Amazon Advertising: Sponsored Ads 101

Amazon Advertising Sponsored Ads 101

Since 2016, Amazon has been the first place consumers start their product search. You likely have your Google paid search strategy, but do you have a search strategy for Amazon? As part of this, it’s important to understand how to leverage Amazon Sponsored Products and Sponsored Brands to boost visibility and maximize sales.

What Are Amazon Sponsored Ads?

Sponsored ads are keyword-targeted ads that appear in Amazon’s search results and product detail pages. Keywords are matched to search terms used by customers to search for products in the marketplace, which determines when your ads appear.

These ads function on a cost-per-click auction model: the ads display at no charge, and marketers are charged only when a customer clicks the ad. Sponsored ads appear at the top, bottom, and on the side of search results, as well as in the carousel on product detail pages.

Two Types of Amazon Sponsored Ads

There are two types of Amazon sponsored ads: Sponsored Products and Sponsored Brands. In order to utilize sponsored ads, the products must be eligible for the Buy Box (the white box on the right side of a product detail page where customers can add items to their shopping cart). Buy Box eligibility is limited to professional sellers who have met performance-based requirements such as order defect rate, fulfillment method, price, shipping time, and overall customer experience.

  • Sponsored Products ads: Sponsored Products allow marketers to promote specific products. They appear in search results and on product detail pages on Amazon, increasing visibility and sales of advertised products by displaying ads when shoppers are looking for similar products. This ad format is most suitable for product visibility, new offers, unique selections, clearance items, and seasonal promotions.
Sponsored Product Ads
  • Sponsored Brands ads: Sponsored Brands help drive brand awareness by featuring your brand logo alongside three products. This type of ad directs shoppers to a landing page that features a selection of your products, an individual product’s detail page, or your Amazon Store. This ad format helps drive both visibility and sales for your brand / product portfolio by appearing in high-visibility locations in search results.
Sponsored Brands Ads

How to Optimize Your Amazon Sponsored Ads Campaigns

Use a mix of keyword types: Include a variety of keyword types in your campaigns to help maximize success. The more you include, the more customers you’re likely to reach and sales you’re likely to get.

  • Branded product keywords: your brand name, product name, and variations
  • Complementary product keywords: products that are sold separately from yours but used together
  • Competitor branded keywords: competitor brands and products

Optimize your product details page: Advertising can bring shoppers to your products, but you’ll need a strong product detail page to convert an ad click into a sale.

Review your product detail pages to make sure your they are ready, including:

  • Accurate, descriptive titles
  • High-quality images
  • Available inventory
  • Over 3.5-star rating
  • 15+ reviews

Leverage Average search term report: Find search terms that have high click volume but low sales and add them as negative keywords to improve revenue metrics. Similarly, identify high performing keywords that are not included in your campaigns and add them to the mix to increase sales and improve Advertising Cost of Sales (ACoS).

Why Should You Use Amazon Sponsored Ads?

When users search on Google, it’s likely they are researching what to buy. But when they go to Amazon, they’re often ready to make a purchase. And that’s why using Sponsored Products and Sponsored Brands will not only capture high-intent searchers, but increase the likelihood that your products will be found by the right customers.

Don’t have Buy Box eligibility? Even for those marketers who don’t, they can still leverage Amazon data to inform various marketing efforts in their media mix. Among these possibilities? Enhancing campaign retargeting, capturing new audience insights, and using first-party data for display targeting. Ultimately, regardless of the depth of knowledge or experience, a brand may have with Amazon, the possibilities to capitalize on the data it offers is endless.

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