Amazon and Amazon Advertising have played a crucial role in eCommerce in the past several years. eCommerce platforms such as Amazon, Walmart, eBay, and Alibaba have contributed significantly to global eCommerce development. Many brands had struggled to push sales on their websites while managing fulfillment, logistics, shipment issues, fast and reliable tracking of shipped goods, etc. As a global eCommerce giant, Amazon resolved it, and currently, over 6 million sellers globally sell their goods on the Amazon platform. Also, the COVID-19 pandemic outbreak revealed the importance of eCommerce development and its future direction.
The most powerful tool for pushing sales all over Amazon is Amazon Advertising. While it was a complicated, time and money-consuming task for many Amazon sellers, its primary goal is to get and improve rankings, push sales and promote your goods to as many as possible new and potential customers. Amazon Advertising has been and still is the most innovative tool to push total revenue. Apart from reaching potential hundreds of millions of customers, the most significant advantage for Amazon sellers is to be several steps closer to selling than on other search platforms. When potential customers sign in and open the Amazon front page, they are highly motivated to buy whatever they need or desire. Between first search queries and final checkout, Amazon Advertising plays the most crucial role.
The presence of globally well-known brands on Amazon is one of the key factors of Amazon’s reliability for eCommerce brands. With a small and easy research, you can find your favorite brands on Amazon that you use every day. Besides having official vendor channels, applications, websites, retail shops, shopping malls, and all shopping spots, Amazon became one of the most prominent, fast-growing eCommerce channels. In the past few years, many well-known eCommerce brands on Amazon relocated their annual marketing budgets from traditional channels of communications and vendors to Amazon Advertising growing year-on-year.
It’s a pay-per-click (PPC) model based on search advertising, where sellers that advertise their products pay only for a click. Amazon sellers use advertising to stand out from the competition.
WELL-RUN AMAZON ADVERTISING ACCOUNT ESSENTIALS
The most productive Amazon Advertising for eCommerce brands’ accounts focuses on several key elements.
Clear goals - Companies that successfully use Amazon Advertising can precisely articulate what they want to get out of the program. For example, instead of focusing too broadly on “more sales,” the business might specify a precise amount of impressions or revenue increases to achieve within a particular time frame.
Granular strategies - This process involves identifying product differentiators to use when targeting Amazon Advertising keywords. Examples include targeting competitor products with lower reviews and devoting a greater portion of ad spend to products with high margins.
Diversity of ad formats - Amazon Advertising benefits brands and retailers that leverage a range of options. Each ad type aims to reach consumers at different stages of buying, which means a mix of Sponsored Products, Sponsored Brands, and Sponsored Display Ads is often necessary to ensure ROI.
AD TYPES FOR E-COMMERCE BRANDS
There are three basic types of Amazon Ads - Sponsored Products, Sponsored Brands, and Sponsored Display. Based on current, short-term, or long-term targets and goals, eCommerce brands on Amazon should set a strategy regarding these three campaign types in Amazon Advertising.
Sponsored Products - Amazon Sponsored Products is a keyword-targeted, cost-per-click (CPC) advertising program designed to promote individual listings and drive traffic to product detail pages. These ads tend to generate high-quality clicks because they’re shown to shoppers who actively search for terms associated with a particular product. They can yield a much higher ROI than many other pay-per-click (PPC) programs. We mainly use them for purchase intent and final purchase.
Sponsored Brands - These keyword-based, banner-style ads appear above Amazon search results to help build brand recognition and drive shoppers to a complete product portfolio. They feature the brand’s logo, a customized headline, and up to three products. Sponsored Brands can be an effective way to reach consumers who are browsing but don’t yet know what they want to buy. Like Sponsored Products, Sponsored Brands operate on a CPC pricing model. We primarily use them for purchase consideration and brand awareness.
Sponsored Display Ads - Sponsored Display Ads are CPC ads that can show up in different areas—on websites, apps, and devices, both on and off Amazon—to drive traffic to a product’s detail page. These ads are relevant to buyers looking for specific product pages instead of those scrolling search results on Amazon. They deliver highly relevant ads to consumers with particular interests or shoppers who actively view specific products. We suggest using them for purchase intent and final purchase.
Amazon Advertising is the most powerful tool for managing the almighty Amazon algorithm to stand out from competitors. Without advertising, your product on Amazon stays in the shadows while competitors keep getting their sales. The future of eCommerce is closely related to Amazon’s future development and exclusive new features that Amazon will drop in the upcoming period. As we have witnessed the transition from radio to television in the past decades and from all traditional media to digital media, we’ll see the strengthening of Amazon Advertising and ad budgets for AMZ. We have a team of experienced PPC professionals ready to maximize your eCommerce brand impact and sales on the competitive Amazon platform. Follow the link to book a FREE Amazon audit and discover how we can place your business on a one-way street to eCommerce success with Amazon Advertising!
About the author
Vukašin Mihailović is a Data Analyst at Sellers Alley with extensive experience in PPC and inbound marketing. More than 4 years in digital advertising. Very familiar with all relevant digital tools for advertising. DIMAQ certified. Amazon PPC passionate.