Why should you consider paid advertising on Amazon?

Over 200 million customers prefer purchasing with Amazon to any other store. Despite the astronomical figure, every single customer finds the exact product they are looking for. Amazon marketing provides great exposure for every retailer that wants to be seen by the target buyers.

People searching on Amazon are more likely to be at the end of the buyer's journey (i.e. closer to a purchasing decision). On Amazon, they know what product they want, and they are just looking for the right deal and provider. Your ad is the face of your product, which will compel the buyer to view your product.

This blog is all about different types of ads for amazon that you need to know before choosing "the one" for you.

Are Sponsored Ads worth it?

It is a known fact that Sponsored Ads are one of the most effective ways to increase conversion rates and ranking for your products. As more and more sellers enter the amazon business, the competition would be tough enough to implement much more effective strategies such as Sponsored Ads.  Though the payment for the clicks comes from your profit margin, this will in turn boost your sales.

Different Types of Amazon Ads
There are three types of ads employed in marketing at Amazon:

Sponsored Product Ads
Sponsored Product Ads are part of Amazon's Pay-Per-Click Advertising that enhances the visibility of your product.

With Sponsored Product Ads, you can target keywords relevant to the search term of the potential buyer. In automatic keyword targeting, Amazon decides to target the most relevant keywords for your products. Going by the name, Pay-per-click advertising brings up your product’s ad to the viewer and in turn, you have to pay amazon whenever a buyer clicks on it.

When shoppers click on your sponsored product ad, they’ll be directed to the ads product detail page. These ads are typically keyword targeted and are displayed on the top or bottom of the search results page.

Let’s say you want to buy a hair straightener. As a buyer, it is obvious that if you find the exact product you are looking for, you wouldn’t bother to scroll further. Hence, you must attract the shopper before your competitor. Amazon PPC Ads are located in prime positions for your buyer to take notice of your product. They appear at:

- Top of the search result
- At the bottom of the search result
- On product detail pages

Due to their position in search results, Amazon PPC Ads help attract your target buyer. The shopper is taken to your product detail page after which his decision solely depends on how your page persuades him/her to convert the click into a sale.

Can you use Sponsored Product Ads?
Sponsored Product Ads can only be available to :

- Professional Sellers
- Retail Vendors
- Kindle Direct Publishing Authors

To be eligible to use sponsored ads, your product must be new, qualified for the Buy Box, and listed in a qualifying product category.

How much do Amazon PPC Ads cost?
On average, Amazon sellers pay $0.81 for every ad click.



However, this cost is not set in stone. Keywords have the most notable impact on the cost of your Sponsored Product Ads. For example, if you’re bidding on keywords with a high cost-per-click and competition, it will cost you more.

AiHello AutoPilot is a new Amazon PPC automation tool that automatically adjusts your bids, bid boost, placement, and budget for your Amazon ads to increase sales and lower ad costs.  It enables you to monitor your ads and automate the bids continuously to minimize your ad spend and also boost your sales.

Using automation, AutoPilot ensures that you don’t overspend on ads more than required and keep your sales flowing.

How to create a Sponsored Product Ads campaign?
Creating campaigns:
 1. Go to the campaign manager in the amazon seller central and click on create a campaign.
2. To create an automatic campaign, click on automatic.
3. It is always best to put an apt name for your campaign to avoid confusion.
4. Enter the start date, end date, daily budget and finally input a default bid and Amazon will take care of the rest.
5. Click launch campaign to launch it.

It’s that easy to launch an automatic campaign. To create a manual campaign,
1. Click on manual
2. Select the match type you want. If you want to include a combination of keyword match types, run separate campaigns for each match type.
3. Instead of choosing a default bid for the keywords, you can enter your choice of keywords and apply the suggested bid.
4. Few keywords take up most of your budget so remember to check them before clicking apply all.
5. Click launch campaign.
Do's and Don'ts:
1. Remove poor performing keywords
2. Start with an automatic campaign
3.  Do not overspend your budget on a single keyword.

Sponsored Brand Ads
Sponsored Brand Ads are part of Amazon's Pay-Per-Click Advertising that enhances the visibility of your brand up to three products. Just like Product ads, Sponsored Brands follow the amazon PPC advertising paradigm. When a buyer clicks on your ad, Amazon charges you for the click on the ad. You pay for clicks, not impressions.

Why Sponsored Brands?
Remember that amazon specifically prefers branded products over random ones. Do not try to sell many random products but instead focus on building a brand. This way you'll be able to get approval without any questions and on top of that you're building an actual brand that's going to be more long-term

Where do Sponsored Brands appear?

- Above search results
- To the left of search results
- Below search results


In the Amazon mobile app, Sponsored Brands appear within search results.

Can you use Sponsored Brand Ads?
You can use Sponsored Brands for advertising new products. You can opt for Sponsored Brand Ads if you are either a professional seller or a retail vendor. Each has its own requirements:

For a Professional Seller to be eligible to use Sponsored Brands, one must:

- Register in Amazon Brand Registry
- Have an active account
- Ship to every address in the U.S.

How much do Amazon Sponsored Brand Ads cost?
Just like Sponsored Product Ads, you pay only when someone clicks on your ad. Since these ads have higher prominence than Product Ads, they have a higher cost per click (CPC). Depending on the keywords, products, or categories you are targeting, your advertising cost varies. Depending on the bid amount, Amazon decides where the ads would appear.

Due to the complexity of Sponsored Display Ads, it is always better to have an experienced team on your side.

Setting up Sponsored Brand Ads Campaign
1. Log on to your Amazon Advertising account
2. Go to “Choose a Campaign Type,” then click “Sponsored Brands”
3. Select your Sponsored Brands landing page
4. Set a suitable campaign name, bid, duration, and budget.
5. Append your keywords and their bids
6. Create an ad headline and upload your ad image
7. Submit your Sponsored Brands Ad for review
Usually, it might take 24 to 72 hours to get approval for your Ad

Do's and Don'ts:
1. Experiment with different images and headlines,
2. Targetting around  30 to 40 keywords when it comes to Sponsored Brand Ads is recommended to reach a wide range of shoppers within your target audience.
3. Give keywords ample time and check their performance. Take the poor-performing keywords off your list to reduce advertising costs by not spending on irrelevant keywords.
Sponsored Display Ads
Formerly known as Product Display Ads, Sponsored Display Ads are quite a competitive choice for Amazon Advertisers. These ads focus on how relevant is your product to the shopper's interests and can give your product a decent exposure. Instead of bidding on keywords, Sponsored Display Ads look for similarities between your product and buyer's interests, product categories, and select products.

Shopping on Amazon is all about relevance.  With Product Display Ads, you can upsell your products to shoppers in your target audience who have a similar interest. This also allows your business to reach out and connect with shoppers that your competitors’ ads would have missed.

Like Sponsored Product Ads and Sponsored Brands, however, Product Display Ads also use a PPC advertising model which means that you only pay when a buyer clicks your ad. Instead of bidding on keywords, you’re solely bidding on clicks.

Amazon features two types of targeting options as interest- or product-based targeting:

Interest-based targeting: With interest-based targeting, you target shoppers by their wider interests. This helps you reach a wider range of audiences and build your brand, which has positive impacts on your selling business.

Product-based targeting: With product-based targeting, you target related, complementary, or adversary products on Amazon. It is helpful if you’re looking to gouge your opponent’s sales or promote your product’s suitability as an add-on purchase.
Where do these Display Ads appear?


Amazon Product Display Ads appear in the following locations:

- Related product detail pages
- Merchandising emails
- Customer review pages

- Amazon websites like IMDb
- Amazon devices such as Amazon Fire
- Amazon Demand Side Platform (DSP)

With Product Display Ads you can reach a wider audience than the former two types of advertising.
How do you create a Product Display Ads campaign?
Build your Sponsored Display Ads by implementing these steps:

- Log on to your Amazon Advertising account.
- Select “Choose a Campaign Type,”
- Click “Product Display”.
- Choose “Product targeting” or “Interest-based targeting” based on your preference.
- Pick the product you want to advertise.
- Select the products or interests you want to target.
- Create your campaign name, budget, and bid.
- Set your campaign start date and duration.
- Enter your ad headline and upload your brand logo.
- Submit your campaign for review

Just like other ads, DIsplay Ads take around 72 hours to get approved.

Do's and Don'ts:
1. In Vendor Central, you can create Vendor Powered Products. When you set up your Product Display Ads, you can also promote your VPCs. This encourages more shoppers to click on your ad and buy your product.
2. Run your campaigns continuously as this will boost your chances of being visible to the potential buyer and thus, increase sales.

Summing Up

Amazon PPC is the best way to connect with your customers. Therefore, choose the right strategy for promoting and advertising your product as it significantly impacts your business.

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