Amazon’s online advertising platform is extremely useful, allowing Amazon sellers to take advantage of the plethora of benefits provided. Amazon has grown in popularity, and as a result, the marketplace has become increasingly competitive.
While these ads only target particular products, they help in increasing awareness of your brand and attracting consumers, which is why you have to advertise. Ads that run on Amazon follow a pay-per-click (PPC) model, which means you only pay when someone clicks on your ad. Often, advertised products are displayed above organic product ads on Amazon search.
They play an important part in improving CTR. There are three different types of promotion solutions on Amazon. Each offers a different service.
The three different promotion types are as follows
- Sponsored Products
- Sponsored Brands
- Sponsored Display
Amazon Sponsored Products are among the most popular choices for sellers, so let’s take a look at all important information concerning Amazon Sponsored Products, including their stipulations and charges as well as their significance.
What are Amazon Sponsored Product ads?
A form of paid advertising on Amazon is referred to as promotional advertising. These ads appear on SERPs for your product listings and are triggered by search terms. They are also featured on organic product pages.
Keywords are an important part of these ads because they influence how well they rank. If you use popular keywords in your ads, your ads will rank higher and better. As a result, you must conduct keyword research to identify the best keywords to use. It is the most effective way to reach and attract the appropriate audience.
You must be registered as a Professional seller in order to run Amazon Sponsored Product ads. Additionally, Amazon individual sellers are eligible to use PPC as well. The products you advertise must also meet eligibility criteria. You cannot advertise prohibited or restricted merchandise.
They are the following
- Alcohol or tobacco products
- Ammunition and guns
- Products that violate intellectual property rights
- Pirated products or products that do not hold authorization
- Devices used to pick locks and other security risks.
How much do Sponsored Product ads cost?
If you’re wondering about how a vendor gets compensated for running these ads, it is simple: You go to advertise, and it’s live. If you wonder what the customer enters into the Amazon search bar for a product, they will see Sponsored Product ads.
By clicking on the ad, you will be redirected to the Amazon product listing page, and the seller will be charged for the usage of each click costs incurred on his website. The seller is not charged for obtaining the ad displayed.
The amount you spend on these advertisements is determined by CPC (cost per click), the average CPC of which is $0.81. It can be between a minimum of $0.02 and a maximum of $3.For advertisements, sellers bid on keywords, and the highest bidder wins the top placement for his or her ad.
Manual and automatic campaigns
You can select from manual and automatic campaigns. If you choose automatic, it means that Amazon will independently manage campaigns and you will not have much control. Your designated task is to set a CPC bid and add all pertinent keywords. Amazon will decide where to display your ads.
If you are running manual campaigns, you have considerably more control over who your ads need to target and the keywords you want to use. It is possible to take advantage of effective Amazon PPC management tools to meet your requirements.
You need to plan what type of campaign structure to use effectively before starting. Using both automatic and manual campaigns can achieve impressive results. It all depends on what your campaign objectives are for each campaign.
With Amazon Sponsored Product ads, you have the option of choosing between keyword targeting and product targeting. Keyword targeting involves selecting a keyword your advertisements will appear for. Product targeting means advertisers can target specific product classes and ASIN numbers.
After you do that, your ads will appear on the Amazon product page and search results page for the targeted Amazon Standard Identification Number (ASIN). Selecting reference classes allows you to identify product categories in which you do not currently sell. It is the most effective way to increase your brand exposure and improve your visibility while increasing impressions.
Sponsored products are the best choice for brand launch because they are a productive and cost-effective way to promote new products, improve sales rankings, and boost revenue.
Innovative advertising methods help you stand out from the competition. With their findability and easy management, these are the perfect choices when introducing new products.
Arishekar N is the Senior Director of Marketing and Growth at SellerApp, an e-commerce data analytics solution. He is responsible for overseeing the development and implementation of marketing strategies, as well as increasing process efficiency by executing cutting-edge Search Engine Optimization strategies at SellerApp.
Arishekar has over 10 years of experience in marketing analytics and SEO. He has worked as a Digital Specialist for the tech giant IBM and most recently as the Senior Marketing Specialist for ZioTive Technologies where he enhanced their site structure by increasing website and mobile usability. Previously, he worked as a Senior SEO Analyst for Star Group where he was responsible for managing SEO Audits and analytics.