Amazon is without a doubt one of the most dynamic and fierce competitors in retail at the moment. If you are selling products on Amazon, then you should take advantage of it by advertising your brand and products.
Advertising on Amazon will help your business grow because it gives you the ability to advertise your brand, products, or services directly to consumers who may be interested in them.
There are different ways you can advertise on Amazon. Sponsored product ads are the most effective because they appear directly next to search results for relevant keywords that shoppers might use to find your product.
Additionally, sponsored product ads do not cost you anything unless a shopper clicks on your ad and makes a purchase from your store as a result of that click. This article will cover 9 reasons why Amazon advertising is a must for sellers!
The Pros of Amazon Advertising
Amazon runs the best advertising platform in retail. In fact, according to a report by BI Intelligence, Amazon’s ad revenue is expected to increase from $10 billion in 2018 to $38 billion by 2022.
This is primarily because Amazon has a unique advantage over other advertising channels like Google Ads or Facebook Ads — a huge and engaged audience of consumers who are already shopping on Amazon and are actively looking for deals and discounts.
As a seller, you can tap into this audience and take advantage of their browsing habits by advertising your brand and products on Amazon. Doing so will increase your brand awareness, attract new customers, and boost your sales.
Moreover, Amazon’s advertising platform is simple, easy to use, and has a ton of useful features.
You can target your audience based on their demographics and interests, and you can also create ad variations with different images and offers to test which one performs better.
These are just some of the many advantages that come with Amazon advertising — advantages that help you grow your business faster and more effectively than other marketing channels.
Read More:
- What’s The Best Way To Manage Amazon PPC Campaigns? Agency or Software?
- Amazon Ads: The Pros and Cons of Advertising on Amazon
How To Advertise On Amazon
There are different ways you can advertise on Amazon, but the most effective and common way is through sponsored product ads.
Sponsored product ads appear directly next to search results for relevant keywords that shoppers might be using to find your product. In order to create these ads, you have to create an ad campaign and ad group.
An ad campaign is a group of ads that are run together under one set of settings. An ad group is a group of similar products that go under one setting. There are a few essentials you need to know when creating an ad campaign and ad group.
When setting up your ad campaign, make sure to select “Sponsored Products” as the campaign type, and then choose an ad type. The ad type that you select will determine the type of ad that you will see on Amazon.
There are six different ad types: headline search ads, product display ads, product promotion ads, search ads, headline search ads, and coupon ads.
People Are Going To Amazon When They Shop
With over 250 million shoppers visiting Amazon every month, it’s safe to say that many consumers are going to Amazon first when they are ready to buy something — whether it’s groceries or a new pair of shoes.
What’s more, many of these shoppers are going to Amazon to look for deals and discounts, making it critical for brands to advertise their products on Amazon.
This is because Amazon is a marketplace that hosts millions of third-party sellers that are selling a range of products, including your branded products. Most of these sellers are paying Amazon a fee to host their products, and Amazon is using the third-party marketplace model to increase their revenue.
These third-party sellers are responsible for their own shipments and customer service — which means that if something goes wrong with your order, the Amazon customer service team will not be able to help you.
By advertising your brand, you can drive sales and generate more revenue from your products, which means you are helping to remove the burden of the third-party sellers’ fees from Amazon.
You Can Measure The ROI Of Your Ads
One of the best things about Amazon’s advertising platform is that you can track the ROI of your ad spend. You can see how much each ad is costing you, how many clicks each ad is receiving, and the number of sales that each ad is generating.
This way, you can monitor your ads closely and make necessary changes whenever necessary.
All you have to do is click on the “Amazon Advertising” tab on the left-hand side of your seller Central dashboard, click on “Ad Campaigns,” and then select an ad group or ad campaign to view your ad performance metrics.
At the top of the page, you will see the metrics for your ad such as impressions, click rate, and number of sales generated by that ad. You’ll also see the total ad spend for that ad and the amount Amazon is charging you for each click.
Shoppers Are Already There Looking For Deals
As we have mentioned before, Amazon is one of the biggest online marketplaces where millions of third-party sellers are hosting millions of products. This means that millions of different brands are using Amazon as a sales channel to sell their products online.
But what does this mean for you as a seller? It means that you have to stand out from the crowd to capture your share of the market. You can do this by advertising your brand and products on Amazon.
Amazon’s ad network is a great way to attract more customers to your products, and the best way to do this is by offering deals, discounts, and free shipping.
By offering deals, you can make your products look more appealing and get more clicks. By getting more clicks, you can increase your sales, which will help you rank higher on Amazon.
Read More:
- How to Advertise on Amazon in 2023
- The 10 Secrets of Amazon Listing Optimization (do this for every SKU!)
It Helps You Find Out What Products Consumers Want To Buy
Another way Amazon advertising can help you grow your business is by letting you test and track product ads. You can create different product ads and run A/B tests with them to find out which products your shoppers are more interested in buying.
Now, Amazon doesn’t let you choose which products you want to advertise. Instead, you have to select from the products that Amazon recommends for you.
Read More – The 10 Secrets of Amazon Listing Optimization (do this for every SKU!)
You can choose the category, product type, and keywords for your ad, but you can’t choose which product you want to advertise. Now, this doesn’t mean you can’t pick which products to advertise.
Instead, you just have to make sure that you are picking the best products to advertise.
It Helps You Find Competitors’ Products And Track Their Sales
Another way Amazon advertising can help you grow your business is by helping you find out what products your competitors are selling and how many sales they are generating.
You can enter your competitor’s ASIN on Amazon and then click “Sponsored” in the right-hand sidebar to see which products are advertised next to your competitor’s product.
This way, you can see what your competitors are advertising and how many sales they are getting as a result of these ads. This will give you insight into how your competitors are advertising their products and what keywords they are using to drive sales. And from there, you can use that information to create better ads for your products.
Frequently Asked Questions
Why are Amazon ads good for sellers?
In the world of ecommerce, Amazon is one of the most popular sites. It provides sellers with exposure to a huge audience at a reasonable price. Amazon ads can help your product stand out and boost sales. Ads are a great tool for sellers because they are affordable and easy to use. You can set up an ad campaign in minutes and start targeting potential customers. The benefits of Amazon ads include:
1. Increased exposure: Ads put your product in front of potential buyers who may not have seen it before. They help your product gain exposure, which can lead to more sales.
2. Improved targeting: With ads, you can target specific groups of people based on demographics and interests. This allows you to reach the people most likely to buy your product.
3. Improved conversions: Well-designed ads can lead to more clicks and sales for your product. They help convince potential buyers that your product is worth buying.
4. Cost effective: Ads are affordable and can be set up to run automatically, so you don't have to worry about paying for them yourself. They are an affordable way to boost sales without breaking the bank.
Is it worth paying for Amazon ads?
That depends on what you are advertising and how much you are willing to spend. If you want to target a specific audience that is likely to be interested in your products, then yes, it can be worth it. But the quality of your ads is just as important as the amount you are willing to spend.
If your ads are not well-targeted or if they contain spelling or grammatical mistakes, they will likely not generate any results at all. On the other hand, if you are advertising products that are of poor quality or that no one is interested in, then no amount of advertising will help.
How long does it take for Amazon ads to start working?
It can take anywhere from a few days to a few weeks for Amazon ads to start working. The amount of time it takes for your ads to start working depends on a number of factors, including the keywords you're targeting, your bid amount, and the competition for those keywords.
If your ads aren't showing results, you can try changing your keywords or bid amounts to see if that improves your results. If not, you can always pause or delete your ads and create new ones.
What is an Amazon impression?
An Amazon impression is a type of advertising that lets you target customers based on their interests, demographics, and website visits.
With Amazon impressions, you can create ads that appear on websites and social media sites that are relevant to your target audience. These ads can help you reach more potential customers whom you may not be reaching with your current advertising efforts.
Bottom Line
Amazon advertising is a great way to boost sales, gain new customers, and stay competitive in the Amazon marketplace. From sponsored product ads that appear next to search results to headline search ads that appear at the top of a page, there are various ways to advertise on Amazon.
If you’re selling on Amazon, you should take advantage of advertising to help your business grow and expand. Amazon advertising is a must for sellers because it allows you to advertise your brand, products, or services directly to consumers who may be interested in them.
Amazon PPC is our sole focus. It’s all we do. We’ve even worked on it for brands like Everlast. So if you want to team up and have us apply our playbook, we’re standing by and happy to discuss. Click the ‘Book A Call’ button for more information!