Should you advertise on Amazon to increase product sales? Learn how Amazon advertisements work and what to expect from them.
If you have ever purchased anything on Amazon, you know how convenient it is. That is one reason Amazon is such a large and popular company. It is also one of the top information technology companies based in the United States. Consumers worldwide use its services, which include digital streaming and online shopping. In fact, there were approximately 2.2 billion visits to Amazon in February, 2022.
Due to its extreme popularity, many people opt to use Amazon as a powerful tool for business expansion. If you sell products on Amazon already, the best way to expand your business is to make it as visible as possible on the Amazon website. Amazon sponsored ads can potentially help you do that. You can use them to get the attention of consumers who may not otherwise be aware of your products. However, you must first understand how Amazon sponsored ads work. Here is what you need to know about advertising on Amazon using such ads.
What Are Amazon Sponsored Ads?
Amazon sponsored ads are ads that advertise a product or brand in a specific way either on the Amazon website or other websites, depending on the ad type selected. For example, some Amazon sponsored ads appear when consumers search for certain products on the Amazon website. There are also Amazon sponsored ads that include multiple products or brand information. Certain Amazon sponsored ads are also designed to target previous viewers of products, rather than new shoppers searching for products.
If you want to use any type of Amazon sponsored ad to advertise your products, you may wonder if you need to pay up front. The answer is no. Sponsored ads on Amazon are ordered on a pay-per-click (PPC) basis. Sellers only pay when consumers click on their advertisements. That type of advertising is also sometimes known as cost per click (CPC). To participate, you must select the amount you wish to pay per click for your advertising and how long you want your advertising campaign to last. Different advertising types and packages are available to accommodate various business sizes and budgets.
What Types of Amazon Sponsored Ads Are Available?
Amazon sponsored ads come in several types. The diversity of options available allows you to select one or more type appropriate for your business and budget. However, you may only qualify for certain types based on your current Amazon selling status. Here are some basic details about each type:
-
Amazon product sponsored ads allow you to advertise one product per ad. The ads display as part of search results, as well as on other pages of the Amazon website. You can choose the keywords or have Amazon choose automatically based on your product description. In either case, your ads appear when consumers search for the selected keywords. You can use product ads to drive traffic to as many different products as you wish, but you cannot advertise more than one product in each ad.
-
Amazon sponsored brand ads are similar to product ads in many ways. The primary differences are clickable logos and multiple products mentioned in each ad. If you are a branded Amazon seller with a logo, such ads are helpful because they familiarize potential customers with your logo and the scope of the products you offer for sale.
-
Amazon display ads are designed to display to potential customers based on their past browsing histories on Amazon. They are also frequently displayed to potential customers who have viewed your products in the past but not purchased them yet. Display ads also differ from most other sponsored ads because they are displayed on other Amazon-owned platforms like Twitch and some platforms not owned by Amazon.
How Do You Get Amazon Sponsored Ads?
Sellers who use sponsored ads are carefully vetted by Amazon. Therefore, you cannot participate in Amazon sponsored ads programs unless you meet certain basic criteria. You must also meet additional requirements to use certain types of ads. For example, to purchase display ads or brand ads you must register on the Amazon Brands Registry. Examples of basic eligibility requirements for any or all ads programs on Amazon include:
-
Proof of Adequate Stock for the Volume of Customers Desired
-
Positive Order Fulfillment History on Amazon
-
Competitive Prices
-
Large Amount of Successful Completed Amazon Sales
-
Positive Delivery Feedback
-
Positive Product Quality Feedback
Do Sponsored Ads Actually Work on Amazon?
Sponsored Amazon ads are like any other advertisements in some ways. Like other advertisements, consumers are not forced to click them or make purchases. Therefore, there is no guarantee of a particular amount of clicks or sales. However, the customization options Amazon offers and the PPC nature of the ads makes them far less risky than many other types of advertisements.
Amazon ads are also more likely to work than many other types of advertisements due to the level of general exposure they provide. As ads on one of the most popular retail platforms in the world, they are seen by many more people than advertisements in other mediums, such as magazines, newspapers, or less popular websites.
Amazon ads also have hidden benefits. A top benefit is better ranking on the Amazon website for your products. As your ads are clicked, Amazon algorithms notice the increase in popularity of your products. As a result, your products are listed nearer to the beginning of the list when consumers perform Amazon searches. Therefore, visibility is increased and sales are more likely.
Why Else Might Consumers Buy Your Product Due to Amazon Sponsored Ads?
A final consideration about Amazon ads programs is Amazon supplies data about each ad campaign you create. Therefore, you can track the success or failure of each campaign. The metrics measured can help you determine which ads are strong and which are weak. They can also allow you to adjust ad campaigns based on the data you receive. Fine tuning your ad campaigns allows your Amazon ads to become more powerful and reliable over time. For example, you might choose to initially create two ad campaigns. After two or three weeks of data are available, you may notice one is more attractive to consumers than the other. Then you can eliminate or tweak the under-performing ad campaign.