A-Z Beginner’s Guide: Advertising on Amazon

A-Z Beginner’s Guide to Advertising on Amazon

According to Amazon, the company’s marketing costs originally consisted of targeted online advertising, TV ads. Amazon’s annual advertising costs are about 10.9 billion U.S. dollars for the year 2020. Amazon Advertising and Amazon Pay-Per-Click (PPC) advertising are growing and have become a vital threat to Facebook and Google’s own PPC market share.  

Amazon Advertising enables sellers and brands to reach different types of customers when they shop, which means they are already in the buying phase of the consumer journey. Amazon Advertising puts your brand ahead of the competitors, and your business should be taking full benefit of this program. 

Below, we’ve put together a complete guide to further knowledge and understanding of Amazon Advertising tools, products. This knowledge is needed to maximize its reach and boost results.

What Are Amazon Ads?

Amazon Advertising is a service that works similarly to pay-per-click ads (PPC) on Google. In this, Amazon sellers only pay when shoppers click on ads regardless of whether or not the item sells. For example: when you type a specific keyword in the Amazon search box and results appear. Few products appear in the top products being sponsored posts, and such posts are considered Amazon ads.

Amazon’s advertising business is growing significantly and expanding beyond. In this way, Amazon has allowed sellers to buy, display, and video ads at range and target audiences on Amazon.com. 

Advertisers who wish to succeed and gain more visibility for the listed products can position by bidding on specific keywords, leading to higher visibility in the Amazon SERPs. The advertiser will then be charged when a customer clicks on their ad. 

Why should sellers advertise on Amazon?

Amazon is an excellent platform to use for selling.  If you’re indecisive, then start small with a product that you already know sells well online. However, the only way users will purchase your products is to advertise the product that you sell in the first place. Once you commence seeing a Return on investment (ROI) using Amazon ads, we recommend incorporating more brands and expanding your campaign. Another compelling reason to advertise on Amazon is that if you are using Amazon PPC, your organic Amazon rankings will possibly improve as well. Hence, Amazon can boost your product sales by investing in Amazon ads, but it could also increase the organic rankings of your products. 

Amazon Advertising works on a pay-per-click model (PPC) that varies from other marketplaces.

There is a deep knitted relationship between ads and organic search on Amazon. The platform strives to produce sales by bestowing high-converting and best-selling products to the customer query. Hence,  Amazon wants to prioritize the products that are likely to sell the most, i.e., products with good sales and feedback history. 

What does Amazon Advertising offer?

Amazon has extensive knowledge of how customers engage with products and brands to discover, browse, and purchase online.

Advertising with Amazon Advertising can be helpful to reach customers. In doing so, Amazon encourages you to achieve your advertising goals while helping customers in finding the products they want to purchase.

Where should a seller begin?

If you start with Amazon Advertising and are a registered seller or vendor who sells products on Amazon, we suggest you start with sponsored ads. Sponsored ads are easy to set up, and they are created to work with different levels of budgets. Also, these ad types are cost-per-click which means that you will only pay when a shopper clicks on your ad. When you build a sponsored ads campaign, you choose your budget to own, and the price wants to bid for a click. Suppose you are willing to use Amazon Advertising to advertise products or services. 

Amazon advertising offers various innovative ad types such as;

 display ads, video ads, and custom ads.

How Do I Know If My Ads Are performing?

Amazon has a helpful metric called ACoS (Average Cost of Sale). This permits you to know how much each sale is costing you. The lower ACoS, the better the sales; if you’re selling a product that costs $10 and spending that amount on Ads, you will have an ACoS of 100%, which means you are spending as much as you earn. 

Perks of using Amazon Advertising 

• The quality, brand-safe environment that advertisers need.
• Reducing the sales cycle
• Developing sales history & product visibility
• Advancing brand awareness
• Getting valuable insights on developing consumer habits & optimizing campaigns to lead a more targeted audience
• Shopping journey data about who customers are and how customers shop
•  Amazon advertisements can strengthen the organic positioning of products on Amazon. 
• Amazon has information about consumer’s habits, which other platforms cannot reach. Hence, it enables us to build unique and different connections with the audience when they want to buy.
• Amazon Advertising’s metrics can aid brands in better defining and optimizing their marketing strategies for frequently helpful advertising.
• As compared to other pay-per-click platforms, Amazon is relatively simple to use. Even it has an automated campaign creation alternative that takes care of most of the work.
• Though Amazon advertising still lags behind the pay-per-click. But, ad revenues are growing five times faster than Google’s.

Final Takeaway

Amazon is growing the eCommerce industry, and the ever-increasing competition is driving digital ad spend on marketplaces. Consequently, Amazon’s advertising business is overgrowing as it expands its ad products. 

Undoubtedly, advertising on Amazon has its perks and challenges. Hence, sellers need a necessary and adaptable promotion plan to stand out in an overcrowded market. They also need to stay flexible in the fast-changing marketplace reality. Amazon provides you with valuable metrics, and campaign reports follow how much you spend on Amazon advertisements. All you require to do is advise this data and optimize your campaigns, respectively.

 We hope this helps. We understand that there are many issues that Amazon sellers deal with. That’s why we have designed a seller-centric intelligent tool- Asinwiser. Get in touch with our experts to get the maximum benefit of this innovative tool.