Amazon Advertising Strategy
Amazon is the world’s number 1 online mail order company. The platform is now becoming more and more interesting, especially for B2C marketers.
The interest in paid advertising on Amazon continues to grow for brands and is thus increasingly competing with Google. While it was an insider tip a few years ago, it is now an almost indispensable strategy for effective advertising in the B2C segment. A clear argument in favor of Amazon advertising is its enormous growth. Especially during the corona pandemic, Amazon emerged as the winner of the crisis. This is confirmed by the figures for the second quarter of 2020: Compared to the same quarter of the previous year, Amazon posted sales growth of 40% and at the same time the highest quarterly sales . Promoting products on Amazon is therefore an attractive tactic. In the following you will find out everything you need to know to get started successfully with Amazon Advertising.
WHAT IS AMAZON ADVERTISING?
Generating enough traffic is the biggest challenge for marketers on the internet these days. Especially in the B2C sector, there is hardly a brand that does not use PPC strategies. The placement options range from social platforms to search engines. And the retail market leader Amazon would like to support companies and brands in expanding their reach. So-called Amazon advertising offers an effective strategy for paid advertising. If you, as an advertiser, choose this tactic, then your products will appear more frequently in targeted places on the results pages of potential buyers. The special effect here: sales via Amazon Advertising have a positive effect on the organic ranking of your product.
A paid advertisement is identified by the “sponsored” feature.
WHO IS AMAZON ADVERTISING FOR?
Amazon PPC is available to anyone who sells products on Amazon. On the one hand, this includes sellers and vendors. Most of the advertising options are available to a vendor here. Selling and shipping is done here by Amazon. It is different with sellers, who sell their goods directly to the end customer with a small selection of advertising options.
Amazon Advertising is right for you if you:
- have a new product
- want to improve your organic ranking
- want to increase your market share
- want to generate more reach and sales
HOW DOES THE AMAZON ADVERTISING CONSOLE WORK?
Campaign and ad groups can be managed in the Amazon Advertising Console.
Amazon Advertising (formerly Amazon Marketing Service) is aimed at everyone who is planning an advertising campaign and wants Amazon to accompany it. The switching of the advertisements works via the Amazon Advertising Service , through which you can book the advertisement and manage all functions. You can even set up a free landing page on Amazon. Amazon Advertising enables you to advertise your product and Amazon.
You can buy seats for ads in an auction, similar to Google Ads . You are not simply bidding on the ad, but on certain search terms that match your product. If you win the bid, your ad will be shown. In order to find the ideal place for the advertisement, you will receive suggestions for frequently searched keywords. You will also get suggestions for similar products in the vicinity of which your ad will appear. You have to pay according to the CPC principle (cost-per-click). This means that you only pay for the display if the advertisement is clicked on.
In order for you to be able to carry out advertising campaigns for a product using the Amazon Advertising Console, it must of course be listed and available (deliverable). The position of the display of your ad will vary depending on the type of ad you set. You can use the sales reports that you receive on a regular basis to improve your capital growth. A so-called dashboard gives you information about your sales, clicks and the number of views of your ads (impressions) and you are therefore able to continuously improve your own ads, for example by adding meaningful keywords.
HOW CAN YOU ADVERTISE ON AMAZON?
There are three main ways to use Amazon Advertising’s self-service. These include Sponsored Products, Sponsored Brands and Sponsored Display. In the following you will get an overview of the advantages of the respective advertising option:
Option 1: Sponsored Products
So-called sponsored products are advertisements that are displayed under the product details. For an additional fee, you can book a maximum of three additional ads above the displayed search results. However, these displays cannot be individualized. They take the entries in the product database as a basis. The aim of this form of advertising is greater visibility.
Option 2: Sponsored Brands
A sponsored brand (previously headline search ads) is a slightly higher quality form of advertising than sponsored products. The sponsored brand is displayed above the search results list in the form of an Amazon banner. The title, the logo and a motto can be customized. You can also have a maximum of three different images of your product shown. The display takes place by triggering the corresponding search terms. This form of Amazon advertising is intended to optimize brand perception.
Option 3: Sponsored Display
The Sponsored Display Ads are considered by customers to be the most eye-catching and individual advertisements. This is because they are based entirely on the customer’s requirements or are generated on the basis of the Amazon standard identification number. Logo, motto and title can be customized. Products Display Ads are always displayed next to or below the shopping cart button that contains the request to buy. Since the area on the right side of the product is considered to be the most prominent place, these ads are also very costly. The primary goal of Amazon advertising with Product Display Ads is improved cross-selling and upselling. This means that the customer is offered additional products that match their needs.
MEASURE ADVERTISING EFFECTIVENESS
At Amazon Advertising, the metrics Advertising Cost of Sales (ACOS) and Return on Advertising Spend (ROAS) offer a way to prove the effectiveness of advertisements. ACOS describes the attributed cost of sales while ROAS represents the profitability of advertising costs. That means the impact on the purchasing performance as well as the reactions of target groups to campaigns. Optimization measures can then be derived from the findings.
Conclusion: Amazon Advertising is and will remain exciting!
Amazon advertising offers a PPC opportunity to sell more products faster on Amazon. On the one hand, the visibility increases through paid advertisements and thus also the sales figures. In addition to bestseller products, this also applies to niche offers. Especially for new products on Amazon, PPC can push the first purchases here and increase the traffic to offers with previously few hits.
But even top products should not ignore the possibility of paid advertising on Amazon. Defending top positions is paramount in tough competition. PPC can serve as a simple and quick support here. Amazon PPC can also help to increase your organic search. Because the higher the conversion rate of your products through PPC, the higher the appearance in organic search ( Amazon SEO ). This is a very clear argument that investing in Amazon Advertising can be worthwhile for almost every brand that is represented on Amazon. Conclusion: Paid advertising on Amazon is and will remain exciting in view of the many advantages in the B2C segment as well as the enormous market growth!
What is Amazon PPC?
With the help of Amazon PPC, entrepreneurs can place paid advertising for their products on Amazon. Through targeted placement of advertisements in the search results of potential customers, more reach and sales can be generated. Paid advertising on Amazon also affects the organic ranking there.
How does Amazon Advertising work?
Similar to Google Ads, with Amazon Advertising the ads (e.g. Amazon Sponsored Products) are paid for per click. To manage your campaigns, you can find all the information and options in the so-called Amazon Advertising Console.
What does advertising on Amazon cost?
The price per click depends heavily on the competition, the category and the type of ad on Amazon. The average CPC is between € 0.02 and € 3.00.
