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Advertising Solutions by Amazon: A Closer Look into Amazon Ads

Product and brand visibility are essential for improving an Amazon store’s engagement and sales performance. For that matter, Amazon sellers set a generous portion of their resources to implement their digital advertising campaigns. In particular, third-party merchants utilize Amazon Advertising to help achieve their business goals. 

What is Amazon Advertising?

Ad products by Amazon

Amazon Advertising or Amazon Ads is Amazon's advertising solution to help Amazon sellers boost their online advertising campaigns. Amazon Ads allow sellers to reach more consumers through ads on and off the Amazon website. 

In the effort to simplify the advertising process on their platform, Amazon introduced 'Amazon Advertising.' It reflects the unified brand and direction of Amazon when it comes to providing advertising solutions to Amazon sellers. 

With the introduction of Amazon Advertising in 2018, the tech giant likewise retired the names Amazon Advertising Platform (AAP), Amazon Marketing Services (AMS), and Amazon Media Group (AMG). 

Different Types of Amazon Ads - What Does Amazon Offer?

Amazon Advertising has been helping sellers with their goal of improving product visibility and brand awareness. To refresh your knowledge of the product portfolio Amazon offers in terms of advertising solutions, here are some popular offerings under Amazon Ads.

Sponsored Products

Sponsored Products by Amazon pertain to the cost-per-click (CPC) ads that can help your individual product listings appear on Amazon. The specific product listing will appear on Amazon search result pages and relevant product pages. 

The main objective of Sponsored Products ads is to help increase sales conversion. Furthermore, Sponsored Products can also help drive traffic to your product pages, for when Amazon shoppers click the ad, they will be redirected to the corresponding product detail page. 

This Amazon advertising solution is available to professional sellers and Amazon vendors.

Key Insights for Amazon Sponsored Products 

  • Based on Amazon Internal data, there was a 54% increase in glance views after launching the Sponsored Products campaign and a 40% increase in units ordered. 
  • Simply adding optimized content to your product detail page while running Sponsored Products can help generate up to 93x more unit sales.

Sponsored Brands

As its name would suggest, Sponsored Brands is an advertising solution intended to boost brand awareness and increase sales of the Amazon sellers' entire catalog. Similar to Sponsored Products, the Sponsored Brands also appear on the Amazon website, but it displays multiple products along with custom headlines and brand logos. 

The Sponsored Brands are available only to vendors and Amazon sellers already registered in the Amazon Brand Registry. 

Key Insights for Amazon Sponsored Brands 

  • Amazon sellers using Sponsored Brands in a video ad format experienced a 108.1% increase in click-through rate (CTR) compared to those advertisers who are using only the product collection ad format of Sponsored Brands. 
  • Advertisers using a combination of Sponsored Brands custom image and Store spotlight ad formats have seen a 57.8% increase in conversion rate. 

Sponsored Display

The Amazon Sponsored Display or Display Ads is intended for sellers to quickly create display ads and reach audiences on and off the Amazon website. The unique characteristic of this campaign ad is it engages the audience who previously showed interest in your product or visited your product detail page but decided not to continue with the purchase. 

This particular advertising solution by Amazon is available to vendors and sellers registered in the Amazon Brand Registry.

Key Insights for Amazon Sponsored Display

  • The easy-to-use display Ads led to 2 times higher impressions and 1.5 times the number of clicks. 
  • Advertisers or sellers who utilize Sponsored Display audiences have seen an increase of 82% in sales from new-to-brand customers. 
  • A balanced Sponsored Products ads, Sponsored Brands ads, and Sponsored Display ads campaign can result in +15% year-over-year (YoY) sales as compared to those only using Amazon Sponsored Products.

Stores

Amazon Stores, or simply Stores, is a free self-service advertising solution that aims to promote a brand. In the Amazon storefront, sellers or brand owners can introduce their story, mission, and products to Amazon shoppers through a multipage, immersive shopping experience. 

Having an Amazon Store is like having your own website for your product, but still under the Amazon platform. For that, Amazon sellers can access relevant data such as sales, page views, visits, and traffic sources. 

Another exciting feature of this Amazon Advertising solution is the availability of pre-designed templates that are easy to use and customize. Using these customizable features of the Amazon store, brand owners can quickly highlight their products and emphasize their brand. 

Like Sponsored Brands and Display Ads, the Amazon Storefront is only available to vendors and sellers registered in the Amazon Brand Registry. 

Key Insights for Amazon Store

  • Amazon stores that are frequently updated gain more repeat visits, being around 21% more repeat visitors. Updates done within the past 90 days have resulted in 35% higher attributed sales per visitor.
  • Amazon Stores with more than three pages have 83% higher shopper dwell time. Keeping your Store more engaging and interesting can decrease your bounce rate. 

Key Insights and goals for the Amazon store

Amazon Advertising - Budget Matters 

Wisely spending your budgets on Amazon Ads is one of the concerns of Amazon sellers or advertisers. Here are some of the answers to the common questions concerning the Amazon Advertising budget. 

  • Is there an up-front fee to advertise? 

Amazon does not require an up-front fee to advertise, and no monthly payment is likewise needed. In Amazon Ad campaigns relating to CPC, such as Sponsored Ads, you can choose your budget and the amount you can bid for a click. Thus, you will only pay for each customer click and expect that you will never be charged more than your bid amount.

  • Is Amazon Advertising expensive? 

Expenses will likely vary depending on the Amazon sellers' goal for their business. Since Sponsored ads are designed to work with your budget, you can easily control how much to spend on each advertising campaign. According to Amazon, a daily budget of just $10 can already generate results in terms of impressions, clicks, and sales. 

  • Can I adjust my budget after setting it? 

Technically, you can only increase campaign-level budgets, so Amazon suggests considering choosing a daily budget for more flexibility. Once you have a daily budget set,  you can increase or decrease it at any time. 

Identifying Advertising Goals and Key Metrics

Suppose you are still unsure of your Amazon advertising goals. In that case, you can explore the common goals of Amazon sellers and advertisers on why they utilize the various Amazon advertising solutions for their business to give you an idea of how to proceed with Amazon Ads. 

  • Awareness

If your advertising campaign intends to let more people know about your business, you should focus on brand awareness as your goal. You will need to utilize Amazon Ads that can help you tell your brand story and reach new customers. You can use Amazon Ads to establish confidence and trust in your brand. The key metrics to watch for are impressions and brand recall lift when aiming for brand awareness. 

  • Consideration 

Reaching shoppers who will include your product in their shopping mindset will require you to create highly relevant ads. You should focus on consideration campaigns to engage prospective customers. You must have in your metric checklist traffic, store visits, ad engagement, video views, and product detail page visits when aiming for shoppers who are considering shopping online. 

  • Conversion

One of the main goals sellers have in mind when utilizing advertising solutions by Amazon is to drive sales. Having conversion as your goal means engaging with high-intent shoppers to purchase your items. The common metrics to check for conversion are sales, return on and spend (ROAS), and advertising costs of sales. 

  • Loyalty

If you aim for repeat sales, your advertising goal should be focused on customer loyalty. Utilize Amazon Ads that can encourage repeat purchases from Amazon shoppers who have purchased your products. You should focus on the following metrics: (i) repeat purchases, (ii) referrals, (iii) store visits, and (iv) subscribe and save metrics. 

The objectives and metrics mentioned above can serve as a guide for success. You can use this information to serve as your starting point for your Amazon advertising campaign. Depending on your immediate and long-term goals, you can combine one or two or even all of the campaign objectives. 

Goals and metrics for improving your Amazon ads

Advertising and Beyond

The Amazon sellers interested in improving their product and brand visibility can maximize the advertising solutions offered by Amazon through Amazon Ads. Amazon provides advertising campaigns suitable for your various advertising needs. Whether it is for your product or brand, you can always trust the on-site advertising services of Amazon. 

To complement your use of Amazon advertising campaign tools, you should also look into other complementary Amazon seller tools. Some of the complementary tools include but are not limited to listing optimization software, product research tools, keyword research tools, Amazon repricer for a competitive price, and feedback or reviews tool for customer satisfaction.

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