How to Use Amazon Advertising: A Universe of Opportunities

Amazon also offers a wide range of advertising services for small and medium-sized businesses. Here are some tips to make the most of it.

The e-commerce giant Amazon is now world-famous: it is known and used by millions of people every day for online purchases of all kinds and there are numerous sellers who populate the pages of the platform. Few, however, actually know its marketing potential and take advantage of the opportunities that Amazon offers to anyone who wants to advertise brands and products efficiently.

Amazon Advertising is a tool to be included without a shadow of a doubt in your web promotion strategy: in this article, we will deepen together what Amazon’s Advertising platform is, how it works and how it is possible to manage the ads inside it for a large investment margin of success.

Content Index

  • What exactly is Amazon Advertising?
  • Why use Amazon Advertising
  • How Amazon Advertising works: advertising options
  • Sponsored products
  • Sponsored brands
  • Amazon stores
  • Display ads
  • Video ads
  • Personalized ads
  • Amazon DSP

What Exactly is Amazon Advertising?

Amazon incorporates an interesting platform that allows you to create and monitor paid advertisements in an easy and intuitive way. It’s called Amazon Advertising and it brings together under a single brand what were once the services called Amazon Marketing Service, Amazon Media Group, and Amazon Advertising Platform.

It is an extremely powerful marketing tool that is able to help advertisers reach large audiences, simultaneously increasing their sales and brand awareness around their brand.

The form of promotion offered by Amazon Advertising is Pay Per Click (PPC) advertising: this means that the advertiser who starts a campaign on Amazon will bear costs only when the end-user clicks on a certain sponsored ad. When those who surf on Amazon enter a search keyword, Amazon will return various results, some organic others advertised precisely through the Advertising section of the site.

In this way, the potential buyer will be involved in sponsored ads and proposals capable of intercepting him, catalyzing his attention, and guiding him towards certain purchase choices.

Do you want to Sell Online?

Advertising via Amazon differs in many respects from that possible on other digital advertising platforms such as Google Ads and Facebook. There are several factors that influence how the audience will come into contact with the ads created by the company, different are the metrics that determine the success of a campaign. Different also the moment in which the advertiser has to pay for the adverts: while on FB are also counted, for example, also the ad visualizations, on Amazon only the actual clicks on the same will be paid.

Why use Amazon Advertising

The first glaring reason why it is important to consider Amazon in your marketing strategies is that the huge e-commerce has over 300 million users, and is a showcase open every day of the year 24 hours a day. Sponsor your products on Amazon, therefore, allows you to easily add the wide audience of the leader of e-commerce, and to take advantage of the numerous statistical data that it collects every day regarding purchases, preferences, reviews and online behavior to plan subsequent data-driven marketing plans.

If your company, therefore, sells a physical product that can be included in the catalog on the Amazon site, it is undoubtedly an interesting choice to use this powerful tool to give a boost to sales on the world wide web. Once present in the vast Amazon showcase, it is important, however, to try to position yourself at the top of the site for the keywords of interest related to your brand since appearing among the first results on the screen of potential buyers can obviously make a difference.

 Which products rank first on Amazon? Those who sell the most. One of the main parameters on which Amazon’s algorithm is based is in fact the sales history and it goes without saying that when you are new to the platform you do not have a substantial one.

It is precisely in this sense that advertising on Amazon Advertising is fundamental: it allows you to show your products among the top positions, through the use of campaigns structured around keywords studied ad hoc, and to bypass the initial absence of data of sale.

As the number of sales increases, there is also an improvement in the organic positioning on the site: through the use of advertisements on Amazon Advertising, it is, therefore, possible to generate direct sales driven by sponsored ads, but also a more generic increase in the own organic situation on the e-commerce pages.

Another element that should make you lean towards investment in Amazon’s advertising mechanisms is the fact that it is estimated that only 20% of sales on the site are through a direct search for the desired product. The remaining slice of purchases? Realized through the addressing of the user who surfs the site towards similar offers, categories of products related to the query entered, or products “often bought together with” the one initially selected, and so on. 

Starting an advertising campaign on Amazon, therefore, allows you to intercept new potential customers even while they are intent on searching for a competing product or brands similar to their own, leading to draws across enormously profitable market slices.

How Amazon Advertising Works: Advertising Options

In order to start creating ads on Amazon you need to activate a Seller account on the site and once you have configured your profile, you can start creating advertising campaigns. Amazon offers a wide range of advertising products and in order to generate a return on investment, it is good to choose the one that best suits the needs of the business and the business objectives. Here are the main sponsorship methods on Amazon to be integrated with alternative advertising tools in addition to the tools offered by Google, Facebook, and other famous platforms.

Sponsored Products

The first of the ways to effectively use Amazon Advertising to promote its product offering is by using so-called sponsored products. In fact, it is possible to select reference keywords that suit and describe the product you want to promote, set the desired spending budget and activate the campaign: your products will, therefore, appear among the first search results as sponsored ads. 

With this system it is possible, as already mentioned, to appear among the searches of those customers who are looking for objects similar to the sponsored one, engaging an audience certainly interested and increasing sales.

Sponsored Brands

Another solution proposed by Amazon useful for generating brand awareness is the one called Sponsored Brands. It is an excellent way to give visibility to a brand and to convey its image and philosophy which it has set itself, creating awareness and bringing as many people as possible to the brand. 

Through Sponsored Brands, you can create personalized advertisements, which contain the company logo, a title, and up to three products that you want to highlight. These ads are generally found at the top of all search results and the related links do not refer to the product page, but directly to your store, to a landing page.or to a personalized link. The potential profitability of this category of sponsorships, therefore, appears evident.

Amazon Stores

Amazon allows its sellers to create personalized stores, real online stores where to display their brand and products from their catalog, in a personalized and carefully planned way, with the help of images, text and even videos. Another effective way to create brand awareness and to better welcome all those customers who want to go back to buying again from the same seller with whom they have found themselves particularly well, increasing the loyalty rate.

 The stores are obviously sponsored through Sponsored Brands and are equipped with very useful insights to track and analyze every movement that occurred within them.

Display Ads

The feature called Sponsored Display is among the newest made available by Amazon and is intended to conduct retargeting campaigns outside the boundaries of the Amazon site. Users who have viewed a particular product on Amazon’s pages will then be intercepted by display ads related to it while browsing on Google or scrolling through the Facebook feed. The content of the ads should encourage an immediate call-to-action so that the user clicks on the ad and is redirected to a particular store, a landing page, or a specific product page. 

These ads generally require higher budgets and their price may vary based on the format of the sponsored banner and the position it will occupy on the screen.

Video Ads

Amazon video ads have almost the same features as Display ads, but place their focus on video content, generally capable of creating a higher degree of end-user engagement. In fact, it is easy to create video ads with a high engagement rate that transmits the corporate message in an efficient way and pushes the viewer to take a specific action.

Personalized Ads

Thanks to the collaboration of Amazon consultants specifically responsible for this function, it is also possible to create ads with an incredibly high degree of personalization, which offers the public innovative and empathic experiences, such as, for example, exciting live events that increase the engagement rate.

Amazon DSP

Finally, the Amazon DSP platform is a tool dedicated to those who want to purchase structured display and video ads in a programmed manner. The service can be managed independently, in this case leaving the seller the freedom to program its ads, or it can be managed in full by Amazon, reaching pre-selected segments of the audience on Amazon-owned websites and apps. The investment, in this case, is particularly high, but with potentially excellent returns.

Amazon, therefore, offers its vendors infinite ways in which to promote its products, which if desired can be integrated into the company’s Facebook page. A universe to be taken into consideration and experimented with, in order to obtain the best results and to put a significant boost to your sales.

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