It should come as no surprise that businesses are increasing their budgets for advertising on Amazon, given that more than 50% of consumers use the site to find new products. What kinds of Amazon advertisements should your company run to increase sales while lowering advertising costs per sale? Learn more in this practical guide that examines each of the Amazon advertisement categories. Alternatively, if you’d like a customised recommendation, get in touch with us via the web or give us a call at +91 74 9002 1947 to speak with one of our honourable strategists at our Amazon advertising agency.
With nearly 200 million monthly visitors, Amazon is by far the largest retailer in the world and the 500-kg silverback of online shopping. Having your product prominently displayed in front of all of these customers makes complete sense. Sadly, everyone else does the same thing: More than 600 million products are available in the US on Amazon.com. You must therefore find a way to reach all of these customers with your product, or your competitors will. Please welcome Amazon Advertising (formerly known as Amazon Marketing Services or AMS). You can get your products featured on the biggest online retailer in the world thanks to the Amazon Advertising Platform, which was introduced in 2012. In order to increase sales, this can help with brand awareness and product visibility. The three types of advertising that are currently available are sponsored brands, sponsored products, and product display ads. Headline Sponsored Brands was the previous name for search ads. Your sales may increase dramatically if they collaborate!
Who is Eligible to Use Amazon Advertising?
Anyone with a Seller Central account can currently access Amazon Advertising, but a Vendor Central account is required to fully utilise its capabilities. By doing this, you’ll be able to make any kind of advertisement and sell your goods on Amazon.
What distinguishes a vendor account from a seller account?
Sellers list, price, and market their own products, whereas vendors sell their goods to Amazon, which lists and sells them to its users. This is the difference between a seller account and a vendor account. Another distinction is that customers who purchase products from vendors will see a “Sold by Amazon” notice on the product page. Their confidence in the product may increase as a result, increasing sales. Vendors also avoid paying Amazon seller fees, such as those associated with referrals, fulfilment, or even account maintenance. Instead, they make a small monthly payment to be able to sell an unlimited number of goods. This cost also includes options for gift wrapping and Amazon fulfilment. The biggest distinction is that vendors now have access to all of Amazon Advertising’s marketing opportunities.
How Does Amazon Advertising Work?
Similar to other Internet-based advertisements, Amazon Advertising operates via a lightning-fast bidding system. Numerous ads compete for the right to be displayed on a particular page whenever Amazon makes that decision. Budget is just one of the elements used to select the winner; Amazon also employs a ranking system to choose the most lucrative Ads. Once chosen, your advertisement appears on Amazon’s search page. When someone clicks on your advertisement, you are charged. The benefit of using this Pay-Per-Click (PPC) advertising model to increase brand awareness is that you can display your advertisement as frequently as you like. However, regardless of how much you bid, if you fail to properly target it and only a few people click on it, Amazon will lower its ranking and display other ads in its place. This explains why “Amazon never displays my ad,” a common complaint about Amazon advertising, is true.
Choosing Your Market Since you only pay Amazon when a customer clicks on your advertisement and when you complete a sale, Amazon benefits from successful advertising. Running the best campaign possible is therefore in your best interests as well as those of Amazon. You need to target your audience as effectively as possible in order to increase clicks and make the most of your advertisement. An audience that is interested in your product will click on the advertisement more frequently. Everybody benefits, including Amazon. But identifying the ideal customer base for your product is notoriously difficult. Three methods are used to achieve targeting.
Three Different Types of Ad Campaigns for Amazon
Once your audience has been reduced, you can select which of the following types of ads to display to them:
Amazon Sponsored Brands Ads
Sponsored Brand Ads on Amazon (Previously known as Headline Search Ads) Brands can advertise three or more products using Amazon Sponsored Brands Ads (previously Headline Search Ads), which can direct visitors to any of the websites listed below: Sponsored Brands Ads, as the name implies, appear at the very top of the Search Results page (marked in green) when you search for something: You might have noticed how Amazon shows its own advertisements in the example above. Yes, there are circumstances in which your product may need to outbid Amazon itself, depending on your product. Since third-party sellers must be accepted into the Brand Registry programme in order to be eligible for Sponsored Brands, they are actually not for everyone. Building a brand is made especially easy with Amazon Sponsored Brands. Their size and placement on the page ensure that they are seen, and the fact that they can link to a brand page enables you to market your entire brand rather than just one particular product. It is best to direct customers who click on Sponsored Brands Ads to the Brand page so they can view a variety of products since they are probably just starting the buying process. You might have noticed how Amazon shows its own advertisements in the example above. Yes, there are circumstances in which your product may need to outbid Amazon itself, depending on your product. Since third-party sellers must be accepted into the Brand Registry programme in order to be eligible for Sponsored Brands, they are actually not for everyone. Building a brand is made especially easy with Amazon Sponsored Brands. Their size and placement on the page ensure that they are seen, and the fact that they can link to a brand page enables you to market your entire brand rather than just one particular product. It is best to direct customers who click on sponsored brand Ads to the brand page so they can view a variety of products since they are probably just starting the buying process. The promotion of a variety of goods is also fantastic with Amazon Sponsored Brands. Since you can showcase up to three products, you can advertise a variety of products, ranging from the more affordable ones to the more expensive ones. As you effectively get three times as many ads for the price of one, this indicates that ads can be both affordable and effective. The best thing about them, though, is their positioning: since they show up at the top of a search page, there is no chance that shoppers will overlook or ignore your Ad, especially since you can use your own Ad copy to grab their attention. Additionally, their targeting is excellent: only users who are actively looking for the products you sell will see your ads, giving you a high chance of turning these views into actual sales.
Sponsored Product Ads on Amazon
Sponsored product ads are the ones that are most effective. If you conduct a search on Amazon, you will see some items labelled “Sponsored” among the results. These are goods that, based on your search terms or the subject matter, Amazon believes you might find interesting. Your product can be effectively promoted to the right audience by using sponsored products. When a customer clicks on your advertisement, they are directed to your product detail page rather than one of your competitors. By doing this, you can draw potential customers away from your competitors’ pages and onto your own. In fact, your rivals most likely already practise this, especially given that Amazon allows you to target particular products. By setting up your bids and keywords, you can use Sponsored Products Ads to have your ad appear on search results pages. On a desktop computer, these might show up above, below, or inside the search results. They may show up above or below the search results on mobile devices. Sponsored Products Ads also show up as a row of products on product detail pages: The large number of products listed here, however, lessens its potency as a marketing tool. You may have noticed in the image above that the counter reads Page 1 of 69 in the top-right corner. Consequently, it’s possible that your potential customer will never see your advertisement.
Product display ads on Amazon
Amazon has added a third type of ad known as a “Product Display Ad” to ensure that a customer sees it. Under the “Add to Cart” section, on the bottom right of a product listing, this is displayed. As the final advertisement a potential customer will see before making a purchase, this is a prime location. You can cross-promote your own products using product display ads. Image from Amazon.com Product Display Ads only showcase a single product, as opposed to Sponsored Ads that include dozens of products, giving you much better control over the placement of your Ad. Cross-promoting your own products is a fantastic way to use Product Display Ads. On each of your product pages, display one of your own ads. Use this advertisement to direct customers to more premium, better versions of your products. They can also be used to target particular goods offered by your rivals. This is your last chance to suggest to the customer that they check out your product as well before making a purchase. Provide customers with a better product at a lower cost. You might want to raise your bids to make sure that only your own products appear on your page because your competitors are probably already doing this to you. Even better, Amazon will target users who have visited a product for which you run Product Display Ads in their newsletters, boosting the effectiveness of your ads.
How Can I Tell If My Ads Are Effective?
Just watch your sales rise—as they say, the proof is in the eating! However, Amazon also has a useful metric known as ACoS. (Average Cost of Sale). This enables you to calculate the cost of each sale. The lower your ACoS, the better. For example, if you sell a product for $10 and spend $10 on advertising, your ACoS is 100%, meaning that you are losing money. However, if you only spend $1 on advertisements, you will have an attractive profit margin of 90% and an ACoS of 10%. Amazon’s metrics make this easier. Amazon now includes monthly data, enabling you to sort sales by date, further aiding advertisers. This enhances the data already available and enables you to test your campaigns more effectively.
Amazon Advertising can help you reach your full sales potential in Ahmedabad. Using our effective advertising options, you may reach a massive audience and propel your business forward. Get the ball rolling on your campaign immediately and judge the outcome for yourself. Just click here to start.