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A Beginners Guide to Advertising on Amazon – Amazon PPC & Types of Amazon Ads


What is your end goal as an Amazon seller? 

Boost the products’ visibility, drive traffic to the product listing page, target the right audience, and generate leads.

Thousands of sellers sell the same product as yours on Amazon. As an Amazon seller, you might have implemented many strategies like product image optimization, A+ content in your product listing, Amazon competitor analysis, and a lot more to achieve your goals.

Are you sure that all your strategies boost your products’ visibility? Do they effectively target the right audience for your products?

All these effective strategies may help increase your product’s rank on the Amazon search results page, but not necessarily generate leads.

Have you tried Amazon advertising (Amazon PPC)? 

Amazon PPC is the most effective strategy that helps increase the visibility of your products and boost sales when other options won’t work out.

Advertising with Amazon Ads increases your brand’s awareness and helps you reach new customers. With Amazon Ads, you can choose how, when, and where you want your products to reach customers.

Whether you are an established Amazon seller or a new Amazon seller who has no idea of what Amazon PPC is and how it works, you are at the right place to get simple and useful insights about Amazon PPC.

What are Amazon Ads and Where do they appear?

Have you seen a Google Ad?

Everyone might have seen them on the first page of Google search results when they type in a query on the Google search box.

Just like Google Ads, Amazon Ads appear on the top pages of Amazon search results as well as individual product pages, increasing the visibility of your products to the customers.

It is also popularly known as Amazon PPC or Pay-Per-Click. In simple terms, it is an Amazon Ad that costs the advertiser (Seller) only when a user clicks on the Ad.

You pay a fee only when a customer clicks on your ad and you can set the maximum cost for each click by the Amazon shopper on your product ad, which helps you plan your budget for your PPC campaign.

How does Amazon PPC work?

Amazon PPC or Amazon advertising works on the model of auction.

The sellers on Amazon bid for the most popular search terms related to their products. The highest bidder wins the auction and gets their Ad displayed at the top of the search results page which is the highest ad rank (i.e., ad rank = 1). The highest bidder pays only the amount of the second-highest bid.

Click here for more information on Troubleshooting and Optimizing Amazon PPC

Is it worth investing in Amazon PPC?

Of course, Yes. There are a plethora of reasons.

  1. Amazon is the most popular online shopping platform and the most visited e-commerce site in the United States. According to a survey, Amazon has over 2.64 billion visitors every month and 66% of Amazon users who are ready to purchase, start their online product research on Amazon.
  2. There are about 120 million products on Amazon and for each product you sell, there are hundreds of competitors. While your organic ranking places your products in the search results naturally, the visibility of your products on the first page of search results is equally important and can be accomplished with Amazon PPC.

Benefits of Amazon Ads

Amazon Ads, if created and managed properly, can:

  • Increase the visibility of your products, but you only pay for clicks.
  • Increase your product’s reach (Brand Awareness) on the platform.
  • Increase your product’s organic ranking.
  • Increase sales at a faster rate.
  • Help you stand out among competitors.

Types of Amazon Ads

As an Amazon seller, you need to know the types and details of Amazon Ads before you decide to start making Amazon Ads for your products.

Amazon features 3 types of Ads.

  1. Sponsored Products Ads
  2. Sponsored Brands
  3. Product Display Ads

A brief on the types of Amazon ads

1.    Sponsored Products Ads

When an Amazon shopper searches for a product with a keyword that matches with yours, your ad will be displayed on the search results. Therefore, keyword selection and keyword bidding are valuable strategies for Amazon sellers for a successful Amazon Ad campaign.

Assign the more relevant keywords to the products you choose to advertise and then enter the cost-per-click bid to boost your product’s visibility to the customers and promote your sales.

Where do Sponsored Ads appear on Amazon?

These Ads appear at the top, the bottom, and at the right of the Amazon search result pages and on the individual product listing pages.

Sponsored product ads will only appear if the seller owns the Amazon buy box.

Sponsored Products is a pre-paid service. You need to pay in advance to enable your Ads on Amazon search results and your advertising spends will automatically be debited from your advanced paid amount.

2.    Sponsored Brands

Sponsored Brands, previously known as Amazon Headline Search Ads, are also cost-per-click Ads where you can target keyword-targeted Ads, but unlike Sponsored Product Ads where you can promote only one product at a time, Sponsored Brands allow you to promote up to three of your products at the same time. Sponsored Brands appear at the top or alongside or within the Amazon search results.

Using Sponsored Brand Ads allows the shoppers to go either to your custom landing page or the brand’s store when they click on your brand logo or to the product detail page when they click on the product. You can also use customized messages to help shoppers perceive your brand in a certain way.

Sponsored Brands are a great way to grow your brand’s awareness among Amazon shoppers and build your product portfolio. (Click here to know how)

3.    Product Display Ads

Unlike the previous two types of Ads which are keyword-targeted, Product Display Ads are targeted on the behavior of Amazon shoppers and their interests.

Product display Ads help your products reach the right audience based on the customers’ shopping activities and those who showed interest in similar categories related to your promoted product.

These Ads appear at the bottom or to the right of the Amazon search results page or customer review pages or at the top of the product listing page, as well as in Amazon marketing emails.

However, only sellers who enrolled in Amazon Brand Registry can create and use these Ads.

The Bottomline

Amazon advertising is an effective and impactful marketing strategy that plays a large role in your business growth. All these types of Amazon Ads are powerful advertising tools on Amazon that boost your product’s visibility, increase quality traffic, enhance your brand value, and help promote your products by targeting the relevant shoppers at the right time of their buying journey thereby increasing the chances of sales.

All you need is to plan your budget on Amazon PPC, choose the right products to advertise, craft compelling product descriptions, and bid on competitive and popular keywords to stand out from your competitors.

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