Earlier known as Amazon Marketing Services (AMS), Amazon Advertising is a term that describes the platform’s entire range of advertising services. This blog will educate you on what it is and all that you need to know before you begin advertising your products on the platform.
What is it?
Ever noticed how you type your search in the Amazon search box and some of the results displayed on the top show up as ‘sponsored classified’? These results are Amazon ads.
Amazon advertising is a sales and marketing tactic to gain better exposure for their brand and products. Advertisers can grab these ad spots by bidding on selected keywords to boost their Amazon SERP rankings and drive sales. These advertisements are seen on the individual product pages as well.
Types of Amazon Ads
Sponsored Products
They are pay-per-click, targeted advertisements that show specific products. When clicked, they take you to the listing on the product information page.
Sponsored Brands
They are pay-per-click ads that promote the targeted keywords of several products in and around and in conjunction with the Amazon search results. Clicking on a sponsored brand ad can direct you to your Amazon Store or your custom website.
Sponsored Display Ads
Sponsored display allows targeting of consumers on and off Amazon. These are unique in that they allow you to remarket to consumers who have previously viewed your product or similar products, used search terms connected to your product, or bought from you.
Video Ads
Video ads are displayed on Amazon-owned sites such as Amazon.com or IMDb. It can also be displayed on Amazon devices such as the Fire TV. Even those who don’t sell items on Amazon can use Amazon video advertisements.
Amazon Stores
Customers can promote their brand or product on their personal multi-page Amazon Store. Brands are provided the Amazon URL and can check out the traffic statistics.
Amazon Native Ads
Amazon Native Ads are displayed on a company’s website. They can be personalized ads, recommendation ads, or search ads. Once the automatic scan of the page content is over, these ads display products based on the keywords used within the page.
Why Advertise on Amazon?
There are several benefits to take into consideration:
- Provides a safe space and functionality that is top quality
- Decreases the cycle of sales
- Boosts sales and product visibility
- Increases brand awareness
- Helps gain invaluable insight into dynamic consumer preferences
- Ensures that campaigns are reaching their specific audience
- Exposes you to abundant data on your buyers and their buying behavior
- Offers competent ways to track your campaign results so you can make the right decisions
How Much Does Amazon Charge for Ads?
It’s a no-brainer that one can start with self-service advertisements to market their brand and products on Amazon. Let’s see how budget-savvy Amazon advertising is.
Sponsored product ads have a minimum budget of $1. But the budget of this pay-per-click ad type can vary depending on the target keywords and competitors’ advertising strategies.
Sponsored brand ads have a minimum bid amount of $0.10. There are no restrictions on the budget whatsoever.
Sponsored display ads have a minimum bid amount of $0.02 on your offer and their minimum budget starts at $1. You can choose between the CPM and CPC models.
It may be harder to afford other types of ads early on because of their higher budgets. They have high budgets as they are subject to stricter rules.
For launching an Amazon DSP ad, you will easily require a minimum of $35000.
Video and audio ads also require a high minimum budget, so $25000 and $35000, respectively.
Final Thoughts: How to Really Begin with Amazon PPC?
Starting a business might be intimidating but taking it online on Amazon can be a challenge on another level. But not for those who have BIE by their side.
We suggest you begin with Sponsored Products ads they give the highest visibility by appearing at all stages and touchpoints of the consumer journey. With these, you can get a massive return on ad investment (RoAS). Customers can even be retargeted on third-party sites via Sponsored Product ad campaigns.
