Amazon Advertising Gets Sales

Considering I spend a good portion of what I make on Amazon buying everything from vitamins to pet products, I know Amazon works. But lately I have noticed what really catches my eye while shopping are the sponsored ads. Sponsored ads usually have the best offer and because they pop up at me, I am attracted to them and thus shop from them. Interestingly enough, 

Sponsored product ads made up “roughly 73% of retailers’ Amazon ad spend in the second quarter of 2021”.

Why Amazon Ads work

First of all, Amazon customers are pretty loyal unless they have a really bad experience on Amazon. With Prime offering free shipping and around 200 million members using it, Amazon is one of the most popular online shopping sites on the Web. Competitors use Amazon Ads to push their products up on a pay-per-click basis. This means that the merchants pay Amazon when the shoppers click on their ads. As such Amazon’s advertising business is rapidly growing and its “Amazon DSP (Demand Side Platform) allows sellers to purchase display and video ads at scale” and gives them exposure in areas such as “Amazon.com, IMDb.com, Fire TV Sticks, Kindles, and more.” If you need Amazon advertising, contact us today!

Amazon Ad Styles

Amazon advertising offers various Ad styles to accommodate their sellers. Here are their ad types that are used: (Source for all ad information: Amazon)

Sponsored Product Ads

These types of ads are shown to shoppers based on keywords and product names and may display at the top, alongside, within shopping results and on product pages both on desktop and mobile, and some may be “featured offers”. These ads are PPC (Pay-Per-Click) keyword targeted ads that are in display or image form and showcase an individual product. When the person browsing clicks the link it leads them to the product details listing page to make the purchase. The model used for this ad is CPC, and you will bid the maximum amount you are willing to pay when a shopper clicks an ad for your product. The products must be new, and not refurbished, and not of adult nature. Amazon says, “Sponsored Products can help generate up to 93x more unit sales.” (Source: Amazon Sponsored Product Ads)

Sponsored Brand Campaigns

These ad types may be displayed on top of, alongside, or within shopping results and shown on both desktop and mobile devices. Amazon offers a New-to-Brand metrics tracking option where you can track the orders and sales that first-time customers have made of your products. The metrics allows you to track the number of first-time orders, the percentage of new total orders, and the total sales of new orders that are all related to your brand. This campaign is also a CPC (Cost-Per-Click) auction-based model of advertising. (Source: Amazon Sponsored Brand Campaigns)

Sponsored Display Ads

Sponsored Display Ad types are image ads that may appear on “desktop, mobile, and apps dependent on the specific product strategy that you chose.” They can reach your potential customer as they browse or buy products on the Amazon home page, product detail page areas, the shopping result page areas and even Twitch or other third-party sites and applications. (This feature is not available yet in Japan and India) This ad type is available to merchants on the Brand Registry, vendors and agencies who sell their products on Amazon.

Sponsored Display Ads are also a CPC (Cost-Per-Click) model and no budget minimum is needed. For a viewer to see your display ads, your products would have to be in stock and be a Featured Offer. Ad creatives are automatically generated and comprise of a product image, pricing, a deals and savings badge, the rating based on stars, and a Shop now button that links to the product detail page. (Source: Amazon Sponsored Display Ads)

Amazon DSP Ads

Amazon DSP (Demand-Side-Platform) Ads are ads that cost upwards of $35,000 USD that allows advertisers to reach new and engaged audiences through purchased “display, video ads, and audio ads,” both on and off the Amazon platform. Amazon DSP supports media buying and marketing goals by measuring results meticulously as these digital ads bring new customers for the brand to their Brand page on Amazon. This type of advertising is recommended for companies with a large marketing budget such as enterprises. Our team has worked with enterprises and together with an Amazon executive, we can help you strategize your campaign. (Source: Amazon DSP Ads)

Sponsored Display Ads are also a CPC (Cost-Per-Click) model and no budget minimum is needed. For a viewer to see your display ads, your products would have to be in stock and be a Featured Offer. Ad creatives are automatically generated and comprise of a product image, pricing, a deals and savings badge, the rating based on stars, and a Shop now button that links to the product detail page. (Source: Amazon Sponsored Display Ads)

Amazon Video Ads

Amazon Video Ads are “available for brands, vendors, sellers and agencies.” Companies can purchase these types of ads “whether or not they sell products on Amazon.” These video ads are only available in the US and UK. The beauty of these types of ads is that the majority of people now watch movies, shows, sports matches, news, documentaries and more on their smart TV’s through Amazon Prime. Thus because the ads are shown through Amazon, your company’s target customers have easy viewing access to them. This beats traditional TV media which for the most part the majority watch only during specific seasonal and sport related days. An Amazon executive will need to be reached for this type of an ad. (Source: Amazon video ads)

Sponsored Display Ads are also a CPC (Cost-Per-Click) model and no budget minimum is needed. For a viewer to see your display ads, your products would have to be in stock and be a Featured Offer. Ad creatives are automatically generated and comprise of a product image, pricing, a deals and savings badge, the rating based on stars, and a Shop now button that links to the product detail page. (Source: Amazon Sponsored Display Ads)

Amazon Audio Ads

Amazon audio ads are available for businesses that have a typical minimum budget of $35,000 USD who want to spread awareness by auditory means. Amazon audio ads are audio advertising types that people can listen to on their hearing device. “Ads are sold on a CPM (cost-per-thousand impressions) basis.” This ad type requires an Amazon executive’s assistance to run the campaign.

Sponsored Display Ads are also a CPC (Cost-Per-Click) model and no budget minimum is needed. For a viewer to see your display ads, your products would have to be in stock and be a Featured Offer. Ad creatives are automatically generated and comprise of a product image, pricing, a deals and savings badge, the rating based on stars, and a Shop now button that links to the product detail page. (Source: Amazon Sponsored Display Ads)

Whether you are a small startup with a good size budget to set up your store and do ads with, or an enterprise, Amazon offers a plethora of great opportunities to reach your target customers. Our team and Amazon together will create intelligently executed advertising campaigns that will help you outperform your competition.