The Ultimate Guide to Amazon Advertising

I am willing to bet that anytime you discuss marketing strategy with your team, you are typically discussing the same three or four social platforms – Facebook? Check. Instagram? Check. Pinterest? Check.

But – what about Amazon?

Amazon launched in 2018 “Amazon Advertising”(formerly Amazon Marketing Services or AMS) as a search engine advertising solution for Amazon providers. Similar to pay-per-click ads on Google, sellers only pay when buyers click ads.

AMS is growing fast. In fact, Amazon’s advertising revenue is expected to be around 12.75 billion in 2020with an impressive 23% growth since 2019.

If you don’t already use it AMSyour team should think about it. Amazon Advertising could become a central advertising platform for many companies and a good alternative to Google and Facebook.

To help you get started with advertising on Amazon, we created this ultimate guide that outlines all of the types of ads you can run on Amazon and some of their best practices. Read on to learn how to advertise on the ecommerce platform in 2020.

Read on or skip to a specific type of Amazon advertisement:

1. Amazon Sponsored Ads

2. Amazon Headline Search Ads

3. Amazon Product Display Ads

4. Amazon Native Ads

5. Amazon Video Ads

6. Amazon Stores

Amazon advertising strategy

While we describe five unique types of Amazon Ads, each with different best practices, here are seven general tips for creating a successful Amazon advertising strategy:

1. Determine your goals.

Whether you want to generate more sales or increase brand awareness, you can use Amazon to align your goals with your goals. For example, you can use your Advertising costs of sales (ACoS) as a measure of success if you focus on generating more sales.

Alternatively, consider impressions as a measure of success if your focus is on building brand awareness.

Fortunately, Amazon divides its product page into “goals” when it’s easiest for you to find out which Amazon ad product is best for you based on your goals. Examples include video ads, display ads, audio ads, and custom advertising solutions Recommended if your goal is to increase brand awareness.

By working backwards from your goals, you ensure that the strategy you are implementing at Amazon is best suited to your business needs.

2. Choose the right products for advertising.

Promoting your most popular products is your best chance of converting clicks into purchases. You should also make sure that these products are in stock and are competitively priced.

Alternatively, you may have a new product or service that you want to raise awareness about. When choosing the right product or service to advertise, you should keep your goals in mind and make sure you have done your research to determine them whether Amazon is the right platform to present your products primarily.

3. Create clear, concise, and compelling product detail pages.

Amazon ads can entice customers to visit your product detail pages. However, the product detail page ultimately turns those customers into customers. To create a compelling product detail page, add accurate and descriptive titles, quality images, and relevant and useful product information.

4. Choose where you want to show your ads.

Amazon offers a variety of products in its full suite of advertising. For example, you can create voice ads to be displayed on Alexa-enabled devices, video ads to be streamed on Fire TV or Amazon exclusive websites like IMBD, or display ads to attract Amazon users to your brand.

Once you’ve determined whether voice, video, or search is right for you, it’s time to investigate a number of options, including sponsored branded ads versus sponsored product ads (discussed in the next step).

Note that there are tons of ways to display your ads on different devices or websites on Amazon. So remember to get creative. An audio advertisement played on devices with Alexa functionality may be best for your business, or you may get the highest ROI with Amazon DSP, serving you the Amazon audience on both Amazon websites and websites Third-party apps can reach.

5. Test sponsored brands versus sponsored products.

Let’s look at the following example to examine the differences between Sponsored Brands and Sponsored Products.

When i search “Baby Food” on Amazon, which is the first Sponsored Placement I see Tanners Sponsored Brand Post highlighting a few different Gerber products to help increase brand awareness and increase sales:

Gerber sponsored brand on Amazon

However, think about what happens when I click on a single Gerber baby food product. In the lower right corner of the product screen, under the Buy Now button, you will see a Happy Family Organics Promotion of a Single Product – Stage 4 Fiber & Protein Baby Food Bags:

happy tot sponsored product on Amazon

This is the difference between a Sponsored Brand and a Sponsored Product Post. Simply put, a sponsored brand post can display some of your products or services and is ultimately best suited for companies looking to increase brand awareness for an entire line of products.

Alternatively, a sponsored product post is a CPC (cost-per-click) ad that advertises individual product lists on Amazon. If you are looking to increase sales on a specific product or target a niche group (e.g. anyone who has already clicked on a competitor’s product) this may be a better option for you.

6. Use category-specific targeting.

Amazon offers advanced targeting functionality For example, to help you display your products next to top-notch products or even tangentially related products, you could serve your ad to Amazon users who searched for “Keurig” when selling K-Cups for a Keurig.

Product Attribute Targeting enables you to serve ads to buyers who have shown interest in other products in your industry. This advanced targeting feature allows you to maximize the effectiveness of your ads. In addition, you can increase brand awareness with a high-purposeful audience.

For example, if I search for basketballs on Amazon and click on a Wilson product, I can scroll down and see a section labeled “Sponsored Products For This Item”:

sponsored products related to basketball on Amazon

Avid basketball players are more likely to be more inclined to look at knee braces or sports cones, which makes this an effective ad placement. Even if buyers are not in the

Even if I’m not in the market right now, I will ideally keep an eye on these brands for the future.

7. Use negative keywords to reduce wasted spend.

It’s important that you don’t waste advertising spend by including negative keywords – or which keywords you don’t want to appear for – to avoid getting your ad served to people who don’t convert.

For example, consider the difference between a search for “granola bars” and a search for “KIND granola bars”. You don’t want to appear in a search for “KIND granola bars” when the user is clearly determined to find a particular brand of cereal.

Because of this, you may want to add brands like “KIND” or “Chewy” to your negative keyword list so that your ad can serve people with a more general interest in viewing various branded cereal products.

You should also include negative keywords if they are not related to your product to avoid wasting your advertising spend on people who are not interested in your product. For example, if your product is not gluten-free, you would want “gluten-free” in your negative keyword list.

Additionally, you can consider targeting your ads more specifically to a smaller group with higher intent. For example, instead of just targeting “granola bars” you could try targeting “low sugar granola bars”.

Ads sponsored by Amazon

Amazon sponsored product ads are keyword-targeted pay-per-click ads for individual products that appear on search results and product detail pages. For Sponsored Product Ads, there are three types of keywords you can bid on if you choose to target it manually – broad, phrased, and precise.

sponsored sock product on Amazon

Common keywords can include words before and after the target keyword, e.g. B. “white hand mixers” if you sell hand mixers. By targeting these keywords, your ads will get the most traffic.

Phrase keywords Focus on how the order of the words used changes the context of a query. For example, “stainless steel hand mixer” indicates that you sell hand mixer. However, “stainless steel hand mixer” means that you are selling stainless steel mixers, but not necessarily stainless steel hand mixers.

Exact keywords are the most restrictive types of targeted keywords. A buyer’s search query must contain the exact keyword in order for your ad to show. No words are allowed before or after the keyword. For example, if you select exact keywords, you can target an ad for “Hand mixer”, but it won’t appear for the query “Electric hand mixer”.

With Sponsored Product Ads, you can also use automatic keyword targeting, which uses an algorithm to select the most relevant keywords for your product ads.

To measure the performance of your ads, Sponsored Product Ads offers a reporting tool that shows the clicks, spend, sales and advertising costs of your ads (ACoS).

Best Practices for Amazon Sponsored Ads

Targeting

With Amazon sponsored product ads, you can find keywords with low conversion rates and mark them as negative. This way, Amazon will no longer serve your ad to buyers looking for these queries. It’s important to make sure that you mark certain keywords as negative. Even if these keywords have a high CTR, their low conversion rate means they are unlikely to be reaching the right type of buyer.

Offer

In manual targeting ad campaigns, you can use Bid + to increase the likelihood that your ad will appear at the top of search results. You can only use Bid + on ads that are eligible to appear at the top of search results. If you do, however, you can increase your default bid by up to 50% to keep your best performing campaigns competitive without having to constantly adjust your bids manually.

Amazon Headline Search Ads (a.k.a. sponsored brand campaigns)

Example of Amazon Headline Search Ad of the shoulder bag

Image source

This type of Amazon advertising, currently known as sponsored branded campaigns, allows you to advertise keyword-targeted ads for multiple products above, below, and next to search results.

With Sponsored Brand Campaigns, you can choose three types of keywords: Branded Product Keywords, Complementary Product Keywords, and Sponsored Product Auto Targeting Keywords.

Keywords for branded products are a combination of your brand name and a product that you sell.

Free product keywords are a bundle of two separate products that influence mutual demand and can be sold together (like ketchup and mustard).

Sponsored products have automatic keywords for targeting are searches that have already been successful when running automatically targeted sponsored product campaigns.

Also, with Branded Sponsored Campaigns, you can get up to three unique products in your ads, customize the image, headline, and landing page of your ads, and even test these elements out.

Below is an image from Amazon that lists the keywords you can use for your sponsored branded campaigns:

Amazon describes the different types of keywords.

Image source

To determine how much you pay for sponsored branded campaigns, Amazon uses an auction-based pay-per-click pricing model so you never pay more than you bid per click. In addition to manual bidding, you can choose automatic bidding to optimize your ads for conversion.

If you want to know how well your ads are doing, Sponsored Brand Campaigns offers a reporting feature that shows the clicks, spend, sales, estimated rate of return for keywords and ACoS (Advertising Cost of Sales) of your ads.

Shirt Invaders is promoting three of their t-shirts below. Clicking on each of the shirts calls up the specific product page. However, if you click the “Shop Now” button below the copy, you will be taken to the Amazon Store:

Shirt Invaders Amazon Headline Search Ads Above Search Results. Image source

Sponsored Brand Campaign Best Practices

Ad motif

It’s a good idea to include three top performing products in your Sponsored Brand campaign to increase the number of clicks and sales your ads generate.

Amazon also recommends including the main benefit of your product in the headline of your ad, as mobile buyers can only see the main image and headline of the ad.

When describing your product, do not try to claim that your product is “# 1” or “Best Seller” – your ad will not be approved.

Testing

For the most accurate and fruitful testing, change only one variable at a time, run it for at least two weeks, and anchor the success of your tests to business goals.

Landing page design

Sponsored Brands allows you to direct customers to your Amazon store or a custom product page. Test how different product pages convert visitors into customers and the order in which your products are displayed.

Amazon product ads

Product ads are pay-per-click ads that appear on product detail pages, customer review pages, at the top of the listing listings page, and below search results.

You can also place these ads on abandoned cart emails, follow-up emails, and referral emails. Your main goal is to sell or sell your customers.

sponsored products related to razors on Amazon

With product ads, you can use two types of campaign targeting: product and interest. Product targeting is a contextual form of targeting that allows you to target specific products and related categories. Interest orientation is a behavioral form of targeting that you can use to attract buyers’ interest and reach a larger audience.

With product ads, you can also choose which detail pages in the category you want to advertise on, customize your design and offer a reporting tool that shows the clicks, expenses, sales, advertising costs (ACoS) of your campaigns and detail page views of your campaigns, expenses, units sold , Total sales and average cost-per-click (ACPC).

Amazon Product Ads Best Practices

Targeting

Use product targeting on competitor pages, supplemental product detail pages, and your own product detail pages to sell and sell similar products. By using product targeting for related categories, you can also access sections of the Amazon catalog that are related to your products.

Ad motif

When creating your headings, Amazon allows you to include expressions such as “Exclusive”, “New”, “Buy Now” and “Save Now”. However, if you make claims like “# 1” or “Beat Seller”, your ad will be rejected.

Amazon Native Ads

Amazon Native Ads are ads that you can run on your brand’s own website. There are three types of native ads: recommendation ads, search ads, and custom ads.

Recommendation advertisements are advertisements that you can place on product item pages on your website. These ads are dynamic, so Amazon populates your most relevant product recommendations based on the content and visitors to your website.

Screenshot 2020-10-13 at 2.28.30 a.m. Image source

Search ads are ads that appear on your website based on keywords your customers search for on Amazon or on your website.

Find ads on Amazon.

Image source

Custom ads This option allows you to choose your own range of products that you want to advertise and place them in your product item posts.

Custom ads on Amazon include men's running shoes.

Image source

Best Practice for Amazon Native Ads

Like a blog post call-to-action, make sure your native Shopping ads are highly relevant to the pages you are placing them on. That way, the ads are a natural next step once your website visitors have read your post and can lead to more conversions.

Amazon Video Ads

Amazon Video Ads are ads that you can display on Amazon websites such as Amazon.com and IMDb, on Amazon devices such as Fire TV, and on various websites on the Internet. You can buy Amazon video ads whether you sell products on Amazon or not, and you can choose to land your ad as an Amazon product page, your own website, or any other webpage on the internet.

Example of a Peloton video ad on Amazon

Image source

If you’d like to work with Amazon’s video ad consultants, you can sign up for their managed service option. However, to be eligible, you typically need to spend at least $ 35,000 on video ads.

Amazon stores

Users can promote their brand or product in their own multi-page Amazon store. Use Amazon templates or drag-and-drop tiles to showcase your brand’s products or portfolio.

With Amazon Stores, brands get an Amazon URL and can view traffic analytics that they can use to track sales, traffic sources, and advertising campaigns.

In addition, creating an Amazon store is free.

Amazon saves best practices

Once you’ve created an Amazon store, you can use the analytics tool to find the best performing keywords that have been converted into sales. In addition, the analysis tool informs you about which products are being sold.

This will tell you which products to consider for a paid advertising campaign. It also shows what potential buyers are interested in.

Below is an example of an Amazon store:

Kitchen Smart Amazon Store with the best products.

Image source

When you create an Amazon store, the best practices are similar to the best practices of a landing page. Use clear photos, easy-to-read captions, and clear pricing. Also, make sure to showcase your top performing products. Or you can also introduce new products in your shop.

Before creating your shop, think about the products that you want to use in your navigation. Then list all of your products that you will be showcasing on these pages. Finally, collect the clear, professional photos of your product, write your captions, and list your prices.

Ultimately, selling on Amazon can be a powerful marketing strategy for ecommerce brands. As consumers continue to focus on online purchases, Amazon advertising can play a huge role in your online sales.

Editor’s Note: This post was originally published in February 2019 and has been updated for completeness.

Advertising plan

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