Everything you need to know about Amazon Advertising

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What is Advertisement?

  • An advertisement (often shortened to advert or ad) is the promotion of a product, brand or service to a viewership in order to attract interest, engagement and sales.
  • Advertisements come in many forms, from copy to interactive video, and have evolved to become a crucial feature of the app marketplace.

What is Amazon advertising?

  • When you type in a keyword in the Amazon search box and results appear, some of the top results will be sponsored posts; these are considered Amazon Ads.
  • Advertisers who want to gain more visibility to their products on Amazon can pay for these positions by bidding on specific keywords. The advertiser will then be charged when a buyer clicks on their ad.

What are the types of Amazon ads?

There are three types of Amazon advertising:

  • Sponsored Product Ads
  • Sponsored Brands
  • Product Display Ads

Sponsored Product Ads

This type of Amazon ad promotes your products across search results and product detail pages.

What are Sponsored Product Ads?

  • Sponsored Product Ads are a pay-per-click (PPC) advertising solution that promotes one product.
  • With Sponsored Product Ads, your business can manually or automatically target keywords relevant to your target buyer.
  • If you utilize automatic keyword targeting, Amazon determines and targets the most relevant keywords for your products.
  • Like other PPC advertising options, you only pay for your Sponsored Product Ads when a buyer clicks on them. With that feature, Amazon provides your business with maximum control over your advertising budget and bids for keywords.

Where do Sponsored Product Ads appear?

Amazon displays Sponsored Product Ads on mobile and desktop devices in the following locations:

  • Right side of search results
  • Bottom of search results
  • On product details pages

Due to their prime position in search results, Sponsored Product Ads help your business attract your target buyer. They also encourage buyers in the later stages of the buying funnel to purchase your product.

Benefit of Sponsored Product Ads:

  • You Only Pay for Performance: You’re not charged until a customer clicks your ad, and you always control your campaign budgets.
  • Create Stability, Not Guessing: Amazon will suggest keywords to bid on, or you can target products similar to yours.
  • Allow You to See Insights: Monitor ad performance and optimize to drive results by changing keywords or adjusting bids as needed.
  • Increase visibility: Sponsored product ads allow you to place your ads on the top of search results. This increases your visibility substantially. If you use the right keywords to target these ad placements, you can convert more potential buyers.

Sponsored Brands

  • For many sellers and vendors, Sponsored Brands are better known as Headline Search Ads.
  • With Sponsored brand ads, you pay only when someone clicks on your ad. Note that these ads carry higher CPC (cost per click) than sponsored product ads as they have higher prominence.

What are Sponsored Brands?

  • Sponsored Brands are a PPC advertising solution that highlights your brand and up to three products.
  • Like other types of Amazon ads, Sponsored Brands follow a PPC advertising model. When a buyer clicks on your ad, Amazon charges your business for the ad. You don’t pay Amazon to display it, but you do pay for it when a user clicks on it.
  • Keywords are another component of Sponsored Brands. In your Sponsored Brands campaign, your team targets and bids on keywords relevant to your product. 
  • This type of Amazon ad also features automatic or manual bidding. With automatic bidding, Amazon optimizes your bids automatically but only by lowering them, it never increases your bids. If you choose manual bidding, your team or advertising agency oversees your keyword bids.

Where do Sponsored Brands appear?

Amazon displays Sponsored Brands in the following locations on desktop devices:

  • Above search results
  • To the left of search results
  • Below search results
  • In the Amazon app for mobile users, Sponsored Brands also appear within search results.

Benefit of Sponsored Brands:

  • You Only Pay for Performance: You’re not charged until a customer clicks your ad, and you always control your campaign budgets.
  • Allow You to See Insights: Monitor ad performance and optimize to drive results by changing keywords or adjusting bids as needed.
  • Increase visibility: Sponsored product ads allow you to place your ads on the top of search results. This increases your visibility substantially. If you use the right keywords to target these ad placements, you can convert more potential buyers.

Product Display Ads

While many businesses focus on Sponsored Brands and Sponsored Product Ads, Product Display Ads are a competitive choice for advertising on Amazon. They focus on how your product relates to buyer interests, as well as select products and categories, which can give your product valuable exposure.

What are Product Display Ads?

  • Product Display Ads use PPC to promote a product by targeting buyer interests or similar products. Amazon refers to these targeting options as interest- or product-based targeting:
  • Interest-based targeting: With interest-based targeting, your team targets buyers by their broader interests. That helps your company reach a wider audience and build your brand, which can have positive impacts on your bottom line.
  • Product-based targeting: With product-based targeting, your team targets similar, complementary, or competitor products on Amazon. It’s helpful if you’re looking to undercut your opponent’s sales or promote your product’s usefulness as an add-on purchase.
  • Compared to Sponsored Brands and Sponsored Product Ads, Product Display Ads take a new approach to reaching your target buyer. Instead of focusing on keywords, this type of Amazon ad looks for similarities between your product and buyer interests, product categories, and individual products.
  • Like Sponsored Product Ads and Sponsored Brands, however, Product Display Ads operate using a PPC advertising model. Meaning, your company only pays when a buyer clicks on your Product Display Ads. Instead of bidding on keywords, though, you’re bidding only on clicks.

Where do Product Display Ads appear?

The Amazon sponsored display ads generally appear on the Amazon home page, search results pages, product detail pages as well as third-party websites and apps.

Benefit of Product Display Ads:

  • With Product Display Ads, you can reach a wider audience.
  • It lets the seller control his/her budget and bids.
  • It assists in tracking the performance of ad campaigns.
  • Allows sellers to select the placement for ads certainly and target based on customer interests.
  • Increase brand awareness in your niche.
  • Place your best product under your competitors’ listing.
  • Increase reach for new product listings.
  • It has a strong dashboard to help count the clicks, impressions, sales, considerations, and much more.
  • You can re-engage and retarget your customers on and off Amazon.

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