Amazon Advertising: What Marketers Need to Know

Amazon is not only a place to buy products and avail the fastest home delivery, it’s a widespread advertising network that brings in higher RoI for your business. For those who don’t know, Amazon is the third-largest ad platform after Google and Facebook.

As more customers are coming online and shopping on Amazon, it’s a smart choice to promote your products on this platform. Rather than just selling, take the ads opportunity of this platform and generate more sales in an optimized way. If you have not used Amazon ads for marketing your products, don’t worry as we have got you covered. In this article, we will have a look at the comprehensive ad services offered by this platform so that you can choose the best platform.

Why is Amazon a good choice for advertisers?

When we talk about ads only platforms like Google, Facebook, and Instagram come to our mind. But, Amazon is not far behind and the numbers are growing rapidly. The latest revenue of Amazon from Ads was around $10 billion and it is expected that the revenue will grow by 3x or 4x in the upcoming time.

On the other hand, the ad management experience is also quite comfortable for the sellers. Even if you are a beginner at running ads, Amazon is easy to manage.

Advertising options on Amazon

This shopping giant offers two types of traditional ads that any seller can opt for and start growing their reach in no time. Let’s have a look at both the ad formats. These ads are highly profitable because they arrive at the exact moment when customers are searching for that particular product.

Sponsored Products

As the name suggests, when a customer searches for a particular product, then your product listing will arrive on top of the organic results. This listing looks like any normal organic product result but it’s clearly marked as sponsored by Amazon.

Sponsored product advertisements are based on the CPC ( cost-per-click) model where you only need to pay when users click on your sponsored products. No complex billing model as you only need to pay when someone shows interest and clicks on it.

Sponsored Brands

Another most-used and popular ad format are the sponsored brand ads and it is also a CPC-based model in which when people will click on your ad, only then you will pay. In this ad format, when customers will shoot a search query on Amazon, the product results will showcase a banner-type advertisement on the top of the result page and it generally contains a group of three products that are from the same brand.

In this format, every ad unit is designed to look similar to an organic listing and it has one more benefit to it. You as an advertiser can decide where you want your customers to reach once they click on your products.

To understand this concept better, you can either redirect the users to a category page. This page will look similar to a regular search results page but there is a twist. In this type of search result, Amazon will only show your brand and your products. Or, the sponsored traffic that you have generated could be sent to your store. The storefront can look like a small website that will showcase all your products.

Amazon DSP (Demand-Side Platform)

This is the third most popular ad category and its sort of an advanced ad practice that you can follow to promote your brand. This platform lets you use the shopper’s data and their buying patterns and apply it to open advertisement exchanges. From there, the advertising platforms can plan and run targeted display-based ads. These ads can bring the highest conversion rate as they are highly-targeted. These ads are being targeted using users’ buying history, buying patterns, users’ searches, and more.

Using Amazon DSP, you are free to redirect the traffic outside Amazon to your own websites. On your website, you can give more information about the products you are selling. By doing this, the conversion rate improves drastically. You can track the traffic using UTM codes and it will give you a better idea about which products are performing well.

The Amazon display ads are highly capable of driving relevant traffic to your site. As these Amazon ads can run on any other website, the scope of potential customers amplifies even more. As compared to Google, the ad expenditure could be very low on Amazon depending upon what you are promoting. However, it’s a highly effective and robust network to promote your products on the go without doing much ad research.

If you are also an Amazon seller, then these ads could be the best ways to grow your brand on Amazon and drive more sales to your business. Start with a small budget and check what kind of response you are receiving from customers. Based on that, keep scaling your paid marketing and generate higher revenue.

If you have any questions, please ask below!