The Ultimate Guide to Amazon Ads
- 25 September 2023
Amazon is surely one of the largest online marketplaces out there, so it would be wise to consider leveraging it to boost your e-store’s growth.
Amazon Advertising on the other hand has become pivotal for e-store owners seeking not just survival but prosperity in the digital marketplace. If you’re running an e-store and wish to leverage Amazon Marketplace, you should learn how to get started with Amazon Ads.
If you wish to be successful in the digital marketplace, understanding and harnessing the power of Amazon Advertising will probably become your must-have. That’s why this text will try to:
- explain the benefits of using Amazon Advertising in e-commerce,
- show you how to get started on Amazon Advertising quickly,
highlight the importance of implementing appropriate pricing strategies regarding Amazon Advertising.
What is Amazon Advertising?
Amazon Advertising is, at its core, the practice of marketing goods and brands within the vast Amazon ecosystem. This platform provides unmatched access to a huge and varied audience, with an astounding 300 million+ Amazon users globally.
Let’s look at why entering the Amazon Advertising market is not only advantageous but also necessary for e-commerce success.
Benefits of Advertising on Amazon
Amazon Advertising offers a multitude of advantages that can significantly impact the growth and profitability of your e-commerce business. Below are the ones we’ve found the most significant for e-commerce retailers.
Access to a Massive Audience
One of the most compelling advantages of advertising on Amazon is gaining access to an enormous and highly active audience. With over 300 million active users globally, Amazon provides an unparalleled platform for reaching potential customers.
Amazon is widely regarded as one of the most trusted and customer-focused e-commerce platforms globally. It can be difficult to develop a reputation on your own, but by connecting your company with Amazon, you automatically acquire it.
This trust factor can significantly influence a potential customer’s decision to purchase from your e-commerce store, thus increasing your overall conversion rate.
Increased Brand Visibility
More potential customers means greater visibility as well. Using Amazon Advertising will put your brand in the spotlight.
Your products will gain enhanced visibility, appearing prominently in search results and product listings. The more frequently consumers encounter your products, the more likely they are to recognize and choose your brand when making a purchase.
Advertising on a Shoestring
With costs as low as around $0.70 per click, Amazon Advertising allows you to reach a vast audience without breaking the bank, ensuring a healthy return on investment (ROI).
Its cost-effectiveness is one of the most appealing aspects of Amazon Advertising. Advertising campaigns on Amazon can be tailored to fit various budgets, making it an accessible option for businesses of all sizes.
The Possibility to Go Premium
Premium Amazon Ads offer the unique advantage of appearing on external websites, extending your reach and influence beyond the Amazon platform. With this feature, you can tap into a broader audience, further amplifying your brand’s presence in the world of e-commerce.
Types of Amazon Ads
Understanding the various types of Amazon Ads is akin to unlocking a treasure chest of possibilities, each offering a unique way to engage with your target audience.
Amazon Sponsored Product Ads
These ads enable you to promote individual products within Amazon’s vast marketplace. When a shopper searches for a keyword relevant to your product, your Sponsored Product Ad can appear alongside search results and product listings.
Amazon Sponsored Product ads work in a pay-per-click (PPC) model, ensuring you only pay when someone clicks on your ad.
Headline Search Ads
Headline Search Ads, also known as Sponsored Brands, are designed to promote your brand and multiple products.
These ads appear at the top of search results including a custom headline, logo, and a selection of products. When shoppers click on a Headline Search Ad, they are directed to a customized landing page or your Amazon Store.
One big advantage of this type of Amazon Ads is that they showcase a curated selection of products and can drive potential traffic directly to your website.
Amazon Product Display Ads
These ads can appear on product detail pages, customer review pages, and on the right rail of search results. They are based on customer shopping behavior and give you an effective way to engage with shoppers who have shown interest in similar products.
This type of Amazon Ads gives you the possibility to access customizable ad formats, including video ads.
Amazon Sponsored Brand Campaigns
Amazon Sponsored Brand Campaigns, as the name suggests, are a type of long-term advertising strategy. Similarly to Amazon Search ads, these can also direct potential customers right to your landing page or your Amazon Store.
However, Amazon Sponsored Brand Campaigns require you to keep an eye on their validity, which means you need to refresh and update them regularly so that they will always present your current offer.
Amazon Store Ads
You can also plan your Amazon advertising directly within your Amazon Store. It is a dedicated space within Amazon where you can create a customized shopping experience for your brand.
While not a traditional ad format, your Amazon Store can serve as a powerful destination for customers who want to explore your brand further. Here, you can present your entire product catalog and familiarize your visitors with your brand’s story.
How to Start Advertising on Amazon?
Before you start advertising on Amazon, you will need to take a few important steps. These are required in order for you to begin your Amazon Advertising journey.
Step 1: Plan Your Strategy
The first you’ll want to do is to plan your Amazon Advertising strategy carefully. You need to think about:
- the type of Amazon Ads you’d like to implement in your e-commerce business,
- the budget you would like to spend,
- your target audience (whether they’d be coming from internet search engines, or they should be regular Amazon users),
- how you are going to monitor your Amazon Advertising effectiveness (perhaps using some price monitoring tools).
Step 2: Access Seller Central
Now, that you have your plan all ready, it’s time for you to access Amazon Seller Central. It is going to be your Amazon Advertising hub. The place where you will be able to make decisions regarding your Amazon experience as an e-commerce retailer.
You will also be able to choose one of two plans here:
- the individual selling plan – a more simplistic, pay-as-you-go plan (simple tools and no fees to Amazon if you don’t sell anything),
- the professional selling plan – more advanced tools for Amazon Sellers where you can list and sell anything (you will need to pay regular fees to Amazon, even if you don’t sell anything during the given month).
In the individual selling plan, you cannot create ads. It’s also worth noting that regardless of the plan you choose, Amazon will be still collecting a “tax” fee, which means that they would take some percentage of each of your successful sales.
Step 3: Create Your Ads
Amazon provides a user-friendly interface for creating ads. Begin by selecting the products you want to promote and crafting compelling ad copy. You can set your budget, specify your target audience, and pick the keywords relevant to your products.
Our suggestion for you, if you are new to Amazon and want to start advertising your products there, is, to begin with Amazon sponsored ads. They are CPC and easy to set up. If you only want to use Amazon as an advertising platform, but you sell your products elsewhere, we suggest you go for display ads or video ads that will appear outside Amazon.
Step 4: Monitor and Optimize
A very important step on your way to leverage the power of Amazon Advertising to its full potential.
Once your ads are live, closely monitor their performance. Track metrics such as click-through rates (CTR) and conversion rates to gauge the effectiveness of your campaigns. Use this data to make informed adjustments and optimizations.
This is where Price Monitoring tools come in handy. We will discuss the usefulness of such a solution in a minute.
Step 5: Diversify Your Amazon Ads
Exploring different Amazon Ads formats can help you reach a broader audience and diversify your advertising strategy.
As your business grows, consider expanding your advertising portfolio to reach a wider audience and maximize your profit.
Amazon Ads Optimization
In order for your ads to be successful and efficient, you should take care of their optimization. By this we mean:
- providing high-quality product images,
- implement automatic targeting,
- data analysis and effectiveness measurements,
- excluding negative keywords.
As long as the first three issues are quite self-explanatory, the last one may be a bit confusing. Negative keywords are the ones you don’t want your ads to be associated with. Excluding them prevents your ads from showing up in irrelevant searches, helping you save money and improve the overall effectiveness of your campaigns. But, it requires advanced knowledge of what type of traffic you definitely don’t want to draw to your e-store.
Price Monitoring and Repricing
Price Monitoring and Repricing tools might play a key role in your Amazon Advertising strategy.
Automatic pricing solutions, like Dealavo‘s Dynamic Pricing and Price Monitoring, can be your game-changer. Dealavo’s features can help you stay competitive, optimize pricing, and ensure your products remain profitable in the dynamic world of e-commerce.
Leveraging Dealavo for Amazon Advertising
Dealavo is a dynamic pricing and price monitoring solution designed to help e-commerce businesses thrive in a competitive market. This tool offers features that are especially beneficial for Amazon Advertising in e-commerce.
Dealavo’s Dynamic Pricing capabilities allow you to optimize your prices for maximum profitability. By analyzing market conditions and customer demand, Dealavo can help you set prices that maximize your revenue while remaining competitive. According to our data, this feature can increase your profit by up to 50% (depending on various circumstances).
Automated Price Adjustments
With Dealavo, you can automate your pricing strategy. This means that when price changes are detected in the market, Dealavo can automatically adjust your prices to remain competitive, even when you’re not actively monitoring the market.
Dealavo offers you solid data visualization so that you can make data-driven decisions with great precision. Dealavo incorporates machine learning which enables it to put the data it collects into practice with its Dynamic Pricing feature.
The Ultimate Guide to Amazon Ads – Conclusions
Amazon Advertising empowers e-commerce businesses to thrive. By grasping the benefits, exploring ad options, optimizing your strategies, and utilizing tools like Dealavo for price monitoring and repricing, you can unlock Amazon’s full potential. Elevate your brand’s visibility, credibility, and profitability to always stay one step ahead of your competition.