If you search for any product on the internet, then the most preferred searching browser you use is Google. But Amazon is a leading eCommerce platform for purchasing products. Many other eCommerce platforms exist, but nothing you can compare with Amazon.
It is the leading, efficient, and most convenient method of selling goods over the internet. Now you may be thinking of advertising your products on Amazon. But could it be done? Is it fruitful for your business? It is necessary to know the answers to these questions to grow your business properly.
There are a variety of ways to advertise your products and services on Amazon. The most efficient advertising way is sponsored product ads. It is the best way to increase your sales and profits in the market. If you want to stay a step ahead of your competitors, then you must go with this method.
The sponsored product ads are the most effective way of increasing conversion rates and the visibility of your brand in the market. With the increasing competition in the marketplace, selling products has become a complicated process. Sponsored product ads help you in defeating your competitors in the same business.
Let us see more about sponsored product ads below:
What do You Mean by Amazon’s Sponsored Products?
Amazon sponsored product ads are the advertisements that can help in promoting your sales by increasing the visibility of your product listings on the Amazon search results. Below are some reasons that can help you to understand why these sponsored product ads are useful for Amazon PPC:
- Sponsored product ads are the best and the popular ad type of Amazon for PPC.
- For every seller, it is a crucial step to enhance their business. As it is visible on every page so that customers can see and click on that ad to purchase that product.
- Sponsored product ads support the highest conversion rate of about 10%.
- The sponsored product ads appear on most of the pages on other product detail pages and their organic searches.
Where Can You Find These Sponsored Ads on Amazon?
Sponsored product ads appear on every possible page when any product is searched. These ads always appear on the top of the page result pages, right, bottom, and sometimes even on the product detail pages.
These ads appear all over the page, so the customer can never get those ads out of their vision. These ads are very much valuable for every customer searching for a product on the Amazon. One important factor about these Sponsored product ads is that they only appear if you own the Buy Box.
Mostly every seller uses these sponsored product ads for advertising their products on Amazon. So, there is a big competition among sellers on Amazon. These sponsored product ads appear to those who own their Buy box, and only they can start the process and locate their product ads on other product detail pages.
Many customers prefer buying products from the Buy box section presented on the product detail page. The products with higher rank show up in the Buy box section of the product detail pages.
The seller who has already won the Buy box can only increase their sales more than any other seller in the market. Having a Buy box means that you have an excellent selling record. Amazon looks at some points before gifting the buy box to the sellers:
- An excellent history of selling products.
- Should have good reviews
- You should have a competitive price in the market.
- Excellent handling of the fulfillment of the customers.
- Always have enough stock.
How Does Amazon Advertising Work?
The average cost per click for Amazon PPC is about $0.97. Amazon charges quite less cost for amazon ads than any other platform in the market like Google. So a seller has got a lot of opportunities on Amazon for using Sponsored product ads at a meager price.
The question here arises how Amazon advertising works, and will it be suitable for any seller in the market? There are some factors on which the success of your product depends. Let us discuss them:
It is essential to have an excellent strategy to withstand the competitors in the market, especially when they are on the same excellent platform. What if you have a fantastic product with an excellently designed ad, but then also you are spending money on keywords. Wasting money on keywords is not just a good idea.
But you can bid on those keywords that are very competitive and are most suitable for your product. You always need to optimize and advertise your ads on Amazon so that it will continue making profits for you from the platform. You can use negative keywords to eliminate traffic.
Keep in mind of creating ad groups and well-defined campaigns with your seller account. Never be scared of experimenting in the market and finding what is best for you.
Your budget will decide your product’s fate. Pay per Click is an excellent way of enhancing your sales in the market. You only have to pay for that person who clicks on your ads. If you set a high budget for your ads, then you will possibly get more clicks on your ads.
When you decide to go with the Amazon campaigns or ad process, then you have to ensure that your budget should be able to carry the load of your expectations. You can do this by searching for the conversion rate per unit.
The number denotes how many visitors are there and have clicked on your ads. You can easily find out the estimation of how many purchases are going to happen with the number of clicks. It will help you in analyzing the budget you should be having on keywords and ad campaigns.
Ad and Product Page Copy
Personal sales have their benefits of balancing sales and customer service support. They can easily manage things between the seller and the customers by providing them easy access to the solutions to their problems by directly dealing with them. But if you are selling your products on Amazon, you won’t be able to solve your customer problems instantly. Your ad copy does the job.
Your ad copy will do the convincing work of the sellers that a customer should buy this product. It will tell the customer that the product can fulfill their needs and compel them to buy it. These tasks will improve the performance of the ads.
The copy of the product page needs to reply and sort all the problems of the customers. It has to ensure that if a customer is confused about the product, he or she must not click on your ad. You as a seller are paying money for each click, and irrelevant clicks can lead you to suffer from a waste of money.
The visual of a product is an essential aspect of making customers buy your product. Online customers always get impressed by the visuals of the product. You need to present your product with awesome, presentable, and attractive photos so that a customer is compelled to buy that product.
You won’t be able to move money into your bank account with unclear or unattractive photos. The product pictures are vital for selling products on Amazon with its advertising and conversion.
Having images of the product with its features, action shots, and different angles are one of the requirements for selling a product on Amazon. The product image should be appealing because the customer is compelled to open the link and buy the product.
Every buyer who clicks on your product ads does not mean that he or she will buy that product. Maybe he or she is for online window shopping on Amazon. All the shoppers are not loyal, they will buy their products on other sites if they do not find your platform safe or with products that can fulfill their needs.
You need to provide the quality and the number of products to compete in the market. There are a lot of reasons that can affect your sales in the market, even that includes the sales from the Amazon sponsored product ads. The most appropriate thing you can do for your customers is to provide them excellent customer service. It will ensure your good brand position in the market and among the customers.
What is the Difference Between Manual and Automatic Campaigns?
The new sellers in the market are suggested to use automatic campaigns first, and then they can jump on the manual campaigns. Both of the campaigns are beneficial in increasing sales by creating effective campaigns for the product. Both campaigns can help in generating unique keywords to make most of them. Both have their benefits and drawbacks. Let us see them in detail:
Automatic Campaign: For Keyword Research
First, we get started with automated campaigns. Every new seller in the market is recommended to use automated campaigns for their product sales. Amazon prefers using product information against other ad programs for relevant searches. After opting for the automated campaigns, sellers cannot choose keywords and their bids for their products. Only Amazon has the authority to do so.
Amazon will search for appropriate keywords for your product sales. They will be the only ones to bid on keywords that can be easily guessed by the customers. Using automated campaigns will give you your personal sponsored product campaign manager.
- It is suitable for new PPC sellers in the online market.
- It is easy to understand and set up in the seller central.
- You can easily skip the difficulties of choosing keywords and bids.
- By using it, you can apply for future campaigns easily.
- Amazon is the one who will keep track of clicks and spend time processing it in a short period as it can.
- It is the best way of experimenting with campaigns without putting in much effort.
- It will show you the best research keywords that people might have ever guessed.
Manual Campaigns: To Control Over Bidding
Using a manual campaign will allow you to set keywords of your choice. When you get started with the manual sponsored product campaigns, you will be allowed to have more control over creating keywords and bid price. You will be able to sync your keywords with your bids to maximize the profits and sales in the market.
The ultimate goal is to have maximum ACoS, and gaining it will not be easy with the manual campaigns. Sellers can only bid on exact, or phrase, or broad keywords, but they do not know which keyword will make profits before any keyword research.
- Sellers opted for Pay per click have to set up their manual campaigns.
- You can easily make ACoS and increase your sales in the marketplace.
- It will make the bidding process more precise and targeting.
- You can easily reduce bids on the cost of low-profitable keywords.
- Amazon will only suggest the bids on your keywords, and you will be the only one to decide whether to bid or not.
What if Automatic and Manual Campaigns Work Together?
Automated campaigns are very different from manual campaigns when it comes to working together. They are not friends with each other. If you are a new seller, you are suggested to use automated campaigns to sell your products.
To do so, firstly, you have to create an automatic campaign. Then you have to enter data so that you may know the keywords that can make you maximum profits. You can later enter those keywords in the manual campaign to increase the bids.
You can use an automatic campaign for the creation and keyword research and a manual campaign to customize and increase the bids on those keywords. You can use this tool as an ad badger that can manage the whole process.
What are Better Amazon Ads or Google Ads?
There is a vast difference between Google ads and Amazon sponsored product ads. Amazon is a platform suitable for people who go on searching to make purchases for the products. Amazon also leads people to the end journey of their desires for different products in the market.
Amazon deals with the desires and wants of every customer. They know what is suitable for their customers, what their customers want. They are the best deal broker.
Google is a bag of search queries. It can fulfill the needs of searches of all types of visitors. The ads at the earlier stage of search are more targeting. They usually target the buyer’s choices, and maybe he is not ready to make any purchases. Many companies look forward to having a feature, where there will not be targeting any of those individuals who are not looking to make any purchases.
Amazon is trying to be the ideal platform for the advertisers to have a great advertising strategy where the ultimate goal is to present products in front of only interested customers.
How to Get Started with Amazon Ads?
As you know that the variables that can make your ad campaign successful, you can proceed with sponsored product ads campaigns. You have to follow some steps given below:
- You have to sign up in the seller central and then create your account.
- Then create your sponsored product ad campaign.
- You have to choose the products that you want to promote in your ads.
- Now, you have to decide the keywords that you want to target with your ads.
- With the keywords, you have to determine the budget of promoting ads and keywords.
- Then, your first ad can be created.
You can launch your sponsored products as soon as you complete your steps of creating Amazon ads. You can also see some additional tips on starting the Amazon ads:
Win an Amazon Buy Box?
An Amazon Buy Box is a box that appears on every product detail page where customers can start purchasing their products by adding their products in the cart. Many sellers in the market are selling the same products in the market.
But winning a Buy box is not everyone’s cup of tea. Amazon rewards with Buy box only those sellers who meet their requirements, have a competitive product price, and have useful seller metrics. According to some readings, you need to earn the Buy box from Amazon because most of Amazon’s sales go through the Buy Box.
Implement a Cohesive Structure in Your Ad Account
With your seller ad account, you will be able to build ad campaigns for your products. After understanding the basic structure of the ad account, you can easily optimize your ads to enhance their performance. Below are some discussions about the components of Amazon’s structure.
- Account: Account is a big basket that gives you access to many tools. From your account, you can have access to your ad campaigns and many seller tools.
- Campaign: By building campaigns, you can easily target any product for sales. Creating campaigns can lead to increased sales of your product in the market.
- Ad Group: Ad group contains those ads built by you with its corresponding keywords you are targeting. These ad groups increase the performance of your ads. You need to be specific with these ad groups to make more profits.
Learn the Strategy Behind Keyword and Bidding
Like other Google ads, Amazon uses keywords for triggering your sponsored product ads. There is also a function of automatic targeting by which you can allow Amazon to choose keywords for your ads.
Keywords chosen by Amazon can be the right choice for new sellers to your sales in the marketplace. If you do not feel satisfied with the automatic keywords generated by Amazon, you can also for manual targeting where the seller can choose his keywords for his ads. Keyword matching is of three types:
- Broad Match Type: In this type of keyword matching, if somehow the visitor’s search result gets matched with the seller’s product keywords, including variations, misspellings, synonyms, or any different word order, then the seller’s product ad will get displayed to the customer. It is the most lenient and flexible match type.
- Phrase Match Type: In this type of keyword matching, the visitor’s search result should be precise enough to match the target keywords set by the seller for his product. Or you can say the seller’s product keywords should contain the customer’s search result.
- Exact Match Type: In this type of keyword matching, the visitor’s search results should be the same as the seller’s product keywords, then only the ad will be displayed to the customers. Your ad will not pop up with any similar keywords in the search. The search results have to be the same as the keywords.
Utilize Reporting in Ads
You always have to make good and profitable choices for your ad campaigns. You always have to keep an eye on your progress bar and use a data-driven approach to make effective choices for your ad campaign.
Amazon will provide you data from different advertisers about their searches and keywords to compete in the market with better keywords. Like Google ads, you have to be the advertiser who can have access to the informative data.
That data can be search terms, how to add new effective keywords, or how to increase your ad campaigns’ performance. The search result reports include some data for every keyword that are given below:
- SKU for the sale
- Click thru rate
- Ad group
- Conversions of orders placed
- Cost per Click
If you are looking to sell any product online, you should go for Amazon sponsored product ads. Amazon provides reasonable prices for every seller at any level in the market. Here sellers can promote their products, make maximum sales, and create ad campaigns to make more profits. You can also make your products always on the top of every search result on your product keyword.
- Amazon Native Ads: How to Make Money with Amazon Shopping Ads
- Amazon FBA Ninja Course Review: Is It Worth It? (Why 9 Stars)
- How To Launch Private Label Products On Amazon (100% Working)
- Riley Bennett On How to Start Amazon FBA Business From Scratch
Conclusion: How To Create Amazon’s Sponsored Product Ads 2020
Sponsored product ads are essential to any campaign. It is challenging to understand PPC campaigns without sponsored product ads. You have studied what has sponsored product ads and how you can coordinate it with the PPC campaigns.
Now you can have sponsored product ads to increase sales and profits in your online business. Amazon is a great platform that offers such great options for sponsored product ads. You can easily sign up for Amazon’s sponsored product ad programs.