A Comprehensive Guide to Advertising on Amazon in 2024

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As an entrepreneur running an online business, you will need to have a site that acts as a storefront for you to push your products and services on display. Amazon is one of the best places you can set up this storefront. 

 

Having over 310 million active users, Amazon is sure to have the target audience your product is built for.

 

To help promote their sellers’ stores and products, Amazon in 2018 launched Amazon Marketing Services now known as Amazon Advertising

 

As an Amazon seller, you need to completely understand the numerous advertising benefits Amazon Advertising provides and how to take advantage of them.

I wrote this article to guide anyone interested in advertising on Amazon. I will take you through the different types of Amazon Ads before showing you how to get started.

 

Types of Amazon Ads

 

Amazon Ads is a search advertising solution for Amazon sellers provided by Amazon.com.

 

This tool works just like Google Ads in that when you make searches in the Amazon search box, some of the results it will bring are sponsored posts (the Amazon ads) and you as a seller only pay when customers click on ads.

 

They are denoted with subtle “sponsored” or “ad” text like in the image below.

 

sponsored

 

If you and your business have not started using AMS yet, it’s worth considering. Amazon Advertising could become a central platform for many businesses, providing a solid alternative to Google and Facebook.

 

Here are some types of Amazon ads you could try out:

 

  1. Amazon Sponsored Ads

The most common Amazon product listing ads you’ll encounter on search results and product detail pages are Sponsored Product Ads. You can use them to target keywords and your competitors’ product codes (ASINs), leading customers directly to your product page.

 

Amazon Sponsored Ads

 

Amazon Sponsored Product Ads are pay-per-click, keyword-targeted display ads showcasing individual products on search results and product detail pages. When using manual targeting, you can bid on three types of keywords: broad, phrase, and exact.

 

Broad keywords cover words before and after the main keyword, such as “durable hiking boots.” for hiking boots. By using keywords like this, you get your ads in front of a larger audience for more exposure.

 

Phrase keywords pay attention to how the arrangement of words influences the context of a search. Take “waterproof hiking boots” as an example – it signals you sell hiking boots that are waterproof.

 

Exact keywords are the most specific type of targeted keyword. For your ad to appear, a shopper’s search query must precisely match the exact keyword, with no additional words before or after. 

 

For instance, if you target the exact keyword “running shoes,” your ad won’t appear for the query “best running shoes.”

 

To see how your ads are doing, Sponsored Product Ads has a reporting tool. It shows you clicks, spending, sales, and the advertising cost of sales (ACoS) for your ads.

 

  1. Amazon Headline Search Ads or Sponsored Brand Campaigns

 

Amazon Headline Search Ads or Sponsored Brand Campaigns

 

Sponsored Brand campaigns are headline search ads that help boost your brand by showcasing a variety of your products, commonly three. These ads use keyword targeting and product targeting ads.

 

These ads display your selected products besides the search results. You choose three products, pick keywords or product codes to bid on, and voila! Your chosen product images show up in search results and with related products on matching product detail pages.

 

For the cost, Amazon uses a pay-per-click, auction-based model, ensuring you never pay more than your bid per click. 

 

To track performance, Sponsored Brand Campaigns provide a reporting feature showing clicks, spending, sales, estimated win rate for keywords, and ACoS (Advertising Cost of Sales).

 

  1. Amazon Product Display Ads

 

Product Display Ads aim to boost your product or brand visibility. They appear on customer review pages, product detail pages, at the top of the offer listing page, and below search results. 

Customers can also see them in different emails, such as abandoned cart emails, follow-up emails, and recommendation emails.

 

The reporting tool shows clicks, spending, sales, advertising cost of sales (ACoS), detail page views, units sold, total sales, and average cost-per-click (ACPC) for your campaigns.

 

  1. Amazon Video Ads

 

Video ads are like display ads, but instead of an image, they showcase videos. Interestingly, video ads are often underestimated on platforms like Amazon and Google because good ones are hard to find. 

 

This scarcity is why YouTube ads, which are mostly video-based, have the highest conversion rates among advertising platforms.

 

Amazon Video Ads can be placed on Amazon sites like Amazon.com and IMDb, as well as on Amazon devices like Fire TV and various websites. 

 

You can buy Amazon video ads whether or not you sell products on Amazon. Plus, you have the freedom to set your ad’s landing page to an Amazon product page, your website, or any other web page on the internet.

 

How to Get Started Advertising on Amazon

 

To start building campaigns on Amazon ads, you will need to first have an Amazon Seller Central Account and be logged into Amazon as a Seller.

 

How to get started advertising on Amazon

 

If you use Amazon Seller Central that means you are a third-party seller. Seller Central has pay-as-you-go pricing for small sellers and a pro option for those with higher sales. 

 

Pro sellers can also let Amazon handle shipping, returns, and customer service – a nice perk! There’s also a Vendor Express option if you’re interested in being a vendor. 

 

You can check out other options Amazon provides sellers here.

 

Once you’re signed up for the right plan and logged into your Amazon account, you can start setting up your ad campaigns!

 

In Seller Central, just head to the Campaign Manager, and it will take you straight to the advertising page.

 

Seller Central

 

From here, you just select ‘Create a campaign’ and choose the type of campaign you want to run.

 

Create a campaign

 

choose the type of campaign

 

Then give the campaign a name and a daily limit to how much money should be spent.

 

campaign a name

 

And that’s it. Your campaign is ready to go out. But hold up.

 

Before you create and launch your campaign, there are a few things you should know about creating an Amazon ad campaign and optimising it.

 

Set your goals

 

Figure out what you want from your ads. It affects the types of ads you pick and how you set up your campaign. Here are some goals to consider:

 

  1. Sell more
  2. Make more money
  3. Introduce a new product
  4. Get your brand noticed
  5. Clear out extra inventory

Knowing your ad goals helps you make smart choices when creating your ads.

 

Set a budget

 

While ads are useful, they cut into your sales margins. So, balance your bids—enough for good visibility but still ensure profit with each sale.

 

Plan your daily advertising budget wisely. Initially, your campaign might not bring in more money than it costs. Start with a budget you can afford. As your ads begin making a positive return on investment, think about increasing your spending to boost performance.

 

If you choose to use the sponsored product ads, you will need to:

 

  1. Find the right keywords to use for your campaign to personalise your ads. Remember personalisation is everything. You can go through the product detail pages and use resources like your own Amazon searches or tools.

 

For manual keyword campaigns, categorize ad groups by match type (broad, phrase, exact) to track traffic and broaden your keyword list.

 

Exclude exact match type keywords from your phrase and broad match ad groups, a point we’ll discuss further below.

 

If you’re new to Amazon advertising and lack keyword history, it’s recommended to create both manual and automatic campaigns for each product.

 

manual and automatic campaigns

 

I would recommend you choose the “bid down only” campaign bidding strategy when you select either the automatic or manual campaigns.

 

 It’s the best way to prevent overspending on Amazon. Avoid the other options—it gives Amazon more control and more money, diminishing your control over ads.

 

bid down only

 

  1. Generate captivating copy

 

Make sure your ad text is not just accurate about what you’re selling; try to inject some creativity and humour if possible. 

 

Standing out is crucial amid the crowded Amazon search results. Adding a sense of urgency can be beneficial. For example, if you’re running a sale or promotion, make sure to emphasize it in your ad.

 

Make sure your ad is clear about what you’re selling. If it’s a water bottle, mention key details like its size, whether it’s BPA-free, and how long it keeps water cold. Even if you can’t include everything in the ad, focus on sharing the most important information.

 

  1. Place bids on well-known brands that offer similar products.

 

When brainstorming keywords for bidding, remember to include well-known competitors. 

 

For example, if you sell smartwatches, you could try using terms like “Apple Watch” and “Samsung Galaxy Watch” which are popular smartwatch brands that are often searched and bought. 

 

This will help boost your product’s visibility and also encourage customers to choose your unique, less-known brand over the more familiar ones.

 

Just do a general search on Amazon for products in your category, like “smartwatches,” and see which brands consistently show up in the search results.

 

  1. Use Negative Keywords

 

Just like with Google advertising, using negative keywords is essential to prevent unnecessary spending on irrelevant clicks. 

 

For example, if you’re selling musical flutes and bidding on the term “flutes” broadly, your ad might show up for someone searching for a “champagne flute.” 

 

If they accidentally click on your ad, you’ll be charged for a click from someone looking for a $10 glass instead of a quality musical instrument.

 

Make sure to conduct keyword research to ensure you’re targeting the right words.

 

If you choose to use Sponsored Brand Campaigns, you will need to:

 

A. Setup the campaign:

 

– In the campaign manager, click on “Create Campaign.”

– Choose “Sponsored Brands.”

– Opt for the “Product Collection” ad format and set your Amazon store page as the landing page.

– Use a creative headline to attract shoppers to your store and products.

– Select keyword targeting.

– Add keywords directly related to your products, usually those performing well in your sponsored products campaign.

– (Optional) Exclude any negative keywords.

– Finalize and create the campaign.

 

B. Organize your sponsored brand campaign into two ad groups:

 

One for brand keywords and another for non-branded keywords. This segmentation allows you to distinguish between customers searching for your specific products and those searching for your brand.

 

When picking keywords, prioritize the top-performing search terms from your sponsored products manual and automatic targeting campaigns. This strategy ensures you bid on terms where your products excel in rankings and perform well on Amazon.

 

Conclusion

 

By following this article’s advice you’ll be able to use Amazon ads to create opportunities to increase your sales, boost net profit, and boost brand recognition.

 

Customizing your campaigns puts you in control of your ads’ reach and costs, aligning them with your business needs.

 

Set your daily advertising budget, determine keyword bids, select target ASINs, and decide on ad placements. Sponsored products, sponsored brands, and sponsored display ads offer diverse channels to reach and target shoppers at various purchasing stages.

 

Remember, sponsored products directly connect users with your products, sponsored brand campaigns build your brand and showcase top-selling products, and sponsored display ads serve as an effective channel for remarketing, drawing traffic to your brand and products at the lowest possible cost.

 

Once your products get bought, you will need it delivered to your customers and Globallyfulfill can help your products reach your customers in a proper delivery schedule. They provide various services from dropshipping, delivery logistics, and warehousing

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