Amazon has been transformed into a huge and powerful global advertising platform from a simple marketplace. The brands that succeed in Amazon advertising are not simply selling their products, but they hold a very strong advertising strategy that can break any competitors.
Amazon holds millions of sellers, but only a limited number get through the organic search, so sellers get hold of advertisers to make their products be visible when users search.
No matter if it is a new brand or an old one, knowing and understanding Amazon Ads is not optional but a mandatory step.
In this article, we will be looking into how Amazon Advertising works, why it matters, the benefits your clients can gain and the different types of Amazon Ads.
With the help of these, you can help your clients attain profitable growth.
A glimpse at Amazon Advertising and how it works.
As you already know, Amazon advertising is a paid marketing platform by Amazon that lets sellers promote their products to users who have a high intent to buy them.
Not like other platforms, Amazon has an advantage. When a user comes in, he comes in with the intent to buy and this makes it easier and puts one step ahead when compared to other platforms.
Amazon Ads also works based on a PPC model, that is, the advertiser gets to pay only if a user clicks on the client ad.
Now, coming to the part of how it works?
This is very simple. First, choose the product you want to advertise. Then choose how you want to target your audience, this can be through keywords, other brand products, product categories or user behaviour. Now set the budget and bidding.
When the campaign goes live, Amazon will display your client ads on the Amazon result page, product page and on partner websites. You will need to optimize according to the performance of the ad.
Why is Amazon advertising powerful?
The first thing is something we already discussed, that is the users will appear on the platform with the intent to buy and this stands as a great advantage in investing in Amazon Ads.
With Amazon Ads, advertisers will get real-time performance data that will help advertisers optimize accordingly instead of waiting for weeks for campaign insights. This helps in growing faster and have strong control over profitability.
Even when there is high competition, Amazon Advertising allows brands to display their ads along with the organic ones. And that is why Amazon Advertising is considered to be a powerful platform when compared to others.
Benefits of using Amazon Advertising
- High-Intent Traffic with Better Conversions
The users come with the buyer intent, which will give a better conversion rate when compared to other platforms. Small brands can generate more sales if they have the right keyword strategy.
Advertisers can also get faster returns on ad spend when compared with other advertising platforms. In short, Amazon advertising can be called a platform that gives direct revenue.
- Instant Product Visibility
When a user searches for a product and if your client’s product falls under that category, then your client’s ad will be displayed. This will save the time you wait for organic ranking. One click and your client product will be on top of the search.
If your client is launching a new product or any seasonal offers, Amazon Advertising is the best option, as it may take time to rank naturally.
When your campaign has the right campaign structure, your client’s product can dominate multiple placements on the same page.
- Full Budget Control & Scalability
With Amazon Ads, you can have complete control over daily budget and bidding limits. It allows you to start small, test the performance and optimize it accordingly.
There is no concept called long-term contracts or fixed pricing. Advertisers have the liberty to pause, increase, or decrease based on how the ads perform.
This is a good opportunity if your client is a startup or a medium-sized brand.
- Brand recognition and direct sales
Now you might wonder it is just about selling? Well, No! Amazon Advertising is not only about sales but also helps in building a long-term brand awareness. With the help of sponsored brands, stores and video ads, advertisers will be able to create a strong brand identity.
They will be able to generate immediate revenue out of sponsored products.
This combination will help brands in generating short-term profit with long-term brand awareness, which cannot be provided by many platforms.
- Advanced Data & Performance Tracking
With Amazon Advertising, the advertisers will have detailed insights on impressions, clicks, sales, ACOS, return on ad spend and also with keyword-level data.
With this data, advertisers will be able to find out where the money is being drained and where they get the profit from.
This will help advertisers optimize accordingly and fix errors for better performance.
Different types of Amazon Ads
1. Sponsored Products
Source: Amazon ads
This is one of the highly used Amazon ad formats. Sponsored products are capable of making more conversions. These Amazon Ads blend into the product listing along with the organic ones and appear on both the result page and the product page.
These Sponsored products appear at the top, middle and at the bottom of the Amazon search result page.
In short, this is the best way to drive direct sales, introduce new products to the market, rank keywords and stay ahead of your competitors.
2. Sponsored Brands
Source: Amazon ads
Sponsored brands will help advertisers in promoting your client’s brand instead of just promoting a single product. These types of Amazon Ads include brand logo, a custom headline and numerous products.
Sponsored Brands appear on top of the Amazon search results, dominating other products.
They are perfect if your client needs store traffic or brand awareness, or if they sell multiple products.
3. Sponsored Display Ads
Source: Amazon ads
This is a retargeting audience who have left the product in the cart or left without buying.
These Amazon Ads appear on Amazon and all over any third-party website, leaving your client’s brand appearing even after the user leaves the platform.
Sponsored Display Ads are best if you want to remarket, target your client’s competitor, make repeat purchases and convert customers into loyal ones.
4. Amazon Video Ads
Source: Amazon ads
Video Ads make the users more engaged and are a way to showcase the products and features of the brands. These Amazon Video Ads appear on the result page and also on the Amazon Fire TV placements.
They are more attention-grabbing and have a higher click-through rate.
Amazon Video ads are best for newly launched products, premium products and visually-driven categories.
5. Amazon DSP (Demand-Side Platform)
Source: Amazon ads
This is a solution that will allow brands to reach their audience both on and off the Amazon platform.
This type of Amazon Ad uses the data on customer behaviour for a greater level of audience targeting and retargeting.
The Demand Side Platform is suitable for larger brands, aggressive scaling strategies and Full-fledged marketing campaigns.
These are the different types of Amazon Ads.
Now, let us look into the Amazon Ads ACOS (Advertising Cost of Sale) benchmarks
Amazon Ads ACOS (Advertising Cost of Sale) benchmarks
Here is the list of categories on how the ACOS has performed.
However, whether you focus on immediate profit or a long term brand visibility, the benchmark depends on a few factors such as profit margin, the lifecycle, the intensity of competitiveness and campaign goals.
Why do many sellers fail to perform well with Amazon Ads?
- Poor campaign structure
- Weak keywords
- Lack of proper optimization
These are the basic reasons why advertisers fail. But there is more, when the product listings are not optimized with a focus on conversions. That is why it is necessary to work with experts who have years of experience in this field to handle any hurdles.
How whiteDigital Helps You Succeed With Amazon Advertising
whiteDigital is a performance-driven White Label Digital Marketing Agency that has expertise in Amazon Advertising. We do not just optimize ads but engineer growth.
We combine data, creativity and strategic intelligence to deliver better, consistent results.
We expertise in,
- Strategic Amazon Account Setup
- Advanced Keyword & Market Research
- High-Converting Listing Optimization
- Intelligent Bid & Budget Optimization
- Sponsored Brands & Store Optimization
- Retargeting With Sponsored Display and Demand Side Platform
- Transparent Reporting & Growth Strategy
We focus on strategies that work and make changes to the ones that do not.
Coming to an end, Amazon Advertising has become the most important part for an e-commerce business to be successful. This can only be possible with unmatched buyer intent, better targeting and scalable ad formats.
For a successful campaign, you will need to run your client ads continuously, switch between strategies and optimize continuously. That is why we suggest choosing us, as we combine expertise, data, creativity and performance-driven work execution. If you are ready, whiteDigital is happy to help you win.
