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Andreea Octavia Stancu May 28, 2020 3 Minutes
Categories: Ecommerce | Ecommerce Marketing
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Amazon Ads are ad solutions for products or entire brands that are displayed in the organic Amazon search results. With Amazon Product Ads, advertisers can thus place products more frequently on search results pages and display them to potential buyers. Product visibility is greatly increased. In addition to increased visibility, Amazon Ads can also improve organic rankings in the long term. Amazon Brand Ads, on the other hand, promote entire Amazon Brand Stores and can thus draw attention to a brand that sells its products through Amazon Marketplace. 

  1. Amazon Product Ads vs. Amazon Brand Ads

If a search term is entered on the Amazon page, results that are marked as "Sponsored" are also displayed on the results page above, below or between the organic search results. These can also appear directly on product detail pages. These search results are so-called Sponsored Products Ads. Sellers can use them to promote their own product on competitor product detail pages or to rank their own product page higher in search results. In addition, Amazon Product Ads can also be placed on your own product pages, for example, to generate an up-/cross-sell or to block the competition.

Meanwhile, it is also possible to target potential customers at the product level using Sponsored Product Ads. This can be done either on a product category or on a specific Amazon product identification number (ASIN).  

Sponsored Brand Ads, like Product Ads, are keyword- and product-driven PPC ads. They can be placed in the headline (at the top of the search results page), on the side under the filter bar, at the bottom of the page or on product detail pages. These are marked as "Sponsored by Brand xx". In addition to the cover image (brand logo), these ads include a short title and three products from the brand's range. If a potential customer clicks on the ad, they can be redirected to a brand store within Amazon, for example. Not least because of the comparatively elaborate design within the search results, such ads attract a lot of attention within the search results. In principle, every seller can place such Sponsored Brand Ads, as long as they are located within the Amazon Brand Registration has registered. 

Although running sponsored brand ads can be an effective way to target potential customers, in practice, sponsored product ads are still the most widely used campaign option. 

  1. Costs for sponsored ads 

Sponsored ads are billed using a pay-per-click (PPC) model. The ad spaces are determined by Amazon as part of an auction. Interested parties place bids for their ads, and the highest bidder is awarded the ad. The cost-per-click (CPC) is then based on the highest bidder. When placing a campaign, the advertiser then has the option of setting a maximum daily budget. Based on the budget and the CPC, the Amazon algorithm then calculates the playout rate. 

  1. Improve organic ranking with sponsored ads 

Since sales volume is one of the most effective factors in Amazon bestseller ranking, sponsored ads can be used to sustainably improve the organic ranking for products. The Amazon algorithm includes all sales, including those from PPC campaigns, in the ranking, which is why sponsored ads can significantly improve the ranking, especially when introducing new products.  

  1. Automatic vs. manual alignment of keywords  

If you want to place sponsored ads for your products, you have to decide between automated and manual targeting. In the case of automated targeting, Amazon itself creates a keyword research by means of the automated creation of an implicit keyword list based on the product descriptions. All products that the seller selects for the campaign in the next step are played out using the same keyword list. Irrelevant search queries can be intercepted via negative keywords. Overall, however, the seller has little control over his ads with automatic targeting. 

With manual targeting, on the other hand, the seller has the option of controlling the campaigns himself via positive and negative keywords. This means a high research effort of the keywords, which is, however, often worthwhile: Through the targeted playout exclusively with matching keywords, the conversion rate usually increases significantly compared to automatically targeted ads. 

  1. Optimize Amazon Ads 

If Amazon Ads are switched on, you can constantly improve the performance of your campaigns with a few steps. On the one hand, the product data on the product pages can be constantly optimized, since these serve as the basis for the sponsored products campaigns. An optimized basis minimizes the bounce rate and converts prospects at every opportunity. Secondly, the keywords of the campaigns can be constantly optimized or supplemented. Ongoing optimization of these should be a key part of any campaign's advertising strategy. For both automated and manual campaigns, positive and negative keywords should always be kept in mind and those that do not convert or are too expensive should be excluded.

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