more visibility on Amazon
Do you sell day-to-day or seasonal products that people often try to purchase online? You should use Amazon ads. Chances are that your potential customer has tried searching for the exact product you have in store but couldn’t find you.
Showing up in Amazon searches organically can take a while, running Amazon ads is a great strategy to ensure you’re making sales without having to wait until the algorithm favors you.
Increase your conversions, Make more Sales
Gaining more visibility means you get to make more sales. After all, the only way people can make an order is if they see your listings. Amazon ads are Amazon’s way of helping you get customers’ attention even if you don’t show up on page one organically.
Improve your Amazon Rankings
Additionally, if you do Amazon PPC advertising, your organic Amazon rankings are likely to improve as well. The more sales you make on Amazon, the more the algorithm notices you, and in the long run, favors you.
Types of Amazon Ads
There are different Amazon advertising plans available. You should do some research to help you decide the type that suits you best.
Amazon ads can be classified into the following categories:
1. Sponsored Products
This type of Amazon ad is usually displayed at the top or bottom of the Amazon search results page or product detail pages. These ads use a pay-per-click approach, and sellers will be able to choose relevant keywords.
Ads in this category allow you to choose your daily budget and campaign duration. The only requirement is that the campaign runs for at least one day.
2. Sponsored Brands
This type of ad is more suitable for sellers who have more than one product listed on Amazon.
In this case, the ads appear at the top of search results. Generally, they include your brand logo, a headline, as well as three of your products. You can either have customers click on your logo to access your store or custom landing page, or they can click on one of your items to access the listing for each item.
Reports are available that show clicks, spend, sales, and the ACoS (Advertising Cost of Sales) of your ads.
3. Sponsored Display or Product Display Ads
Ads of this type differ slightly from the first two types we discussed. On Amazon product listing pages, these are display ads that incorporate images.
Pay-per-click ads dedicated to cross-selling and up-selling your product are product display ads. In contrast to the rest, this type of inventory is available to every advertiser, not just those who sell through the platform. According to Amazon, this category includes a display, video, and custom content.
You can measure your performance by using a tool that displays your campaigns’ clicks, spend, sales, marketing cost per sale (ACPS), detail page views, the average cost per click (ACPC), etc.
4. Amazon stores
Consider creating an Amazon store if you are looking for a free way to promote your brand and products. An Amazon store allows users to promote their product or brand on multiple pages. The brand gets an Amazon URL, and traffic data can be seen in the analytics.
Make your brand more appealing to potential customers by using your logo, images, video, and text. Create separate product pages for each item in your store by using the pre-designed templates.
5. Video Ads
Designed specifically for sellers enrolled in the Brand Registry program, Sponsored Brands Video ads are a type of Sponsored Brand ad.
These ads can be placed on Amazon-owned web properties like Amazon.com and IMDb, Amazon devices like Fire TV, and various other web properties. Amazon video ads can be purchased without selling products on the site.
6. Amazon Native Ads
Brands can place Amazon Native Ads on their own site. The types of ads include recommendation ads, search ads, as well as custom ads.
Related: A Guide To Understanding Amazon Sponsored Products
Getting Started With Amazon Ads
Starting your Amazon Advertising journey is easier than you have probably imagined. Once you have done your research on Amazon advertising costs, then you’re good to go. Start here:
- Sign in to your Seller Central or Vendor Central account:
If you don’t have one yet, check here to see which works for you. First-party sellers will need to apply to become a vendor, which is currently by invitation only. You are considered a third-party seller if you sell via Amazon Seller Central.
- Choose an Amazon advertising plan:
Amazon seller central has different pricing plans for individual sellers and a pro plan for professional sellers. Sellers can also let Amazon handle shipping, returns, and customer service, which is a nice perk!
- Select the products you want to advertise:
Promoting all your products may not be possible, especially if you are on a budget and cannot bear the cost of doing that. If this is the case with you, it’s best to start with one or two items and create campaigns for your other product listings as you go along.
This will help you reduce the risk of making losses if something goes wrong with your campaigns.
- Ascertain your eligibility:
Not all products are eligible for Amazon advertising. Instead of wasting time, money, and effort trying to run ads for ineligible products, you may want to confirm the eligibility of any products you decide to promote.
Adult products, used products, refurbished products, and items in restricted categories are currently ineligible for Amazon advertising.
Asides from your products meeting up with eligibility requirements, you will also have to make sure that:
- Your inventory is up to date and products are in stock
- There is no missing information in your listings
- The product is eligible for the buy box and is in line with Amazon’s retail policies.
Confirm your eligibility for Amazon advertising here.
- Create a budget:
Ads may be a strategy to make sales, but they do cost a lot of money. Amazon advertising is not something to go into with your eyes undecided.
Planning your advertising budget also involves estimating how much you’ll spend each day. You should aim to generate more money from your campaign than it costs. This might take some time to accomplish. Hence, set a daily budget that you’re able to stick to and stick to it.
- Listing Optimization
Running ads is not enough. You will have to ensure your listings are well-optimized for conversions.
To do this, make use of high-quality product images, relevant keywords, bullet points, and descriptions. If your advertisement request is rejected at first, you might only need to adjust your listings a little bit to get approved.
Creating a Successful Amazon Advertising Strategy
Creating Amazon ads is pretty straightforward, but there are still a few things you can do to improve your chances of success.
Are you interested in running an effective Amazon ads campaign? We have some tips for you.
- Sales conversions are highest when you offer the most popular products at competitive prices.
- Amazon is constantly updating and changing. Stay on top of changes. Furthermore, new trends emerge constantly. Regardless of how well your current campaign is doing, you should remain flexible and keep your campaign under regular review.
Related: Amazon Advertising: Top 10 Trends You Need to Know in 2021 and Beyond
- Consider markets with less competition and lower click-through rates (CPCs) for a greater return on ad spend. It can be an international market where local sellers are unable to meet the local demand or offer specific products.
- Do keyword research, and carry out a competitive analysis. Check out what keywords your competitors are ranking for, then target those keywords in your ads and listings.
- Avoid ranking for keywords that are not directly related to your products. Before starting your campaign, be sure to submit a list of keywords you do not wish to target. Add any terms with a low conversion rate to your negative keyword list so you only focus on the most profitable terms.
- Analyze your ad reports and track your ads performance. You can a keyword tracker for this purpose.
Amazon ads are one of the most effective methods for increasing awareness of products and boosting sales. With the correct setup, an Amazon advertising campaign can reliably generate revenue for your business.
It is both exciting and challenging to advertise on Amazon. Because the market is overcrowded, sellers require a flexible and strategic advertising plan to stand out. They must also stay flexible in the rapidly changing marketplace.