Should You Invest in Amazon Advertising?

Amazon is the largest ecommerce retailer in the world by revenue. So if you’re an ecommerce business owner, the choice to invest in sponsored Amazon ads is more than just safe—it makes your products discoverable on the largest marketplace in the world.

In several ways, ads on Amazon have the upper hand over Google and Facebook ads. Unlike other online ad networks, Amazon has the inside scoop on consumers’ buying habits. They possess a treasure trove of information on what people are buying right now and what they’re likely to buy next. 

Online sellers already know how valuable Amazon is. As competition increases in the Amazon marketplace, understanding how to make the best use of sponsored Amazon ads will determine who the leading competitors will be. 

What Are Amazon Sponsored Product Ads?

Advertising on Amazon happens in a couple of different ways, but it’s best to get started with Amazon Sponsored Products

When consumers type the name of a product into Amazon’s search box, and a page full of results pops up, several of the top suggestions will be sponsored ads. For the most part, these look like non-sponsored ads—the only way to tell them apart is a subtle “Sponsored” tag that hovers above the product titles. 

One reason why sponsored Amazon ads are so popular is that consumers can’t avoid them. Not only do they appear on organic searches (on the top and bottom rows—and to the side as well), but they can also be found on product detail pages. 

Advertisers choose products to boost by bidding on specific keywords. The payment process is simple: Amazon charges you whenever a shopper clicks on your ad. This is a common advertising model known as pay-per-click (PPC). 

Once a shopper clicks on your ad, they are directed to the corresponding product detail page, where they can purchase your product. The product detail page functions as the landing page for your ad. 

Are Amazon Sponsored Product Ads Worth It?

The short answer? Yes. 

Remember that Amazon does what’s best for Amazon. Sponsored Amazon ads have been so successful that they’ve taken over the search results page despite initially occupying only a single column.  

Keep in mind that advertising with Amazon gives you exclusive access to their search-query data, which can drive the success of your ad campaign through the roof. By picking out high-performing search terms, you can use them to inform them about major aspects of your marketing strategy. 

What details should you include in your listings (titles and descriptions)? What products should you prioritize? How can you adjust your next bid to increase visibility? Amazon search-query data can guide you toward the most profitable answers to these questions. 

How Do I Create Sponsored Product Ads on Amazon?

There are a few basic requirements you need to meet before being eligible. Among these, you must have an active seller account on Amazon, and the products you wish to promote can’t be used, refurbished, or adult products.  

Your product listings must also be eligible for the buy box, which is the white box on the right side of the product details page where consumers have the option of beginning the checkout process. Factors that play into your chances of winning the buy box include the number of positive reviews you’ve garnered, your history as a seller, and how new your product is. 

How Can I Set Up an Ad Campaign on Amazon?

The process of creating a Sponsored Products campaign is sweet and simple. Start by picking three products you want to increase visibility for. 

Come up with a campaign name (it’s a good idea to use the name of your product along with your target ACoS), then determine your daily budget and how long you want your campaign to last. 

Amazon Sponsored Products Strategy: Automatic or Manual Targeting? 

You’ll be asked to choose between automatic and manual targeting. In automatic campaigns, Amazon uses product info to target ads. There’s no need for you to choose any keywords—this type of campaign is useful for figuring out what keywords consumers tend to use. 

On the other hand, manual campaigns (where you set your own keywords) give you control overbidding. You have the option of bidding on broad, phrase, or exact keywords. Manual campaigns can help maximize profits, but only once you’ve done a great deal of keyword research already and are well-informed on what keywords to choose. 

What Is the New Product Targeting for Sponsored Products?

Amazon has introduced a new feature called product targeting in addition to keyword targeting. Advertisers are now able to target consumers by product via Amazon Standard Identification Numbers (ASINs) or through categories. Filters can be applied by price, brand, and star rating. 

Product Attributes Targeting (PAT) has been made available for manual campaigns, while automatic campaigns have the added benefit of Enhanced Auto Targeting (EAT). Within automatic campaigns, ads can now be shown on the detail pages of products, which are substitutes or complements of your own sponsored products or in the search results for products that match yours. 

How Much Do Sponsored Product Ads Cost?

You control your daily budget. A PPC solution means that Amazon only charges for the number of clicks you receive on your ads. How much you spend for a click, and the maximum amount you want to spend in a day is entirely up to you. 

The amount you pay will depend on how aggressively you want to market your products. You will want to consider your potential ACOS and ROAS when determining your ad budget and keyword bids.

Do Amazon Sponsored Products Work?

Sponsored Amazon ads are one of the best ways for advertisers to increase visibility on their products and to optimize their ad campaigns. 

If you’re still hesitant, try starting with something small. Run an ad campaign for a product of yours that you already know sells well online. You’ll be able to earn your investment back in no time, after which you can expand your campaign with more confidence. 

You can also use RevenueWize to help you identify profitable keyword opportunities that take your key KPIs into account.

Whether or not they work is hardly the right question to be asking. Instead, as the competition for Amazon Sponsored Products only continues to increase, you should be asking yourself how soon you can start your own campaign. The simple answer? The sooner, the better.

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