In this guide, we are covering all the essential things you need to know about Sponsored Product ads to add to your PPC advertising strategy. For any other expert PPC assistance, contact BIE.
What are Amazon Sponsored Products?
These are keyword or product-targeted ads that boost the visibility and sales of the desired product listing in Amazon’s search results. These look very similar to organic search results. Sponsored Products are created automatically based on the advertised product listing, and are only indirectly customizable.
Amazon claims that these ads give you the best chance to “show off your products, create with ease, control your costs, and track your success.”
These ads perfectly align with your goal of increasing sales and attracting traffic. Here’s more to convince you about them:
- They are the most popular type of PPC ad.
- They have a high conversion rate.
- They help display your products to shoppers at the lower stages of the sales funnel with a higher likelihood of making a purchase.
- They are more economical and direct than Google Ads.
- As these ads increase sales by promoting products that then influence rankings on the platform, you can boost your organic rankings with these ads.
Where are they displayed?
- In the beginning, middle, end of, or next to the search result
- As display carousels on product pages
Sponsored Products are inevitable to the success of your buyer’s customer journey as they appear on almost every page.
Who Can Use Sponsored Products on Amazon?
Amazon allows professional sellers, vendors, and Kindle Direct Publishing (KDP) authors to use Amazon Sponsored Products without any Brand Registry formalities. If your account is standing well with Amazon, and it can ship products to the country where you’re advertising and finds your payment method acceptable, you will be eligible.
What Do You Need to Set Up Amazon Sponsored Product Ad Campaigns?
Campaign goals
If you are not tracking your campaign execution status against your campaign spend, then you can experience a loss. You need clarity on your goals from the beginning to be able to gauge the performance of your Amazon PPC campaigns.
Goals can be of two types:
- Maximizing sales, for example, a new product’s launch or maximizing impressions to raise brand awareness. The costs are typically kept at a break-even level which is emulated by the so-called target KPI ‘break-even ACoS’.
- Generating gradual sales while achieving a specific profit margin which is emulated by the so-called target KPI ‘target ACoS’.
Campaign targeting
Automatic targeting is where Amazon uses product information to target the ads to all relevant searches. Here, Amazon holds the power over the choice of keywords and bids.
Advantages of Automatic Targeting
- Excellent for beginners as they allow easy setup
- No hassle of entering keyword bids
- Amazon can store data for use in upcoming campaigns. It usually takes 2-4 weeks to collect enough data to find which campaigns are performing well.
- These campaigns allow you to play around without putting in much effort.
- They give you visibility even on long-tail search keywords you may have never thought people use to find you.
Manual targeting allows you to pick up your keywords as a seller or vendor, naturally giving you more control over the bid price. It enables you to tweak your bids either to achieve your target ACoS or maximize revenue. Its success depends on carrying out keyword research before executing the campaign.
Advantages of Automatic Targeting
- Excellent for those with enough time to set up campaigns with this targeting.
- Allows you to maximize your sales volume and perfect your ACoS.
- More precise targeting can lead to more sales.
- You can reduce bids or pause low-performing words.
Steps to Set up the Campaign(use screenshots to explain each step)
Step 1
Navigate to the Campaign Manager in Amazon Seller Central and stay on the Amazon Sponsored Products tab.
Step 2
Click on the “Create Campaign” button.
Put in the How To Description while adding an image relevant to it.
Step 3
Enter your campaign name, budget, and duration.
Use the sponsored products name along with your Target ACoS for your campaign names.
Step 4
Choose between an automatic or a manual targeting campaign.
Can Automatic Targeting and Manual Targeting Work Together?
Yes, they can.
To do this, you have to create an automatic campaign for a particular product and wait for the data to get collected from where you will know which keywords are useful and profitable. And, then you can enter them in a manual campaign with higher bids.
What you are doing is using automatic campaigns for keyword research and manual campaigns for their customizability, giving you the perfect balance of efforts.
Final Thoughts
Running Amazon PPC campaigns may have many elements but it is an indispensable part of your advertising success story with Amazon. With BIE, you get all your PPC needs to be taken care of in one place. No hassles, guaranteed!
