Basics of Amazon Advertising: All you need to know

There is no doubt that Amazon has billions of customers, which allows us to drive significant business opportunity and profitability from other platforms. So, whether you are a small or A+ business owner, you should have knowledge of the basics of Amazon advertising.

In this article, you will find important aspects of Amazon advertising and how it works.

The goal of this article is to help new sellers and existing brand owners who are not familiar with the advertising terms and, due to that, are not making good business with Amazon PPC advertising.

So let’s stick with the post and read it thoroughly; this will help you 100% in better understanding the Amazon advertising model.

One thing that we all agree on here is that Amazon is growing very significantly, and this will go far above average in coming generations, right? Whether you agree or not!

Before going ahead, let me introduce you to some of the key benefits of running Amazon advertising.

• Help reach targeted customers.
• brand awareness and product visibility.
• helps to understand the customer’s purchase cycle.
• tracking the results and performance of the entire catalog.

Amazon advertising model: PPC ads

Like other platforms, Amazon ads also work on the PPC model, which stands for “pay per click.” Sellers can only pay when searchers click on the advertised products.  Also, like Google, Facebook, Flipkart, Amazon PPC has different characteristics and strategies that every seller should be aware of.

Types of Amazon Ads

Every seller or brand owner can run Amazon ads that are available in different ad formats like Sponsored Product, Sponsored Brand formerly known as “headline search ads” Video and Sponsored Display ads. These ad formats are available with different objectives, targeting, placement etc., which we will learn in other detailed posts.

Sponsored Product Ads:

This ad format is available for both AUTO and Manual targeting. Your advertised products would appear at the top of the search results and also in other ad placements that depend on how you are bidding on the targeted keywords. SP ads work on a CPC model where you can use manual keyword and product targeting.

Sponsored ads can be used for different campaign goals, whether you want to increase reach, visibility, get ranked on top keywords, or drive sales. To understand campaign goals more in depth, we will discuss them in the next post.

Where can you see sponsored product ads?

In SP ads, you can see the top of the search result when someone looks for a particular term on Amazon’s search bar, like we did here for the “Dettol” keyword.

Additionally, sponsored product ads can also be seen on the product detail page.

Sponsored Brand Ads:

SB ads, formerly known as “Headline Search Ads,” are another ad format that is the second most commonly used in the Amazon advertising planning and strategy for major businesses. Primarily, sponsored brand ads are used for building brand awareness. You can use them for a separate landing page for your advertised products or route customers directly to your brand store.

What will be required for sponsored brand ads?

For SB campaigns, you need engaging custom creatives, a brand logo, and a headline under 50 characters. Also, there’s an option to run video ads under the sponsored brand ad type. You can simply run and test for your best-selling products with a video length of less than 30 to 40 seconds and a well-equipped product’s USP.

Sponsored Display Ads:

What if I told you that you could retarget customers to your product listing? Yeah, it’s possible to re-target Amazon visitors to your products through sponsored display ads.

Back in 2019, sponsored display ads were launched as an Amazon ad campaign type. Many positive aspects have been observed, which is why many advertisers are allocating more budgets for this type of campaign.

As with keyword targeting in sponsored product ads, here in SD campaigns, you can see three major types of targeting like audience view remarketing, interests, and product targeting.

Note: To understand the mechanisms of all three ad formats, we need to learn more in depth about their functionality, including ad creation, targeting, reports, etc., which we will cover in future posts.