Amazon is one of the largest platforms for buying and selling products amongst others. It has more than 350 million products which make it difficult for most sellers to gain visibility on the platform. Sellers are more often than not face the challenge of exposing their products to the eyes of the buyers. As an Amazon seller, your main target is to earn more profits by making the product or offering more prominent in the eyes of the buyers.
For doing this, sellers from all over the world opted for various strategies. Some got successful whereas other faced issues. However, Amazon decided in providing ease to the sellers by offering a service that helps in integrating their process of sales and help them in reaching more customers with less effort and cost. The platform is called Amazon Marketing Services which became the main preference of Amazon vendors for increasing their sales and revenues.
Amazon Marketing Services (AMS) was launched in the year 2012
It is an effective marketing tool offering targeted cost-per-click advertising. This helps the Amazon vendors in getting their brand or product in front of their customers on the platform. Not only this, it also helps the vendors in getting prominent on the website and introduce their products. Furthermore, it enables them in comparing their products alongside competitors products. This is done by Amazon, by collecting the huge amount of data and using it to match buyers with the ads to which they would respond or show interest. The customers are targeted by using the shopping history or the search history regarding the products.
Keywords and product types are also used for targeting them. The relevant keywords bidding help the sellers in getting their products ads in front of the customers who are in search of the similar product. Moreover, if managed and set up correctly, this tool has been proved very powerful. At first, the facility of this service was only provided to the vendors of Amazon but later it was made available to other vendors as well including, Kindle direct, publishing account holders and vendor representatives.
With the passage of time, various fast changes like the discontinuation of initial Amazon Text Ads and Product Ads occurred in the Amazon advertising offerings. They opted into the three advertising formats, which are Sponsored products ads, Headline search ads and Product display ads.
Sponsored Product Ads
These are a type of pay-per-click search ads which helps in promoting the products individually. On desktop sites, these ads can appear on:
- The right of the search result page or beneath Amazon search result
- As ‘pop up’ ads beneath “frequently bought together” area.
Whereas on mobile they appear on:
- On the page of product detail
- Below search result
It can be done by targeting the keywords relevant to the seller’s product niche. These ads help in taking the relevant and interested customers straight to the product page but in order to make it happen, good optimization of product page should be done. By the help of sponsored product ads, greater ROI can be achieved with greater visibility of the product. Use of relevant keywords is the key in such ads. However such ads are only available in specific countries i.e. China, Italy, Spain, UK, Germany, US, France, and Canada.
In addition to these, there are some requirements for Amazon sponsoring products which need to be fulfilled otherwise the seller would be unable to display them. Following are some points that need to be fulfilled before enabling the sponsored ad run on Amazon:
- An active account of Amazon’s personal seller
- Shipment ability to all addresses in the U.S
- The seller should know the importance of product listing. The product should be new. Used ones are ineligible for sponsored products.
- It should also be assured that the listing made must be eligible to Buy Box. If an ad created by the seller for product listing is ineligible to buy the box then it would not be displayed on Amazon’s site.
Headline Search Ads
These kinds of search ads are similar to the banner ads of a website. On both desktop and mobile devices, these ads are displayed on the top of the search result page. They help in taking the visitors on other specified pages of Amazon as well as the brand pages. For the best results, it is necessary to combine the search terms with the brand name.
In order to make them more effective, three products should be included in these ads. Brands can make their own logos and custom headline by themselves in it which makes such as good as compared to others. In addition to these, Image, Custom landing page selection, Number of featured ASINs, ASIN selection, and Order of ASINs can also be adjusted in these ads. Such ads help in increasing brand awareness, drive sales and increase the exposure of the products even if they have a poor ranking in organic search results.
The Amazon Headline Search Ads costs up to an average daily budget of minimum $1 or a campaign budget of minimum $100. However, the ACoS and other ad formats have a relatively high cost for Headline Search Ads. But it gets compensated because of a greater number of sales.
Product Display Ads
These ads are a bit different from the other two mentioned above. Detail pages of related products comprise of such ads. Actual products are used for targeting the customers instead of keywords. Such ads help in bringing the traffic directly to the product page. Even competitors products can be targeted as well by the help of their ASIN number and UPC.
Another option included in these ads for targeting is to target by interest. This kind of targeting helps the seller in gaining a good impression with less ROI. However, it is only done for specific interests. Despite advantages, one major disadvantage of such ads is that it doesn’t prove much helpful in terms of reporting. The reporting of individual products is not attained which makes it difficult for the buyer in determining the product’s ROI. But, with the help of careful grouping and planning, this problem can be blown away.
Advantages of Amazon PPC Ads
Amazon marketing services provide various benefits to the buyers as well as the sellers. Running the various PPC campaigns with the help of this service leads to various advantages.
Some of them include the following:
- The PPC campaigns are easy to create as compared to other campaigns with a self-explanatory and easy user interface to use.
- It has a ‘copy’ feature by which campaigns can be duplicated in an easy and quick way.
- It is a cost-effective service. Because of low CPC, the ROI of the seller’s increases.
- By the help of Amazon algo, the buyer is placed in the higher rank according to his sales in the product search.
- In addition to this, the visibility of the buyer also increases on an economical budget because of its current pricing model.
- One of the unique features of Amazon sponsored ads is that the seller pays only for clicks and not the impressions. Impressions generated by the sponsor ads are not necessary to be paid by the seller. Moreover, the transaction is hassle-free because once the seller reaches a certain credit limit; Amazon on its own deducts the advertiser’s sale proceeds amount.
- Adopting the PPC or sponsored ads route, the seller can rank their products high on the site of Amazon. It also helps in making the product prominent to the buyers.
- As product information appears side by side to the targeted search of the buyers because of relevant sponsored ads, this helps the buyers to buy the product in no time providing the advantage to the seller as well.
- By the help of PPC, the seller can attain a global reach. For instance, within few seconds, a single campaign of PPC of buyer’s product gets millions of views. It also helps in selling more products on Amazon within less time.
- Amazon provides powerful PPC management software known as Sellics which helps the sellers in managing and optimizing their sponsored product. Moreover, the seller gets knowledge about their performance about the campaigns that weather, the keywords they are using are helping in generating profits or not. Some other features of Sellics that help the Amazon’s sellers in boosting their success includes inventory managing, profit calculation dashboard, keyword ranking optimizer etc.
- Amazon’s PPC campaign is device-friendly which means that the sponsored product link can be displayed on smartphones, tablets, and mobiles of the people using Amazon’s app.
- There is no activation cost or subscription fee for Amazon’s PPC or sponsored ads.