How To Create Amazon Sponsored Product Campaigns 2020 (Step by Step)

Today’s market is very competitive. There are several sellers competing to attain the maximum market share possible. This race towards becoming the top seller on the Amazon to achieve maximum profits is cut-throat. If you want to reach the top spot, a seller must do everything to spread brand awareness.

Different marketing techniques can support this need for brand awareness and placement. Most of the popular brands make sure that they have a healthy mix of all these marketing strategies. You can not ignore any of the techniques if you are aiming to achieve maximum results. It is essential to understand that a simple difference in the marketing strategies of two brands can result in vast disparities between the market share.

Realizing the potential that Amazon has a brand, Amazon has come up with many features to support its sellers. One of such features aimed towards helping the sellers to advertise is its Sponsored Product Campaign.

What is a sponsored product campaign?

Sponsored Products is a pay-per-click ad that helps in promoting product listings on Amazon. In simple words, a Sponsored Product campaign is a technique where you pay as someone clicks on your sponsored advertisement. When you use Amazon’s sponsored product campaign, your products get visible to the sellers at the top of the search results.

Consider that someone comes looking for a guitar online. When that guitar enthusiast comes to Amazon and searches for guitars, your product will show at the top of the search result. With the help of a sponsored product campaign, your products also feature on the product description page. Your product’s visibility on the product description page enables more people to see your product, increasing brand popularity.

According to the market stats, the products which feature on the top of the search results have more chances of getting purchased. The chances of sale conversion go up to 31%. This percentage depicts how important it is to highlight the top of the search results, and Amazon helps you in doing that.

If you are interested in knowing how exactly Amazon sponsored product campaigns help you and your brand, look at the points listed below.

Benefits of Amazon Advertising

Increase brand recognition

An increase in brand recognition is crucial to every business’s success. Amazon sponsored product campaign is an essential tool that increases the efficiency of a marketing strategy. When you subscribe to Amazon’s sponsored product campaign, your ads appear in highly visible areas. Your products appear within shopping search results or on the product description page, increasing sales chance.

Control your marketing expenses

In Amazon advertising, you pay according to the PPC method of advertising. PPC method of advertising refers to the marketing technique where you pay for the clicks that you receive on advertisements.

With the help of PPC, you only pay for when someone actually goes to your product landing page through the advertisement search results. Most of the advertising methods have a fixed cost, and you have to pay no matter if you get any results or not. However, that is not the case for the PPC marketing technique.

This PPC marketing technique helps you control your marketing costs. You can also define a budget and control how much expenditure you want to incur on Amazon marketing.

Increase in Sales

It is a well-known fact that what consumers see, they buy. If your product doesn’t have any market visibility, the chances of selling your products are low. A successful marketing campaign can make the entire difference between a successful product and an unsuccessful product.

The customers who visit Amazon for shopping often come with a set purpose. They know what they are looking for and hence they are sale-ready. In these case scenarios, your product must be visible to them. If your product gets featured in the top search results, your chances for sales can go up to several percentage points.

Measure the Results of Advertising

It is essential to know the return on investment when it comes down to advertising. Tracking this return on investment can be challenging and tricky when you are using multiple advertising channels. Amazon advertising provides you with numerous detailed reports showing the direct impact and the results that Amazon advertising is generating for your product.

This knowledge about the advertising results helps you in creating and improving your marketing strategies. Amazon advertising enables you to understand how a marketing technique is performing for your product.

Customizable according to budgets

There are multiple ways in which you can advertise on Amazon. From a single product to various products, there are many options available. You can choose any of these options based on your budget. In case you are a start-up with one or two products to offer, you can select the sponsored products to advertise those products or the sponsored brand option to advertise your entire brand with a complete portfolio.

These techniques help you fit your marketing expenditure in multiple budgets. Moreover, you can control the amount of investment that you incur on your advertising. This ability to track your transactions helps keep things under check. You can set up budgeting controls to ensure that you do not pay any overhead or hidden costs.

Campaign Types

To make Amazon’s advertising experience as convenient as possible, Amazon has come up with multiple advertising methods. These methods are efficiently planned to generate maximum results possible. From providing advertising to a single product to a complete brand, there are various options available for your marketing needs. Amazon also displays holistic advertisements if that is what you prefer.

Let’s look at the three types of campaigns or advertising portfolios offered by Amazon.

– Display Ads

With the motto of ‘Reach, inspire, and re-engage customers,’ Amazon Display Ads is a very hand tool of advertising with unique capabilities. This tool runs advanced AI and algorithms by tracking custom preferences.

This tool shows the advertisement to the Amazon customers who have previously viewed your products or similar products. Everybody likes options, and Amazon provides those options to the customers featuring your product. What can be better than being shown to the customer who needs your product? Let’s look at some of the benefits of using Amazon Display Ads.

Key features and benefits of using Amazon Display Ads

– Deliver your brand message

With the help of Amazon Display Ads, you can deliver your brand’s message to the relevant audience. You can inform the public about what your brand stands for, and what are your brand values. Additionally, you can customize your brand’s advertisement as well. You can do so by using one of the templates which Amazon has for you, or you can just use your creativity.

– Link multiple platforms

The best feature of Amazon Display Ads is that it is unnecessary to sell your product on Amazon. You can buy Amazon Display Ads and link it with your website or any other platform to list your products. Display Ads helps you utilize Amazon’s efficiency and huge customer base to your benefit.

– Reach targeted audience

What good does a women’s cosmetic advertisement do to a single man? Right? Amazon makes sure that you make the most of the money you spend on your products’ marketing. Amazon has advanced algorithms that ensure that your ad reaches the customers who have a use for your products.

By getting Amazon insights, you can target the relevant audience and keep track of your Amazon advertisements. The results they are producing and how much costs you are incurring on that method help you improve your marketing strategies.

Amazon Sponsored Brands

One of the critical components of Amazon’s marketing arsenal is Sponsored Brands. Sponsored Brands is a marketing tool that allows you to advertise your brand on Amazon and three products. Amazon Sponsored Brands is a very comprehensive tool that is useful for businesses of all sizes.

Sponsored Products

Amazon Sponsored Brands makes your brand appear in relevant shopping searches. Also, Sponsored Brands makes sure that your brand displays along with other brands offering similar products. These ads help increase your brand visibility and help drive more traffic to your brand page.

Key features and benefits of Amazon Sponsored Brand

Increase brand recognition

Sponsored products help you increase your brand recognition. Your brand displays to all the customers who are shopping for similar products. It features you in highly visible areas. With the help of customizing ability, you can decide how your brand appears to your customers. It is important to note that brand recognition directly drives sales.

Reach targeted audience

Your ads must be visible to the consumers who have utility for the products that you have to offer. With the help of advanced algorithms, Amazon helps you to target the desired customer visiting their website. They make your advertisement appear whenever someone searches for similar products at the top of search results and in the suggestion. This comprehensive technique helps you reach the targeted audience.

Cost control

Amazon Sponsored Brand follows the pay-per-click method of advertising. Under this method of advertising, you can only pay when someone clicks on the advertisement link. If your advertisement appears in the search result and none clicks on it, you don’t have to pay for it. It is as simple as this.

Moreover, Amazon insights help you track the results of your advertisement. The detailed reports help you understand how many clicks you got and the effect of those clicks. These insights help you in determining the future course of action related to your advertising strategies.

Create a satisfying customer experience

You can link your brand’s digital stores on different platforms with Amazon Sponsored Brands. This linking of different platforms helps you take your customers to the life-like shopping experience through your stores. An overall excellent shopping experience helps you grow your brand image in the market.

Amazon Sponsored Products

One of the most successful weapons in Amazon’s arsenal of marketing techniques is Sponsored Products. Sponsored products is a way of advertising products such that whenever someone searches for a related product or brand, your product features top on the search result. When you opt for Sponsored Product, your product also gets featured on the other product pages. This advertisement on the product pages helps in providing options to the consumers.

Sponsored Brands

Amazon Sponsored Products is a very efficient marketing technique that helps you build brand image and directs a customer to your product’s landing page. It is vital to understand that brands and sellers of all sizes can use this marketing method. With budget customization, Sponsored Products offer vast control over your expenditure on marketing.

Using Amazon’s Sponsored Product can help you in marketing your flagship products or the new launches by dedicating a specific budget to that production. So, naturally, Amazon Sponsored Product is a very unique and efficient way of product marketing.

Today, we are covering how one can set up their Amazon Sponsored Products in a hassle-free manner. But before we proceed with that, here is a list of some benefits of using Amazon Sponsored Products.

Brand placement and recognition

All of Amazon’s tools aim towards increasing brand recognition by efficient brand placement. Paying a small advertising feed makes your brand feature on all the highest visited places like the search results for similar products.

Reach targeted audience

Amazon has made sure that all their marketing endeavors target the relevant audience only. They understand that a man would have no use for female shoes, and so on. Their algorithms function in such a manner that you get accurate brand placement, which helps your products feature at the right place in front of the right audience.

Many other marketing techniques are general and do not keep in mind the costumes’ demographic profiles. Amazon advertising tools have overcome that shortcoming.

Control your expenditure

Amazon provides you complete liberty and freedom to spend whatever you feel is right. You can define your monthly budgets and change them whenever the need arises. With the help of detailed reports, you can also understand how your investment in marketing is performing.

Detailed reports and insights

You will never find out how much return you are getting from your investment if you do not get proper insights. With the help of detailed reports, you can quickly get the data about how many leads have the advertisements generated and what their conversion ratio. Based on these insights developed from the reports that Amazon provides, you can make critical business decisions.

 Pay-per-click

One of the unique features of Amazon advertising is paying-per-click. You only pay when someone goes to your landing page through that advertisement. Otherwise, you do not pay at all.

An Insight into Amazon Sponsored Products

So it is right to induce that the Sponsored Product is a keyword targeting technique. Under this technique, you pay as you get clicks on your Amazon campaign, which helps sellers generate additional traffic for their product’s landing page. If we talk about Sponsored Products, there are various types of available Sponsored Product Campaigns.

Targeting automated Sponsored Product Campaigns

Automation targeting campaigns referred to the automation feature that Amazon provides for the Sponsored Products marketing. In this feature, Amazon takes care of everything from the keyword choosing your landing page. Automation targeting is an excellent feature for those sellers who lack technical know-how and time to spend on the Sponsored Products campaign.

How to Create Sponsored Product Campaign

Targeting Manual Sponsored Product Campaigns

Manual targeting campaigns gives complete control to the seller. He can customize the target audience, the keywords on which he wants to bid, and everything else.

How To Create Your Sponsored Products Campaign?

After we understand the benefits of Amazon sponsored products, the next thing to know is how to create your first Sponsored Product Campaign. It is important to note that there are multiple stages for setting up your Sponsored Products Campaign. Amazon has made sure that you can do it without any professional help. Let’s have a look at those stages.

Campaign Settings

The first and foremost step when you are creating a Sponsored Products Campaign. This next step is where you will decide on details and settings for your campaign. Essential things that you will choose on this page are:

Campaign Name

It is the primary name that you want to give your campaign. It is essential to decide on this so that you and your buyers can recognize your brand.

Portfolio

This column helps you select the portfolio to which the Sponsored Product will belong to.

Campaign Date

There are two fields in this domain, the start date, and the end date. By defining these dates, you can set up the time frame in which your campaign will run.

Daily budget

Daily budget is one of the most crucial fields on the settings page. The daily budget field helps you define the daily budget that you will spend on your Sponsored Products campaign.

Targeting

You can choose the target audience through the automatic or the manual method. In the automatic mode, Amazon will target the keywords and products which are similar to your products and help you drive customers to your landing page. The automatic feature comes handy when you don’t have time and efficiency to decide on these manually.

The manual selection feature gives you complete liberty to choose the keywords of your choice. This manual feature also allows you to target the audience which you deem fit.

Campaign Bidding

The next thing to decide on while setting your Sponsored Products campaign is to decide on the bidding. In this feature, you decide on and the amount of bid that you are placing on the keywords. If your bid winds over your competition, those keywords will show your products as the number one result.

Amazon Sponsored Product Campaign - Campaign bidding

There are three options that Amazon gives you to choose from. These options are-

Dynamic bids – down only

In this option, Amazon will lower your bids when your ad has fewer chances to convert to sales. The bids are synchronized to real-time, making sure that you do not lag on anything.

Dynamic bids – up and down

This option adjusts your bids by a maximum of 100%. This feature will increase your bids when the changes in the conversion are significant and vice versa. Dynamic up and down is a convenient feature suggested for experienced Amazon sellers.

Fixed bids

Fixed bids is a very stable method most preferred by the new sellers on the Amazon marketplace. The bigs that place are fixed and can only change if you are defining your preferences. The likelihood of the sales won’t have any effect on the bids that you place.

Ad Groups & Products

An ad group refers to a collection of products that target the same keywords in a campaign.

The Ad groups help in improving the organization’s products that it is targeting. Amazon prefers that you group your products on the basis of price range and category for ease of management.

It is suggestible that per Ad Group, you use one parent SKU. This helps you control your bidding for those products during the long run.

When you are using the manual feature of campaigning, Amazon offers you three ways of targeting keywords upon matching – Phrase, Broad, and Exact. As a general principle, the ad group of broad match type should have the lowest bid followed by a phrase match and the exact match in that sequence.

After you successfully create your Ad group, the next thing to do is the selection of the products from your portfolio. You can do this by merely scrolling down on the page itself.

Bidding

The next important step in the Amazon Sponsored Products campaign is to place the bids. Amazon has a unique method of auctioning the keywords. No matter how high the bid you place, you have to pay up just one additional cent more than the second-highest bid.

Bidding

Consider placing a bid of 10$ on a keyword. And your competitor places a bid of 6$ on the same product. You win the keyword auction because you have set the highest bid. While you have won the auction, you don’t really have to pay 10$. You have to pay 6.01$, which is just once cent extra than your competitor’s bid.

Amazon supports bids on Ad groups. So, if you decide on a 10$ bid on the group, then all the keywords within that Ad Group will have 10$ bid on it. When you want to set more comprehensive bids on the keywords, you can customize your bids. The bids can be customized based on targets, keywords, and categories within one ad group.

Targeting

Amazon has two ways of targeting your customers. Either you can use the manual feature where you can define your preferences and settings manually. Or, you can choose to have Amazon work for you by selecting the automatic function.

In manual targeting, you can customize the following features.

  • Keywords
  • Amazon unique identifier code or ASINS
  • Categories

Targeting

Additionally, when keyword targeting is the concern at hand, the following basis for matches is available from Amazon.

  • Broad

It includes all the keywords located in any order, including variations, plurals words, and other related terminologies.

  • Phrase

It contains the complete phrase or set of keywords strung together.

  • Exact

This match type helps you target the exact keyword or string of keywords.

Negative Keywords

Negative Keyword is a method of excluding your searches from unrelated searches. These keywords help to limit the search results when irrelevant searches can direct to your landing page. Negative keywords are an essential feature which helps you prevent the unnecessary cost. We hope that you remember that you pay according to the clicks on your advertisement.

Negative Keyword

Consider that you are a men’s shirt seller and do not have black shirts in your portfolio. You can add the negative keyword ‘black shirt.’ Anyone looking for a black shirt will not direct your products, saving you cost on advertising.

Negative keywords are an optional field and can be skipped if you don’t want to define them.

Quick Links 

Final Verdict: Create Amazon Sponsored Product Campaigns in (2020)

So, this is the entire process for Amazon Sponsored Campaigns. When you are a seller on Amazon, it is imperative that you use this technique to optimize your marketing strategy and get more sales. Just make sure that you choose the most suitable marketing technique for your products and brands.

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About Bella Dokell

Isabella is a M&A Analyst at FE International - The investment bank for internet businesses. She loves to explore on Digital trends, Social Media viral content, you name it, Bella always seems to know where the market is going. On BloggersIdeas she is willing to share her experience on upcoming digital marketing tools & strategies.

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