Everything You Need to Know About Amazon Ads!

• By Bella Clarke
• 21-08-2024
• Digital Marketing

Did you know Amazon has 37.8% of the market share in the e-commerce industry? It would be wise if you use this platform to grow your own e-commerce business. As the competition in this business world is always at its peak, most business owners are always looking for the best platform and tactics to increase their sales. This is where Amazon comes to assist your business. It is one of the most prominent players in the e-commerce sphere, which provides various opportunities for businesses and merchants. If you intend to promote your company effectively on Amazon and benefit from Amazon's ad services, stay tuned with us!

The growth of Amazon has inevitably led to extensive use of its advertising solutions for various enterprises, ranging from startups to significant companies. This implies that through Amazon ads, companies can access a large pool of consumers who are already willing and able to purchase products online. While Amazon Advertising helps brands sell products directly to consumers, its principal strength is targeting consumers based on their buying behavior and search history.

In this article, you will find an overview of Amazon ads, their differences from other advertising platforms, and the steps towards creating an effective advertising campaign. If you're new to local SEO management, you will find tons of helpful information here.

What is Amazon Ads?

Amazon ads are paid advertising through which you can market your product via Amazon sales channels. These ads are placed strategically within the searches, product details ads, and other areas of Amazon’s sprawling ecosystem. Amazon ads are unique from other conventional advertising platforms because they are built into their relevance to a consumer’s shopping quest. Amazon fully understands that people visiting its pages are often in a ‘shopping mode,’ which is why many of its ads are conversion-focused.

What Sets Amazon Ads Apart from Other Advertising Platforms?

Specifically, Amazon ads are not like Google search ads, Facebook ads, or any other form of online display ads that are kept with consumers. This integration ensures that your ad is being viewed by targeted users and, at the most optimal time, the users search for a product to purchase.

Furthermore, Amazon has vast data that defines its customers’ habits, inviting relevant and appealing advertisements and boosting the conversion rate. As such, Amazon ads are highly effective for growing eCommerce sales and ensuring your advertising investment results in tangible compensation.

Types of Amazon Ads

Amazon uses various ad types, all of which have distinct characteristics. Knowing these different types will enable people to choose the most suitable ideal for their business objectives.

Sponsored Products:

Sponsored products are ads that target specific customers and direct them to buy an item on Amazon. They appear on search pages and product sections, so consumers will likely come across them. Sponsored products make the advertising tool effective for enhancing a product's visibility in the market. This, in turn, creates demand for the product. Sponsored products are beneficial in niches that interest potential customers by presenting them with target keywords for things that they need.

Sponsored Brands:

Sponsored brands are formerly known as headline search ads. These ads display your brand logo, a headline you provide, and multiple products you wish to advertise. Paid listings are shown in the first place when you enter any word or phrase in the search box. This helps you develop the brand image in the customers' minds. These ads are perfect for boosting awareness of specific goods and services. As a result, companies can gain more customers' trust and be proficient in local SEO management.

Sponsored Display Ads:

During off-Amazon sales, these ads reach shoppers directly via the sellers and the general population. They can be placed on product detail pages containing customers’ reviews and other web pages outside of the store’s platform. Display ads are also preferred over sponsored ones. They are perfect for targeting customers interested in your or similar products or services.

Setting Up Your First Amazon Ad Campaign: A Step-by-Step Guide

Starting your first Amazon ad campaign is generally not very easy, but the process will be much easier with a clear guideline.

1. Choose Your Campaign Type:

So, when you finally decide to leverage Amazon ads services, selecting the best option for your business is essential. This means choosing an ad suitable for your marketing campaign.

2. Set Up Your Account:

You can do this by signing in to your Amazon Seller Central or Amazon Advertising accounts. If you do not have one developed, you may need to make one yourself. Check that the data you provided during the sign-up process is correct and as precise as possible, as this will make campaign management more effortless.

3. Create a Campaign:

On the campaign home page, click on the create campaign icon and choose your campaign’s type. For example, let's consider using sponsored products. This option is often used by newbies who are advertising their businesses since the process is relatively easy and efficient.

4. Name Your Campaign and Set Your Budget:

You can assign a name to your campaign and define your daily limit or total amount you want to spend. Select a start and an end date if you wish to launch a campaign to reach people for a given period. Setting a marketing budget helps prevent spending from exceeding it.

5. Choose Your Targeting Options:

Choose between an automatic campaign (one that is generated by Amazon where you don’t choose your keywords) and a manually targeted campaign (one that requires that you select your keywords). This flexibility makes manual targeting more valuable, as the targeting strategy can be tweaked and fine-tuned as necessary. It is recommended that automation be used in targeting to obtain some primary quantitative data and then move deeper with manual targeting.

6. Select Your Keywords:

Choosing appropriate keywords to input in the manual targeting area is essential if you use a manual targeting technique. The best way to find keywords using Amazon would be to use the keyword suggestion feature or search for the keywords on your own. Pay attention to the broad, phrase, and exact-match keywords to cover different types of searches.

7. Set Your Bids:

Decide on the amount you would like to spend per click. It is also possible to set default bids for all the keywords or use relative value, which allows setting bids individually for every keyword. Think about profit while setting bids so that ad spend contributes positively to revenue generation.

Additionally, integrating local SEO management can enhance your overall performance and ROI.

8. Create Your Ad:

Choose the products you want to advertise. Create the advertisement text and check the ad to ensure everything is fine. When composing the ad copy, emphasize the product's advantages and incorporate a call to action.

9. Launch Your Campaign:

After reviewing all the details, click the ”Launch campaign” button to set it live. This is an important point; you must always watch this campaign to make changes whenever necessary. It is essential to get started on the long-term monitoring of the system and its performance to make necessary adjustments at this stage if needed.

Tips for the Best Practices for Amazon Ads Services

Generating Amazon ads is not just about creating a campaign. Developing an appropriate campaign takes more time than one might expect.

Here are some best practices to help you optimize your ads:

1. Write Compelling Ad Copy:

Your ad copy should be accurate, compact, and to the point, and it should influence readers to patronize the company's products. This should focus on the aspects and features that make your product distinct to capture people’s attention. Ensure that the copy is gripping and laced with strong calls to action to elicit a click and eventual conversion.

2. Use High-Quality Images:

As mentioned, visuals are beneficial in attracting attention. Make sure the images of products you provide are high quality and clear, which helps capture the different angles of the product being sold. One of the best tactics is to consider using lifestyle images where the customer uses the product and is having a good time.

3. Conduct Thorough Keyword Research:

Search for high quantities of lucrative keywords from Amazon’s keyword tool, Google's keyword tool, and any other third-party tool. Emphasize using long-tail keywords, which are niche-oriented and more suitable for a particular type of inquiry. Long-tail keywords are associated with less competition and more conversions, yet the number of queries is far smaller. Using Amazon ads services can help you find valuable keywords.

4. Set Competitive Bids:

Always track your competitors’ bids to make necessary adjustments to provide optimal competition. Try using automated bid features on Amazon. These features include bid smart pausing and bid-wise spending down. They allow for bid changes based on conversion rate. Reviewing your bids and adjusting them consistently is essential to keep them at the right level.

5. Optimize Product Listings:

Make sure your product listings are search engine-friendly concerning the applicable keywords, descriptions, and other customer ratings, where necessary. If the listing is well optimized, it will cut the rate of non-converting ads. Ensure you keep changing your listings to incorporate any new feature that might benefit the client.

6. Don’t Forget to Use Neutral Keywords:

Further, you must add positive and negative keywords out of hundreds of possible keywords to avoid targeting irrelevant searches. This assists in keeping undesired ad time to a minimum by enhancing the app’s or an individual ad’s relevancy. Review and optimize the list of negative keywords from time to time according to the results of your ad promotion. Besides, integrating local SEO management can help refine your keyword strategy.

7. Regularly Monitor and Adjust Your Campaigns:

Utilize Amazon’s advertising reports to monitor its effectiveness and tweak it accordingly using analytical solutions from the platform itself. Experiment with ad text, keywords, and bid prices, as they are instrumental in determining advertisement success. It’s important to note that ad optimization is ongoing, and it’s the constant pursuit of enhancing the ads you place.

Key Metrics to Track and How to Use Amazon Advertising Reports to Refine Your Campaigns

So, when you need to ensure that all your Amazon ads are on track, you always use metrics and Amazon Advertising Reports.

Here are some metrics to focus on:

1. Click-Through Rate (CTR):

This metric defines how many individuals who see the ad click on it on the online platform. When you get a high CTR, this only tells you that your ad is attractive and a joy for people to view and read. You can gain awareness of the activity level of your ad copy, and the focus attained can help to improve CTR.

2. Conversion Rate:

This is a metric that shows the ratio or proportion of clicks through links to the actual sales that are made. A high conversion rate means your product listings, such as clothes, can influence buyers through your appropriately worded ads. Make sure your product descriptions turn clicks into sales by effectively providing all the relevant information. The proper utilization of Amazon ad services can enhance your ROI.

3. Advertising Cost of Sales (ACoS):

Clarified, ACoS means how much advertisers spend divided by the sales revenue they produce from ads. The extent of ACoS is lower when your ads are affordable. You must constantly check the ACoS score to see if you are still operating at a profit.

4. Return on Ad Spend (ROAS):

ROAS refers to the advertisement's ability to stimulate the consumer into making a purchase. Hence, it is the revenue yielded from every dollar spent on ads. This means that when the ROAS is high, the actual campaign will likely be profitable. Compared to the conversion rates, this measurement is used to assess the effectiveness of advertisements across the board.

5. Impressions:

This metric calculates how often an ad is displayed to users. In other words, it indicates how frequently your ad is viewed on the user's screen. Tracking impressions lets you know the number of people who saw your campaign. No matter whether you broaden or narrow down the campaign area and local SEO management. If the impression number is low, it would indicate whether to increase the list of keywords or the bid amount.

Empower Your Business with Amazon Ads and Local SEO Management

Therefore, Amazon's advertising services offer an effective solution for promoting companies to a vast pool of consumers. You can use these services to increase your sales in the eCommerce industry.

If you want to enhance your Amazon advertising, hire professionals who can offer both Amazon ad services and local SEO services. Geek Informatics & Technologies Pvt. Ltd. aims to provide businesses with efficient marketing solutions through strategic advertising and proper SEO solutions.

Book an appointment now and let us know how we can help you elevate your web profile and increase your sales.