Amazon is one of the largest e-commerce platforms in the world. It is highly sought after by sellers and shoppers alike. There is tough competition if you want to stand out from the crowd and earn huge profits. There are several things that sellers can and need to do in order to differentiate themselves and drive their sales. Amazon PPC, Sponsored ads or Amazon ads as they are referred to are very effective in giving your business that powerful boost. 

In June 2021, the average cost-per-click (CPC) of ads on Amazon in the United States stood at 1.20 U.S. dollars. A year earlier, it amounted to 0.79 U.S. dollars, which signifies a growth rate of nearly 52 percent year-on-year (source).

What are Amazon ads? 

Advertising on Amazon follows a PPC (pay per click) model whereby sellers or advertisers only pay when someone clicks on their ad. These ads are used by sellers and brand owners to enhance visibility for their products. Whatever product you’re selling, there’s bound to be several others offering the same product. So how do you get your product in front of potential customers? Amazon Sponsored ads are the answer. 

Well-optimized ads will appear in strategic positions so that people see your ad and click on it. What you need to do is to ensure that your ad copy is attractive to customers along with your product listing. Getting people to click on your ad is one part of the process while the next step is to get people to buy your product. This is only possible if you have a well-written copy for your product listing. So keep in mind that along with advertising your products, they also need to have good listings so that you can make the most out of your Amazon ads. 

Types of Amazon Sponsored ads 

Amazon offers three different types of ads for sellers to utilize 

  1. Sponsored Products 
  2. Sponsored Brands 
  3. Sponsored Display 

There are 2 kinds of PPC campaigns that you can run on Amazon:

  • Automatic 
  • Manual
  1. Sponsored Products 

These ads are the most popular and appear on SERPs and product listing pages. They work towards improving sales and visibility of selected products. You will see the word “Sponsored” where these ads appear. With these ads, you can choose either automatic or manual targeting options. With an automatic campaign, you will not have to worry about managing anything. Amazon will carry out all the functions and decide how your ads need to be displayed, however, this limits the seller’s control over various aspects. With manual targeting, a seller has more control over which keywords need to be used, the products that are going to be advertised as well as the overall budget for your campaigns. 

  1. Sponsored Brands 

You can use these ads only as long as you’re enrolled in the Amazon Brand Registry. These ads appear at the top of Amazon search results and can feature up to 3 products. They usually consist of the logo of the brand along with the brand’s tagline. You can link it to your storefront on Amazon and boost sales for your whole catalogue. The purpose of these ads is to boost brand awareness and promote multiple products at once. Automatic targeting is not available for these ads but that means you have more control and can personalize it to a great extent. You can decide on your budget and set a CPC bid of your choice.

  1. Sponsored Display

This type of ad works towards advertising your products on and off Amazon. Just like Sponsored Brands, here too you need to be registered with the Amazon Brand Registry. There are two targeting options available – product and audience. Product targeting works towards displaying your ads for similar products. Audience targeting is ideal when you want to retarget leads that were generated earlier or to reach a wider audience. These ads are considered to be more exclusive and thus have a lower level of competition. You can manage your advertising budget and CPC more effectively. 

Benefits of advertising on Amazon 

Amazon PPC is the best way to get your products in front of as many people as possible. Amazon ads work towards improving the organic of your products. How? Strategically using the right keywords in your PPC campaigns helps to boost the ranking of a listing. Sales ranking depends on the sales history of a product. With ads, you can generate more sales which in turn works towards boosting the position and ranking of your listings. 

Another benefit of advertising on Amazon is that it is very economical. With the help of the right Amazon PPC automation tools, you can save time, money, and effort and still earn a good ROI from your ads. SellerApp’s PPC Analyzer is built to ensure you earn the highest profits from your ads with the help of advanced machine learning and analytics. 

These ads display everywhere that is prominent to a customer – on product detail pages, at different positions on search results, and off Amazon on other platforms and apps as well. They can also be optimized to display appropriately according to the device – desktop, mobile devices, and tablets accordingly. Moreover, while advertising on Amazon you have access to a large customer base that is already looking to make a purchase. Thus, all you need to do is ensure your ad copy and product listing are enticing enough to convert clicks into actual purchases. 

Conclusion 

Amazon ads are the best way for your brand and products to gain exposure which is necessary if you want to generate a high amount of sales. These ads are easy to run and while it may take some time to figure out their nuances, you can profit handsomely once you figure them all out.  Adopt an advertising strategy that is suitable to your business goals and be careful not to budget too high or too low.

Author’s Bio:

Arishekar N has over five years of web development experience and is the senior digital marketing strategies at SellerApp, Specialist in SEO, SEM, and best conversion rate optimization strategies that deliver industry-leading ROI. Arishekar has helped companies through more effective search engine marketing and SEO strategies. He is most passionate about working with e-commerce companies.

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