What Should We Know about Amazon Advertising?

Sharline Shaw

Have you ever utilized Amazon ads to promote your business?

Amazon is a powerful product search engine which gives online business owners numerous opportunities to advertise their products.

There are a wide variety of options available to promote a business.

For instance, sellers can make use of blogging to market their business.

Blogs are a great way to connect with customers which makes then really useful, but a blog might not be enough on its own. Some sellers need more tactics to boost their campaigns and achieve more sales.

Amazon has fast and effective ways to market for business expansion.

Amazon advertising is such a great opportunity, and it’s designed to help you achieve your goal rapidly by accurately targeting your customer.

Are you curious about how the Amazon advertising program works?

Do you want to know how to integrate the platform program into your business for more sales?

If so you are in the right place; we will discuss Amazon advertising in detail and share some key points of knowledge to help you make the best use of the platform every day.

What Should We Know about Amazon Advertising 1

What is Amazon Advertising?

It is an advertising solution offered by Amazon to sellers to promote their products’ ranking on the Amazon search result page. It works similarly to Google Ads. When shoppers input the keywords related to a certain product in the search box, and the results appear, some of the top results will be Amazon Sponsored Ads. These ads are denoted with subtle “sponsored” or “ad” text in the image. In this way, the product bypasses the search results and appears at the top of the search results.

Advertisers who want to promote products on Amazon can pay for these top-ranking positions by bidding on a certain keyword. Generally, it will bring a boost in traffic to your product page, a higher click-through rate, and greater exposure for the promoted product page. The advertiser is charged when shoppers click on the ad.

As you know, there is a great competition on Amazon for sales, but there is also great competition by sellers bidding on the popular keywords too.

How Does Amazon Advertising Work?

Amazon advertising works similarly to a Google search. If you type a question into Google, it searches for content that most closely matches those questions and ranks them in order of relevance.

The Amazon algorithm does the same; it ranks products by relevancy based on the search term the shopper used. The more relevant the product, the closer to the top of the search results it gets.

When customers are ready to buy something, they would likely to search to find the product that is the closest match for their needs and one that has excellent reviews.  You aim to be at the top and among the top recommendations selected by the powerful algorithm. Being at the top means you are likely to gain higher visibility for your products, more traffic on your website, more sales, and ultimately more profits.

Think of how you shop or search online; how often do you keep scrolling past the first few options?

Amazon Advertising lets you pay to be at the top. You only pay when a customer clicks on your ad.

The Amazon algorithm uses keywords to identify which product best matches the customer’s search and matches and ranks them accordingly. Keywords are the drivers for a successful campaign; your keywords are the search terms your potential customers use to find a product to match their needs. For a cost-effective, well-targeted campaign you need to choose the keywords that best match your words your target market will use.

The Amazon Advertising Types

There are several types of advertising solutions offered by Amazon

  • Sponsored product ads,
  • Sponsored brands, and stores.

The Sponsored products ads are for individual product listings on Amazon. These ads pop up on search result pages and product detail pages and will boost sales and increase product exposure.

Sponsored brands ads will show your brand and product portfolio in the search results.

The most common type of Amazon advertising is the Sponsored Product ads, known as the PPC (Pay –Per – Click) ads. PPC means that advertisers will only pay for the ad when it gets clicked by a potential customer. When they click the ad, they will be directed to the product detail page. These types of ads typically appear on the search result page, headlines, product page, and email newsletters, etc. Keywords target the ads; advertisers choose the keywords, phrases, or broad matched keywords and they bid on these to rank the ad.

Which keywords you choose and how you choose to bid on them depends on you. Based on your business plan, you need to set a daily budget and consider the overall length of the campaign too.

What Should We Know about Amazon Advertising 2

How Much Does It Cost Per Click?

The average cost per click on an Amazon ad is up to $0.35 according to Rob Sieracki. Remember this a guide, most Amazon PPC ads are based on bids made by you and your competitors.

When you start an ad campaign, you will set a budget, but you will also need to set a bid price. This bid price will help Amazon’s search engine to place your product on the search result page. Because both you and your competitors could be bidding on the same keyword, it means that the rankings of ad campaigns can be quite fluid.

If you bid high enough your ad could appear at the top of the listing page. Bid low and your ads might not show on the first page or not show at all, and this is not what you want.

The good news is that there are several methods for you to evaluate the cost for an Amazon ad campaign. Firstly check the competition of your product on the Amazon market. Advertising costs are low for a product with little competition but high demand.

Remember to consider your profit margin when you decide your ad campaign budget. You have to consider the product price, Amazon commissions, and production cost, etc.

A great idea is to test a product campaign before you pull the trigger. Testing a campaign allows you to verify your keywords and check if it works effectively or not. You can start your test campaign after optimizing your product listing. Use both automatic and manual campaigns to learn the most and understand how to get the best possible result. After that, you can decide your advertising strategy for your Amazon marketing.

What Should We Know about Amazon Advertising 3

How to Optimize Amazon Ad Campaigns?

Amazon is a big platform, and you may doubt that you could get a great result from Amazon ads campaigns. There are ways that you can optimize your campaign and stand out among the massive competition. Let’s look at them together.

1. Utilize High-quality Product Images

Product images, especially the main image, matters to your business. Why? Product images create the first impression for your products with your potential customer.

A picture says a thousand words and the images are what will attract your customers’ attention first before they read any description. High-quality product images should be the first experience an online visitor has with your business; great images are key to success.

An enticing image is well worth spending time and money on as it will capture buyers’ interest and lead them to click through to your product page easily. Don’t just show one image; display your products from different angles and with a wide variety of styles.

If you have lots of images and don’t know which to choose you can test and change the order of your images to see which works best. Track your sales and compare the result and you will identify the one best fit for your ad campaigns.

Remember to follow the Amazon rules about product images.

2. Optimize Your Keywords List Regularly

Keywords matter to your rankings in the search result page. You have to make sure that shoppers who are ready-to-buy will not land on a differently sponsored product page. Making sure your keyword list is accurate, effective, and highly relevant not only ensures the best ranking but it makes for the best shopping experience for buyers too. If some of your keywords are irrelevant to your product or your service, find them and remove them and remember to check your keyword list regularly.

Making the best use of negative keywords and phrases targets your campaigns more accurately and effectively. You can add negative keywords and phrases to avoid your products showing in irrelevant searches on Amazon.

Remember to optimize your keyword list on both relevant keywords and negative keywords. Continuous optimization should be an integral part of your ad campaigns.

3. Create Compelling and Specific Ad Copy

Shoppers are coming to Amazon for an effortless shopping experience. As such, remember to make your ad copy clear, informative and creative doing so makes your product listings appealing to possible buyers.

Be creative, use humor, and stand out and make it easy for customers to choose your product.

Make your product title zippy, meaningful, and compelling and instill a sense of urgency for your promotion.

Be specific and be clear to avoid misunderstanding. List any distinguishing features of your products and insert keywords with high relevance. Put yourself in the customer’s shoes and think about how they use the product and what they want to know. If your customers contact you with questions, remember to use these questions as ideas for the information that you should include in your product page.

4. Make Well-Structured Campaigns

If you are seller dealing with products of different categories, you have to pay special attention to your ad campaign structure. In this situation, you have to master the organizational skills to structure your campaigns and groups into keyword and product categories.

Your campaigns can be separated by each of your main product categories. You have to create different ad groups for the corresponding category of products and create relevant ads for each keyword grouping.  A well-structured ad campaign is a very effective method of business promotion, and you will gain a higher return on investment (ROI) with a limited budget. This step is a critical step when advertising on the Amazon platform.

What Should We Know about Amazon Advertising 4

5. Give Your Customer the Best Shopping Experience

Advertisers also have to consider customer service and offer the best shopping experience. For instance, they should respond immediately to the inquiries from shoppers, and give the best customer support.

A follow-up email is also helpful for your business, and you can send a customer satisfaction survey email to understand what customers thought of the service that they received. You can send helpful content to your customers and respond to their questions. This is how you nurture relationships with your customers.

You can email buyers and ask them to share their shopping experience on your website. Remember to say thank you. Fantastic customer reviews will also help promote your business.

Reviews and feedback are a great way for you to interact with your customers and promote your business. When you advertise on Amazon, remember to keep customers happy and give them the best service, you will stand out and be on the right track to success.

6. Set up a Competitive Price

Pricing is not as easy as you think when you are marketing on Amazon. As we know, the price of the advertised product affects the purchase decision made by the shopper.

It’s very important for advertisers to set a competitive price for their products as this gets more traffic and higher conversion rate. Given all the pricing related rules, and your production cost, marketing cost, and your profit margins, you have to price reasonably competitive to gain more sales.

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Leverage Amazon advertising correctly and it will bring higher visibility of your products, more sales, and profit. Hopefully, we’ve given you some insight about how to make this work for you and how to optimize your Amazon PPC ads to stand out on the marketplace.

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Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.

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