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Intro to Amazon Advertising: How to Get Started and Grow Profitably [Webinar Recap]

Amazon Advertising expert Kiri Masters discusses Amazon Advertising 101 — how to get started and ensure your campaigns are profitable. By Catie Grasso April 23, 2019
Intro to Amazon Advertising: How to Get Started and Grow Profitably [Webinar Recap]

There’s no denying that Amazon Advertising is becoming a popular tool utilized by sellers and brands on Amazon to drive discoverability, brand awareness, and overall sales. If you are new to advertising on the platform, this webinar led by Amazon Advertising expert and Forbes contributing writer Kiri Masters will be extremely beneficial. In the webinar, Kiri discusses Amazon’s two main ad types — Sponsored Products and Sponsored Brands — as well as how to measure your PPC success, allocate ad spend, and how to get started.

To begin, Kiri explains how drastically different the consumer buying journey was in the early 2000s versus now. Nearly two decades ago, consumers searched for products on a search engine such as Google or Bing to learn more about an item, did research by asking friends who have the item about their experience, and ultimately make the purchase.

However, today’s consumer journey looks very different. Most consumers start their search for new products on Amazon (66%), versus a search engine and it has become the main destination that they go to at the start of their shopping process. Additionally, consumers go to Amazon for research and comparison — 79% visit the platform to check reviews before making a purchase. When they are ready to buy a specific product, 74% of consumers prefer to shop on Amazon versus search engines, brand websites, or retailer websites.

According to Kiri, there are three core reasons that Amazon Advertising is so effective:

  • Access to Amazon power shoppers. These high-value shoppers — Amazon Prime members — shop more frequently and spend more money, so advertising is another route to get in front of this audience.
  • Direct sales data means clearer ROI. Amazon sales data allows you to track consumers’ shopping journeys and buying habits so you can more accurately justify ad spend.
  • Amazon is getting better at sharing data. They hold a significant amount of consumer data and are getting better at sharing it with sellers and advertisers.
Catie Grasso
About the Author

Catie Grasso is a content manager at Feedvisor where she oversees and executes on the company's content strategy. She enjoys running, trying new restaurants, and traveling.

Amazon’s Two Main Ad Types

If you are just starting out with Amazon Advertising, there are two ad types that make sense to begin with. Sponsored Products promote products to shoppers actively searching with related keywords or viewing similar products on Amazon. Sponsored Brands showcase a collection of items to shoppers actively searching with related keywords on Amazon.

Sponsored Products can be used to achieve the goal of promoting individual products. These PPC ads show up in organic search and on product detail pages. When a shopper clicks on one, they are brought to the product detail page for that item.

With these ads, you can target by keywords, product category, or even individual ASINs. You can choose from two targeting types: manual targeting where you choose keywords or products to target shopper searches and set custom bids and automatic targeting where Amazon targets keywords and products that are similar to the product in your ad.

With Sponsored Brands, the goal is likely to drive brand and product awareness. These ads show up above search results and when clicked, take the consumer either to your Amazon storefront or a specific landing page, such as your Amazon Store. These ads are keyword-driven and available to sellers and brands who have completed Amazon’s Brand Registry process.

How to Measure Success with Amazon Ads

According to Kiri’s strategies, you can effectively benchmark your advertising performance by measuring specific KPIs across the consumer buying journey. During the awareness stage, be sure to monitor for impressions, which is the metric that counts how many times your ad has been displayed. During the consideration stage, focus on clicks, click-through rate (CTR) and product detail page views.

During the purchase or transactional stage, focus on ACoS, return on ad spend (ROAS), and cost-per-click (CPC). Finally, to measure loyalty, you can utilize Amazon’s “new-to-brand” metrics that demonstrate how many customers bought your brand from an ad that had never previously purchased from your brand. All of these metrics will help you understand repeat purchase behavior, generate demand and acquire new customers, and drive brand awareness and growth.

When figuring out how much to spend on Amazon ads, figure out your key objectives for advertising first. What do you want to accomplish? By clearly establishing and presenting your goals, you will be better equipped to decide which products to include in your campaigns, properly structure them, and measure results.

From there, you will be able to determine target profit margins and ACoS to track on an ongoing basis during the campaign’s life cycle. As you scale and test what ad types work best for your business, you will be able to invest more when you discover what provides the highest ROI for your business.

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