The number of sellers on Amazon is increasing, and so is the competition. Sellers need an effective strategy to compete. Here is the complete Amazon Advertising guide for sellers in 2022.
Amazon has over 1.9 million active sellers worldwide. Third-party sellers account for more than 50% of all units sold on Amazon. This growing competition has helped Amazon achieve a 32% year-over-year growth in ad revenue from $21 billion to $31 billion. Amazon is now the third-biggest digital advertising company behind Facebook and Google.
There are 300 million active customer accounts on Amazon. Increasingly, the majority of shoppers begin their product searches on Amazon. Find out all the ways sellers can advertise their products and surpass the competition.
Amazon Advertising, formerly known as AMS (Amazon Marketing Solutions), is the term used to describe all of Amazon’s advertising solutions. There are many different types of Amazon ads, so let’s break down each type.
Amazon pay-per-click (PPC) ads are self-service ads that are available for professional sellers and Vendors. There are three types of Amazon PPC ads:
Amazon PPC is the most common ad platform for Amazon sellers. Advertisers can create PPC campaigns within minutes in their Seller Central account. Let’s dive into each PPC ad type.
Sponsored Products are cost-per-click (CPC) ads, and they appear on the top, along the side, or within search results and on product pages. Sellers bid the maximum amount they are willing to pay for a click. These ads have a “Sponsored” tag and they are shown to shoppers based on relevant keywords or products.
Sponsored Product ads are the most straightforward ad type. Sellers don’t need to be brand-registered to use it, but they must have a professional seller account or be a Vendor. Sellers can use either automatic or manual targeting, and target keywords or products. After conducting proper keyword research, sellers decide which keywords or products to target, and the ads will appear for relevant search terms and products.
Sponsored Brands are cost-per-click (CPC) ads that feature the brand’s logo, a custom headline, and multiple products. These ads appear on the top, along the side, or within search results and help drive brand awareness. Sellers bid the maximum amount they are willing to pay for a click.
There are three different Sponsored Brands formats: Product collection, Store spotlight, or Video. Sellers must be enrolled in Amazon Brand Registry or be a Vendor to use these ads. Similar to Sponsored Products, sellers can target either keywords or products with Sponsored Brands. The biggest advantage with these banner ads is that there are no competitor listings – just the brand’s products.
Sponsored Display ads are cost-per-click (CPC) ads that have the ability to reach relevant audiences on and off of Amazon. Sellers can target potential customers based on interests, shopping behaviors, or whether they’ve viewed their product’s detail page in the past. Sellers must be enrolled in Brand Registry or be a Vendor to use these ad types.
Sponsored Display ads can appear on the Amazon homepage, product detail pages, within search results, on Twitch, or other third-party websites and apps in select marketplaces. Sellers bid the maximum amount they are willing to pay for a click. With Sponsored Display ads, sellers can retarget customers who have previously viewed their listings or target customers browsing similar products.
Here are some of the metrics sellers can measure with Amazon PPC:
These metrics help sellers measure the effectiveness of their ads and allows them to optimize for efficiency.
Amazon DSP (demand-side platform) is a software that allows advertisers to programmatically buy ads to reach new and existing audiences on and off Amazon. It automates the buying and selling of digital advertising inventory across the internet.
Amazon DSP is available to both advertisers who sell on Amazon and those who do not. Sellers can use Amazon’s data intelligence to reach their audience by using a variety of display, video, and audio ads to target potential customers.
Self-service and managed-service options are available. Self-service customers are in full control of their campaigns and there are no management fees involved. The managed-service option is made for companies that want consultative service and typically requires a minimum spend of $50,000 USD. This option requires working with an Amazon Advertising account executive to begin.
Amazon Attribution is an analytics measurement tool that allows you to attribute traffic and sales on Amazon to your non-Amazon advertising efforts. With Amazon Attribution, you can easily measure the impact and ROI of Google search, paid social media, email, and other non-Amazon advertising channels.
You can track your customers throughout the entire sales funnel and gain valuable insights into how your customers discover and purchase your products on Amazon. With this data, you can measure, optimize, and scale the impact of your cross-channel digital marketing efforts to ensure efficiency. Also, you get a better understanding of which non-Amazon marketing efforts work best for your business.
As an Amazon seller, you rely on the data from your pay-per-click campaigns to make decisions about keywords, bids, and budget. Correspondingly, it’s crucial to have this data for the advertising campaigns you run outside of Amazon.
Paid social platforms such as Facebook or Google allow you to track potential customers by using a pixel. Placing this snippet of code on your website allows you to track potential customers after clicking on your ad and report back to you every action they take. This only works if you own the website domain, and you don’t own the Amazon domain, so how can you track non-Amazon ads? Rather than giving you a pixel, Amazon gives you what they call an “Attribution Tag.”
Attribution tags are parameterized URLs, which are tracking URLs that you place in your non-Amazon ads. Basically, these tracking URLs are links to your Amazon products. You place these links in the destination URL of your non-Amazon ads. This tracking URL follows potential customers after they click on your ad and tracks all the actions they take on Amazon. This allows you to attribute traffic and sales on Amazon to your non-Amazon marketing efforts.
Amazon Attribution is available through the Amazon Ads API. To get started, you will have to register for Amazon Ads. Next, you will need to create an Amazon Attribution account within your Amazon Ads account. You can generate Attribution Tags in your Amazon Attribution account for each of your products, and implement these tags across your non-Amazon advertising efforts.
Another effective strategy sellers can deploy is getting featured in Amazon Editorial Recommendations.
Amazon Editorial Recommendations are product recommendations written by a list of hand selected third-party publishers inside the Onsite Associates Program. They show up on the first page of search results when a product’s keywords are searched on Amazon.
Editorial Recommendations are meant to be a credible source of information that aids consumer decision making. They are distinct from organic and sponsored product listings.
Editorial Recommendations are a great way to boost a product that already consistently sells well and previous customers have rated highly. They’re a protective moat that allows sellers to add value to their customers and build loyalty. Read here to see the benefits, requirements, and how to get featured.
Sellers have many options to choose from when it comes to Amazon Advertising. It’s completely necessary for sellers to be successful. We hope this Amazon Advertising guide provided value and helped you understand a little more about how you can grow your business on Amazon.
Sam Young is a Digital Marketing Specialist at SellerRocket. You can find him on LinkedIn here.
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