Are you using Amazon Advertising yet?

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Updated on: January 9th, 2023Frank Falco7 min read
Amazon Advertising

Unless you have been under a rock for the past few years you are probably aware that Amazon is the largest online retailer in the world. Close to 45% of shoppers in the U.S. start online searches for products via the Amazon website whether they end up purchasing from Amazon or not. That begs the question, are you using Amazon Advertising yet? As one of the top web development companies in the industry we wanted to share our insights into using the Amazon Advertising Platform and why we think it is a viable solution for those businesses looking to get a solid marketing boost.

What is Amazon Advertising?

The Amazon Advertising Platform (AAP) offers a variety of options for digital marketing. With sponsored ads, display ads, or video ads at your disposal there are options to meet the needs of most any campaign for businesses that sell products online.

While the ad business has been dominated by Facebook and Google in the past, Amazon is aggressively expanding its own ad infrastructure to make its ad platform powerful, efficient, and convenient.

The primary reason this new platform is so exciting to marketers is because of the sheer number of visitors Amazon receives every day. According to Statista, Amazon had just over $170 billion in sales for 2017. As of December 2017, they had 197 million users visiting Amazon websites each month. That means any ads on the site are going to have a high degree of visibility.

Fun fact, it is estimated that more American households have an Amazon Prime account than vote in presidential elections or go to church each month.

Aside from the high degree of visibility, that also means that Amazon has a ton of purchase data to draw from which makes it different than Facebook, which understands interest levels, or Google, which has raw search data.

How Amazon Ads Work

There is a lot of similarity between how Amazon Ads work and how Google utilizes ads. The following ad types are available:

  • Sponsored Product Ads – Sponsored ads appear in the top of search results when using the Amazon search box much like with Google search ads. They have the “ad” or “sponsored” text attached to them denoting that they are a paid result before getting to the top results based on Amazon’s search algorithm. There are options for auto and manual campaigns. With auto campaigns, Amazon reviews the content on your product page. For manual campaigns, you can bid on specific keywords which gets you higher visibility in SERPs and then you are charged when a shopper clicks on the ad. If this seems a lot like Google AdWords, you are correct!
  • Headline Search Ads – These ads appear above the sponsored product lists and are the first thing customers see with search results. You can feature one or more products, provide your own ad copy, and link to an Amazon store or even to a landing page, not on Amazon. The cost-per-click is higher for this ad type however that is to be expected given the premium location.
  • Product Display Ads – PDAs are a common ad type that can be placed mid page or on a side column. With Amazon, you can use them on your own pages as well as targeting competitor’s product pages. This is a common tactic by aggressive businesses looking to steal business from their competition. All is fair in love and advertising!

Tips for Optimizing Ads

While the Amazon marketplace is vast and filled with numerous competitors, there are still a few things you can do to stand out from the crowd:

  • Focus on Product Categories – Rather than trying to hit everything at once, it is much better to create focused campaigns based on product categories. That way you can use subsets within a category to focus on specific ad groups. The goal is to zero in on customers with relevant ads for keywords and categories.
  • Use Specific, Urgent Copy – When you are selling, using urgent copy is a common technique which should be used on Amazon. Highlighting sales, listing time remaining on promotions, and the like are all promising ideas to increase urgency. Additionally, the copy should be very specific and provide all the information a customer needs to make a decision. Of course, the copy should always be compelling and fun.
  • Bid on Competitor Keywords – Amazon can be a warzone at times and it pays to have a take no prisoners approach. You should consider keywords your competitors will use which can include their brand name. You want to gain exposure with your brand and one of the best ways is to have an ad appear on an already popular destination. For example, if you are selling running shoes then you might bid on ‘Nike running shoes’.
  • Try all Ad Formats – It is worth experimenting with the different ad formats to see what produces the best ROI for your products. With the statistical reporting options provided with Amazon Advertising, you can easily review results and then re-allocate resources to the best performing formats.

The Bottom Line

The bottom line when it comes to using Amazon Advertising is does it make sense for your business? If you are selling any type of tangible product online, then advertising on Amazon makes a lot of sense. It offers a fantastic way to get your products in front of more people which is often the biggest hurdle when it comes to making sales – finding likely buyers.

Lounge Lizard is a top web design and development firm that is experienced with the Amazon Advertising Platform (AAP). To learn more about the platform and request a quote please follow this link.

Be sure to check back every week for great new Lounge Lizard blog articles.

Published on: September 12th, 2018
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