Amazon Seller, Amazon FBA, Marketing Strategy / 5 MIN READ

How Amazon Advertising Helps You Multiply Your Sales

How-Amazon-Advertising-Helps-You-Multiply-Your-Sales

For Amazon sellers, the site itself presents a tremendous resource. In particular, Amazon Advertising offers a real opportunity to boost sales. Once upon a time, the company used the blanket term of Amazon Marketing Services (AMS) to encompass everything from sponsored products to display ads. But nowadays, Amazon Advertising is the go-to way to maximize your profits as an Amazon seller. To help you understand a bit more, let’s take a look at how Amazon Advertising works and how you can apply it to your store.

How Amazon Advertising Works

Before you even begin to use Amazon Advertising, there are a few things you’re going to need. These are the bare minimum requirements you should be sure to have lined up before you go any further:

  • Naturally, you must have a registered and active professional seller account.
  • You must be able to ship your product to any address across the United States
  • Your Amazon Sponsored Product listings must be eligible for the Buy Box.
  • You must be willing to contend with fierce competition for the Buy Box listing.

buy-box-competition

Once you meet those criteria, you’ll have four different primary types of Amazon ads to choose from. Each of them has distinct benefits, but what connects them is their potential to boost your exposure to shoppers. Largely, your Amazon ads will enable you to focus your aim on your competitors’ products. In this way, you offer consumers one last chance to select your version of the same product. Here are the types of ads you can choose from:

  • Sponsored Products: If you’re looking to highlight a specific product, you could create one of these ads. They appear in both shopper search results as well as product pages. This is a great opportunity to implement your Amazon marketing strategy to great effect.

  • Sponsored Brands: Under the AMS Amazon setup, this was previously known as Headline Search Ads. Decide which keyword bank to target, and you’ll be able to highlight a group of products for Amazon shoppers. Throw in your logo and a custom headline, and your ad will pop up in shoppers’ search results.

  • Sponsored Display: This section is where you’ll find Amazon product display ads. You can target shoppers who previously viewed your products or even those viewing similar products in an effort to direct them to take the next steps. With this self-service advertising solution, you’ll be able to tap into shoppers who are much further along their buying journey.

  • Stores: Formerly known as Brand Pages, this feature allows you to set up your own free “store” on Amazon. Rather than just having a seller account, you’ll be able to take your branding further, creating a unique aesthetic designed to help you stand out from your competition.

Why Amazon Advertising Is So Powerful

Now that we’re briefly run through some of the options you have to advertise through Amazon, let’s emphasize a bit more clearly some of the key benefits you can enjoy when you engage in the above advertising techniques.

You may have noticed just how much space on a given Amazon page is devoted to ads. Over the years, the site has expanded ads reach to more highly visible terrain within a product or search page. Most of this is towards the top of a page, making the chances of connecting with shoppers better than ever. After all, Amazon ads are among the first things they see during any session.

Amazon-ads-exampleAmazon shoppers are just that: shoppers. They’re already searching for a product to meet their needs, and anything you do at that point to spread awareness of your solution is extremely helpful. Because your ad is on Amazon, your chances of securing a sale increase exponentially. You are, after all, targeting an audience already pre-sold on the type of product you’re selling. The potential return on investment from an Amazon ad vastly eclipses that of other sites.

Although you’ll still have to compete against like-minded companies to become the go-to search result for your chosen keyword, the site provides the option to make constant changes to your marketing strategy. Whether this means choosing different keywords or fine tuning your Amazon advertising budget, the choice is yours. As the above breakdown makes clear, you already have a ton of options available to suit your account’s needs.

When effectively leveraged then, Amazon Advertising can be a powerful way to scale up your business. You’ll be able to attract customers already on the verge of purchasing a similar product, and thanks to the site’s features, you’ll be able to make changes anytime. So there’s no need to be locked into a specific marketing strategy. Tread carefully so you don’t over-spend. But don’t be afraid to test out how Amazon Advertising can make a distinct difference in your business.

Creating Your Amazon Advertising Campaign

amazon-advertising-siteIf you’re ready to begin your first Amazon Advertising campaign, here are the key steps you need to take. Granted, the process varies a bit from one ad type to another. But generally, it is similar enough to avoid significant confusion.

  • Logging in: Before you do anything, you’ll -- of course -- need to sign in to your seller account. From the Advertising drop-down menu, select the Campaign Manager.

  • Setting up: The first major decisions you need to make are the budget and duration of the campaign. Be sure to crunch some numbers ahead of time so that you have a clear idea of what you’re willing to spend each month on advertising. If you’re new to Amazon Advertising, don’t be afraid to take it slow at first.

  • Targeting options: At this point, you’ll have to decide what kind of keyword targeting you want to choose. If you go with automatic targeting, Amazon will automatically decide what keywords to use in your campaign. But if you opt for manual targeting, you’ll be able to make that decision yourself. If you go the latter route, be sure you’ve done your research first.

  • Naming ad groups: You’ll need to name your ad group before you continue. Be specific about your ad group name, as you’ll likely be adding multiple ad groups to a single campaign later on. You certainly don’t want any confusion behind the scenes.

  • Choosing specifics: You can only focus on a single product in each campaign. So you’ll need to choose carefully to make the most of your Amazon Advertising efforts. Moreover, you’ll now lay out how much you want to spend per keyword. Based on this, Amazon will calculate your expected daily click rate.

  • Selecting keywords: Now’s your chance to select which keywords you want (if you’re doing manual targeting). Amazon will provide suggestions, but if you so choose, it’s up to you to decide which keywords will be most closely tied to your advertised product. After that, you can save your details and prepare for your campaign’s imminent launch.

Before You Get Started

While Amazon Advertising can be a powerful tool to help Amazon FBA sellers like you maintain an edge over your competition, it’s also one you need to exercise with a bit of restraint. If you rely too much on Amazon Advertising, the cost of the service can lead your bottom line down the wrong direction. Balancing cost and revenue is the real trick.

Pay-per-click (PPC) ads can be useful, but they’re a double-edged sword. If you’re spending so much on clicks, then the allure of Amazon PPC ads can be severely diluted. Everyone wants to know how to advertise on Amazon, but it takes real finesse to make the system work for you in exactly the way you want it to. Be very aware of your marketing strategy and course-correct as necessary.

Early on, automatic campaigns can take a bit of the pressure off. This way, you can focus on the creative side of your advertising. In tandem with your Amazon reports, you can develop more innovative ways of reaching shoppers without the added headache. The goal here is, of course, to foster growth in your Amazon FBA account. 

So don’t spread your ad budget too thin with insanely competitive keywords. Start with one type of Amazon ad, focus on what makes your product unique, and make changes as you go. Amazon Advertising works best for everyone in slightly different ways. The only way to discover its best application for you is to get started.

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Originally published Apr 21, 2020 4:09:48 PM / Updated June 5, 2020

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