Everything you need to know about Amazon Advertising|[2021]

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Introduction to Amazon Advertising Platform

I am presuming that while you are here, You are thinking of doing Amazon Advertising for your product categories. Over the years, I have seen that many companies do Social Media Marketing, Google SEO-PPC and other Online marketing tactics to optimise conversions.

Digital has changed the shopping habits of people over the period of time, Now buyer persona’s not just shopped now but also Compare Products over E-commerce websites.

About Amazon Advertising

Amazon in 2018 launched “Amazon Advertising”, (Formerly known as the Amazon Marketing Services or AMS) with an aim to provide the search advertising solution to Amazon Vendors.

In simple words, Amazon Advertising is similar to Google Ads where you search for any keyword in the product search section and the results get displayed with few ads on the page. Top results will be Sponsored Ads- these are considered Amazon Ads.

Amazon Advertising Sponsored Ads

As we can see that Product Search Results shows two results, First on the Top there are two Sponsored Ads and underneath we can see Organic Search Result. Sponsor Ads can be categorised into Sponsor Product Ads and Sponsor Brand Ads (Formerly known as Headline Search Ads).

According to Statista, “During May 2020, Amazon.com had over 2.5 billion combined desktop and mobile visits, up from 2.01 billion visits in February 2020. The platform is by far the most visited e-commerce property in the United States”, and it has been estimated that close to 112 Million are Prime Users in America and that is a huge number for you to connect your products to relevant customers and simultaneously reduce ACOS (Advertising Cost of Sale).

So while we have discussed Amazon Advertising and its importance then the question arises, Why Amazon Advertising? And how useful It can be for us. Let’s Discuss those now.

Why Amazon Advertising?

“Google has search data, and Facebook knows interest levels, but Amazon has real power because it knows what people are buying and how they’re doing it,” says Shareen Pathak in Digiday.

If you are a Seller or an Amazon Vendor who desires to drive sales and have to earn more profits through cost-cutting on Advertising Budget then Amazon Advertising can be an excellent choice. Why generally people advertise products on Amazon?

Well, there are multiple reasons behind that for example, to Increase the Brand Value by reaching your larger audience through different avenues, Stock Clearance, getting Reviews for your brands/products and most important if you want to Launch a New Product on Amazon.

If you are selling a tangible product that is currently being sold over E-commerce websites then Amazon can provide you with the space to sell your products which can bring you more potential customers. If you are not sure about Amazon Advertising then start your Ad campaign for your highly in-demand product and check for the ROI on the Ad cost spent over the sales often called “ACOS”. The minimum percentage of ACOS the higher margin of profit you would get over sales.

Amazon has emerged as one of the strong competitors of Google and Facebook in the matter of Advertising spendings and there could be the end of Duopoly and it will turn into a triopoly soon. Industry experts are also not underestimating the value of Amazon Advertising. According to Citi Research predicted in January (2018), “In the next 10 years, Amazon advertising would hit $50 billion

After analysing this I can assure you that Amazon advertising is the need of the time for us.

Benefits of Amazon Advertising

As the masses are connecting with Amazon, there is huge data available for the Amazon vendors to whom they can target and eventually enhance conversions. If you are not focusing on AMS, then probably your team should consider it otherwise you are losing out on everything.

There are numerous merits of advertising on AAP, so let’s discuss some of those.

Target Relevant Audience or Potential Customer’s

People love to shop on Amazon, Why? Because it provides them with relevant products and provides customised products that fulfil the needs of the people. On the Survey of more than 2000 people in the US, 89 per cent of the people agreed that they are more likely to buy products from Amazon than any other E-commerce sites (Feedvisor 2019). Therefore, You can target those customers or audiences who are studying your brands or who are familiar with your products.

Keyword Targeting

Your team can target specific keywords that the people are searching for their products on Amazon and with the help of that you can tailor your keyword targeting effectively. We can help you with a list of keywords that your customers are searching for similar brands or products that can ultimately help you in framing proper campaigns.

Campaign Management and Evaluation

We get valuable Leads when we deliver proper Campaign management and monitor it effectively. Significantly, AAP also provides you with the tools through which you can analyse your campaigns and be able to see the impressions, engagement rates, etc and if your ads are effective and reaching to the right people or not.

Multiple Ads Targeting feature

Similar to Social Media Marketing, AAP also gives you access to promote your ads to the other websites they own and on leading publishing sites. It gives you leverage to target a large audience and optimize conversions. AAP profiles it as Sponsored Display Ads where you advertise your ads to third party affiliated websites with Amazon.

Pricing

Unlike in any other advertising mediums, AAP only charges on Cost-Per-Click and not Cost-Per-Impressions (CPM). Along with you choose the Bid Strategy for the clicks on the products and when any customer clicks on the ads, you pay. This is the most significant pricing model I have seen and with this, you can properly channelise your Ads Budget and Spendings.

Whom to Consult for Amazon Advertising Platform?

My first question to you is, Are you indeed practising a competitive strategy to stand out from other players in the market? Well, you already know the fact. In the eCommerce market where everyone is focusing on competitive moves and strategies, the main thing to focus on is “Sustainability and Stability” on your product, business or any strategies.

Types of Amazon Advertising Platform for Amazon Vendors to enhance sales

We have consulted more than 70 clients and are still counting. We focus on the long term strategic planning and execution for our clients that we can drive more output in fewer cost inputs. We use advanced tools such as Helium, Viral Launch, Jungle Scout, etc for proper keyword planning and optimize SEO that focuses on driving quality leads and ultimately brings more sales to our clients.

We categorise our Amazon Advertising into 3 Offerings namely “Sponsored Product Ads”, “Sponsored Brand Ads”, “Sponsored Display Ads”. We understand the problem area of our clients and also plan accordingly that brings almost 100 per cent results. Let’s discuss more these three categories in detail.

“Sponsored Products are cost-per-click (CPC) ads that promote individual product listings on Amazon”, Amazon Advertising. On Amazon there are more than 4000 products being sold every minute, does that include your product as well? Product Ads gives you the potential to highlight your brand or product to the masses thus enhancing engagement.

Product ads are Keyword-Targeted search results that get displayed with product detail pages. In Sponsored Product Ads you can bid on different phases of Keywords namely Broad, Phrase and Exact Keyword targeting.

There are numerous advantages of Sponsored Ads such as Gaining visibility in the crowd, Increase Sales by displaying relevant ads to your Audience, Cost Control by adopting the CPC pricing model and you can also Measure your Advertising success through properly scrutinizing your Reports.

Sponsored Brand Ads in Amazon Platform with Amazon Advertising

Sponsored Ads have two types of campaigns.

Manual Campaigns

These are accessed on the keywords Targeting and Product Targeting. In product Targeting, you can target specific Products, Brands and Categories, Amazon also provides you with a variety of ways to target the list.

Automatic Campaigns

Here you give the opportunity to Amazon to understand your products and simultaneously generate Keyword Targeting, etc. It purely runs on the Amazon Algorithm and you do not have the leverage to reason it.

The main motive behind these three ads is to Promote Brand Awareness of your Products or the stores. Unlike Product Ads, Brand Ads will require you to input a 50 Characters headline (to be written by yourself) and the Ads can be displayed either to the Landing page of your store which is created automatically or can be displayed on a designated landing page.

There are Multiple types of Ads you can perform here,

Product Collection

It gives you the leverage to showcase multiple products details with images on the desktop and in the case of mobile in between one to three products may show. This ad requires 50 characters headlines and if any customer clicks on it then it redirects to your Amazon store.

Store Spotlight

Here you will be granted to highlight your store images to
your audience instead of just product images. In this type of ad, you will create 50 character Headlines for your Ad and 40 (max) Character Headline for each page you create. This form of Ad only supports Mobile Ads.

Video Ads

This will be muted automatically from Amazon. In this, the video will start automatically as soon as the user searches for your brands, etc. It works on Keyword targeting and supports mobile ads only. Be clear and concise with your Brand message that you want to convey to your audience.

Sponsored Brand Ads can help you in many ways such as building Brand Awareness, Connecting you with the shoppers, helps you to create a perfect shopping experience and Price control through the CPC model. If your Brand is emerging in Amazon and you want to engage customers with a superior shopping experience then you should do Brand Ads, I Reckon.

Sponsored Display is a self-service ads campaign for those who want to
launch their display campaigns quickly and want to reach relevant audiences through different touchpoints. The main motive of Display ads is to remarket the product so that people should consider it buying, In short, we try to do Cross-sell or Upsell the products by displaying ads in multiple mediums such as ON Amazon or OFF Amazon.

In-Display Ads there are different options to Advertise and as per that the Bid reach and strategies vary. Let us look at those options in detail.

Views

There are two important points to consider this option. First is
Viewers of your product page and Second is Viewers of similar product pages. In this option, you can select the products you want to display and Amazon will automatically do remarketing. This will be Off-page Amazon Ads and this View considers the CPC model.

Searches

As the name describes, it targets the people who have searched
for similar products of your offerings. This ad is shown on both ON Amazon and OFF Amazon. This option considers Cost per Impression bid strategy

Purchases

These ads target the people who have already interacted with
you or purchased the products from you. This option also adopts Cost per Impression bid strategy.

We follow different kinds of Amazon Advertising tasks for our clients such as doing Keyword Research, Campaign Setup, Campaign Strategy Development, Bid Adjustments, Ad creation, etc that can definitely optimize your Brand value and substantially drive sales and increase profitability.

The conclusion to Amazon Advertising Platform

Finally, I can conclude that Amazon Advertising is an Interesting option for you if you want to scale your business and want to enhance your customer shopping journey. Amazon Advertising can bring you quality leads and conversions if you plan and execute your strategy effectively. As customers learn more about Online shopping than Amazon Advertising would seamlessly drive out your Business operations and ultimately optimize.

Author:- Akshay Trivedi

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