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Your Guide to Paid Advertising on Amazon

Lem Turner
Jan 31, 2019 4:51:01 PM

The Ultimate Marketing Playbook: 2021 Edition

Last updated: January 20, 2021

Navigating the ins and outs of Amazon is a full-time job—managing the beast of Amazon Advertising makes this job even more confusing and difficult. It seems as though every day there are new tools and features, and new processes in place for setting up advertisements. For new and experienced sellers alike, this constant change and movement can get frustrating—especially for brands starting out who want to focus on developing their Amazon brand presence using advertising.

Amazon Paid Advertising

That’s why we put together this comprehensive guide to paid advertising on Amazon, so you can understand the different types of advertising on the marketplace and feel comfortable optimizing your advertising campaigns. Read on to learn more on the main types of ad campaigns available to Amazon sellers:

  

Sponsored Products

One of the most common types of Amazon ads are Sponsored Products. These ads show up throughout search results (at the top, in the middle, etc.) and are often referred to as the “Google Ads of Amazon.” A type of Cost-per-Click (CPC) ad, they help drive customers directly to your products based on a set of predefined keywords. Sponsored Products are usually a great first option for brands looking to dip their toe in the ocean of Amazon advertising since they allow brands to connect with brand loyal customers as well as new audience members who might just be shopping around on Amazon.
Amazon Advertising Guide: Sponsored Products

  

Sponsored Brands

Sponsored Brands are CPC ads that feature a brand’s logo, a custom headline, and multiple products in each advertisement. These ads appear in shoppers' search results and help drive customers to your brand when they’re shopping for products similar to yours. For example, if an Amazon shopper searches for a product similar to yours, your Sponsored Brand advertisement may appear. If the shopper clicks on your Sponsored Brand advertisement, they’re taken to your Amazon Storefront (see more on these below!) or a custom landing page.

As Sponsored Brand ads are designed to build brand awareness, there are now new search term reports that help Amazon sellers understand how their Sponsored Brand campaigns perform compared to other advertisers.Amazon Advertising Guide: Sponsored Brand

   

Sponsored Display

Formerly known as Product Display Ads, Sponsored Display ads are a display advertising option that helps brands grow their business on Amazon. By engaging shoppers on and off the Amazon marketplace, Sponsored Display ads allow sellers to engage relevant consumers who are in the mindset of browsing or purchasing products by placing an ad in front of shoppers who have previously been on that listing, or a similar product's listing.  

Sponsored Display is an excellent choice for advertisers as it has the capacity to reach a broad audience and offers two different types of targeting, Audience Targeting and Product Targeting. Within these two types of targeting, advertisers are able to specifically choose who they want to target and the placement of the ads. Sponsored Display ads are currently only available to sellers enrolled in the Amazon Brand Registry Program.Amazon Advertising Guide: Sponsored Display

   

Amazon Storefronts

Amazon Storefronts offer a unique marketing opportunity to brands looking to build customer loyalty and deliver a small-scale shopping experience within the massive Amazon universe. Brands can build a unique Storefront or landing page that expands on all available products the brand offers. Amazon sellers who set up Storefronts for their brands also have access to Store Insights—a dashboard that provides powerful insights into Store-related sales, visits, page views, and traffic (both on and off Amazon).

Curated Amazon Storefronts engage shoppers and introduce them to your full brand story—who you are and what your company strives to do. Advertisers will want to drive traffic to your Amazon Storefront using Sponsored Brands, display ad campaigns, social media marketing, and more.Amazon Advertising Guide: Amazon Storefront

   

Lightning Deals

While Lighting Deals may be most closely associated with Prime Day, they are actually available throughout the entire year. Lighting Deals are available across the entire Amazon platform and basically ‘run’ until all allotted products are sold. As a seller, you can set aside a number of products or a budget (since Amazon charges a small fee per sale on Lighting Deals) dedicated to a Lighting Deal. Lighting Deals are a great way to jump-start sales for a certain product without going too in-depth with keyword search terms.

   

Coupons

Unsurprisingly, Coupons are one of the most popular Amazon ad forms on the platform, and they have one of the highest conversion rates of any campaign. Many consumers are comfortable with coupons both on and offline, and the Amazon version can help influence sales. Brands simply have to choose which products to add to a coupon, select the coupon amount (we recommend testing various dollar amounts or percentages to see what resonates with your audience), and then set your overall campaign budget. Since Amazon charges a fee per Coupon on top of your discount, Coupons can quickly become expensive, but they are a great way to entice new buyers who might not have heard of your products before.

   

Develop an optimized Amazon advertising strategy

Amazon Advertising is constantly evolving, which means smart brands are continually updating and iterating on their Amazon strategy. The best way to stay on top of the marketplace is to test new advertising products as they emerge and apply insights to your assortment.

If you’re a brand looking to offload the management of Amazon Advertising, contact us and learn more about how a Wholesale or Agency partnership with SupplyKick can help you reach your advertising and sales goals.

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