A Beginner's Guide to Advertising on Amazon

Google has search data and Facebook knows interest levels, but Amazon has the real power because it knows what people buy and how they do it.

So why don't you advertise on Amazon to get more attention for your products? If you use Google Shopping, the Display Network, Facebook, and Instagram, well, there's no better time to break into one of the largest remaining online advertising networks. For e-commerce businesses, Amazon advertising should be a breeze.

An omnichannel e-commerce strategy is an effective e-commerce strategy.

What are Amazon Ads? 

Similar to how Google search works, when you enter a keyword into the Amazon search box and results appear, some will be sponsored posts - these are considered Amazon advertising. They are indicated by thin text "sponsorship" or "advertising".

Advertisers who want to increase visibility for their products on Amazon can pay for these positions by bidding on specific keywords, which will result in higher visibility in Amazon search results. The advertiser will then pay when a buyer clicks on their ad. Essentially, Amazon's advertising platform can be thought of as Amazon's version of AdWords.

Amazon advertisements may also appear on individual product pages.

However, there are plenty of Amazon advertising options beyond sponsored search posts, some of which we'll cover in this guide.

 Should I advertise on Amazon?

Do you sell a tangible product that consumers can buy online? If yes, then you should advertise on Amazon!

Amazon will simply provide you with another way to get more attention for your products and likely attract more customers.

When in doubt, start small with a product that you already know sells well online. For example, if you sell sports equipment and tennis rackets have always been your best-selling product online, start by advertising the best-selling racquet. Once you start seeing ROI from this ad, include more brands and types of racquets to expand your campaign.

Another good reason to advertise on Amazon is that if you use Amazon PPC, your Amazon organic ranking will likely improve as well.

It was previously observed that organic rankings were significantly improved for those keywords that were successfully used in Amazon PPC advertising. This is due in part to additional sales that were generated through Amazon AdWords, increasing the product's sales history. Sales history is a very strong ranking factor. If a product sells better, Amazon will rank it higher in search results. 

So, not only can you increase your product sales by investing in Amazon advertising, but you can also increase your products' organic rankings.

Self Advertising and Premium Advertising 

When you start exploring Amazon's public advertising pages, you may get a little confused about the differences. 

Self-service ads work in the same way as Google search ads that appear on search results pages, where premium ads are more like display ads.

To start advertising on Amazon, you first need to log into your seller or supplier account.

If you don't have any of these accounts, you can check out their different pricing and plans to suit your needs here. If you are your own seller, you will need to register as a seller, which, unfortunately, is by invitation only. If you sell through Amazon Seller Central, you are considered a third-party seller. 

Professional sellers have the option of letting Amazon manage shipping, returns, and customer service, which is quite a perk! Finally, Amazon has a Vendor Express option that might be worth exploring if you want to go the vendor route but don't have an invite.

Once you've signed in and signed up for the plan you want, you can sign in to your Amazon account and start setting up your ad campaigns!

Amazon Advertising Types 

So you've got some great branding banner ads from your creative team that you'd like to promote, but you also want to simply increase your online sales with Google Shopping Ads. Luckily, you've come to the right place because Amazon has options! There are three main types of ads you can set up through Amazon, including Sponsored Product Ads, Search Headlines, and Display Ads.

Amazon Sponsored Product Ads 

Product Ads work similarly to ads on the Google Shopping Network. These are ads that direct searches.
Amazon wikis directly to the specific product you are selling on Amazon. 

When customers click on your ad for a product, they will be redirected to a page detailing that product. Product advertisements typically appear above or below the search results page, as well as on other product detail pages. These ads are targeted by keywords, and advertisers can choose between exact, phrase, or broad match. Advertisers can also set a daily budget as well as the duration of the campaign. Although the campaign can be paused at any time, it must last for at least 1 day.

Here are six tips to help get you on the right track:

#1: Create well-structured campaigns by product category 

If you're an experienced AdWords advertiser, this is something you've probably already mastered. You can use your organizational skills in AdWords to structure your campaigns and ad sets using Amazon's advertising platform. The best strategy here is to create a separate campaign for each of the main product categories, and then create more specific ad groups under each campaign.

Within each campaign, you should create ad groups around more specific categories. For example, in Campaign #1, you might have three ad groups: women's yoga pants, women's jogging pants, and women's lounge pants. Next, you need to create a list of relevant keywords for each ad group (we recommend 15 to 30 keywords per ad group). Finally, you'll create relevant ads for each keyword group. 

A strong account structure will ensure your listings are relevant, which in turn will save you money and increase your ROI. This tip is extremely important to take advantage of Amazon advertising.

#2: Create compelling and urgent ad copy

The ad copy should be accurate and with added creativity and humor if possible. It can also be helpful to instill a sense of urgency. For example, if you're running a sale or promotion, be sure to highlight it in your ad.

#3: Make sure your ad copy is as specific as possible

The ad copy should also be very specific in terms of what you are selling. For example, if you sell a water bottle, I want to know how many milliliters or cups of water it holds, whether it is BPA free, whether it keeps my water cold for a certain number of hours, etc. It can be difficult to cover all of this information in the ad copy, but it's important to squeeze in the most important information. 

#4: Bet on popular brands that sell similar products

When brainstorming keywords to bid on, don't forget about your well-known competitors.

To find your top competitors, do a general search on Amazon for products in your vertical—say, “backpacks”—and see which brands appear most often in the search results.

#5: Experiment with all three ad formats

While product ads may produce the fastest and most visible ROI, search ad headlines can lead to more loyal, repeat customers. It's worth experimenting with all three ad types to see which ones deliver the best returns, and then once the stats show a clear picture, you can reallocate your budget based on your campaign results.

#6: Use negative keywords

Just like with Google advertising, negative keywords are key to reducing wastage from irrelevant clicks. For example, if you sell flutes and you bid on the word "flutes" with a broad or phrase match, someone could search for champagne flute and your ad would still appear. If they then accidentally click on your ad, you will be charged per click from a user who is looking for a $10 glass rather than a quality musical instrument.

It can also help to be more conservative with match types, avoiding broad and focusing more on phrase and exact matches. Be sure to do some keyword research to make sure you're choosing the right words as well.