Amazon is the largest marketplace. Amazon is so beloved by online shoppers, that many of them won't even consider buying products from the site.
Amazon's dominant position is closely linked to the high level of competition among Amazon sellers. Amazon Advertising is growing. Sellers need to have a flexible and strategic advertising plan that will give them the highest ROI.
Amazon Advertising
Amazon Advertising, formerly AMS or Amazonamazondsp Marketing Services, is a service that functions similarly to Google's pay-per-click ads. Sellers only pay when customers click on the ads (regardless if the item sells).
Amazon's advertising business continues to grow at an impressive pace as it diversifies its product offerings across its ecosystem. Amazon DSP (Amazon Demand Side Platform), allows sellers to programmatically purchase display and video ads at a large scale. They can target audiences on Amazon.com Fire TV Sticks and IMDb.com.
Amazon Advertising Benefits
Amazon advertising comes with many advantages:
- Advertisers want a brand-safe, high-quality environment
- Reduce the sales cycle
- Sales history and product visibility can be improved
- Increasing brand awareness
- Gain valuable insights into changing consumer behavior and optimizing campaigns to reach a broader audience
- You can find tons of information about your shoppers and their shopping habits.
- Learn the best ways to get customers in a certain time
- Being able to track your results and make data-driven decisions.
Amazon's Advertising Model
Amazon Advertising uses a pay-per-click (PPC), which is different from other marketplaces such as eBay. eBay promotes the pay-per-sale (PPS) funding model through promoted listings.
Relationship between Amazon Ads and Organic Search
Amazon ads are interconnected with organic search. Amazon's goal is for the platform to sell high-converting, best-selling products that are relevant to the query. Amazon will prioritize products that are most likely to be sold, i.e. Products with a good track record of sales and positive feedback.
Organic rankings rise when there is more feedback and sales.
Amazon Ads: Types
Amazon sellers have many options when it comes to ad placements and formats. Amazon Sponsored Product, Amazon Sponsored Brand, etc. You can find out more about the given ad types below.
1. Sponsored products
Sponsored Products refer to the product listings that are displayed on search results pages and product detail pages. These are pay-per-click, targeted display ads that target specific products. The link takes you to the product details page.
A reporting tool allows you to measure the effectiveness of your sponsored product ads. It displays clicks, spends, sales, and advertising costs of sales (ACoS).
2. Sponsored Brand Campaigns
Sponsored brand campaigns allow you to promote keywords-targeted ads for multiple products, above, below, and alongside search results. These campaigns are based on an auction-based, pay-per-click pricing model. The shopper can be directed to either your Amazon Store or your custom product page.
Your ads can feature up to three different products. You can customize and test your ads' headline, image, and landing page.
A reporting feature allows you to monitor the performance of your ads. It displays clicks, spends, and sales. You can also see your keywords' win rate and estimated ACoS (Advertising Cost Of Sales).
3. Advertisement for Product Display
Product Display Ads, which are pay-per-click ads, have the primary goal of upselling or cross-selling to your customers. This inventory is not available to only those who sell on the platform, but all advertisers can access it. This category is broken down by Amazon into three categories: custom, video, display.
Display ads are found on product detail pages and customer reviews pages. They also appear at the top of the offer listing pages and below search results. They can also be found in abandoned cart emails and follow-up emails.
You can use a reporting tool to measure your performance. It displays clicks, spends, sales, advertising costs of sales (ACoS), detail pages views, average cost-per-click (ACPC), and other metrics.
4. Video ads.
Video ads can be placed on Amazon.com, IMDb, Amazon devices such as Fire TV, and other properties. You don't need to sell products to buy Amazon video ads.
5. Amazon Stores.
Amazon allows users to promote their brand or product on their multi-page Amazon Store. Brands can get an Amazon URL, and view traffic analytics.
6. Amazon Native Ads
Amazon Native Ads are available for brands to place on their website. These can be search ads, recommendation ads, or custom ads.
