Amazon Advertising: Why You Should Use the E-Commerce Giant's Advertising Service
5 minute read
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June 25, 2021

Have you heard of Amazon Advertising? Previously Known as Amazon Marketing Services (AMS), it's a versatile digital advertising platform offered by the e-commerce giant of its namesake. While there are platforms on which you can advertise products to sell, Amazon Advertising Offers several benefits that distinguish it from the rest.

 

Top-Page Listings on Amazon

 

You can use Amazon Advertising to get your products listed at the top of Amazon's search results and relevant category pages. With nearly 10 million sellers using it, Amazon is filled with competition. You can list products on Amazon after signing up for an Individual Plan or a Professional plan. Because there are so many sellers using it, though, your products not generate many views. Amazon may show your products at the bottom of its search results and category pages where they are overlooked by shoppers.

 

With Amazon Advertising, you can rest assured knowing that your products will generate views. It allows you to pay for additional exposure. After listing a product on Amazon, you can create a Sponsored Products campaign for it in Amazon Advertising. Sponsored Products are paid ads for product listings. They appear at the top of Amazon's search results and category pages, so they naturally overshadow all unpaid product listings.

 

Easy to Use

 

Amazon Advertising is easy to use. If you're familiar with Google Ads or Microsoft Advertising, you shouldn't have trouble using Amazon Advertising. It offers a similar interface while offering many of the same features as the top two search engines.

 

You can create a Sponsored Products campaign, for example, in just a few simple steps. Just set a duration for which you'd like your paid product listing ads to run, enter your target keywords, choose your products and set your maximum bid.

 

Sponsored Products campaigns are exceptionally easy to create since they leverage your existing product listings. You don't have to create custom ad copy, nor do you have to split test it. With a Sponsored Products campaign, Amazon will use your existing product listings for your ads.

 

Cheap Clicks

 

Click costs for Amazon Advertising are often less than those for other advertising platforms. According to research by AdBadger, the average cost per click (CPC) for Amazon Advertising is about 71 cents. For every 100 shoppers who see and click your Sponsored Products Campaign ads, for instance, you might be charged just $71.

 

Other advertising platforms feature a similar CPC pricing model for their respective ad inventory, but you can expect to pay more when using them to advertise your products. The average CPC for the Google Ads Search Network is $1 to $2, whereas the average CPC for the Microsoft Advertising Search Network is $1.50.

 

Video Ads

 

While Sponsored Products is the most popular campaign type for Amazon Advertising, there are other types of campaigns you can create. Since being rebranded, Amazon Advertising now offers video-based campaigns like Over-the-Top (OTT) and Online Video.

 

OTT video ads are those that appear alongside streamed video content, which is known as OTT content. They typically appears before, during or after an organic video. To proceed with the organic video,users must watch the OTT video ad. Amazon Advertising's OTT network encompasses IMDb, Twitch and other affiliated video platforms. Online Video ads, on the other hand, consists of in-feed, interstitial, in-article and banner video formats. Amazon Advertising's OTT and Online Video ads offer an alternative way to reach new shoppers.

 

Product Targeting

 

Another benefit of using Amazon Advertising is product targeting. Product targeting is a feature that allows you to selectively serve your ads to shoppers who've expressed interest in one or more similar products. It's available for Sponsored Products and Sponsored Display Campaigns.

 

When creating a Sponsored Products campaign or a Sponsored Display campaign, you can enable product targeting. Product targeting means that your ads will appear on the pages of similar products. If a shopper visits a competitor's product listing, he or she may see your ad, assuming the competitor has a similar product.

 

Selling Only Amazon Isn't Required

 

You don't have to necessarily sell your products on Amazon to use Amazon Advertising. Sponsored Products campaigns do, in fact,require your products to be listed on Amazon beforehand. Amazon, however,offers other paid advertising options for external sellers who sell their products elsewhere.

 

Amazon Advertising's demand-side platform (DSP) inventory is available to all sellers, including those who sell their products outside of Amazon. It covers a wide range of online properties, including social media networks, mobile apps, video platforms and traditional websites.With DSP ads, you can advertise your products while selling them on Amazon or anywhere else.

 

It's important to note that DSP ads feature different pricing model than other types of campaigns. Unlike most campaign types in Amazon Advertising, they don't use a CPC pricing model. Rather, DSPads use a cost-per-impressions (CPM) pricing model. You'll incur charges for every 1,000 impressions your DSP ads generate.

 

Ad Performance Tracking

 

Amazon Advertising makes it easy to track ad performance.When advertising the same products that you've already listed to sell on Amazon, you'll have access to conversion data. You can see how many total shoppers clicked your ads as well as the percentage of those shoppers who made a purchase. Conversion data will be automatically displayed in your account, making it easy to track ad performance.

 

With its ad performance tracking features, you can optimize your Amazon Advertising campaigns. If a particular campaign has a low conversion rate, you can try targeting different keywords. Removing Irrelevant keywords while adding new and more relevant keywords can lift conversion rates.

 

Amazon doesn't make all of its revenue through standard seller fees. Its advertising business is a major source of revenue as well. Whether you sell products on Amazon or elsewhere, you should consider using Amazon Advertising. It's a versatile advertising platform that's easy to use, allows you to earn top-page listings, offers cheap clicks, supports video ads, product targeting and ad performance tracking.

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