How Does Amazon Sponsored Products Work

Faqs: Amazonfresh / Prime Pantry Advertising

;Below responses are provided by Amazon:

Q. If Im advertising an ASIN with multiple offers, how does Amazon determine which offer to feature?

Amazon will determine the best program or placement for your ad . All offers are eligible for placement in all product search, with the business rules determining which offer is best to show to the customer.

Q. How do you determine whether to show the national vs. the regional offer?

If there is a national offer, that offer will be shown. If there is no national offer, the regional offer will be shown when the customer is eligible to purchase it.

Q. What if my ASIN is only available locally?

The ad for an ASIN without national availability will only be shown to customers eligible to purchase it.

Q. What happens if my ASIN is out of stock regionally vs. nationally, or vice versa?

The ad will feature the offer that is in stock.

Q. What happens if my ASIN is out of stock entirely?

Your ad will not be shown to customers

Q. Should I add Fresh ASINs to my existing campaigns?

You have the choice of adding Fresh ASINs to your existing campaign or creating new campaigns to advertiser these ASINs. Amazon will determine the best program or placement for your ad.

Q. Where will my Sponsored Product ad featuring a Fresh ASIN appear?

Q. How will customers experience Sponsored Products ads available through these programs?

Q. Will ads for Fresh ASINs appear to customers who are not members of AmazonFresh?

For more information on AmazonFresh, email

Create Compelling & Urgent Ad Copy

Ensure your ad text is not only accurate in terms of what youre selling, but try and insert some creativity and humor into your ads if possible. Standing out is more important then ever amongst the cluttered search results of Amazon. Instilling a sense of urgency can also be helpful. For instance, if youre running a sale or promotion make sure to highlight this in your ad like the one below.

How Much Should You Spend On Amazon Advertising

When it comes to setting a budget for advertising on Amazon, there are a few ways to go about it.

If youve got some flexibility in your budget, you can set your average daily budget for ad campaigns based on how they perform over time.;

When youre just getting started, you likely wont have clarity on what your daily average spend should be. At this point, it makes sense to assign a few dollars per ASIN ; to begin generating traffic for your ad campaign. This also helps to avoid unanticipated costs.

Once youve got some performance data, you can make a more informed decision and adjust your budget as needed. If your campaign is profitable, dont cap your budget at the account level. In other words, allow for maximum profitability on specific campaigns by adjusting your budget so youre not limiting your spend prematurely.

If you do so,; your ads can stop running when sales are occurring and this could render a loss of potential sales. If your campaign is profitable, set your budget just above your daily average budget spend to protect against unexpected costs.

If you find that your campaign is unprofitable, its basically the same logic applied in the other direction. Set a budget at the top level to put a maximum on the amount you are willing to spend until the campaign starts to render results.

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Understanding Amazon Ads For Authors

Before we get into the case studies, its important to have a look at what Amazon ads do. If youre already familiar with them or have taken the Reedsy Learning course on , or Dave Chesson’s video training you can skip this part.

When judging any advertising platform, you should think about four crucial things:

Why Are Sponsored Product Ads Essential For Brand Marketing

Sponsored Products ads are important for building catalog awareness, driving conversions, as well as protecting and expanding your brand space.

A staggering 68% of Amazon Shoppers Window Shop on Amazon, according to our The number of consumers using Amazon as a way to discover new brands is on the rise.

In 2019, Amazon introduced advanced tools to help advertisers engage with new customers using Sponsored Product Ads product targeting.

With product targeting, it is now easier than ever before to reach shoppers as they browse detail pages and filter search results for specific products similar to yours.;

Sponsored Products impact your brands overall Amazon marketplace presence by:

• Accelerating growth of newer or low-exposure ASINs
• Increasing discoverability for your top Buy Box offers
• Acting as an incremental revenue driver

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Breaking News: Amazonfresh Available In Sponsored Products

If youre a grocery retailer and you havent explored selling on Amazon,;it could be time to stop fighting for that eye-level shelf space at your local brick and mortar grocery chain, and focus your efforts online via .

Now more than ever before, grocery retailers have an incredible opportunity to expand their customer base and make a name for themselves outside of limiting farmers markets and grocery stores.

According to eMarketer, this year Amazons ecommerce share of food and beverage sales in the U.S. will grow by 40.1%; the largest increase among all categories listed below for 2018:;

Although only 23% of Amazon households;currently buy their groceries online, that number is expected to jump to 70%;within 10 years,;according to a recent report;by Food Marketing Institute and Nielson.

So, who is leading the online grocery revolution?;;Due to their recent purchase of Whole Foods and additional , Amazon is now at the forefront of the online grocery shopping movement.

In the following article, we take a closer look at the benefits of selling groceries online via AmazonFresh.

Whats The Difference Between Self

Self-serve ads function similar to Google search ads and are displayed on the search results page. According to Amazon statistics, approximately 76% of online shoppers will use the search bar to look for a specific item. Self-serve ads hit this market. Premium ads are displayed throughout the Amazon site. They can be displayed as a visual banner or sidebar ad.

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Is Amazon Ppc Worth It

Some sellers might not be sure that Amazon PPC ads are a useful tool. Some might say they are just a waste of budget. However, PPC ads are the best way to introduce new products on Amazon because, at the start of your Amazon journey, organic rankings don’t allow you to increase sales and become more powerful in the market. Ads help drive more traffic to the product listing; the same way it works for experienced sellers. Amazon advertising develops brand awareness and provides the opportunity to defend products by targeting other products of the same brand.

To sum up, every PPC ad type on Amazon plays a significant role. A lot of advertising strategies with diverse aims are based on launching all three types. However, advertisers need to analyze the niche and determine the proper budget before setting up their campaigns.

How Much Does Amazon Charge Per Click

For Sponsored Ads set up through the Amazon Marketing Service self-service platform, Amazon charges you per click that your ads receive.;

According to tests done by Practical Ecommerce, the cost-per-click price for running Sponsored Ads is usually $0.35 or less. And since youre in control of your budget, you can determine how much youre willing to pay before your campaign stops running .;

If you have an ad budget of $100 for a certain ad, then youll pay per click up to that $100 amount plus your monthly Amazon Seller account fee.;

So, you can expect to spend about 35 cents to generate one click. Thats a good benchmark to keep in mind. But, how much do you need to spend in order to actually drive sales for your products?;

Thats what were going to dig into it next.

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What Is The Average Cpc For Amazon Advertisers

When you get involved in an advertising campaign, you always want to know how much it will cost. On average, Amazon advertisers pay $0.81 for every click on their ad.

The important thing to remember is that the cost is not set in stone. Your advertising campaign costs will depend upon your competition and your budget.

If youre competing for highly competitive keywords, you can expect to pay more for them. It will lead to a bidding war and drive the price up. You may go above the average of $0.81 because there are multiple companies bidding for certain ad placements and keywords.

Your budget will also affect your CPC. If you have limited flexibility in your budget, it will influence where you set your CPC.

For instance, if you only have $500 to spend on a PPC campaign, it would be better to set a bid of $1 rather than $5. You can get 500 clicks with $1 or 100 clicks with $5. If you want to get as many clicks as possible to attract leads to your products, you must figure out what CPC will work best to maximize your budget.

How To Create An Amazon Sponsored Brands Campaign

1. Log onto your Amazon Account. Log into Seller Central at sellercentral.amazon.com or Advertising Console at advertising.amazon.com

2. Go to Campaign Manager. Click the button Create campaign and select Sponsored Products. Seller Central: sellercentral.amazon.com/cm/campaigns, or Advertising Console Campaign Manager: advertising.amazon.com/cm/campaigns.

3. Create Campaign

• Enter a Campaign name.
• Choose Start and End dates.
• Enter a Daily budget or Lifetime budget.
• Select Landing page for ad traffic. Amazon Sponsored Brands advertise a landing page instead of a specific product detail page. The landing page must have at least 3 products, but no more than 100 products for advertising. Shoppers who click on your ad can be taken to your Amazon store, a product list page or a custom URL.
• Amazon Store . Select your store and choose a page you want to promote. Note, if there are no Stores in your account, you can search for a Store on Amazon that is not associated with your account.
• New product list page. Create a page selecting 3 or more of your products from your inventory to be featured on a product list page.
• Custom URL. Advertise any Amazon page that showcases at least 3 of your brands products.

4. Creatives. Sponsored Brands Ads allow creatives with custom text and ad images. ;

5. Keywords and bids.

6. Well done! Click Launch campaign

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Why Use Sponsored Products

Increased visibility on Amazon.

Sponsored Products can make your ads appear on the first page of search results or on product pages. This gives an instant boost in visibility.

Give customers what they want.

You can use Sponsored Products to tailor your ads to customer search terms that match your products, so the shoppers who want them can see them .

Increase your sales.

People visit Amazon because theyâre ready to buy. Sponsored Products puts your ads in front of people who are looking to put those items in their carts.

Pay only when your ads are clicked.

You only pay for the ads if people click on them, so thereâs less risk involved than simply paying for an ad that may or may not get clicked.

And if people are clicking through to your product, thatâs half the job done – then all you have to do is make sure your product page copy does the rest of the work.

Measure ROI and optimize spend.

Amazon has campaign reporting which allows you to track your ads’ performance, which means you can measure return on investment and adjust your budget accordingly.

How To Set Up A Sponsored Product Ads Campaign

Well outline the steps on getting started right here! Check out our video on Sponsored Product Ad campaigns if you want to follow along in live time.

Step 1: Navigate to the Campaign Manager in Amazon Seller Central and make sure youre on the Sponsored Products tab, not the Headline Search Ads tab.

Step 2: Hit the create campaign button.

Step 3:;Set your campaign name, budget, duration. For campaign names, we recommend including the sponsored products name along with your Target ACoS.

Step 4:;Decide if you want to run an automatic or manual targeting campaign and youre done! Not sure which one to pick? No problem, we got you covered. Buckle up.

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How To Determine If Your Ppc Campaigns Are Doing Well

When you are gauging the success of your Amazon ad strategies, you need to ensure that you compare the performance with those of your peers. The marketplace has many other sellers who also sell the same products and are in the same categories, this means that you need to ensure that you stay on top.;

Check out your rankings so that you can know if the sponsored products are working and that you have all the requirements to ensure your account can have the sponsored products. All the categories thereby type and other factors which make it easy for amazon to determine the products they will sponsor.;

After using the free sellics benchmarker, you can then compare your CTR to that of your competitors and also find ways of improving to have more clicks. You also need to understand if you are targeting a broad or a narrow audience so that you can customize your keywords and other ads to match the targets. The success of the ads will ensure you get a better ranking and you can stand out from the rest of your competition.;

Your peers are those with whom you sell in the same category and those that you are in competition. You need to ensure that any decision you take about your account will positively affect your ranking.

The metrics will help you gauge how you need to adjust and what you need to do so that your product page will be more appealing to your potential customers. This way, you will know if you are successful in convincing consumers.;

Other Ad Types And Amazon Dsp

Amazon also sells “display ads,” which are image ads that could show up as you shop on Amazon or on your Kindle, or as you read an article on a third-party website.

There are also video ads, which are pretty self-explanatory. They appear in video content across Amazon sites , as well as on Amazon devices like Fire TV.

Display and video ads don’t necessarily have to be for products sold on Amazon, and can appear both on Amazon and on sites and apps from third parties.

For instance, let’s say you’re a bathroom repairman. You might like the information Amazon has to target people who are buying things like grout and hammers. But you can’t sell your repair services directly on Amazon. So Amazon lets you use its data to target the same kinds of customers, both on its site and on other sites.

To reach consumers on third-party sites, advertisers can use something called a “DSP,” or a “demand-side platform.” Amazon has its own, called â you guessed it â .

In simple terms, the advertisers figure out what audiences they’d like to reach, then can use the service to reach those people across multiple sites automatically . Amazon says the product is “best suited to advertisers who want to programmatically buy display and video ads at scale.”

Amazon lets advertisers very easily see how well their media spend is translating to actual sales using the DSP. Many other e-commerce companies with similar offerings, like Walmart and Target, do not, said Digitas’ Berani.

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The Benefits Of Advertising On Amazon

Amazon shoppers are typically far down the purchase funnel and are ready to buy when they shop on the marketplace.

Compared to Google and Facebook, you can expect a stronger conversion rate on both your organic and advertising placements on Amazon.

Because it is a saturated and highly competitive space, advertising is essential to ensure your products are visible in front of the right consumers.

With different ad types, you can tailor your advertising approach to guarantee you hit your sales goals. For example, if your goal is brand awareness, you can utilize Sponsored Brand ads to get recognition on the top of the SERP for a given search term.

That leads us into the different ad type options on Amazon

Amazon Sponsored Products How To Optimize Your Campaign

The default bid you set should reflect how much you are willing to spend on the PPC campaign.;

Try to start low and adjust the bid amount to reach an optimal level. You always need to keep in mind that the PPC strategy should align with the goals you set. Setting a higher bid to get to the first page may not be the right strategy always. It can hurt your conversions and your product ranking in the long run.;

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I Ended My Campaign But Im Still Seeing My Sales Increase Are You Juicing My Numbers

At Seller Labs, we are fans of a nice, freshly squeezed juice, but were not inflating your reporting!

With a 30-day attribution window, your customers have plenty of time to checkout after clicking an ad. ;Often, this means that a periods sales will appear to increase over time as customers eventually make their purchase after their initial click.

Lastly, an ad click that leads to a sale of another one of your products will still be counted as an attributed sale. This is what Amazon refers to as brand halo conversion. Amazons rationale for this type of sales attribution is that the initial ad click generated interest in your brand, even if the customer did not purchase the product featured within the ad.

So what are the two biggest takeaways from all of this?

We understand that Amazon Sponsored Advertising can be downright confusing at times, but thats why we’re here!

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