What Is Amazon Advertising? Your Guide to Advertising with Amazon

What is Amazon advertising?

Amazon advertising is a powerful marketing tool that helps businesses promote their products on the popular online marketplace, driving more sales and increasing brand visibility.

You’ve been selling your products on Amazon for over a year. You’re earning sales, but you feel like there’s something more you could do to increase your Amazon revenue. There is —Amazon advertising.

With Amazon advertising, you can help place your products in front of more qualified leads that turn into sales for your business.

We’ll answer all your questions about Amazon advertising, including:

• What is Amazon advertising?
• Why should I do advertising with Amazon?
• What types of Amazon ads can I create?
• How do I create an Amazon advertising campaign that drives results?

Keep reading to get answers to all your Amazon advertising questions! Or, if you need help with your Amazon marketing efforts, check out our Marketing Resources for Amazon to help you maximize your sales on the platform!

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What is Amazon advertising?

Amazon advertising enables you to promote your products through paid ads on Amazon’s site and partner sites, like Dog Food Advisor. These ads help more leads discover your products when searching on Amazon.

Amazon ads run on a pay-per-click system, so you only pay when someone clicks on your ad.

Why do advertising with Amazon?

Now that we answered, “What is Amazon advertising,” the next common question that comes after is “Why do advertising with Amazon?” Here are four benefits to crafting an Amazon advertising campaign:

1. You reach more customers

One of the biggest reasons to do Amazon digital advertising is that you reach more customers. When you sell on Amazon, you compete with dozens of businesses looking to reach the same customers as you. While you can optimize your Amazon product listings to rank higher in search results, sometimes it isn’t enough to beat your competition.

That’s where an Amazon advertising campaign helps. With an advertising plan in place, you can craft ads that appear in search results before your competition’s organic listings. As a result, you can drive more customers to your product listings and increase your business revenue.

2. You can target the right users

One of the most significant benefits of advertising with Amazon is that you can target more qualified leads for your business. When you run Amazon advertising campaigns, you target keywords your audience searches. You can target precise, long-tail keywords to reach people most interested in your product.

That means you can have ads appear on the front page of results in front of leads looking for your product.

3. You only pay for clicks

One of the biggest reasons to do Amazon digital advertising is that you only pay when people click on your ads. This pay-per-click model offers two big benefits for your business. The first benefit is that you only pay when people click on your ad.

That means that if someone is interested enough in your product to click on your listing, they’re more likely to buy. As a result, the money you spend on your ads goes towards attracting people who will likely convert. The second benefit is that, even if leads don’t click on your ad, they still become aware of your brand by seeing your listing in search results.

You don’t have to pay anything for ad real estate, which means that you expose users to your business — free of charge. This brand awareness can translate into more sales down the line because people recognize your product listing.

4. You increase conversions

One of the most significant benefits of Amazon advertising is that you increase conversions for your business. Since you can create ads that appear on the first page of results, people are more likely to click on them. With a combination of positioning and keyword selection, Amazon ads brew the perfect conditions for earning a sale.

3 types of Amazon ads you can run for your business

Now that you know what Amazon advertising is and the benefits of running these ads, it’s time to look at the different types of Amazon ads you can run.

How does Amazon advertising work and what kinds of ads can you create?

Amazon offers three ad formats:

• Sponsored Product ads
• Sponsored Brands ads
• Sponsored Display ads

Let’s dive more into these ad formats.

1. Sponsored Product ads

The most popular Amazon ad format companies use is Sponsored Product ads. These ads appear within the search results page with other organic listings. They look just like organic listings, except for the “Sponsored” tag.

When visitors click on these ads, it takes them straight to your product page, where they can learn more about your product.

Sponsored Product ads offer two options for targeting: Automatic and Manual. If you choose Automatic targeting, Amazon will auto-target keywords related to your product — this option is great if you aren’t sure what keywords will work best for your ad. You can also manually choose what keywords you want to target.

2. Sponsored Brands

Another Amazon advertisement option is Sponsored Brands ads. These ads appear at the very top of search results in a banner format.     You must be a registered brand through Amazon to run these ads.

When you set up Sponsored Brand ads, you have multiple options for landing pages, including:

• Your brand storefront
• A custom landing page of products
• A product detail page

With Sponsored Brands, you have the option to include a lifestyle-type image to show your product in action. In this example from Golfkicks, they offer a lifestyle image of their golf traction kit installed on a pair of shoes.     Sponsored Brand ads are a great option if your business is looking to build brand awareness for products.

You can also use these ads to push less popular products and get your audience to notice other product offerings.

3. Sponsored display ads

The last advertising option we’ll cover is Sponsored display ads. These ads are displayed anywhere on Amazon’s advertising network, including their site and any of their partner sites.     You’ll typically use sponsored display ads when you want to retarget Amazon shoppers.

If people look at your products but don’t convert, you can use Sponsored display ads to drive them back to your Amazon listing and purchase. These ads are automatically generated based on shopping behavior. If someone looked at a particular type of product from your store, they’d see ads based on what they viewed.

In this example, I looked at golf shoe bags and got a Sponsored display ad featuring the product.  

How to create an Amazon advertising campaign that drives results

If you want to start advertising with Amazon, now’s the time. To help you set your campaigns up for success, here are five quick tips to help you nail your Amazon advertising campaign:

• Use high-quality product images: People won’t click on your images if they’re low-quality or grainy. Make sure you use professional, high-quality images, so people trust your ad listing and click on it.
• Optimize for relevant key terms: If you want to see the most success from your ads, make sure you target the right keywords. You can use our Amazon keyword tool, KeywordsFX, to help you find relevant terms for your ads. Your business can also try automatic targeting to let Amazon help you find the best terms for your ad.
• Optimize your product pages: Once people click on your Amazon advertisement, you need to get them to convert. By having an optimized product page, you’ll take them from click to conversion. Fill your listing with photos of your product, information about your product, and how your product benefits the consumer.
• Use negative keywords: Negative keywords are critical for your Amazon advertising campaign because they ensure that your ad doesn’t appear in irrelevant search results. You can have up to four words per phrase. Use negative keywords to keep your ad from showing in unprofitable search results.
• Continually test ads: If you want to garner success with Amazon digital advertising, continually test your ads. Try different ad formats, product images (while keeping within Amazon’s requirements), and keywords. Continual testing will help you improve your campaigns to drive more success.

What is Amazon advertising? Your key to increased sales

Amazon advertising is a great way to help you earn more sales for your business. But if you’re feeling overwhelmed with trying to set up an Amazon advertising campaign, WebFX can help.

We offer PPC services for Amazon to help you lower your Advertising Cost of Sale (ACoS) while increasing your sales and market share. From Sponsored Products to Sponsored display ads, we can help you create campaigns that improve your business leads and revenue. Ready to boost your business’s revenue through Amazon?

Contact us online or call us today at 888-601-5359 to speak with a strategist!