Scale Insights Team
Struggling to get your products noticed on Amazon? Amazon advertising may be the solution, providing sellers with advanced tools to boost product visibility and drive sales in a crowded marketplace.
Amazon advertising can elevate your brand with targeted ads and branded pages, which are essential for today's competition.
Amazon advertising’s complexity can be overwhelming for both new and seasoned Amazon sellers, but this guide is here to clarify. We break down its essential features, including Sponsored Products and Brands, into understandable terms.
Read on to master Amazon's marketing and watch your products soar from search results to checkout.
What Is Amazon Advertising?
Amazon Advertising is the comprehensive term for all advertising services offered by Amazon, which includes a range of solutions designed to help businesses promote their products both on and off Amazon. This platform evolved from what was previously known as Amazon Marketing Services (AMS).
The offerings within Amazon Advertising are categorized into two primary groups:
Self-Service Amazon PPC (Pay-Per-Click Ads)
On-Amazon Ads
These ads are instrumental for professional sellers and those enrolled in Amazon Brand Registry to reach a wider customer base. This popular advertising type includes the following:
Sponsored Products: Ads that appear within Amazon search results and on product detail pages. These ads are targeted to specific keywords and are displayed to customers who are actively searching for products related to those keywords. Sponsored Products are a great way to increase product visibility and drive sales.
To create a Sponsored Products campaign, you need to select the products you want to advertise, choose the keywords you want to target, and set a daily budget. You only pay when someone clicks on your ad, and you can track your performance using the Campaign Manager dashboard.: Ads that drive traffic to individual product listings, found within search results and product page placements.
Sponsored Brands: Ads that showcase your brand logo, a custom headline, and up to three of your products. These ads appear at the top of search results and help increase brand awareness and consideration. Sponsored Brands are a great way to promote your brand and products to a wider audience.
To create a Sponsored Brands campaign, you need to have a registered brand on Amazon, select the products you want to advertise, and set a daily budget. You only pay when someone clicks on your ad, and you can track your performance using the Campaign Manager dashboard.
Sponsored Display: Ads that are targeted display ads that appear on and off Amazon. These ads help you reach customers who are browsing related products or interests on Amazon and other websites. Sponsored Display ads are a great way to increase product visibility and drive sales.
To create a Sponsored Display campaign, you need to select the products you want to advertise, choose the targeting options you want to use, and set a daily budget. You only pay when someone clicks on your ad, and you can track your performance using the Campaign Manager dashboard.
In addition to these PPC options, brand-registered sellers gain access to enhanced branding and measurement tools like Amazon Stores, Amazon Attribution, and the interactive Amazon Live—all under the umbrella of Amazon Advertising.
Managed-Service Amazon DSP (CPM, Cost Per Thousand Impressions Ads)
On and Off-Amazon Ads: Amazon DSP is crafted for advertisers seeking to launch expansive campaigns beyond what self-service options offer.
This managed service is open to all advertisers, regardless of whether they sell on Amazon, and typically requires a significant budget, starting around $50,000.
Unlike the swift process of setting up PPC ads, initiating Amazon DSP campaigns involves consulting with an Amazon Advertising account executive to tailor your approach.
Key Features of Amazon Advertising
Amazon advertising offers several key features that make it a powerful advertising tool for sellers and vendors on Amazon. Some of the key features include:
Targeted Advertising: Amazon advertising allows sellers and vendors to target their ads to specific audiences based on keywords, products, interests, and other factors. This targeted approach helps sellers and vendors reach the right customers at the right time, ultimately leading to increased sales and revenue.
Self-Service Platform: Amazon advertising is a self-service platform that allows sellers and vendors to create and manage their ad campaigns. This gives sellers and vendors more control over their advertising and allows them to change their campaigns in real time.
Analytics and Reporting: Amazon advertising provides detailed analytics and reporting tools that allow sellers and vendors to track the performance of their ad campaigns. This data can be used to optimize campaigns and improve ROI.
Budget Control: It allows sellers and vendors to set their own budgets for their ad campaigns. This gives sellers and vendors more control over their advertising spend and allows them to allocate their budgets more efficiently.
How Do I Create an Amazon Advertising Account?
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To create an Amazon Advertising account:
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Sign in to your existing Amazon Seller, Vendor, or KDP account.
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Go to the "Advertising" tab in your account dashboard.
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Click on "Campaign Manager" and accept the Amazon Advertising terms and conditions.
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Enter the required account details, including business and billing information.
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Create your advertising campaigns by choosing the campaign type, setting a budget, and selecting products.
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Submit your campaigns, and upon approval, they will go live as scheduled.
Strategies for Effective Amazon Marketing
When it comes to Amazon marketing, there are a few key strategies that can help you optimize your listings and reach your target audience. Here are some tips to help you get started:
Keyword Optimization
One of the most important aspects of Amazon marketing is keyword optimization. This means identifying the keywords and phrases that your target audience is searching for and incorporating them into your product listings.
To optimize your keywords, start by doing some research to identify the most relevant and high-traffic keywords for your product.
You can use tools like Amazon's Keyword Tool or Google's Keyword Planner to help you find the right keywords. Once you have your list of keywords, make sure to incorporate them into your product title, description, and bullet points.
Target Audience Analysis
Another important aspect of Amazon marketing is understanding your target audience. This means identifying who your ideal customer is and tailoring your marketing efforts to their needs and preferences.
To analyze your target audience, start by looking at your product's features and benefits and thinking about who would be most interested in them.
You can also use Amazon's customer reviews and feedback to get a better sense of your audience's likes and dislikes. Once you have a clear understanding of your target audience, you can tailor your product listings, advertising, and promotions to better appeal to them.
Performance Metrics
Finally, it's important to track your performance metrics to see how your Amazon marketing efforts are paying off. This means monitoring your sales, traffic, and conversion rates to identify areas where you can improve.
To track your performance metrics, use Amazon's Seller Central dashboard or third-party analytics tools to monitor your sales and traffic. You can also use tools like A/B testing to experiment with different marketing strategies and see which ones are most effective.
Amazon Advertising Campaign Management
When using Amazon Advertising, managing your campaigns is crucial to ensuring your ads are effective and efficient. Here are some key factors to consider when managing your campaigns.
Setting Up Campaigns
To set up a campaign, you must choose the advertising format you want to use, such as Sponsored Products or Sponsored Brands. You must also select your targeting options, such as keywords or product categories. Once you have chosen your settings, you can create your ad and set your bid.
Budgeting and Bidding
It's important to set a daily budget that aligns with your advertising goals. You can also set bid adjustments to increase or decrease your bid for specific keywords or placements.
Remember that bidding too high can quickly deplete your budget, while bidding too low may result in limited impressions and clicks.
Monitoring and Optimization
To ensure your campaigns are performing well, it's important to monitor them regularly and make adjustments as needed. You can use Amazon's reporting tools to track your ad performance and identify any areas that need improvement.
From there, you can optimize your campaigns by adjusting your bids, targeting, and ad creatives to improve your ROI.
Challenges and Considerations of Using Amazon Advertising
There are several challenges and considerations that you need to keep in mind in Amazon advertising. Two of the most important ones are Competition Analysis and Ad Compliance and Restrictions.
Competition Analysis
There are thousands of sellers on Amazon, many of which are using Amazon ads to promote their products. This means that you need to be strategic in your advertising approach and understand your competition well.
To do this, you should conduct a thorough analysis of your competitors. This includes looking at their product listings, pricing, and advertising strategies.
You can use this information to identify market gaps and develop a unique selling proposition (USP) for your products.
Ad Compliance and Restrictions
Another challenge when using Amazon ads is compliance with Amazon's advertising policies. Amazon has strict guidelines on what you can and cannot advertise on their platform.
For example, you cannot advertise illegal products that violate Amazon's intellectual property rights.
To ensure that your ads comply with Amazon's policies, you should familiarize yourself with their advertising guidelines. You should also ensure that your ads are accurate and truthful and do not mislead or deceive customers.
In addition, you should be aware of any restrictions on the types of ads that you can run. For example, Amazon may limit certain keywords or ad formats. You should also be aware of any restrictions on the placement of your ads, such as limitations on where your ads can be displayed on the Amazon website.
Conclusion on Amazon Advertising (Previously AMS)
Mastering Amazon Advertising is key to propelling your brand in a global retail arena. Equipped with knowledge of Amazon’s advertising tools, you can now enhance your selling strategy on Amazon—not just by gaining visibility but by forging valuable connections with customers and significantly growing sales.
Keep in mind Amazon is an ever-changing landscape. So if you’re looking to optimize your Amazon advertising strategy further, we offer a free trial for new signs on our Amazon PPC software. Don’t miss this opportunity to boost your visibility and make an instant difference in your sales — sign up here!
Frequently Asked Questions
What Is Amazon's Most Common Form of Advertising?
The most common form of advertising on Amazon is pay-per-click (PPC) advertising, which includes Sponsored Products, Sponsored Brands, and Sponsored Display ads. Advertisers pay a fee each time a customer clicks on these ads, allowing them to boost product visibility and sales.
How Much Does It Cost to Advertise on Amazon?
The cost to advertise on Amazon varies based on several factors, including the type of ad, the competition for keywords, and the target audience. Advertisers bid on keywords for Sponsored Ads and pay per click, with the average cost ranging from a few cents to several dollars per click.
What Is the Difference Between AWS and AMS?
Amazon Web Services (AWS) is Amazon's cloud computing platform offering various services like hosting, data storage, and AI, while Amazon Marketing Services (AMS), now known as Amazon Advertising, refers to Amazon's suite of advertising tools designed to help sellers promote their products on the Amazon marketplace.
How Are Amazon Ads Paid For?
Amazon ads are paid for on a cost-per-click (CPC) basis. Advertisers set bids on keywords or products and only pay when a shopper clicks on their ad, allowing for precise budget management and measurable advertising cost relative to the traffic generated.
Can Advertising on Amazon Improve Organic Product Rankings?
While Amazon advertising itself does not directly influence organic rankings, the increased visibility and sales from ads can lead to improved organic performance over time by signaling product popularity and relevance to Amazon's search algorithm.
What Types of Targeting Can Be Used in Amazon PPC Campaigns?
Amazon PPC campaigns offer several types of targeting, including keyword targeting, product targeting, and category targeting. Advertisers can choose specific keywords, competitor products, or broader categories to place their ads in front of the most relevant audience.
How Can I Track the Success of My Amazon Advertising Campaigns?
Tracking the success of Amazon advertising campaigns can be done through the Amazon Advertising console, which provides performance metrics like impressions, click-through rate, conversion rate, and ACoS. Analyzing these metrics helps advertisers optimize their campaigns for better ROI.
