Amazon advertising plays a huge role in boosting sales. It is multifaceted and can be used by all Amazon sellers owing to the plethora of benefits it offers. Amazon’s rising popularity and success have made it a marketplace where sellers face fierce competition in order to stand out.
Even though these ads target only individual products, they help in growing awareness for your brand and attract customers, which is why you have to advertise. Ads on Amazon follow a pay-per-click (PPC) model which means you pay only when someone clicks on your advertisement. Usually, advertised products display over organic product ads on Amazon search results. They also play an important role in improving CTR.
There are three different types of advertising solutions on Amazon. Each serves a different purpose. The three different advertising types are as follows:
- Sponsored ProductsÂ
- Sponsored BrandsÂ
- Sponsored DisplayÂ
Sponsored Product ads are the most popular among sellers so let’s take a look at everything you need to know about Amazon Sponsored Products along with their eligibility criteria as well as their charges and more.
What are Amazon Sponsored Product ads?
Sponsored Product ads on Amazon are a form of pay-per-click advertising that helps with increasing organic traffic to your listings and thereby sales. These ads appear on the Amazon Search Engine Results Page (SERP) either at the top or the bottom. You will also find them on pages of product listings.Â
Keyword usage is a crucial part of these ads as they contribute to how well these ads rank. If you target popular keywords in your ads, then your ads will rank better and higher. Thus, you need to find the right keywords to use with the help of keyword research. It is the best way to ensure you reach and attract the relevant audience.Â
Eligibility criteriaÂ
In order to be eligible to run Amazon Sponsored Product ads, you have to be registered as a Professional seller. Vendors are also eligible to use Amazon PPC. The products that you’re advertising also follow eligibility criteria. You cannot advertise products that fall under the prohibited or restricted category.Â
They are as follows:
- Pornographic and nudity related productsÂ
- Alcohol or tobacco productsÂ
- Ammunition and gunsÂ
- Products that infringe on intellectual property rightsÂ
- Pirated products or products that don’t have authorizationÂ
- Devices used to pick locks and others that compromise security.Â
How much do Sponsored Product ads cost?
If you’re wondering how a seller gets charged for running these ads, it’s pretty simple. You create an ad and run it. When someone types a search term or keyword into the Amazon search bar to search for a product, they will see Sponsored Product ads. If you click on the ad, you will then be redirected to the Amazon product listing page and the seller will get charged for every click he receives on his ad. The seller does not get charged for just getting his ad displayed.Â
The amount you pay for these ads is calculated on the basis of CPC (cost per click). The average CPC is $0.81 and it can vary between a minimum of $0.02 and go up to $3. This cost is dependent on how much demand there is for a given keyword or search term. This is why your bidding strategy is important. Sellers have to bid on keywords and the highest bidder wins the highest position for his ads.Â
Manual and automatic campaigns
You can choose between manual and automatic campaigns. If you choose automatic, it means that Amazon will decide how to run your ads and you will not have much control. Your only job is to set a CPC bid and add all your relevant keywords while Amazon decides how to display it. In manual campaigns, you have a lot more control over whom your ads need to target and the keywords that you want to use.Â
You can make use of expert PPC management tools that are guaranteed to give you the best results on Amazon. You need to plan out what type of campaign structure you want to use well in advance. Using a mix of both automatic and manual campaigns can also give you good results. It all depends on what your goals are for each campaign.Â
Targeting
With Amazon Sponsored Product ads, you can choose between keyword targeting and product targeting. Keyword targeting means when advertisers choose what customer search queries they want their ads to appear for. Product targeting refers to when advertisers can target specific product categories and ASINs. Once you do that, your ads will appear on the Amazon SERP and product details page that the targeted ASIN is on. Targeting categories means that you can target product categories that you yourself sell on. It is the best way to grow your brand and improve visibility while also increasing impressions and avoiding negative reviews in amazon.Â
Conclusion
Sponsored Products are the most popular because they are the most effective way to launch new products, boost sales and improve rankings. Innovative advertising strategies help you stand out from the competition. These ads also work out to be more economical and easy to manage which is why they are the most popular choice among sellers.Â
Arishekar is the Head of Marketing at SellerApp and specializes in digital marketing, in addition to website keyword optimization for search engines. His areas of expertise include enhancing the organic ranking of web pages on search engines with innovative SEO strategies and online promotions.
