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Reasons To Consider Amazon Advertising For Your eCommerce Brand

Feb 08 , 2021

When it comes to online sales platforms, Amazon is a juggernaut with over 197 million users per month. According to CNBC, 90% of online customers check a product out on Amazon before buying it and 55% of users even begin their shopping searches on Amazon. Featuring your products on Amazon is a no-brainer if you’re aiming at a faster growth rate for your eCommerce brand.

You need to make sure your products listed on Amazon are being seen by users. Amazon Marketing Services (AMS) lets you use their advertising platform to boost your listings, stand out among the competition, and reach a larger audience.

How Do Amazon Ads Work?

Amazon ads work somewhat in a similar fashion to Google search ads, where the user types in a specific search term in the Amazon search box and relevant results appear. These search terms, in most cases, include product-specific keywords and Amazon’s own search engine algorithm displays matching results where some of the top results are “sponsored” results. These results tend to get more clicks and trigger more purchases since they often catch a user’s attention due to their placement on the result page.

With Amazon’s ad, you can make your product a sponsored listing to drive more users to your product pages and consequently, bring more sales. Amazon ads guarantee more visibility to your products within the Amazon ecosystem. All you have to do is pay Amazon for key positions on the SERPs by bidding for relevant keywords. Amazon ads work on a cost-per-click basis, meaning it charges you for your ad only when a user clicks on it, not for impressions.

Types of Ad Formats on Amazon

There are various in which you can place your ads on the Amazon platform. Choice of these types depends on the type of product you’re selling and the type of target audience you’re catering to.

Sponsored Products – If you’re concentrating on promoting and selling one particular product, product ads work best for you. You can enable both automatic and manual keyword targeting to potential customers. The idea is to bring your product listing at the top whenever a user searches for something similar. These types of ads appear on the right side and bottom of the SERP, as well as on the product detail pages.

Sponsored Brands – Also known as Headline search ads, these are used to highlight your brand, rather than a single product. They also allow you to showcase up to 3 of your products. You can create custom headlines to showcase your brand in the way you like. Sponsored brands are displayed above, below, and on the left side of the search results. Like sponsored product ads, they are also targeted by keywords.

Sponsored Display – These ads let you target customers based on their interest instead of keyword targeting. These ads are often displayed as “related products” on product detail pages, review pages, merchandising emails, and even outside Amazon such as IMDb and Amazon devices. Product display ads have a new approach to target a user’s interest, based on his/her search and purchase behavior. These ads help you reach a wider audience.

A good ad strategy involves finding the best type of ads to promote your product. You can spend a little time with your team or an Amazon Advertising agency to formulate the perfect type of ad for your product or brand.

Why You Should Do Amazon Advertising

Sell Directly To Customers – Google shows an ad to anyone who enters a related keyword whether or not that user intends on buying a product. Amazon is a platform where most of the users are ready to buy something. Hence, your ads work better since you sell directly to customers, not any random user.

Target users based on search terms – With Amazon’s sponsored brand ads and sponsored product ads, you can target users based on search terms that match your product keyword. This ensures that only people who are interested in the products you sell see your ads, bringing in quality leads and resulting in a higher rate of conversion.

Impressive Analytics – Google and Facebook ads provide relevant data for impressions and CTR, but they can’t tell you what happens after a user clicks your ads unless you a visit to your website analytics. Since this is a two-step process, most of the insights are lost in translation. In Amazon, however, everything from ad discovery to purchase checkout happens on a single platform. This gives you better reporting to understand everything about your sales funnel.

Pay Only For Clicks – Paying advertising platforms just to make your ad seen is such a painful thing from a marketer’s perspective. Amazon doesn’t charge you for impressions, it just charges you just for clicks. You can also choose your bid amount for clicks on your product. This defines a clearer ROI for your ad campaigns.

More room for Ad Optimization – You can assess the performance of your ads and products using data you get from Amazon’s analytics and reporting feature. You can dynamically optimize the visual assets, product descriptions, and targeted keywords based on this data. This helps you improve your advertising strategy and bring in more sales and conversions.

If you own an eCommerce website on your own, a head-on competition with Amazon is impossible. But you can use their power to build value for your brand and then convert users to your website. If users love your product they bought on Amazon, they are more likely to visit your own website in the future once they get to know about your brand and product up close, especially if you’re providing exclusive offers and coupons.

Advertising on Amazon requires careful planning, proper keyword research, and stunning creatives. You can accomplish these tasks by consulting with an in-house team or an experienced Amazon Advertising agency. Either way, advertising on Amazon will help you reach a wider range of customers who are already qualified leads and will help you bring in more sales with relatively minimal investment.