University - Amazon Advertising

Amazon Advertising: Frequently Asked Questions

Amazon Advertising: Frequently Asked Questions

Although Amazon Sponsored Products were first introduced in 2012, the company has recently invested a tremendous amount of time and resources into growing its advertising sector. Both sellers and brands are gradually integrating advertising into their overall Amazon strategy, experimenting with various ad types and targeting options, and looking for innovative ways to stand out from the competition.

In this post, we have rounded up your most frequently asked questions about Amazon Advertising to provide a comprehensive overview of the platform, including details of the offering, capabilities for sellers, and how to get started.

What Are Amazon Ads?

Amazon ads are product placements on amazon.com intended to help you reach more customers, increase sales, and grow your brand audience. Sponsored Products, Sponsored Brands, and Product Display Ads each have their own targeting criteria and required campaign structures.

Can I Advertise My Website on Amazon?

No. You can not advertise your website on Amazon. According to Amazon, any attempt to divert transactions or buyers to another website or sales process is prohibited. Specifically, any marketing messaging that leads Amazon users to leave the Amazon website is prohibited.

How Much Does Advertising on Amazon Cost?

Advertising on Amazon runs on a pay-per-click model, where you only pay for the ad once someone clicks on it. Costs vary, as you get to decide how to budget your ad spend. With Sponsored Products, you set a daily budget and for Sponsored Brands, you can set a daily or lifetime budget.

How Do Amazon Sponsored Ads Work?

Amazon Sponsored Product ads run on a pay-per-click model. You choose which products to advertise, assign keywords or product attributes for targeting, and enter a cost-per-click amount according to your budget. When a shopper searches for one of your target criteria, your ad is eligible to show.

How Do I Create a Sponsored Ad on Amazon?

To create your first Sponsored Product campaign on Amazon, go to advertising.amazon.com/register and choose one of the account options to register for Amazon Advertising. Then, select “Campaign Manager” from the dropdown and select Sponsored Products from the options to build your campaign.

How Do I Advertise on Amazon Seller Central?

On Seller Central, you can choose from Sponsored Products, Sponsored Brands, Lightning Deals, and other classic promotions such as a percentage off or buy one, get one. To participate in any of these advertising options for Amazon Seller Central, you must meet certain eligibility criteria.

What Is Amazon PPC?

Amazon PPC (pay-per-click) is the advertising model that only requires advertisers to pay a fee to Amazon when a shopper clicks on their ad. With Sponsored Products, you choose which items to advertise, assign keywords or other attributes, and enter a maximum cost-per-click amount.

How Do I Run an Amazon Ad Campaign?

To run an Amazon ad campaign, choose an advertising option within the Amazon campaign manager, such as Sponsored Products, and complete the Settings section which asks for campaign name, daily budget, start and end date, targeting options, product to advertise, and more.

What Is Amazon AMS?

Amazon AMS stands for Amazon Marketing Services. Under Amazon’s advertising rebrand, AMS will now be called “Advertising Console.” The Console is Amazon’s PPC paid search marketing platform and contains Sponsored Products, Sponsored Brands, and Product Display Ads.

How Do I Sponsor a Product on Amazon?

To sponsor a product on Amazon, you must meet certain eligibility requirements and then must choose Sponsored Products within Amazon’s campaign manager. You must then populate the information in the Settings section such as campaign name, daily budget, start and end date, and targeting options.

Where Can I Promote My Products on Amazon?

You can promote your products in various placements across Amazon. With Sponsored Products, your ads can show up in organic search results, as well as on product detail pages. Sponsored Brands show up above Sponsored Products and organic search results.

What Is an Impression on Amazon?

An impression on Amazon occurs whenever an ad is displayed. The impressions metric measures how often your ad is served for the search terms triggered by shoppers. You do not pay for impressions on Amazon, only clicks. Impression share provides valuable competitive insights for you to leverage.

How Does Amazon Ad Campaign Work?

Amazon’s ad campaigns operate with an auction-based model where advertisers set their daily budget for ads. The higher they are willing to pay for their ad, the greater the likelihood of their ad to be displayed. Advertisers pay for their ad campaigns by click, each time someone clicks on their ad.

What Is an Amazon Campaign?

An Amazon campaign is an ad placement on amazon.com intended to help you reach more customers, increase sales, and grow your brand audience. Sponsored Products, Sponsored Brands, and Product Display Ads each have their own targeting criteria and required campaign structures.

What Is Amazon Pay-Per-Click?

Amazon pay-per-click is the advertising model that only requires advertisers to pay a fee to Amazon when a shopper clicks on their ad. With Sponsored Products, you choose which items to advertise, assign keywords or other attributes, and enter a maximum cost-per-click amount.

How Can I Improve My Amazon Advertising?

You can improve your Amazon Advertising by monitoring detailed performance data, conversion metrics, and frequent reporting to help you understand your SKU-specific performance, ad spend, and potential ROI, and optimize your campaigns appropriately.

Do Amazon Ad Campaigns Work?

Amazon ad campaigns work to help you generate brand awareness, reach relevant shoppers, and increase sales. You can align your Amazon ad campaigns with your business goals and strategies to ensure that your campaigns are effective and being optimized on an ongoing basis.

Where Do Amazon Ads Appear?

Amazon ads appear in various placements across Amazon. With Sponsored Products, for example, your ads can show up in organic search results, as well as on product detail pages. Sponsored Brands show up above Sponsored Products and organic search results.

Final Thoughts

Advertising on Amazon is an effective way to promote new items and drive discoverability, generate brand awareness, increase sales of top performing SKUs, optimize underconverting ones, liquidate stale items, and so on. However, to optimize performance on an ongoing basis, you should leverage AI-powered technology, data-driven intelligence, and hands-on expertise to help you maximize your in-market advertising impact.

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