Do you ever feel like Amazon is on its way to global domination? I know I personally shell out about half my earnings on Amazon Prime alone. From everyday necessities like cleaning supplies and paper towels to intriguing kitchen gadgets and my go-to snacks in bulk, Amazon’s allure of convenience and affordability is hard to resist.
Even if you’re not as passionate about Amazon shopping as I am, chances are your customers are. With a staggering 300 million users, Amazon boasts a massive reach. What’s even more impressive is that an estimated 80 million Americans are Amazon Prime members! That’s a whopping 80 MILLION! To put it into perspective, more households in the US have Amazon Prime than those who regularly attend church or even have a landline phone!
With this extensive user base and their purchasing habits, Amazon has amassed a treasure trove of information about us. “While Google holds the keys to our search history and Facebook tracks our interests, Amazon possesses a unique advantage. They know precisely what people are buying and how they’re going about it,” observes Shareen Pathak in Digiday. This begs the question: why aren’t you leveraging Amazon advertising to showcase your products to a wider audience? If you’re already maximizing your presence on Google Shopping, the Display Network, Facebook, and Instagram, expanding into one of the largest remaining online ad networks like Amazon seems like a logical next step. For e-commerce businesses, integrating Amazon ads should be a no-brainer.
Consider this your roadmap to navigating the fundamentals of Amazon advertising. This guide will empower you to boost product visibility and ultimately drive higher returns! Maximize your reach with a robust multi-channel ecommerce strategy! Download our free guide to Google Shopping and watch your brand soar!
Demystifying Amazon Ads
Think of Amazon’s search functionality as a close relative of Google search. When you input a keyword into the Amazon search bar, the results page often features sponsored posts at the top. These are essentially Amazon ads, subtly identified by labels like “sponsored” or “ad” as illustrated below.
These coveted positions are up for grabs for advertisers looking to increase their product visibility on Amazon. By bidding on specific keywords, advertisers can secure higher rankings in Amazon’s search engine results pages (SERPs). The billing kicks in when a potential customer clicks on their ad. In essence, Amazon’s advertising platform can be viewed as the Amazonian counterpart of Google AdWords. But Amazon ads aren’t confined to search result pages. They also pop up on individual product pages. Let’s take a look at an example. While browsing a water bottle, an ad for sunglasses conveniently appears on the right side of the page.
As we delve deeper into the page, more ads come into view!
However, Amazon’s advertising repertoire extends far beyond these sponsored search posts. This guide will delve into some of these diverse ad formats.
Should You Join the Ranks of Amazon Advertisers?
If your business involves selling tangible products online, then advertising on Amazon should be a resounding yes! Think of it as an additional avenue to showcase your products and potentially attract a wider pool of buyers.
For those hesitant to dive in headfirst, starting small with a tried-and-true product is a prudent approach. For instance, if you’re a sports gear retailer and tennis rackets have consistently been your online bestseller, initiating an ad campaign for your top-performing racket is a good starting point. As you start witnessing a positive return on investment (ROI) with this ad, gradually incorporate more brands and racket types to broaden your campaign’s scope.
Another compelling argument in favor of Amazon advertising, particularly Amazon pay-per-click (PPC), is its potential to elevate your organic Amazon rankings. “We’ve consistently observed a significant improvement in organic ranking for keywords that were effectively utilized in Amazon PPC campaigns,” reveals Sellics. “This can be partly attributed to the surge in sales generated by ‘Amazon AdWords,’ which in turn enhances the product’s sales history. And sales history happens to be a powerful ranking factor. Simply put, the better a product performs in terms of sales, the higher Amazon will position it within search results.” Therefore, investing in Amazon ads not only has the potential to boost product sales but can also give your products’ organic rankings a well-deserved lift. It’s a win-win situation!
Decoding Amazon Advertising Costs
So, what kind of financial commitment are we talking about with Amazon ads?
According to Rob Sieracki at Practical Ecommerce, the average cost-per-click (CPC) on Amazon rarely exceeds $0.35. This makes it a more budget-friendly option compared to search ads on platforms like Google AdWords or Bing Ads, especially on a CPC basis. Moreover, it’s on par with some of the most affordable CPCs offered by Facebook ads or Google display ads. Considering the strong commercial intent associated with Amazon searches, these figures are undoubtedly promising! (Later in this guide, we’ll unveil some insider tips to help you minimize your Amazon advertising expenses.)
Self-Serve Ads vs. Premium Ads: Understanding the Distinction
As you embark on your exploration of Amazon’s public advertising information pages you might encounter some confusion regarding the difference between self-serve and premium ads, as depicted in the two sidebars below:
Here’s a simplified explanation: self-service ads operate akin to Google search ads that appear on search result pages (similar to the screenshots provided earlier). In contrast, premium ads share similarities with display ads. While premium ads still hold a place within the Amazon ecosystem, they manifest as more visually prominent banner and sidebar ads like the one illustrated below. Their reach extends beyond Amazon, appearing on external websites, much like Google’s Display Network.
Getting Started with Amazon Ads: A Step-by-Step Guide
Your journey into the realm of Amazon advertising begins with signing into your seller or vendor account.
If you’re new to the Amazon selling scene and lack either of these accounts, fret not! Explore their diverse pricing and plans to find the perfect fit for your business needs here. If you’re a first-party seller, signing up as a vendor is the recommended route, although it’s worth noting that this option is currently by invitation only. If you’re selling through Amazon Seller Central, you fall under the category of a third-party seller. Seller Central offers flexible pricing options, including pay-as-you-go for independent sellers and a pro option tailored for those enjoying higher sales volume. Pro merchant sellers are also privy to the perk of entrusting Amazon with the responsibilities of shipping, returns, and customer service—a tempting offer indeed! Lastly, if the vendor path appeals to you but you’re lacking an invitation, Amazon’s Vendor Express option might be worth exploring. Once you’ve successfully logged in and subscribed to the appropriate plan, you’re ready to dive into setting up your ad campaigns through your Amazon account!
Navigating the World of Amazon Ad Types
Perhaps you have eye-catching banner ads crafted by your creative team, perfect for branding purposes, but you’re also keen on simply boosting e-commerce sales with ads similar to those on Google Shopping. Thankfully, Amazon caters to both needs! You have three primary ad types at your disposal through Amazon: sponsored product ads, headline search ads, and product display ads.
Amazon Sponsored Product Ads: Your Gateway to Product Visibility
Sponsored product ads share a striking resemblance to ads running on the Google Shopping Network. These ads act as direct links, guiding Amazon shoppers to specific products you offer on the platform.
Clicking on your sponsored product ad transports shoppers to the product detail page associated with the ad. Sponsored product ads typically claim their spot above or below the search results page, and you might even encounter them on other product detail pages. These ads operate on a keyword-targeted system, granting advertisers the flexibility to choose from exact, phrase, or broad match types. Advertisers also wield control over their budget by setting a daily limit and defining the campaign’s duration. While campaigns can be paused at any time, they must run for a minimum of one day.
Headline Search Ads: Commanding Attention Above the Fold
Headline search ads stand out prominently as headline banner ads within the search result pages, consistently appearing above the actual product listings, as exemplified below. These ads operate on a cost-per-click basis and have the power to direct searchers to any designated page on Amazon.
The landing page is often a customized, brand-centric page like the one Casper Sleep led me to when I clicked on their headline ad.
These ads, too, rely on keyword targeting and offer the advantage of promoting three or more products simultaneously. Headline search ads also employ a cost-per-click model, with a minimum bid of $0.10 per keyword. However, they support only two keyword match types: exact and phrase match. The minimum campaign budget for these ads is set at $100, with a daily spending cap of $1. Campaigns can be scheduled up to four months in advance.
Amazon Product Display Ads: Targeting Based on Interest and Product
Product display ads, the third type, function slightly differently from their two counterparts discussed above. These ads ditch keyword targeting in favor of interest or product-based targeting, resembling display ads. They aim to steer shoppers toward product detail pages and also adhere to a cost-per-click pricing model.
Advertisers are presented with an extensive list of products (e.g., similar products to their offerings) or interests (e.g., if a shopper shows an affinity for running) to ensure these ads reach the most relevant audience. However, it’s crucial to remember that each campaign is restricted to a single target type. These ads can materialize in various locations: to the right or bottom of search results, on the customer reviews page, at the top of the offer listings page, and even within Amazon marketing emails.
Maximizing Your Amazon Ads: 6 Tips for Success
In a marketplace as vast and product-saturated as Amazon, it’s natural to harbor doubts about the platform’s ability to generate a worthwhile return for your business. However, with the right strategies, you can rise above the competition. The key lies in approaching Amazon advertising with a well-defined plan.
Here are six pointers to set you on the path to success.
#1: Structure Your Campaigns Strategically by Product Category
Seasoned AdWords advertisers are likely well-versed in this practice. Thankfully, you can apply your AdWords organizational skills to structure campaigns and ad groups within Amazon’s ad platform. The optimal approach is to dedicate a separate campaign to each of your primary product categories. Under each campaign, create ad groups that delve into more specific niches. For instance, imagine you’re a seller specializing in women’s athletic wear. You could start with three of your top-performing products:
- Women’s workout pants
- Women’s workout shirts
- Women’s sports bras
Within each campaign, establish ad groups centered around more specific subcategories. For example, campaign #1 (women’s workout pants) could house three ad groups: women’s yoga pants, women’s running pants, and women’s lounge pants. Next, compile a list of relevant keywords for each ad group (ideally between 15-30 keywords). Finally, craft compelling ads tailored to each keyword grouping.
A well-structured account is crucial for ensuring your ads hit the mark, ultimately saving you money and maximizing your ROI. This tip is paramount for reaping the rewards of advertising on Amazon.
New to the world of account structuring? Check out this comprehensive guide on AdWords account structure.
#2: Craft Ad Copy That Captivates and Compels
While accuracy in reflecting your product is essential, strive to infuse your ad text with creativity, and even a touch of humor, if appropriate. In the cluttered landscape of Amazon’s search results, standing out is more important than ever. Injecting a sense of urgency can also work wonders. For instance, if you’re running a limited-time sale or promotion, make sure it takes center stage in your ad, as illustrated in the example below.
#3: Precision is Key: Make Your Ad Copy as Specific as Possible
When it comes to describing your product, specificity is paramount. If you’re selling a water bottle, for instance, potential customers want to know its capacity (in ounces or cups), whether it’s BPA-free, if it can keep their beverages cold for a specific duration, and so on. While it might be challenging to squeeze all this information into the ad text, prioritize the most critical details. The ad below excels at this by concisely conveying the weight, height, and included accessories in the headline.
#4: Don’t Shy Away from Bidding on Popular Brands Selling Similar Products
When brainstorming keywords, don’t overlook your well-established competitors. If you’re in the backpack business, for instance, bidding on terms like “L.L. Bean backpacks” and “Northface backpacks” is a smart move. These renowned brands are frequently searched for and purchased. This strategy allows you to tap into their audience and potentially sway a customer to choose your less-familiar but equally impressive backpack brand.
To identify your top competitors, conduct a generic search on Amazon for products within your vertical (e.g., “backpacks”) and observe which brands dominate the search results.
#5: Embrace Experimentation with All Three Ad Formats
While sponsored product ads might seem like the fastest route to a visible ROI, headline search ads have the potential to cultivate more loyal, repeat customers. It’s well worth experimenting with all three ad formats to determine which yields the highest returns for your business. Once your data paints a clear picture, you can reallocate your budget based on the campaign results. [More: Unlocking the Amazon Buy Box: Why You Need It and How to Get It]
#6: Negative Keywords: Your Secret Weapon Against Wasted Spend (and a Conservative Approach to Match Types)
Just like in the realm of Google advertising, negative keywords play a crucial role in minimizing wasted ad spend resulting from irrelevant clicks. Let’s say you’re a musical instrument retailer specializing in flutes. If you bid on the keyword “flutes” using broad or phrase match, someone searching for “champagne flutes” could still trigger your ad. An accidental click from such a user would result in a charge for a search query entirely unrelated to your product.
Adopting a more cautious approach to match types can also be beneficial. Steer clear of broad match and prioritize phrase and exact match. Additionally, conduct thorough keyword research to ensure you’re targeting the most relevant terms. Our comprehensive guide to keyword research is an invaluable resource for this endeavor! The world of Amazon advertising is vast and constantly evolving, with the platform continuously expanding its toolkit. Are you already leveraging the power of Amazon advertising? Share your experiences with us in the comments below—we’d love to hear your insights!