how to advertise on amazon

It has been one of the best mediums of improving product visibility, driving traffic, and increasing sales. It holds the greatest scope for reaching your target audience due to its active users in millions. However, to be successful in Amazon advertising, you have to understand how to navigate the tools, set the right goals, and create campaigns that convert.

In this article, we’ll guide you through the fundamentals of advertising on Amazon, the options of ads available, and setting up and optimizing your campaigns for maximum impact during 2024.

Why Advertise on Amazon?

Amazon is neither a marketplace; it’s search. It is often those shoppers come to Amazon hunting for what to buy. With millions of competition vying for one’s attention, advert placement places your products on Amazon above all the rest at a congested marketplace. And here are a few reasons to consider that Amazon advertising cannot be done without:

1.Massive Audience Reach: One of the e-commerce giant platforms in this world. Millions of potential buyers converge at one place.

2.Accurate Targeting: You can target customers who use specific search keywords, their shopping behavior, and interested in certain products.

3.Trackable Results: With Amazon’s analytics capability, you can track and improve your campaigns.

4.More Sales and Visibility: Run properly managed ads to raise your chances of being in the sight of shoppers likely to buy.

Types of Amazon Ads

Amazon provides several types of advertisements to help you promote your products. The following are the primary advertising options available on Amazon in 2024:

Sponsored Products Ads

Sponsored Products are the most popular and easiest form of advertising on Amazon. These are keyword-targeted ads that are displayed in search results as well as product detail pages.

Where they appear: Search results, product detail pages, and sometimes in recommendations.
Ad format: These ads resemble normal product listings but are branded as “Sponsored.”
Targeting options: You can target using automatic targeting (Amazon decides on the best keywords) or manual targeting where you will choose the keywords.

How to use it: Sponsored Products ads work well for getting more visibility and for pushing immediate sales. They work well with new products or products that need a bit of a visibility boost.

Sponsored Brands Ads

Sponsored Brands ads let you display your brand and portfolio of products at the very top of Amazon searches. Your ad will show your brand logo, a headline you can customize, and multiple products.

Where are they displayed: They are shown at the very top of search results, appearing above the Sponsored Products ads.
Ad type: They feature your brand logo, headline, and up to three different products
Targeting options: You can target your keywords or product categories.

How to use it: Sponsored Brands ads are perfect for brand awareness and if your business has a variety of products. They drive traffic through your Amazon Store or to a custom landing page.

Sponsored Display Ads

Sponsored Display ads are a retargeting tool that allows you to reach customers both on and off Amazon. These ads target shoppers who have viewed your products or similar items but haven’t made a purchase yet.

Where they appear: On product detail pages, customer review pages, or even third-party websites through Amazon’s ad network.
Ad format: They could feature your products with a personalized message, or they can be used as a remarketing ad.
Targeting option: You can target by shopper behavior (e.g., views or purchases from previous) and interest

How to use it: The best way to utilize the Sponsored Display ads is as a remarketing ad. It means reminding customers of your product when they visit other websites or pages.

Amazon DSP (Demand Side Platform)

Amazon DSP is a programmatic ad solution that gives you even more control over your ad placements and allows reaching a greater audience both on and off Amazon. Usually, they are used in bigger brands with more extended advertising budget.

Where they show: On Amazon, as well as on other third party websites and mobile apps
What format they’re in: You can operate display, video, as well as other types.
Targeting options: Advanced targeting capabilities that go beyond audience insights, and more.

How to apply: Amazon DSP is suitable for users looking for advanced campaign management and a wider scope of reach. It will best suit the needs of advertisers who have the resources to scale the size of their advertising endeavors.

Setting Up Your First Campaign on Amazon

That is all the types of ads available. Let us proceed to the setting-up of your first campaign on Amazon.

Step 1: Log in to Amazon Seller Central

You need to have an Amazon Seller account in order to begin advertising. Once you’re logged in to Seller Central, you’ll find the “Advertising” tab in the main navigation bar.

Step 2: Select Your Campaign Type

Select an ad campaign type based on your objectives and budget. For beginners, we recommend starting with Sponsored Products ads because they are straightforward and cost-effective.

Step 3: Set Your Budget and Bidding Strategy

Daily Budget: Set a daily budget as to how much you want to spend per day on ads.
Bidding: Amazon functions on a cost-per-click, or CPC basis. Select the amount you are willing to pay per click. Alternatively, you can set a manual bid for each keyword or make use of Amazon’s automatic bidding.

Step 4: Target Your Ads

Depending on the ad you are running, you will have to specify your targeting. In the case of Sponsored Products, you can either automatically or manually target:

Automatic targeting: Amazon automatically selects the keywords to target based on your product’s listing.
Manual targeting: You select the keywords that best match your product’s offerings.

For Sponsored Brands, you’ll need to select the products to feature and the headline you want to use. For Sponsored Display, set your audience targeting based on behaviors or interests.

Step 5: Create Compelling Ad Copy

Ensure that your product descriptions and images are optimized. The more appealing and accurate your product details, the better your ads will perform. For Sponsored Brands ads, create a headline that resonates with your target audience.

Step 6: Monitor Your Campaign Performance

After you have launched your ads, you need to monitor how they are performing. Amazon provides in-depth analytics about your campaigns, including:

Impressions: How often your ad is shown.
Clicks: How many times people are clicking on your ad.
Conversions: How many of those clicks convert to sales.
ACoS (Advertising Cost of Sale): Ad spend divided by sales. This is your bottom line, and it indicates the effectiveness of your campaigns.

Adjust campaigns using these insights to drive improvement. If a keyword isn’t performing, then think about changing your bid or choosing a different keyword.

Best Practices for Optimizing Your Amazon Ads

Focus on high-converting keywords: Conduct proper keyword research to find the terms that are driving the most traffic and sales.
A/B test your ads: Test different headlines, images, and keywords to see what works best with your target audience.
Refine your targeting: Use negative keywords to avoid wasting ad spend on irrelevant traffic.
Adjust bids strategically: Increase bids for high-performing keywords and lower bids for those that aren’t generating sales.

Conclusion

It’s an Amazon Ad opportunity to revolutionize your business. Through these ads, you’ll be highlighted among your competition in a crowded marketplace, and those ready customers will find your product. Selecting the proper ad type, then establishing the correct budget with campaign optimization will get you visible, driving traffic and ultimately increasing sales.

With the constant innovation of Amazon’s advertising platform, it is important to stay updated on the latest tools and strategies. Start experimenting with Amazon ads today and refine your approach based on performance insights to make 2024 your most successful year yet on the platform.