What are Amazon Ads? A Guide to Advertising on the biggest E-commerce platform!
With over 50% of the world online shoppers spending roughly half of their paycheck on the website, Amazon is one of the unprecedented heroes of the e-commerce industry!
300 Million Users, 150 Million Prime Members, and selling over 4000 products per minute in the U.S. alone – Amazon is a powerful platform driving the attention of marketers, retailers, start-ups, and businesses alike.
From a humble bookstore launched back in 1995, Amazon has grown multifold becoming an online marketplace for products such as food, clothing, home décor, gadgets, and more. And ever since the evolution of the internet and the rise in the number of online shoppers, Amazon has become one of the major marketplaces for the audience to not just purchase but verify, learn and explore new products online.
Fact: 90% of the consumers use Amazon to price check a product!
Being one of the most-visited shopping Apps on your phone, Amazon holds a strong potential for engagement, sales, and growth of brands.
But will Amazon Ads suit your brand/business marketing needs? Let’s find out!
Amazon Ads – What are they?
If you know about Amazon, you already know how displaying an Advertisement can help you compete with and stand out amongst the other products and brands on the platform.
Amazon Ads are the listings of products that find preference over others.
Much like Google Ads, Amazon Ads appear when you search for a product on the website. Amazon Ads are displayed with tags like ‘Sponsored’, ‘Ads’ etc, and are given a preference listing i.e. top of the page display over others.
Why should you choose Amazon Ads?
As we mentioned, Amazon is one of the most powerful online-shopping websites today.
With over 300 Million users and more than 150 million Prime users – Amazon delivers the holy grail of marketing – A huge amount of traffic! It has a user base of online shoppers who aren’t just interested in shopping online but also use Amazon for their regular shopping needs.
This large user base serves Amazon with data of user purchasing habits, shopping ideas, etc which helps Amazon to analyze, devise strategies and predict how and when a user purchases products.
The Amazon Advertising landscape aids marketing through this data that brings about great results and helps retailers, businesses, and brands to grow their sales. Here are some of the reasons why Amazon Ads should be a part of your marketing funnel:
- Direct Access to dedicated online shoppers with a high purchase-intent
- Targeted Customers who are most likely to convert to sales
- A rich platform for small and medium retailers
- Dedicated packaging and delivery service, helping new brands, homegrown brands, etc to cater to a global audience
How do Amazon Ads work?
From mobile phones, laptops and groceries to home décor, general utility items and books – Amazon Sells nearly everything that you could think of!
And that means that your ads can appear in a wide range of listings that could have any context to the product that users search for.
For example, when a buyer looks for a colouring book on Amazon, he isn’t just served with a result page with Colouring Books but also related products like sketch pens, acrylic paint, pencils, journals, canvas, etc.
Therefore complementary and context matching products drive the audience to new products. Cross-selling is one of the major strategies of Amazon, just like brick-and-mortar retailers.
Amazon pushes ads to the relevant and contextual audience for them to simply decide and purchase when they want to!
Types of Amazon Ads
So you have designed your brand banner ads and are looking to creatively drive the audience to your website. But you also want to drive e-commerce sales and boost revenue. Luckily, Amazon has different Ad types designed for businesses to meet different needs.
At present, Amazon helps you configure different types of Advertisements based on the Pay-Per-Click and Demand-Side Platform.
- Sponsored Ads
Sponsored Ads are the specific product ads that work on the search engine module. These ads drive Amazon Searchers directly to the specific product you are selling on the platform.
The sponsored product ads are given zero listings i.e. displayed on the top of the search result page when the user searches for the product. These are keyword targeted and marketers have the option to design the product name, phrase, etc according to the broad match types, etc. They can also dedicate daily budgets and campaign duration to optimize their budget and sales.
- Headline Search Ads
Displayed in the Search Result page as a headline banner, the Headline Search Ads list your product as a banner when anyone searches for the product.
Giving more space and exposure to your product with a feature banner, these Ads work on a Cost-Per-Click basis to convert leads into sales.
- Multi-Page Store Ads
Like a mini-store on Amazon, the Multi-page store ads feature brands/businesses with their entire range of products together.
So when the user clicks on Brand, they can visit the Brand Page, know about the business, its features, etc and browse through every product that is in store for them. Like walking into a store in a big mall, the Multi-Page Store Ads helps brands take the maximum attention of the visitors.
The campaigns work on a cost-per-click basis and are supported by keywords, phrases, and other specifications for maximum optimization.
- Product Display Ads
Targeted towards the interests of the buyer, the Product Display Ads are different from other forms of Advertisements.
The Product Display Ads are featured on the right side of the result page (Sponsored), towards the end of the shopping experience (Cross-Selling), sent through mails (suggested), and often displayed on host websites, so that customers can view the products based on their interest.
The placement of these Ads is determined by AI so that users looking for the same or related products can be targeted.
Amazon Data-Side Platform Ads have customized picture or video ads that are available in a variety of formats and deliver the brand message to the customers in their own style. The advertisements can be displayed on Amazon and across the Web for maximum exposure.
(Across Web platforms)
A brand can design its own creatives or Amazon can do it for you. Here is how the Amazon DSP looks across Amazon and other Web Platforms.
What do the numbers say?
Amazon Advertising is Booming!
According to eMarketer, Amazon Ad Revenues have been growing by at least 20% on average. And despite businesses being shut for a good amount of time in 2020, Amazon Ad Revenues have scaled up big time.
It is estimated that Amazon Ad revenues might be double of what they were in 2019. (Indication: Marketers are spending on Amazon Ads). Read how the industry is undertaking Financial Decisions in Marketing
Amazon’s first-quarter revenue of 2020 was about $75.5 billion with a net income of about $2 billion.
Research says that over 33% of the Digital Marketers on Amazon choose Sponsored Product Ads for their product advertising. As a large number of retailers are not yet advertising on Amazon, there is a huge opportunity for growth.
How to set-up Amazon Ads?
Amazon takes Advertising very seriously, especially for the small businesses who are still navigating their way into the Digital World.
Amazon has a dedicated portal to design, set-up, and run Ad campaigns on its platform.
If you are an Amazon Seller and have hosted your products on Amazon.in/Amazon.com for sale, you can visit advertising.amazon.in to create an Ad Campaign.
Choose the Ad format, Personalize/Upload your Banners and set up budgets for the banners to run across the portal.
Amazon has its own Analytics Dashboard to understand how the Ad Campaigns are performing and optimize their performance by making timely changes.
If you are a retailer and want to advertise your products all across the country and abroad, Amazon is one of the best platforms to help you begin. While being an Amazon Seller itself opens the door for you with its wide user base, Ads play an important role as the platform itself optimizes its working to drive more audience towards your products.
There’s no better way to sell products than by displaying them right where the most likely buyers are looking for them!
All Stars Digital is a Digital Marketing and Brand Scaling agency driven towards creating brand awareness, generating leads, and helping businesses prosper online. With Creative Ad campaigns, Advertising assistance, and a deeper understanding of Lead Generation we help you make your Business relevant in the online world. Looking to boost your sales online? Get in touch with us and let’s get you started!
Still unsure? Read Why do you need to hire a digital marketing agency in 2020?