Where did online shopping caught the world’s attention? Amazon.
Is it taking over the Internet? Perhaps, maybe.
If I’d look into the transaction details on Amazon Prime, I have probably spent more of my paycheck on their products. Whether it’s a random cleaning product, paper towel, or my favorite snack in bulk– I can get it on Amazon. The convenience and affordability Amazon offers are irresistible!
There are likely 300 million Amazon users and 80 million of them are registered members of Amazon Prime! With this, it is hard to tell whether your customers are Amazon shopping fanatics.
According to Digiday, Amazon holds the real power in digital marketing. Google is winning on search data, while Facebook has an idea of the people’s interest levels. However, Amazon has the idea of what people buy and how they do it.
Now, if I may ask, why are you not advertising your product on Amazon? If you have already joined Facebook, Instagram, and other social ad networks– it is time to break into the most extensive online ad network, Amazon.
I have curated a guide to help you understand the basics of starting with Amazon Ad Platform.
Gain more consumers and enjoy higher results!
Table of Contents
- What is the Amazon Ad Platform?
- Why Should You Use Amazon Advertising?
- Types of Amazon Ads
- Getting Started with Amazon Ads
- How much does Amazon Advertising Cost?
What is the Amazon Ad Platform?
We can simply tell that the Amazon ad platform is similar to Google Ads.
Whenever you search for a keyword in Amazon, the top results will contain sponsored posts– these posts are what we call the Amazon ads. There is a subtle indication of “ad” or “sponsored” on the product.
As you can see, as I searched for “iPhone” on the search box, you can see a USB (sponsored product) on top of the results page. Advertisers or product owners who want to gain more visibility on Amazon can pay to have these positions. They only have to bid on specific keywords that will lead their products to higher visibility in the Amazon SERP.
Advertisers are charged when a consumer clicks on the ad. As you see, it has the same mechanism as Adwords, but in the Amazon version.
Also, advertisers can have their product ads on individual product pages. For example, I was looking for a camera. At the right-bottom side portion of the screen, I can see an ad of a shutter release button.
Like Google Ads, Amazon can connect your products to relevant products that customers are actively looking for. But, the Amazon ad platform has several options for sponsored search posts.
Why Should You Use Amazon Advertising?
As we have mentioned, the statistics of Amazon users and their Prime members, it would be possible that our customers are one of them.
Amazon has gathered millions of data about their shoppers through what they buy and their purchasing habits. That’s why we could say that Amazon has the power.
Now, wouldn’t you think how great to advertise your products on Amazon? Probably!
If you are already using Google Shopping, Instagram, and other social networks that offer online ads, then it is time to join Amazon ads.
There are three acronyms that dominate the Amazon advertising landscape– AMG, AMS, and AAP/DSP.
Amazon Advertising Landscapes
Amazon uses several acronyms on their advertising landscapes, which can be confusing at times. But, brands and advertising agencies are willing to learn the new language of the Amazon Ad Platform.
Let’s talk about the three acronyms that dominate the advertising landscape of Amazon.
AMG (Amazon Marketing Group)
The Amazon Marketing Group has two subsidiaries, the AMS and AAP/DSP. AMG is responsible for the display and search advertising offered by Amazon. Now, most marketers call AMG as Amazon Advertising.
There are several advertising solutions AMG offers:
- On-site ads
- Video ads
- Mobile ads
- Amazon affiliate website and devices ads
Using AMG and its subsidiaries is an excellent solution to ensure a win against your competitors.
AMS (Amazon Marketing Services)
The Amazon Marketing Services (AMS) is where the Pay-per-Click performance is under. Advertisers can avail of the products through self-service portals. There are three types of PPC products AMS offers– sponsored products, product display ads, and headline search ads.
Advertisers can set and manage their ad campaigns through these products on the AMS dashboard or Seller Central account. There’s a recent addition to AMS, the Amazon Storefronts, that offer brands to merchandise the assortment of their products in landing pages.
Amazon Advertising Platform/Demand Site Platform (AAP/DSP)
Amazon Advertising Platform is relative to the Demand Side Platform of Amazon, which services are directly managed by Amazon or self-service through their accredited agencies. Advertisers are allowed to reach the Amazon audience through third-party applications and websites through ad formats. The formats include:
- Banner ads
- Display ads
- Video ads
- Mobile interstitial ads
AAP is the only way you can buy ad space on the websites owned by Amazon, and DSP media is the only method in which you can specifically target Amazon shoppers.
Using DSP campaigns is useful for building your product and brand awareness. But, if you intend to spend on advertising to impact sales directly, it might not be a wise choice. AAP/DSP is more suitable for companies that understand the nature of brand advertising and running display ads on other platforms.
Types of Amazon Ads
Now, you have some banner ads that you want to promote and drive more e-commerce sales. Fortunately, the Amazon ad platform provides several options for you. There are three main types you can configure for your ads.
Let’s briefly discuss the main types of advertising options for you!
Display ads target the relevant audience through customization creatives and actionable insights. It helps you deliver the message you want to convey to your customers. You can have your campaign on Amazon websites, apps, devices, and even on their third-party websites. More so, you have the choice to console or work with their ad experts.
Amazon display ads are not limited to their website, several sites are affiliated with Amazon. That’s why you will likely see your ads on:
- Amazon devices
- Owned and affiliated websites of Amazon
- Amazon network
If you want to use the display ads, you would expect to have these benefits:
- Headline Search Ads: Your display ads will appear as headline banner ads on the SERP, which will always be above the results. These ads are cost-per-click, and it will lead the customers to any specified pages on Amazon.
- Flexibility: Display ads will provide more memorable brand moments and motivates consumers to take action through creative formats and storytelling visuals.
- Reach: You can reach out to customers on and off Amazon, whether you are selling on Amazon or not.
- Relevant Audiences: The insights of first-party shopping behaviors will help you reach your ideal audience.
Through sponsored ads, you can reach Amazon customers in two ways– Sponsored Products and Sponsored Brands (known to be Headline Search Ads). When Amazon users search for a product, they will discover yours, too.
Sponsored ads help merchants promote their item listings by pairing them with items potential customers are looking for. Your ads will appear on the search result page and a relevant product page that will direct the customers to your product page or Store.
Using sponsored ads is simple:
- Select the products you would like to advertise on Amazon.
- Set a budget.
- Choose specific keywords and categories that would relate to your products.
You will experience the benefits of sponsored ads once you get started. Sponsored ads allow you to:
- Create stability: Amazon will suggest specific keywords that you can bid on, or you can target similar products.
- Only pay for performance: You are only charged when a customer clicks on the ad. It will allow you to easily control your ad budget.
- Provide insights: Amazon monitors and optimizes the ad performance to drive more results. They adjust the bids or change the keywords when needed.
Video ads will encourage advertisers to share stories and build emotional connections with consumers throughout their decision-making. Amazon will help you reach the ideal audience through brand-safe environments. More so, they give you the leverage to measure the results of your video campaigns.
Your video ads will appear on any Amazon operated sites– yes, not only on the Amazon shopping platform but also on Echo and other operated websites.
As you can see, video advertising is spiking everywhere across marketing efforts. How could the video ads help you?
- Increase brand awareness: You can embed your brand message on Amazon websites and devices. Make your high-quality content known across the web.
- Relevant reach: Reach beyond the traditional ads on TV, you can share your brand message to any relevant customers everywhere with the content they consume.
- Match Display Ads: Make connections with customers by pairing a video with your display ads. In this way, you can showcase your brand message or make a demo of your products or services.
Getting Started with Amazon Ads
To get started on Amazon ads, you have to sign into a seller or vendor account. But, if you still don’t have one of these accounts, you can register here and check out their various pricing that will fit your needs.
If you are a first-party seller, you can sign-up as a vendor. But, you can only do this with an invitation. Luckily, Amazon has a Vendor Express option. Try to explore it if you want to register as a vendor but lack an invitation. Meanwhile, if you are selling via Amazon Selle Central, you are considered as a third-party seller.
Seller Central has two pricing options– it is for independent sellers and pro sellers that want to have a higher sale volume.
If you have signed up for the right plan, you can log in to your Amazon account and start setting up your ad campaigns. As you are new to the Amazon Ad Platform, we recommend reading how to optimize your Amazon ads!
How much does Amazon Advertising Cost?
This question is one of the frequently asked questions about Amazon advertising – how much does it cost to run an ad on Amazon?
The cost of the display and video ad campaigns may vary depending on their placement and format.
Amazon allows creating a store for FREE, it also offers sponsored ads by cost-per-clicks. It means you only pay when the customers click on your ad. You have all the means to control the campaign budget.
But, the CPC basis of Amazon is more cost-effective than on Adwords or Bing Ads. It is comparable to the lowest CPC ads on Google display and Facebook ads.
Are you ready to get started? We recommend you begin with sponsored ads. They offer the easiest solution to set up. Also, the sponsored ad solution is a cost-per-click ad, which helps you maximize your ad budget– it is designed to fit on different budget levels.