What are Amazon Ads
It is a system that allows advertisers to use the different advertising options on Amazon, which allow them to reach millions of users, both on its platform and on third-party sites and applications and ad exchanges.
Benefits of advertising on Amazon:
- More than 300 million active customer accounts (2021 data).
- Nearly 2 million trading partners worldwide (2021 data).
- Average cost, €75 per purchase.
- Better organic positioning of advertised products.
- Simple creation of campaigns. It has automations, be warned, they can be expensive if you don’t control them.
- Users mainly use Amazon to buy, so it is essential for e-commerce to advertise on this platform.
- Data. Especially consumer habits, which help manage campaigns and products more effectively than other online advertising tools.
Amazon advertising options
DSP Amazon
DSP Amazon is an advertising platform that allows you to reach different audiences from Amazon inventory or third-party sites. Payment is based on CPM and know what they say on their website, and I got to check it out, managed service advertising options usually require a minimum monthly spend of €15,000, although this type of advertising can also be done through partners at a lower price, but as you can see from its cost, it is not recommended for all advertisers.
Possibility of Amazon ads
Sponsored product
This ad type is a simple format that Amazon Advertising makes available to you, which is all about driving sales through Amazon search results.
Operation is simple, while creating the campaign you can select the daily budget, the start and end of the same and the countries in which to launch it. First of all, we will have to select the products we want to promote in this ad group.
segmentations
Subsequently, there is the possibility of carrying out two types of segmentation:
- automatic segmentation. Where Amazon itself will make a selection for keywords and products similar to your ad product. When paying per click we have these possibilities:
- Set the default bid. For example €0.30 per click.
- Set your bids by segmentation. Where we can manually set a bid for different targeting groups:
- Close match.
- distant coincidence.
- Substitutes.
- Complementary.
- manual segmentation. Where the advertiser can choose different keywords or products, to segment the different searches of buyers. Here we have two options:
- Keyword segmentation. Here the keywords will be selected to make the products appear in the searches of the buyers. As in Google Ads, we will be able to bid differently for different types of broad, exact and phrase matches.
- Product segmentation. Where we can choose specific products, categories, brands or other product features to target ads.
- negative segmentation. Where to be allows you to include negative search terms, to prevent ads from appearing on irrelevant user queries.
Campaign bidding strategies
Advertising on Amazon offers us several alternatives in this regard:
- Dynamic offers. Just reduce. They’ll lower bids in real time when your ad is least likely to convert into a sale.
- Dynamic offers: increase and decrease. In this setting, the tool will increase bids (up to 100% maximum) in real-time when your ad is most likely to convert into a sale, and decrease bids when it’s least likely to convert into a sale.
- Fixed offers. Here the bid is not changed, the exact amount set by the advertiser is set.
There is also the possibility to increase the bids for the placements, setting a percentage to appear on the top of the page (front page) or on the product pages.
places
The locations where Amazon Sponsored Ads may appear are:
- Product details page.
Sponsored brands
Sponsored Brands ads can include your company logo, a brand image and up to 3 products, to run these types of ads, the brand must be registered with Amazon in the section of brand. They are available to suppliers and manufacturers and have a private labeled URL to which advertising traffic will be driven (as opposed to products directly on Amazon). This would be an example of an ad for a brand I really like:
By clicking you can direct traffic to the brand by landing on Amazon. An ideal Brands page should convey the history of the company, as well as the product catalog. Most of the time, since we are dealing with extensive catalogues, a landing will be made sorted by categories. Texts, images and videos can be included in them, quite easily.
Here are the ad formats accepted on Sponsored Brand:
- Product collection.
- Featured by Store.
- Video.
Segmentation here can be done in several ways:
- keyword targeting. Keyword selection to make products appear in shopper searches. As in Google Ads, we will be able to indicate the type of match, exact, phrase or broad.
- product segmentation. Choosing specific products, categories, brands or other product characteristics to target ads.
Sponsored Exhibition
Display ads allow users to be impacted with images or video, on Amazon, third party applications and websites, it should be noted that here too the company needs to be registered in the Amazon brand registry, before you can start a campaign in this format. Once the campaign has been created, you must indicate the start date, the daily budget and three types of offers available:
- Optimization to achieve. Where you want to get more visible impressions. The cost is per 1,000 viewable impressions (VCPM).
- Optimize for page views. Here it is optimized to increase visits to product pages. The cost goes to CPC.
- Optimize for conversions. In this type of offer, it is optimized to obtain effective conversion rates, showing the ad to the users most inclined to buy. The cost also works with pay per click, CPC.
Next, you need to select from the two available ad types, image ad or Amazon video ad.
The next step is to make a selection of the product or products that we want to promote in these Sponsored Display campaigns and then, one of the most important aspects when setting up a Display campaign on any platform, segmentation.
Here we can select between the first two segments:
- contextual targeting. Where two possibilities open up.
- Categories. Such as digital music, baby, office and stationery, etc.
- Individual products. Where you will be able to select a segmentation for any Amazon product by name or ASIN.
- Segmentation by audience. In this type of segmentation, you will be able to select which type of audience will see your ads.
- Amazon audience. Here Amazon gives us the possibility to show advertisements to segments established by Amazon, to increase awareness and consideration of the product.
- View remarketing. This selection will show ads to users who have viewed certain pages of selected products, categories, brands and similar products.
- Purchase remarketing. You will be able to select the audience that bought products, product categories, brands and similar products.
With display ads, you’ll be able to reach higher reach than other types of campaigns, with certain audience segments, and with a more appealing ad type.
If you intend to sell products on Amazon, it is advisable to advertise on this network, but always with caution, given that in recent times the competition is getting stronger and the CPCs in some sectors are skyrocketing, just like with Google Ads.
