Amazon has changed the way we shop, and it’s not done yet! People all over North America shop the mega e-commerce site whether they’re purchasing the latest accessories for their smartphones or stocking up on toilet paper. If your business sells products online, then Amazon advertising offers a huge opportunity that you can’t afford to miss.

Not convinced? Consider this. There are currently more than 300 million Amazon customers, and that number is growing every day. In the United States alone, it is estimated that there are more than 80 million Amazon Prime members. There are now more Amazon Prime households than there are households that have a landline!

So how do you take advantage of Amazon Ads and what can they do for you? Well, buckle up because you’re about to find out.

What is Amazon Advertising?

Amazon Ads work in a similar way to Google Adwords. The customer types in a keyword for the product that they are looking for and results appear. Some of these results are organic while some are sponsored ads. Like Google Adwords, sellers who want their products to have more visibility can bid on keywords and, if they win the bid, they will pay that amount when someone clicks on their ad.

Amazon ads can appear in a number of places including in the product listing section, the far right side and in the “customers also bought” section. Amazon also uses off-site ads on many apps where your ad may also appear.

How much does Amazon Advertising cost?

PPC prices for Amazon is usually less than $0.35 USD per click which is typically less than Google Adwords or Bing PPC and about on par with some of the lower cost Facebook ads.

Getting started with Amazon Advertising

Advertising on Amazon can be a highly effective way of getting your product out in front of more potential buyers. But if you are nervous about trying it, then it is recommended that you start small with one of your better selling products.

Starting with a product that you already know sells well will help you improve your chances of a better ROI.

Connect with Amazon customers

By purchasing Amazon advertising, you will also be helping your organic listings on Amazon as well because the purchase history is a strong ranking factor that they use in their algorithms.

Before you can start advertising on Amazon, you are going to require either a seller or vendor account. If you are a first-party seller, it is better to have a vendor account, however, these, unfortunately, are by invitation only.  Once you have set up your account and are logged in, you can begin setting up your Amazon ads.

Types of Amazon Advertising

Amazon provides many options to help you showcase your products and drive sales.  They include Sponsored Product Ads, Headline Search Ads, and Product Display Ads. The following descriptions will help you decide which type of advertising is best for your business.

Sponsored Product Ads

These ads are used to drive traffic to a specific product that you are offering on Amazon, and they are typically displayed either at the top or bottom of the search results page. When users click on this type of ad, they click straight through to your product details page.

Amazon sponsored product ads are keyword targeted and allow you to set daily budgets as well as the length of your campaign.

Sponsored Product Ads

Headline Search Ads

These ads will appear as headline banners in the search result pages above the result listing. These are also Pay Per Click and usually direct the user to a custom landing page which is branded and can promote three or more products.

The minimum bid for headline search ads is $0.10 USD, and the minimum campaign budget is $100 USD.

headline search ads

Product Display Ads

Finally, if you are advertising on Amazon, you may want to consider product display ads. These ads work a little differently. Instead of being keyword targeted, they target a shopper’s interest. For example, if you have a product that is catered towards running, Amazon will target that ad to customers who have shown an interest in other products related to running.

Product display ads are displayed at the bottom or to the right of the search results. They can also show up on customer review pages as well as in marketing emails from Amazon.

Procuct display ads


Optimizing your Amazon Advertising

Just like any other form of online marketing, there are strategies that you can use to help you get the best return for your marketing dollar. These strategies include:

  • Having a well thought out and structured campaign for each product category that you sell.
  • Creating compelling content that will engage potential buyers.
  • Being as specific as possible in your advertising copy.
  • Bidding on well-known brand names sold by your competitors.
  • Experimenting with different ad formats to see what works best for your business.
  • Tracking the success of your campaigns and adjusting as necessary.

As the Amazon platform is showing no signs of slowing down, now is the time for businesses who sell tangible products to enter the world of Amazon advertising. For assistance with any of these strategies, contact the team at Rocket Digital to get started.