amazon adsAmazon Advertising is making giant leaps. In the third quarter of 2019 alone, Amazon’s ad revenue jumped up to a massive US$3.6 billion. This places them alongside paid advertising mega giants like Facebook and Google.

The numbers run as follows:

  • 90% of online consumers utilise Amazon to check on prices. (Big Commerce)
  • 72% of online shoppers use Amazon to find new products they might like to buy. (CPC Strategy)
  • 54% of online consumers check Amazon before searching anywhere else. (Retail Dive)

Therefore, it is obvious that Amazon is where consumers go to shop and research products. And what is the optimal way to ensure they notice your product? Advertise it, of course.

The Outstanding Benefits of Advertising on Amazon

There are plenty of benefits to Amazon advertising, but here are a few key reasons why it’s going to be big in 2020

Simply put, Amazon benefits businesses because you’re selling to keen buyers, not flakey browsers. When online shoppers use Google, they’re doing their research. But when they search Amazon, they have a specific product in mind that they are looking to purchase.

This is why choosing Amazon for an advertising budget investment will likely pay greater dividends. Beyond that, Amazon advertising dramatically increases the likelihood of your product being found by consumers. Bidding for and winning a relevant keyword will produce far more views than a non-sponsored advertisement.

Amazon allows businesses to optimise their ad performance by adjusting specific keywords and budget at any given time, as well as pause and restart campaigns whenever you desire.

Finally, the different ad types allow sellers to choose the most suitable option for their strategy. For example, advertisers looking to increase brand awareness will benefit from using Headline Search Ads, while businesses looking to take on competitors will benefit from Product Display ads.

How to Get Started with Amazon Advertising

amazon sponsored adsGetting started with Amazon advertising contains a number of requirements. To advertise, you must:

  • Hold an active professional seller account.
  • Must be able to ship to every US address.
  • Sponsored Product listings must qualify for the Buy Box.

The Buy Box, for the uninitiated, is a box that appears on your product page that allows shoppers to begin adding products to their shopping carts. The Buy Box involves a little bit of competition, as many advertisers sell the same product. Sellers are therefore required to compete to earn the Buy Box on their page.

Types of Amazon Ads

There are different types of Amazon ads, the three main being:

  1. Sponsored Products

Sponsored Product Ads are pay-per-click campaigns that are keyword-specific and appear within Amazon search results. Available to both first and third-party sellers, Sponsored Product Ads typically appear on the Amazon search engine results page, but also appear on product detail pages. Beyond the small font reading “Sponsored” above the product title, the ads are practically indistinguishable from the other search results on the page. They can also be found in boxes on the right-hand side of the page, but appear as if they are in a natural position, thus enticing customers to click.

  1. Sponsored Brands

These are pay-per-click campaigns that are keyword-targeted and appear in the prominent position above organic search results and Sponsored Products. The ads feature a brand logo, customisable copy, and three spaces to showcase individual ASINs. When a customer clicks on a specific product’s copy or image within the ad, they are taken directly to the product detail page. Conversely, when they click on the “Shop Now” button, logo or headline copy, they are taken to a listing of the products included in that specific advertising campaign.

  1. Product Display Ads

These ads are only available to first-party sellers and appear on product detail pages with similar items to the ones you are advertising. Basically, you have the ability to advertise on your competitors’ pages, thus creating a significant advantage.

As lower-funnel ads, they are targeted by interest area or product and appear below the Buy Box. They are likely to be the last ad a shopper will see before checking out. Because shoppers have not expressed direct, intentional interest in the product displayed to them, you want to consider being more flexible with return on investment goals than with more direct ad campaigns.

Conclusion

Amazon is set to continue its meteoric rise to advertising domination, making 2020 the perfect year for using its beneficial tools. With various campaign styles to suit different business objectives, Amazon Advertising is certainly an ideal way to increase your ROI in 2020.

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