Amazon Ads

When is it worth investing in Amazon's advertising solutions?
March 10, 2023
Marketing

Amazon's popularity as a marketplace is growing in our country faster than anyone expected. Small and medium-sized retail companies don't want to get lost in the sea of competition, so they are investing in advertising on Amazon. Look into what the Amazon Ads system can do for your business as well.

What is Amazon?

Amazon is now the world's largest online retailer. The platform was established in Seattle in 1994, but it took 20 years for it to reach Poland. Additionally, since Amazon.pl was established in 2021, sellers from our country can now easily connect with a large global audience.

As an advertiser, what benefits can you expect from Amazon Ads?

Since it's not just an internal system accessible to members of the community, advertising on Amazon is a tempting proposition. Amazon Ads offers users the chance to advertise on and off the marketplace even if they don't sell anything there. Let's examine what this actually means. Learn about the 7 methods for implementing a successful Amazon PPC campaign and more.

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Amazon Ads: Sponsored Products

Sponsored products involve the promotion of individual items on the platform and are billed on a CPC basis. They are automatically generated based on product listings and appear at the top, on the side, in search results, and on product pages. Both desktop and mobile devices can display the format.

The budget and per-click rate, which determine how frequently ads are displayed, are set by the advertiser. Keywords can be provided to help customers find the right products, or the Amazon Ads system can do it automatically.

This type of advertising is available to professional accounts, book sellers, Kindle Direct Publishing (KDP) authors and agencies. You can promote anything except adult products, used or refurbished items, and those on the banned items list.

Amazon PPC: Sponsored Brands 

Another type of pay-per-click advertising is sponsored brands. They are recommended for companies that want to increase brand awareness, i.e. reach an audience at the very beginning of the shopping path. As with product ads, you pay only for clicks and manage the costs yourself. The display location doesn't change either.

The creatives can feature a clickable logo and image that will take the user straight to your store. You can customize the headline yourself and highlight 3 different products. The next step is to specify the keywords, enter the CPC amount, and submit the ad for review.

Brand advertising is accessible to business accounts that have registered with the Amazon Brand Registry as well as to agencies and book sellers. The restrictions on banned products are the same as within Sponsored Products.

Amazon Ads: Sponsored Display

Automated display ads on Amazon are used to increase brand awareness, encourage purchases, increase sales and build audience loyalty to the brand. They are therefore designed to engage leads at every stage of the buying process. They can be used by companies included in the aforementioned brand registry, book retailers and agencies.

Depending on how the sponsored display ads are targeted, they display:

  • on product tabs, next to customer reviews, on the search results page, or under a recommended offer - when targeting products or categories. This method works best when you want to make it easy for your audience to discover your product;
  • on the Amazon homepage, product tabs and search results page, or outside of Amazon within third-party apps and sites such as Twitch - when targeting ads based on audience groups. It's a great tool for remarketing and retargeting.

Apps, TV shows, and movies can all be displayed on Fire TV in an extended option (beta). This Amazon service allows streaming video content. Amazon has made this solution available to Fire TV app developers, Prime Video Channels, Prime Video Direct publishers and movie distributors.

Sponsored Display is also an example of Amazon PPC ads. CPC or vCPM pricing model can be used. The spending options are very flexible and the campaigns are self-service. The daily and overall budgets can be changed at any time during the campaign, and you can pause an advertisement regardless of its scheduled end time if you are unhappy with its performance.

There are two types of display creatives on Amazon Ads:

  • generated automatically, including a photo of the product, prices, promotion designations, a star rating, and a clickable Buy Now CTA. You can also add a logo and headline to contextually targeted ads;
  • creative option, i.e. supporting a custom image uploaded by the advertiser.

Amazon uses data on customers' shopping habits to reach out to the audience. So it is not necessary to add keywords.

Amazon Demand-Side Platform

On the other hand, Amazon DSP is a solution that enables users to buy digital advertising placements from numerous sources on a large scale. The software supports campaigns including display, audio and video ads. Thanks to workflow automation and machine learning algorithms that the DSP employs to analyze data, the seller can reach the right audience even more successfully.

The Amazon Demand-Side Platform is also used by businesses that do not advertise their goods in this marketplace but still want to connect with customers outside of Amazon. The platform offers tools that make it simpler to develop creatives for those who are willing to use them. These are:

  • e-commerce creative templates - partially automatically generated while giving the authors the freedom to select the image,
  • video creator - enables you to quickly create videos using pre-made templates and product images.

What are the video and audio advertising options that can be implemented through the DSP?

Amazon Video Ads

Video Ads that are billed on a CPM basis include:

  • streaming TV ads, i.e. full-screen videos that are impossible to miss. They are displayed before, during and after streaming video content;
  • In-Stream ads, displayed before, during and after video content on Amazon-owned sites and other Web destinations;
  • Out-Stream ads, displayed in places where there is content other than video, such as between text and images.

With this type of Amazon Ads service, you can reach customers of the marketplace as well as people who use Fire TV, Twitch, the IMDb database, or the Amazon Freevee app, which are all Amazon-related sites. At the same time, ads can also appear on the websites of other leading providers.

Amazon Audio Ads

The audio ads last between 10 and 30 seconds and can be played in between other audio content on the Amazon Music platform. People who use the free version of the service can hear them on desktop computers, smartphones, and other devices with the Alexa voice assistant.

Using audio marketing with Amazon Ads requires contacting an account manager. Ads are billed on a CPM basis, and the minimum budget needed is $25,000.

Custom advertising solutions from Amazon Ads

Brands that aren't satisfied with the options from the classic offer can use custom solutions. Custom advertising solutions consist of comprehensive activities. They include strategy, design, creation and execution of campaigns tailored to the goals and individual needs of a given business.

Why is it worth investing in Amazon Ads?

Companies advertising on Amazon consider the following aspects to be the most important benefits of using this platform:

  • comprehensiveness, meaning it's not always necessary to set up a store from scratch and rely on third-party ad networks;
  • the ability to reach more than 300 million customers worldwide;
  • high recognition and credibility of the platform;
  • real increase in sales - in 2020, 83% of US advertisers confirmed getting at least 4 times return on investment;
  • the ability to scale sales with customized logistics solutions for businesses. One of them is Fulfillment by Amazon (FBA), which provides assistance with product packaging, shipping, returns, and claims;
  • transaction security, a buyer protection program, and high-quality technical support and customer service;
  • extensive analytics and detailed reports at any time during the campaign;
  • the ability to diversify campaigns to ensure consistency in strategy and maximize results.
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The best advertising strategy for your Amazon business — a beginner’s guide

How do you get started using Amazon Ads in a smart and effective way? Here's our quick guide:

  1. Set up a professional seller account on Amazon and fulfill the recommendations, such as registering with the Amazon Brand Registry.
  2. Optimize your product pages. Make your descriptions appealing and include all the necessary details to increase the likelihood that someone will make a purchase.
  3. Set campaign objectives and choose the products you want to advertise.
  4. Start running a campaign with the simplest model, namely Sponsored Products. Analyze the results, adjust the budget, and make decisions about subsequent actions based on your conclusions.

Advertising on Amazon can appear to be much more difficult than on other well-known platforms. Some options require you to contact your account manager, have extra requirements, or have limited availability in specific markets around the world. How do you get out of this so that you don't make a mistake, burn through your budget and get discouraged by this form of brand promotion?

We recommend both novice sellers and large entrepreneurs to trust the professionals. Our performance advertising specialists will take care of everything you need to do to start using Amazon Ads. They will also develop a comprehensive strategy for advertising on Amazon and ensure that the ROAS keeps getting better.

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