A Guide To Understanding Amazon Sponsored Products – PART 1

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What are Amazon sponsored products ads?

Amazon sponsored ads are one of the most effective ways to increase the visibility of your products and conversions.

With the inflow of a considerable amount of new sellers in the Amazon market, the competition for selling your products is also tough.

Sponsored product ads make your product visible and ahead of the intense competition in the market.

Amazon sponsored products are pay-per-click ads that are placed in the strategic location on the Amazon search page for product visibility and opportunity of sales.

The ads appear in the search results right next to the searched product. Sponsored product ads are an advertising option located within Amazon advertising console.

These ads appear at the top and bottom of the search result pages, within organic results, and on the carousel of the product detail page.

There are so many pages this advertisement is displayed that it is almost impossible for a customer not to see your ad.

Factors determining the success of Amazon sponsored products.

Amazon sponsored products ads are effective but it is as much difficult to crack the right strategy.

There are multiple factors that contribute to the success of a sponsored ad, here are some important ones that you should never ignore:

  1. Budget: The unique and best feature of this ad is that you will only get paid when someone clicks your ad. Higher the budget, the more chances of the click. But the trick is to choose the budget wisely, to match your budget with your expectation and goals.
  2. Strategy: You have to do experiments and tests to find out what strategy is working best for you and giving you the required results. A winning ad requires optimization, testing, creating well-structured ad campaigns.
  3. Product Images: Even if you are selling the best product in the world, it won’t sell unless you provide your audience with high-quality and clear images. Product images are one of the most important factors that go into creating a winning Amazon sponsored products ad. Good images visually attract and entice the prospect to buy the products. Besides, Amazon has set compliance requirements for images, ads and product detail pages should showcase features, action shots, and different angles of the pictures.
  4. Product and ad page copy: The ad copy and product description is going to be the first impression that you are going to need to attract your customer. Therefore your ad copy needs to answer all probable questions of the customers. If you want to get more clicks for your ads then make sure your copies are not confusing but are filled with the right information.

Why you should use Amazon sponsored products

Amazon sponsored products are essential for building awareness, driving conversions, and protecting and expanding your brand space. Sponsored product ads are the most important to Amazon sellers because:

  1. No previous advertising is required for the product. Customers can easily find the products on the shopping results.
  2. The first page gives sponsored sellers visibility of the search results to the products.
  3. Display of your product at the top of the first page leads to a chance of better clickability resulting in increased sales.
  4. This also helps in analytics. The impact of the sponsored ads on sales and other various performance measures can be directly tracked.
  5. The Cost-per-click (CPC) feature Amazon sponsored products ads facilitate you to pay only when your ads are clicked.
  6. They appear on almost every page of customers’ purchasing journey resulting in a higher conversion rate.

Who can use Amazon sponsored products?

This feature is not available worldwide. To advertise your product, it must be eligible for the featured offer.

Almost all the professional sellers, vendors, brands, agencies, and kindle direct publishing (KDP) authors can publish their advertising through sponsored product ads.

Almost every category of products qualifies for them but they must qualify for the featured option and you must be able to ship to all the US addresses.

Countries where Amazon sponsored product ads are available:

  • North America: Canada Mexico and the United States.
  • Europe: Germany, Spain, France, Italy, and the United Kingdom
  • Middle East: UAE
  • Asia Pacific: India, Australia, and Japan

Before you start advertising your products on Amazon make sure to check for all the followings:

Account Type: Get enrolled with Amazon’s brand registry and have an active professional seller account.

Product Type: You have to review the creative acceptance policy of Amazon for sponsored products, sponsored brands, and sponsored display.

Featured Offer: The product that you advertise on Amazon should be eligible for the Featured offered placement.

Amazon describes the featured offer as “offers for new products that we display on a product detail page with an Add to cart button that customers can use to add items to their shopping carts”.

Sponsored ads are billed as per the pay-per-click model. For advertising, all the sellers submit a bid for their respective ads. It is the highest bidder who wins the highest position but also pays the highest price.

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