Amazon Advertising: All You Need To Know

What is the best advertising strategy for Amazon? Is it worth paying for Amazon ads? What are the different types of Amazon ads? How do Amazon campaigns work?

There is so much that sellers worry about when trying to drive good results from Amazon.

Especially when it comes to using Amazon advertising.

Well, we are here to answer all your queries regarding Amazon marketing services.

Let’s get started.

Amazon: The Ever-Growing Platform

It goes without saying, Amazon is rising up the charts drastically. According to data collected by The Seattle Times,

“For the first quarter of 2021, Amazon anticipated sales between $100 billion and $106 billion, up 33% to 40% compared with a year earlier, and profit of between $3 billion and $6.5 billion.”

In fact, as per Statista,

Amazon accounted for 41 percent of the U.S. eCommerce market in October 2021, making it by far the leading online retailer in the country.

What does this imply?

Among other facts, one thing that’s crystal clear is: Amazon isn’t going anywhere, and it will continue to boom in the coming years.

What Does This Mean For Sellers Like You?

You must adopt all possible techniques to stay in the game.

Remember, you are not the only one.

Amazon has over nine million sellers. Many among them struggle with rankings, listings, product visibility, or ad campaigns, but only a few succeed at generating measurable success by implementing the right advertising solutions.

You can be one of them if you understand the intricacies of Amazon advertising.

Amazon Marketing Services: The Ultimate Savior

With more than 300 million active customer accounts worldwide, Amazon, no wonder, is well-acquainted with customer behavior.

It wouldn’t be wrong to say that Amazon is both the keen spectator and the alert guard - spectating each stage of the buyers’ journey and guarding itself against any fraudulent activities conducted either by the buyers or sellers.

It certainly sounds like a back-breaking job.

All a buyer has to do is search for their preferred product and either click the “Buy” button - in case they find their desired product - or move to another website/brand - in case they don’t find the right product.

However, it’s the sellers who have to understand the buyer's journey and walk in line with their requirements in order to achieve the defined targets.

This is where Amazon advertising or Amazon Marketing Services (AMS) can help a seller.

AMS is like a digital advertising plan. It can help vendors and sellers achieve the following targets.

• Promote products

• Generate product demand

• Surpass competitors

• Increase brand visibility

Although Amazon advertising is not only the key to achieving the above-mentioned goals, it can be very efficacious when done at the right time, in the right way.

You must have heard about pay-per-click (PPC) ads on Google. Well, Amazon ads are no different - the only difference is the guidelines. Under this ad scheme, sellers have to pay - an amount fixed at the time of creating the ad - when buyers click on any of the ads (whether or not the sale happens).

According to JungleScout:

• 85% of sellers spend an average of $2,500 or less on advertising for their Amazon business.

• 32% plan to increase ad spend in 2022.

A survey including 1000 U.S. brands, conducted by Feedvisor, revealed that more than half of the brands saw a return of 7x or more on their Amazon Advertising initiatives, up from 47% the previous year. Meanwhile, 39% of brands experienced 4x-6x returns.

Now that you have a basic idea of what Amazon advertising services are and the impression they are leaving, let’s move on to the types or formats of ads to get a clearer picture.

Types of Amazon Ads

Sellers can choose from a variety of ad formats, depending on their business requirements and customer behavior.

Let’s have a look at these.

Sponsored Products

Have you noticed how certain products on Amazon have “sponsored” written in the corner? Those are a part of Sponsored products ads.

The simple fundamental behind this ad campaign is keywords. Whenever buyers search for a certain product - by inserting some keywords or relevant terms related to your product in the search bar - your sponsored product will pop up instantly either in the shopping results or product pages.

Take a look at this example: Here the buyer has simply searched “yoga mat” and the sponsored products have popped up. Now, the buyer, if they find the product relevant to his/her requirements - can click and buy.

Since these ads fall under the category of pay-per-click - you only pay when a buyer clicks on your ad. That too is based on the budget limit and the bid that you have set per click.

Remember, not all categories are eligible for this ad type. So, before you begin make sure your product falls under the permitted category. Or, you can simply get in touch with expert Amazon marketing services consultants to know the eligibility criteria and get started accordingly.

Sponsored Brands

Unlike Sponsored Products that focus on individual items, Sponsored Brands ads work on grabbing shoppers’ attention for your brand store and promoting multiple product listings at once. A seller’s prime goal is to target and convert maximum potential buyers and this ad type helps you do this.

It uses creative headings, engaging images, and custom logos to attract buyers and directs them to a custom landing page.

As soon as a buyer searches for a particular product and your ad pops up, they will click on your logo and will directly be taken either to your Amazon store or landing page. Sellers use Sponsored Brand Ads to share their brand message, promote brand awareness, and increase brand/product visibility.

Kindly note, that this Amazon ad service can only be availed by sellers who are enrolled under Amazon Brand Registry or vendor/book vendors, and agencies. If you fall into any of these categories but still face trouble in implementing this ad campaign, find a reliable Amazon marketing agency and embark on your AMS journey.

Sponsored Display

Formerly known as “Product Display Ads,” Sponsored Display can be referred to as one of the most unique advertising services offered by Amazon that targets customers who have either:

• bought from you in the past,

• viewed your products/similar products previously, or

• used search terms relevant to your product.

These can appear on

• Product detail pages - both on desktop and mobile

• Customer review pages

• Below search results

• Top of the offer listing pages

Have a look at an example:

Source: Amazon

As you can see, the ads have been placed at multiple places. Apart from this, these ads can also be placed in emails regarding cart abandonment, follow-up, or recommendations.

Amazon Demand-Side-platform (DSP)

Amazon DSP can be considered one of the most unique Amazon marketing services.

It allows sellers to reach audiences present on and off Amazon. It is an effective advertising model to pull outside audiences and bring them to your eCommerce store on Amazon.

Unlike other ad campaigns, DSP offers advanced targeting options, including:

• Location

• Demographics

• Date/Time

• Segmentation

Additionally, you can run these ads in multiple formats, such as:

• mobile banner ads,

• in-stream video ads,

• image/text ads,

• desktop display ads, and many more.

Video Ads

As the name suggests, these ads are in video/multimedia format with an aim to engage the audiences and scale your reach creatively.

Mostly unskippable, Amazon video ads appear on content streaming platforms and promote your listings on connected TVs, publisher channels and networks, IMDb, and IMDb TV.

Furthermore, they are a great way to showcase your brand and drive targeted traffic to your listings, website, or any other source.

Audio Ads

These ads are suitable for sellers who aren’t interested in promoting their products via videos. In other words, these are meant for sellers who want to inform customers about their products screen-free.

Audio ads are short clips (10-30 seconds) intermittently played on Amazon Music - during the breaks. Since a large chunk of the population has access to Alexa-enabled devices, these ads can reach your customers whether they are traveling or simply sitting on their couch on a Sunday evening.

Along with product promotion, these ads enhance brand awareness while bringing you a few steps closer to your audience.

Customized Campaigns

This can be the best one for sellers who want to create highly personalized and focused ad campaigns.

Customized ad plans are designed according to your business requirements whereby every stage of the marketing funnel is taken into consideration.

Whether or not you sell on Amazon, you can skillfully promote your products using custom ads. However, if you do not have the time to invest in this process, you can also outsource Amazon marketing services to a reputed agency. Brief them of your specifications and enjoy a tailor-made advertising experience solely directed on user experience.

Is Amazon Advertising Worth The effort? Will I Enjoy Any Benefits?

The answer is a big YES!

The value of Amazon advertising is justified by its performance across the globe. Given the potential it possesses, this platform is definitely worth your attention and investment.

Amazon Ads are increasingly gaining value since they are

a) keyword-based,

b) showcase relevant products to shoppers

which, in turn, helps you in reaching the masses. In addition to this, they can benefit you in several ways, such as:

• Increase product revenue

• Generate higher conversion rates

• Inspire better brand recognition

• Improve overall rankings

• Gain competitive edge

• Track customer behavior

• Refine sales history

• Enhance ROI

• Win the Buy Box

• Appear in prime listings

However, considering the long list of core business activities that almost all eCommerce sellers focus on, devoting your time and effort to AMS may not be the best solution. In that case, you can still take advantage of it by hiring Amazon marketing services consultants.

What’s Next?

Now that you are acquainted with Amazon advertising services, types of ads, and their benefits, it’s time to bring the idea into existence. Research more, learn about the processes, tricks, techniques, and all assisting tools before you start working with AMS for your Amazon store.

Otherwise, since neither Amazon nor your business can be taken lightly, it is recommended to go for expert assistance.

Outsource Amazon marketing services to promote your products in the right way.

We Can Help!

SunTec India is a 20+ years old outsourcing service provider, specializing in Amazon advertising services. Our Amazon marketing agency equips you with the right tools and professionals needed to succeed.

From market research to audience analysis, keyword segregation, and understanding consumer behavior, our experts contemplate almost every aspect before creating the perfect ad for you. In addition to this, they adhere to Amazon’s guidelines to ensure zero policy violations while opening new avenues for your business in the hyper-competitive marketplace.

To get in touch with us, please reach out at info@suntecindia.com.