Complete Guide to Amazon Advertising 2021

amazon advertising

Although setting up an Amazon store is easy, getting your product noticed takes patience. It’s difficult to get the attention needed to generate sales when there are so many merchants trying to sell the same item. As a result, leveraging your store with Amazon advertising campaigns is your best bet for selling quickly on Amazon.

Amazon Sponsored Products Ads, Amazon Headline Search Ads, and Amazon Product Ads (also known as “Product Display Ads”) are the three ad formats available. If you’re a third-party seller, you’ll have to use sponsored product ads, which are the most popular form of ad. 

Let’s learn what you need to know to support your Amazon advertising business if you’re new to Amazon’s advertising platform or need some assistance. In this article you can find the best Amazon advertising tips that can come in handy.

Well, What Is Amazon Advertising?

Advertising on Amazon is very similar to Google Ads. When you check for a keyword on Amazon, some of the top results will be sponsored posts, which are referred to as Amazon Ads. They’re identified by text that reads “sponsored” or “ad.

Amazon PPC stands for “Amazon Pay Per Click,” and it is a billing model for advertising with Amazon. The advertiser incurs costs only after a click on the ad is made. While Pay per Click refers to the payment process, the term PPC is more commonly used to refer to the digital advertising options that are billed by Pay per Click. Amazon Sponsored Ads are a form of PPC ad on Amazon. The Amazon Sponsored Product Ad is the most common advertisement format, and it can appear on either a search results page or a product description page. PPC advertisements are paid for by Amazon retailers depending on the number of clicks on the Sponsored Product, as the name implies.

But what is the aim of Amazon PPC management? Simply put, it is to identify the keywords that are used to show your advertising, get clicks, and make as many sales as possible.With high bids and regular budgets, it’s a piece of cake to get noticed. This improves the likelihood of obtaining clicks and sales. Sounds good, doesn’t it? 

However, one of the most challenging aspects of PPC management is keeping bids as low as possible to produce not only a large number of sales but also revenues from those sales. If, for example, the cost of a click exceeds the profit margin of the advertised product, no profit can be made from the ad campaign, no matter how many items are sold. And if an ad generates a lot of clicks but no sales, the merchant would lose money. Let’s take a closer look at Amazon advertising forms. 

What Amazon Advertising Formats Exist?

You can advertise on Amazon in a variety of ways. The following three key forms are available at this time:

  • Sponsored Product Ads
  • Sponsored Brands
  • Sponsored Display Ads

The value of ads on Amazon can be seen by looking at the search results page. You have a slim chance of being available to potential customers if you don’t pay. Only ads (marked in red) can be seen before they start scrolling, “Over the Fold,” after entering most of the search words.

amazon advertising login

Amazon Sponsored Product Ads or Sponsored Products

The most popular form of ad on Amazon is Sponsored Product Advertising (SPAs). They appear above, between, or below organic search results and are similar to text advertising on Google. They can also be found on product description pages in the “Sponsored items relevant to this object” section or below the attributes.

The only visual difference between sponsored and organic search results is a small “Sponsored” indicator (marked in red). Special deals, different prices, names, or photographs are not permitted for SPAs.

amazon advertising revenue

Besides the organic picture, title, and price information of a product, the ad contains no other information. Customers are led to the product information page when they click on one of the Sponsored Product Ads.

Sponsored Product Ads are advantageous for growing sales of newly released goods or products with low organic rankings. They often help to fill advertising space for relevant search keywords, ensuring that the company’s visibility is maintained.

Sponsored Product Ads are available in three variations, each of which allows you to choose the maximum CPC (the rate you pay for one click):

  1. An automated option where Amazon finds appropriate search words and items for you.
  2. A manual keyword-based option where you choose a match form and keyword.
  3. A manual product option where you can target a specific market and product categories.

Since they are shown on top of every competitor’s product: immediately under the search field and above both the organic search results and the Sponsored Products, Sponsored Brands are presented to the consumer at the start of the buyer decision process.

amazon advertising account

By clicking on the Sponsored Brand logo or title, you are directed to an Amazon Store, a custom landing page, or a custom Amazon URL that includes at least three branded items (for Amazon vendors only). As the advertiser, you set the target. Customers are guided to their product description page after clicking on one of the featured ASINs. 

When the Amazon logo and a call-to-action are shown on a third-party website, they are also integrated. They can be of different sizes and link to the advertised product description pages.

If they have an Amazon brand registration, sellers, dealers, and agencies with Amazon customers can use Sponsored Display Ads.

amazon sponsored ads

They’re visible because of unique interest groups, brands, or page views. You may, for example, target people who have seen your product description page but haven’t bought it yet. 

After Getting to Know Amazon Advertising Formats, It’s Time to Learn the Best Amazon PPC Strategies.

There is a common belief that a one-size-fits-all approach works best: that is what many PPC agencies think. However, it is crucial to understand specific goals and your unique target markets to achieve the best results. Here we will take a look at two successful Amazon PPC strategies: 

  • Getting the Most Out of Your Bids

It’s a super competitive game when it comes to Amazon advertising. And there’s no better way to find out for yourself than to improve your bids. It’s an essential thing to develop because if you don’t, you’ll be overlooked by the Amazon gods, and your rivals will come in to pay your way. 

Ad agencies and Amazon advisors adore the little details when it comes to optimizing bids.

You can experiment with your bids to find the “perfect balance” between profitability and growth, for instance. You can also test your ACoS percentage to see how much more efficient the same ad selection can become.

  • Obtaining Keywords

You’re using your paid auto campaigns to find the most appropriate Amazon search keywords for you. Following that, the winners are included in your manual PPC campaigns.

What Is the Average Amazon Advertising Cost?

Advertisers on Amazon usually pay $0.81 a click. It’s important to keep in mind that the price isn’t fixed. The price of your promotional campaign will be determined by your budget and your competition.

You should plan to pay extra for intensely competitive keywords. That will trigger a bidding war, which will raise the price.

What Are Amazon PPC Costs? 

Similar to Facebook advertising, Amazon PPC functions like an auction. This ensures that interested participants bid the highest amount they can spend. The top bidder gets the best ad spot and only pays a penny extra than the second highest bidder.

Let’s imagine there are 3 different advertisers:

  • First advertiser – $5/click
  • Second advertiser – $6/click
  • Third advertiser – $7/click

That is to say, the third advertiser will win. Since the second advertised was the second best bidder after them, they would receive the highest ad spot.

How to Optimize Your Amazon Ads

You might be skeptical that, with so many goods on Amazon, the platform would generate a profit for your business. Fortunately, there are a few things you can do to set yourself apart from the crowd on Amazon’s vast marketplace. It just takes a well-thought-out Amazon advertising campaign to get started.

  • Make Well-Ordered Campaigns Based on Product Categories

You might be skeptical that, with so many goods on Amazon, the platform would generate a profit for your business. Fortunately, there are a few things you can do to set yourself apart from the crowd on Amazon’s vast marketplace. It just takes a well-thought-out Amazon advertising campaign to get started.

  •  Create compelling and time-sensitive ad copy.

Make sure the ad text is not only factual in terms of what you’re offering but also creative and humorous if at all possible. In the crowded Amazon search results, standing apart is more critical than ever. It’s also a good idea to instill a sense of urgency. When you’re doing a sale or a coupon, for example, make sure to mention it.

  • Get the ad copy as precise as possible.

Your ad copy should also be very specific in terms of what you’re selling. Although it can be difficult to include all of this information in the ad document, it is critical to include the most relevant information. 

  • Try each of the three ad formats available.

Though supported product advertising may tend to have the most immediate and measurable return on investment, headline search ads may result in more loyal customers. It’s worth playing with all three ad forms to see which generates the best outcomes, and then re-allocating your budget based on the campaign’s results until the numbers are clear.

 AAP and DSP Should Also Be Taken Into Account When It Comes to Advertising On Amazon. 

The Amazon Advertising Platform (AAP) is Amazon’s Demand Side Platform (DSP), which is available as a controlled service from Amazon or self-service by approved companies. Advertisers can target Amazon’s audiences on third-party websites and applications using a variety of ad types, including:

  •  Show advertising on the desktops and mobile web.
  •  Create banner advertisements for mobile devices.
  •  Design interstitial ads for mobile devices.
  •  Place ads in trending videos.

Advertisers can only reach Amazon customers off of Amazon with a DSP media purchase, and advertisers can only buy ad space on Amazon’s pages using AAP. It’s important to take into account that advertisers can hit Amazon consumers with direct content on Amazon’s blogs, smartphone applications, and Fire tablet wake screen using Amazon video advertising.

Name and product recognition can be increased with DSP promotions. However, if a company’s goal is to spend money on ads that have a direct impact on revenue, AAP may not be the best option. It’s more suited to businesses that already run show advertisements on other channels and are familiar with the essence of brand advertising.

Final Thoughts 

Amazon advertising is an important part of many E-Commerce retailers’ digital strategies. Because of Amazon’s size and reputation among customers, generating revenue on the platform is not only a must, but also a must for retailers looking to expand their businesses. Customers can be leveraged by Amazon ads to help win visibility for their Amazon store.

The most expedient choice for sellers who wish to earn attention for their Amazon store is to use consumers through Amazon ads. Although this step takes a lot of time and effort, the return on investment in terms of potential customers is well worth it.

What Is Amazon Advertising?

Advertising on Amazon is very similar to Google Ads. When you check for a keyword on Amazon, some of the top results will be sponsored posts, which are referred to as Amazon Ads. They’re identified by text that reads “sponsored” or “ad.

What Is the Average Amazon Advertising Cost?

Advertisers on Amazon usually pay $0.81 a click. It’s important to keep in mind that the price isn’t fixed. The price of your promotional campaign will be determined by your budget and your competition.

What Are Amazon PPC Costs? 

Similar to Facebook advertising, Amazon PPC functions like an auction. This ensures that interested participants bid the highest amount they can spend. The top bidder gets the best ad spot and only pays a penny extra than the second highest bidder.

Image credits in order of appearance: © Tierney – stock.adobe.com / Screenshots @ Amazon

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