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Amazon Advertising | Online Marketing for All Business Size

As an example, at jmexclusives, we use Amazon Advertising or Amazon PPC Services to produce targeted advertising campaigns that help us and our affiliates sell more, and worry less. Additionally, through Amazon Sponsored Products Management, we use calculated advertising to increase the Amazon product’s profit margin.

But, before you sink your hard-earned money into Advertising with Amazon, you should know that it’s a complicated process. Whereby, Amazon sponsored products advertising, in particular, should be executed with a well-defined strategy. As part of our Amazon marketing agency plan, we’ll provide you with a very complete picture – from A to Z.

What Is Amazon Advertising?

As you know, Amazon is one of the biggest marketplaces for individuals and businesses alike as of today. It’s so popular among online shoppers that some of them are so loyal (Amazonians). Such that they won’t even consider purchasing products off the platform. And for the Ninth Consecutive Year, Customers Rank Amazon #1 in Customer Satisfaction.

What Is Amazon Advertising?

Amazon Advertising is a service that works in a similar way to Pay-Per-Click (PPC) ads on Google. Whereby, sellers only pay when shoppers click on ads (regardless of whether or not the item sells). Eventually, Amazon’s leading position goes hand in hand with high competition among Amazon sellers.

Brands can no longer ignore the power that Amazon has when it comes to marketing directly to consumers. Its Advertising Network is growing and sellers need a strategic and flexible advertising plan that will bring them the best possible ROI. Its market share has also grown exponentially, with more brands shifting their attention to its Network too.

As a matter of fact, $0.51 of every ecommerce dollar is spent on Amazon. Not only that but, more and more product searches are done on Amazon than on Google. According to the inner workings of the Amazon Advertising Infographic, there are three lynchpins in Amazon’s ad offerings.

Remarkably, as of today, the advertising business is growing at a rapid pace. Especially, as it diversifies its products across its various internet and web-based ecosystems.

For instance, it sells:

  • sponsored product ads,
  • headline service ads,
  • product display ads on a cost-per-click basis to its partners, etc.

More specifically, you’ll use the following items in order to target audiences on Amazon.com, Fire TV Sticks, IMDb.com, Kindles, Freedive, etc. As well as its affiliate web apps, third-party sites, apps, and platforms. In short, Advertising on Amazon comes with many benefits (we’ll more into that later).

How Amazon Advertising Works

As I mentioned, Amazon Advertising (formerly AMS or Amazon Marketing Services) is a service that works in a similar way to pay-per-click ads on Google. Whereby, sellers only pay when shoppers click on ads (regardless of whether or not the item sells).

In short, Amazon Advertising is a Pay-Per-Click (PPC) model that differs from some other marketplaces. Like the way, Promoted Listings on eBay supports the Pay-Per-Sale (PPS) funding model. For example, the Amazon Demand Side Platform (DSP) has allowed sellers to programmatically buy display and video ads at scale.

Through Amazon Marketing Services, Amazon picks up revenue on the front end (i.e. advertising) and the back end when products are sold on Amazon. This puts them at a huge advantage to both Google and Facebook. Not that they are selling advertising but not getting revenue from the sales that those ads generate.

Find The Right Marketing Solutions:
  • Sizmek Ad Suite: Create, distribute, customize, measure & optimize campaigns to support your brand activation goals.
  • Video Ads: Combine sight, sound, and motion in ads on Amazon sites, devices like Fire Tablet, and across the web.
  • Sponsored Brands: Boost awareness with your logo & a customized headline in ads that appear in search results.
  • Sponsored Products: Improve visibility of individual products with ads that appear in search results & product pages.
  • Stores: Inspire your customer’s loyalty with your own free multipage Store on Amazon.
  • Sponsored Display: Grow your business by reaching relevant audiences on and off Amazon.

In general, the Amazon Media Group offers ad displays on Kindle and Fire devices and across the web through its advertising platform. While Amazon Publisher Services provides access to Amazon’s header bidding capability. In order to compete with exchanges that allow advertisers to bid on inventory.

The more niche your product is, the less you will likely have to spend on advertising on Amazon’s platform.  However, for most products, I have found that at present the cost to advertise on Amazon is significantly less than other advertising platforms like Google Ads. In that case, there are a few things to know first.

Find The Right Advertising Solutions:
  • Amazon Attribution (Beta): Discover how your non-Amazon digital marketing tactics are helping drive sales.
  • Posts (Beta): Drive brand discovery and consideration with curated lifestyle imagery in your brand’s feed.
  • Amazon DSP: The demand-side platform provides advanced tools for buying Amazon ad placements both on and off.
  • Audio Ads: Amazon Audio Ads help brands connect with audiences as they listen to its music’s free ad-supported tier.
  • Amazon Live: Drive your product’s consideration by educating & interacting with customers in shoppable livestreams.
  • Custom Advertising Solutions: Generate awareness for your brand with innovative, customized advertising experiences.

As I mentioned, Amazon Advertising is a Pay-Per-Click (PPC) model that differs from some other marketplaces. Like the way, Promoted Listings on eBay supports the Pay-Per-Sale (PPS) funding model. But, there’re a few things to know.

Consider the following:
  • The quality, brand-safe environment that advertisers want
  • Reducing the sales cycle
  • Improving sales history & product visibility
  • Improving brand awareness
  • Gaining valuable insights on changing consumer habits & optimizing campaigns to reach a more targeted audience
  • Tons of shopping journey data about who your shoppers are and how they shop
  • Learning the best ways to acquire customers at a given time
  • Tracking your results & being able to make data-driven decisions.

One of the benchmarks of Amazon’s growing dominance in header bidding is measured by Adzerk. In its latest list of the bidders that publishers are using, Amazon ranks No. 3 after AppNexus and Index, and ahead of Rubicon and OpenX. You can also learn more about Amazon Sponsored Products Management in detail.

Why Brands Should Consider Amazon Advertising

First of all, the Amazon Search Algorithm is so complex. Lots of factors come into play when trying to rank your products in an Amazon search. Secondly, Amazon has been cracking down on reviews and rank manipulation.

To stay compliant a lot of marketing energy that was previously focused on gathering reviews has shifted to Advertising on Amazon too. Rather than focusing on discounted products for reviews – or, even worse, incentivized reviews – you can use Amazon Advertising to get initial conversions.

Perse, this leads to product reviews as your sales velocity increases. This also allows you to get the traffic and conversions you need for your product to be ranked organically. And when working with products on Amazon, the ranking problem is solved so easily.

You can also combine Amazon advertising with different promotional offerings that Amazon offers (e.g., clippable coupons). Initially, after launching a product, you will heavily rely on Amazon Ads to rank your product on the first page.

However, if your product is optimized correctly, your reliance on Amazon advertising will decrease with time. Nevertheless, you might still need to carry on some advertising. More so, even after your products have ranked high to protect your digital real estate. Or even from competitors who might still be using Amazon advertising.

Related Topic: Google AdSense Ads | Save Time With Automated Adverts

So, should you Advertise on Amazon? Well, if you already have a product that can sell online, then you can Advertise on Amazon too. Amazon offers you a way to get your product in front of shoppers at a much lower cost than competing advertising platforms.

Equally important, Amazon Advertising can help you to generate the conversions needed to help you organically gather reviews. As well as increase your organic website (both eCommerce or weblog) ranking on Amazon through its Alexa.

The Overall Benefits of Amazon Advertising Include:
  • The quality, brand-safe environment that advertisers want
  • Reducing the sales cycle
  • Improving sales history & product visibility
  • Improving brand awareness
  • Gaining valuable insights on changing consumer habits & optimizing campaigns to reach a more targeted audience
  • Tons of shopping journey data about who your shoppers are and how they shop
  • Learning the best ways to acquire customers at a given time
  • Tracking your results & being able to make data-driven decisions.

Last but not least, web advertisers can combine different advertising methods on Amazon to place their products in front of millions of shoppers. The constantly growing ecommerce industry and the ever-increasing competition are driving digital ad spend on marketplaces.

Thus, Amazon’s advertising business is growing at a rapid pace, especially as it diversifies its ad products across its ecosystem. You can download the full Amazon Advertising Guide to learn more.

The Best Ways to Advertise on Amazon

Unfortunately, Advertising on Amazon comes with both opportunities and challenges. As a result, sellers need a strategic and flexible advertising plan to stand out in an overcrowded market. They also need to stay adaptable in the fast-changing marketplace reality.

The good news is that the Amazon Advertising Program is being updated now and then. Over the years, I have found the Advertising Platform to offer great benefits to all web advertisers and internet marketers. And as such, using these platforms can greatly help you gain more market share too.

Related Topic: How Google AdSense Native Ads Work | Webmaster Guide

Not forgetting, you’ll also be able to increase your overall web-based brand presence and online reputation awareness, alike. As well as help you to better utilize Amazon as a channel for customer acquisition. And because Amazon reduces the friction of the initial purchase for a product, it can be a great way to present your product to new audiences.

As a beginner, you can start with a product that already sells well and measures your ROI before adding other products. Over the last several years, Amazon Advertising has had a variety of changes, and recently, they renamed some of their products. So, what are some of the ways to advertise on Amazon? Let’s consider some of them below.

1. Sponsored Products

This is the most popular method of advertising on Amazon. Brands have used this powerful tool for many years to automatically and manually target shoppers. Here, you can use different match types that are familiar to you as an advertiser – broad, phrase, and exact match, as well as negative keyword matching.

Any seller on Amazon Seller Central, Kindle Direct Publishing, or Vendor Central platform can participate in the Sponsored Products program. Amazon has been rolling out additional targeting options on its Seller Central platforms such as Product, Interest, and Category Targeting.

It’s rumored that even more match types might be available to advertisers in the near future. While the match types mimic Google’s advertising platforms, there are some nuances to Sponsored Products. So, before setting up your campaign, check the following to make sure that your campaign will run:

1.1. The Buy-Box Percentage

Your ad will not run if you do not have the buy box for that product. Meaning, if a brand is selling a product directly and there are third-party sellers in the buy box, the brand will be unable to run any Sponsored Products Ads for that product.

Before you create your campaigns, I recommend that you check your current Buy-Box percentage on a product. You can view your Buy-Box percentage by viewing the Detailed Page Sales and Traffic by Child Report. In Seller Central go to Reports > Tab > Detailed Sales and Traffic.

Herein, you will see whether you have a significant percentage of the Buy Box to run ads. It’s possible to be the only seller of a product and still not have the buy box. That’s if your item has a suppressed buy box (protecting customer experience).

Sometimes, Amazon will also suppress the Buy Box. Simply, because Amazon feels that the price for that product is too high or they believe the product is available on another site for cheaper.

1.2. Keyword Indexing

Your ad will only run for words that Amazon feels your product is relevant. For any keyword you use, your product needs to be indexed for the keyword being targeted. There are several tools on the market to check for keyword indexing.

You can also check your keywords manually by doing a search for the ASIN plus the keyword you are looking to verify indexing. Some Amazon PPC agencies use the keywords farmed while using an Automatic Sponsored Products campaign to verify indexed keywords.

2. Sponsored Brands Programs

In September, headline Search Ads were rebranded as Sponsored Brands. The program is available to those on Seller Central who have registered their brand with the Brand Registry program and those on Vendor Central Platform.

Sponsored Brands program is a powerful tool allowing you to have a banner ad at the top and the bottom of the search results page and on side columns. The Sponsored Brand program, just like the Sponsored Products program, allows you to target shoppers based on keywords.

However, unlike the former, the Sponsored Brand program gives you creative control where you can add the tagline you want, and it also allows you to display three products within the ad. You can also direct shoppers to the best page.

It can be a:

  • Custom page on Amazon with different products that you want to sell.
  • Brand or Store page that can be created on Amazon to represent your brand or store.

Sponsored Brands campaigns can be a powerful tool to target similar products and take market share away from your direct competitors. For most brands eligible for Sponsored Brands, a campaign can be immediately started.

For at least their brand and product names. More so, in order to make sure that customers are not diverted to other listings when they search for the brand or product name of our clients.

3. Product Display Ads

Primarily, product display ads have not had the same popularity as Sponsored Products or Sponsored Brands Programs. Eventually, because it is a different form of advertising. Thus, in general, you’ll see lower conversion rates on Product Display Ads than its Sponsored Product and Sponsored Brands counterparts.

But, these ads can be effective in certain marketplaces, including the book industry. Product Display and Sponsored Products are the only two advertising options for authors on Amazon Kindle’s Direct Publishing service. The main advantage of product display ads is that you can market your product directly on your competitor’s product detail page.

Your ad will appear below the Buy Box of your competitor. Product Display Ads can also be effective if you have an assortment of similar products and you are trying to cross-sell to your Amazon customers. Let’s say you have five products in your brand, for instance.

As such, you can market four of the slow-selling product on the main product’s detail page. This keeps people from leaving the detail page of the main product and instead makes them check out other products on your brand.

4. Amazon Demand-Site Platform 

Notably, the first three methods of advertising on Amazon are the most popular among advertisers. Whilst, Amazon Demand-Site Platform (DSP Platform) is for big brands looking to create awareness for their brands. The platform allows you to reach Amazon audiences through Apps.

In other words, Amazon DSP is a demand-side platform that enables advertisers to programmatically buy display, video, and audio ads both on and off Amazon. In late 2018, both the search and display sides of Amazon Advertising went through a rebrand. Now, everything is broadly called “Amazon Advertising.”

AMS is called “Amazon Ad Console”, Seller Central Campaign Manager is still called “Campaign Manager” and AAP is now called “Demand Side Platform” or DSP. The self-service DSP normally charges from 7% to 25% of the clearing price. The actual cost will depend on the provider you select, your budget, and the complexity of the campaigns you’ll be running.

The key Ad Formats include:

  • Mobile banner.
  • Video.
  • Mobile interstitial.
  • Desktop.
  • Mobile web display.

The Amazon DSP program is the only way advertisers can purchase the advertisement on Amazon’s websites. But, while this is a great platform for marketing products, note that it will not most likely not generate direct sales.

What’s more, the Amazon DSP program also gives you access to video ads, which are recent additions to Amazon’s advertising platform. Sellers targeting the Amazon marketplace don’t commonly use videos. These videos fall more into traditional marketing, where the goal is building brand awareness rather than increasing sales through a single ad.

5. Generate the Lead Conversions

On one side, Amazon’s advertising programs have continuously been updated for those looking to continually get more leads conversion. And over the years I’ve found these advertising platforms to offer great benefits to advertisers. Perse, using these platforms can greatly help you gain more market share.

You’ll also be able to increase your brand awareness and even help you to better utilize Amazon as a channel for customer acquisition. On the other side, Amazon reduces the friction of the initial purchase of a product. And as such, it can be a great way to present your product to new audiences.

Likewise, through Amazon Ads, you can also be on your customer’s favorite stream or even in their favorite story. Well, in this article, you’ll learn more about how to meet your customers where they like to be – in ways they’ll remember. Get Started! Be Meaningful! Be Memorable!

More Resources:

Just go ahead and see what your brand can be when you choose to be right here with Amazon. There are even more Educational Resources to look out for: Discover insights, tips, guided learning, and advertiser success stories. More so, some that will help you better understand more about Amazon Advertising Solutions too.

As well as know more about how you can use them to grow your business. Or just Get Started free of charge! And, having said that, you can also explore more (view educational resources).

Final Words,

Over the years, Amazon has grown to become the third-largest advertising platform – and for good reasons. Initially, simply having your product on Amazon was enough to start to win sales. But, as of today, if you want to be successful on Amazon, you must participate in their advertising programs.

It’s good to know that following a successful Amazon sponsored products campaign is a very crucial step for any prosperous Amazon seller. Ultimately, it is one of the most important steps in determining whether you thrive or not.

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On a clear note, many customers have hired jmexclusives for our Amazon PPC services after going at it alone. And by even making their best-educated guess. In the end, they cost themselves a lot of money with very little return on investment.

Thus, if you’re looking for such an advertising solution, then you’re in the right hands. All you’ll need to do is Contact Us and let us know how we can support or help you. So, with that in mind, below is an outlook of how our Amazon PPC agency removes any guessing from the equation. We’ve got all the right tools and strategies to make everything work.

We’ll help you:
  • set realistic goals,
  • establish a clear strategy that aligns with your unique business needs,
  • increase your ROI and decrease your advertising cost of sales (ACoS), right away.

Through our team, you’ll get a clear picture of how we’ll execute your successful advertising campaign both weekly and monthly. We establish month-to-month growth percentage goals and thoroughly explain our strategy in each step.

Learn Also: How to Design a Business Website that Converts 50% Leads

In addition, we also make calculated adjustments month to month to ensure we maximize ROI. Weekly and monthly reports are sent to you to keep you regularly updated. So, talk to us and we’ll be so glad to help your business grow.

You can also share your additional opinion thoughts, suggestions, contributions, or even questions related to digital advertising in our comments section below. We’ll make sure that you get all the answers you seek and timely service solutions and guidelines as well. Good Luck!

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