A Guide To Understanding Amazon Sponsored Products – PART 2

How to get started with Amazon sponsored product ads?

Procedure to get started:

1. Create your professional seller account by signing up for Sellers Central.
2. Create your sponsored product campaign.
3. Choose the product you want to advertise with Amazon.
4. Decide which keywords you want to target for your product.
5. Determine your budget.
6. Create your first ad with Amazon.

Unlike other products sponsored products are launched immediately upon completion. They appear directly in the organic results of Amazon. This is precisely why advertising on Amazon is more effective. The intent to purchase is the most significant reason for advertising on Amazon. Also, it is relatively easy to get started on promoting products with sponsored ads.

Sponsored product ads use keywords for targeting. There are two ways of adding keywords to your campaign. You can add keywords manually or you can let Amazon do your job automatically.

Automatic vs manual ad campaigns in sponsored product ads.

Automatic campaign: It is easy to set up and run but you don’t have control over it and it’s equally hard to optimize the auto campaign. Amazon automatically uses the best keywords for the product you decide to advertise. You need to give inputs i.e. daily budget, product to be advertised, start and end date, and default bid. With simple set up and easy to start, this is most useful for beginners. Automated campaigns allow you for a long tail keyword search giving a competitive advantage over other sellers.

Manual campaign: It is easy to control but you have to put an extra effort into setting and optimizing the manual ad campaign. It has a large scope in increasing the overall profit. You have to pick the keywords to be placed manually and set the keyword match type and place a bid for each keyword. This makes manual ad campaign time consuming but at the same time gives extreme precision in control over the auto campaign. For a decent coverage of the entire product search, it is advisable to put around 30 to 40 keywords and include them in your broad match type.

For the success of both types of the campaign, routine optimization of the ads is critical. Make sure to run the optimization within a reasonable time and after you collect enough data to support your decisions. Ideally, it is advisable to wait at least one week between each optimization run.

How does Amazon sponsored product ads work?

When someone searches with the keywords, your product will enter the ad auction with your bid. If you win then Amazon will show your product ad.

You must bid for your keywords. When the customers enter the product name or descriptions in the Amazon search bar and that resembles the keywords you bid in, then your ad will enter the auction. If your bid wins the auction then finally Amazon shows your product in the sponsored section. Remember that you only have to pay when the customers click your ad.

There are three types of matches: Broad, Phrase, and exact match.

In manual search type, you need to select the match type for each keyword to be either broad, phrase, or exact.

Broad Match– This is the most flexible and non-restrictive match. Here the prospect’s query matches your target keyword including misspellings, variations, and different word orders.

Phrase Match– The search must precisely match the target keyword, or the prospect’s query must contain the target keyword.

Exact Match–  It is the most restrictive type of match. The search query must match exactly the target query. Your ad will not show with “similar” matches, but only exact matches with the words searched by the customers.

Sponsored Product ad startup strategy for beginners.

Before kicking off your ad campaign filter your product listing SEO. Make a product set for running a particular ad campaign. Make sure that the products have similar keywords and have a similar profit margin. Combine automatic and manual campaigns.

Automatic campaigns usually work by employing continuous keywords while manual campaigns can be launched wherever you find better keywords then automatic campaigns for ultimate control and optimization of the words.

Conclusion

If you are considering selling a product on Amazon, it is the best time to consider using Amazon Sponsored Products ads. You’ll enjoy a reasonable cost per click and have a chance to promote new products at the top of an Amazon search.

Although Amazon sponsored product ads are the most lucrative advertising tools, your success is primarily dependent upon how you launch your ad, budget your ad, and many other factors that you need to manage with your own knowledge and prior experience.

Read the First Part here: A Guide To Understanding Amazon Sponsored Products – PART 1