What is advertising on Amazon?

The name Amazon PPC refers to the pay-per-click advertising model, where the advertiser pays for a click on an ad, rather than for displaying an ad (as in pay-per-impression). 

RRS has two models: flat rate and bid-based. 

Flat rate PPC is a “flat”, fixed rate. That is, there is a standard price per click, which always remains at the same level. Nothing affects it, it cannot be changed.

Amazon (like Google Ads) uses bid-based PPC - i.e. a bid formation system based on the price offer. It is also called competitive. With it, the rate is not fixed at one level, but can change depending on the competitiveness and frequency of the key, geotargeting, time of ad display and other factors.

Given the bid settings, advertisers enter auctions.

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.

Promotional about Amazon sponsored product announcements

Product Ads work similarly to ads on the Google Shopping Network. These are ads that direct Amazon searchers 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.