Sunday, March 19, 2023

What Does Sponsored Mean On Amazon

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Select Your Keyword Match Types

Everything You NEED to Know about Amazon SPONSORED DISPLAY ADS

When creating a keyword in Campaign Manager or using bulk uploads, you must specify a match type.

Keyword match types gives you the opportunity to fine-tune which search terms your ads appear on. You can choose from three types of keywords: broad match, phrase match, and exact match.

Broad Match Keywords on Amazon

This match type offers ads broad traffic exposure. A customer search term will match if it contains all the keyword terms or their synonyms. The customer search term can contain keywords or synonyms in any order.

Phrase Match Keywords on Amazon

The customer search term must contain the exact phrase or sequence of words. It is more restrictive than broad match and will generally result in more relevant placements for your ad.

Exact Match Keywords on Amazon

The customers search term must exactly match the keyword in order for the ad to show, and will also match close variations of the exact term. Exact match is the most restrictive match type, but can be more relevant to a customers search.

IMPORTANT: You cant change the match type of an existing keyword, but you can add multiple match types for one keyword. You can also select match types for Negative Keywords.

What Sellers Can Use Amazon Sponsored Ads

Nearly 60 percent of Amazons retail sellers are small to medium-sized businesses.

Amazon sponsored ads are only available to select sellers who meet special criteria, which means shoppers are not shown sponsored ads from sellers with questionable track records.

When youre browsing Amazon and you see a sponsored ad, you can trust that the seller met the following criteria to earn this advertising placement:

  • Successful selling track record with a high volume of fulfilled sales and satisfied customers
  • Competitive pricing on popular products
  • Good customer reviews on product quality and delivery/shipping
  • Good history of fulfilling orders on time
  • Adequate stock levels of new products that people are looking for

What Are Amazon Sponsored Brands Ads

Amazon Sponsored Brands are banner ads that include a brands logo, message, and products in Amazons search results.

These ads have historically been keyword-based and placed across the top of the search results, making them valuable for reaching shoppers early on in the buyers journey.

Sponsored Brands are an effective way to build top-funnel awareness by allowing your brand to show your offering for specific shopper search queries. They can be used to drive shoppers to a specific product category, a product listing, or your Store on Amazon.

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Sponsored Product Ads Updates

Auto-targeting Campaigns Negative keywords

Negative keywords were available earlier within manual campaigns. At present, this feature is available for auto-targeting campaigns. You can set the keywords at the campaign level. With the new change, Amazon sellers all over will be able to make use of auto-targeting campaigns much even better.

Ad Group changes for Vendors

Amazon is trying to merge ad platforms for both sellers and vendors. Before, this ad group segmentation was only available for sellers but now, vendors can get overall control and group products across different categories.

Manual Campaigns Offer More Control Over Bidding

What Does Sponsored Mean on Amazon?

Manual campaigns let you set your own keywords.

When starting a manual Sponsored Products campaign, you will have more control of the bid price and be able to fine-tune your bids to either maximize revenue or hit your Target ACoS.

Even though maximum profit and hitting the perfect ACoS is your end goal, performing a manual campaign isnt as easy as a Sunday morning.

Sellers bid on either broad, phrase, or exact keywords, but its very hard to know which keywords are profitable before keyword research.

Benefits of Manual Campaigns:

  • Great for Pay Per Click experts who have time to set up manual campaigns.
  • You can maximize your sales volume and perfect your ACoS.
  • Bidding on keywords manually allows for more precise targeting and could lead to more sales if you are successful
  • Its easy to reduce bids or pause low-performing words.
  • Amazon suggests bids next to every keyword you wish to bid on, making it easier for the seller.
  • Have the keyword ideas you want to test? Manual campaigns help you do that.

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Utilize Reporting In Amazon Ads

Success doesnt happen in a vacuum. In order to make the best choices for your campaign, you need to use a data-driven approach and monitor your results.

Amazon provides advertisers with data about searches for particular keywords. Similar to Google Ads, you have to be an advertiser to get access to this informative data. The data includes which search terms are performing the best, enabling you to add new keywords and refine the performance of your campaigns.

For each keyword, the search terms report will include data on:

  • Campaign

Will I See Better Results On Amazon Vs Google Ads

A major difference between Google Ads and Amazon Sponsored Products is where people are in the purchasing process when they search on each platform.

People searching on Amazon are more likely to be at the end of the buyer’s journey . On Amazon, they know what product they want, and they are just looking for the right deal and provider.

On the other hand, Google has more of a mixed bag of search queries, encompassing all stages of the buyer’s journey. This means your ad strategy can be much more flexible, targeting earlier stages of the buyer’s journey. That being said, not everyone searching in earlier stages of the buyer’s journey will be ready to make a purchase in the near future .

Many product-based companies have no need to target those individuals, making Amazon just fine for their advertising strategy where the goal is to put a product in front of interested shoppers.

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What Is The Amazon Buy Box

is the section of the item page with the purchase options. This appears on the right side on desktop screens, and below the product images and delivery/price info on mobile screens .

Winning the Buy Box means you are currently the seller whose product is sold when the customer clicks Buy it Now or Add to Cart.

If you are not currently winning the Buy Box, another sellers item will be added to their cart or purchased when the customer clicks on Buy it Now or Add to Cart.

Generally, losing the Buy Box is a concern for wholesalers and retail/online arbitrage sellers.

Auto And Manual Campaigns Work Together

Amazon Sponsored Products (Amazon PPC Advertising) – Understanding Your Sponsored Product Metrics

Automatic and manual campaigns form an unlikely friendship when working together. If youre new to Amazon PPC, I suggest the Research-Peel-Stick-Block method.

To do this, you create an automatic campaign for a product, wait for the data to roll in so you know which keywords are profitable, and enter them in a manual campaign with increased bids. You simply use automatic campaigns for their keyword research and manual campaigns for their customizability.

If all this sounds like a lot to you, it might be worth investing in a PPC tool like Ad Badger which automates this whole process for you.

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How To Set Up A Sponsored Products Campaign

In this section, well teach you how to go into Campaign Manager and set up a campaign.

First, log in to Seller Central and click Advertising > Campaign Manager.

Then, click on Create Campaign.

Set your campaign name, budget, and duration.

Lastly, decide if you want to run a manual or automatic campaign.

Not sure how to strategize your campaigns? Our next section will teach you the fundamentals of Sponsored Product strategy.

Harvest Keywords In The Amazon Search Terms Report

In the past, the Amazon Search Terms Report provided sellers with data including how many impressions, clicks, sales, etc. each search term received.

The report also indicated the exact product SKU associated with that search term, which was extremely valuable data for advertisers.

Unfortunately, Amazon updated the report so it no longer identifies which product is associated with the search term.

For example, although you can still see in the report that the term mascara is converting wellAmazon no longer identifies which SKU it is associated with, leaving many advertisers in the dark.

This change to the Search Term Report inevitably made it more difficult for sellers to identify the relationship between keywords and products.

Although we dont know the reason for the changes, we have discovered a proposed solution to this issue by structuring campaigns differently based on catalog size.

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How Advertisers Can Use Sponsored Products

Consider Sponsored Products if youre new to advertising. The ad creative is automatically generated for you, and with automatic targeting, Amazon will match your ads to shopping queries and products. This means you can create and launch a campaign in just a few minutes. You can even advertise in countries where you dont speak the language, as automatic targeting selects shopping queries for you.No matter your level of advertising experience, Sponsored Products can help increase the visibility of your products on Amazon. These ads reach customers as they shop and feature familiar elements to the Amazon shopping experience, such as star ratings, product images and the Amazon Prime badge.Since you can choose your own budget, bids and targeting, Sponsored Products can be used by advertisers of any size for a wide variety of goals, such as generating awareness of a new product, promoting seasonal items, clearing excess inventory or showcasing a best-selling item.

What Are Sponsored Products On Amazon

What Does Sponsored Mean on Amazon?

There are now more than 560 million products available on Amazon. This makes it increasingly difficult for sellers to get their products in front of potential customers.

At the same time, marketers are spending more than ever on sponsored products on Amazon. In Q2 of 2018, spending was up 165%, encompassing 88% of spend share on Amazon.

Its easy to see why: Sponsored products result in the highest sales per click out of all search formats on Amazon. Sponsored products are the image ads which appear in a few different places on Amazon. Sponsored products have a subtle ad or sponsored text next to them.

Part of their power comes from the fact that they look so similar to the organic search results. CPC Strategys 2018 Amazon Shopper Behavior Study showed that 65% of your customers dont notice youre serving them an ad and another 25% of your customers actually like the ads youre serving up. These ads can be found on both the side and top of the search results page, and sponsored listings are also found on specific product pages.

These ads work with keyword targeting similar to the algorithms in advertising on Google and Bing. You can either choose the keywords yourself , or Amazon can find your keywords for you automatically.

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Set Different Bids According To Performance And Value

Not all your products have the same profit margin therefore, you cannot bid the same amount for all keywords. Otherwise, youll risk losing money in products that provide low profits. Choose the keywords that have the potential of bringing the most value and bid higher on them.

At the same time, select the keywords related to low-profit products to lower their bid according to your set target advertising cost of sale. After all, your goal is to make a profit, not to lose money or break even.

Also, keep in mind that if your campaigns are new, youll need to set higher bids to gain search history. Without it, Amazon will give preference to other more senior competitor campaigns that have proven to generate sales. Once you gain search history and sales, then youll be able to set your bids back to normal.

How Much Should I Spend On My Amazon Sponsored Ads

To make a profit, dont spend more on advertising campaigns than your margin allows. You can see this very quickly by looking at the ACoS. As long as the ACoS is smaller than the margin, youre still making a profit. In other words, a Dollar spent on advertising will yield more than a Dollar from additional sales. An example:

To calculate the, deduct all relevant costs from the price. In our example, there is still a 20% margin left to spend on advertising campaigns without loss. The so-called break-even ACoS is therefore 20%.

Break-Even ACoS = Profit Margin Before Ad Spend

If you want to leave a , you will have to subtract it from the ACoS to get your target value in our example, the target ACoS is 15%.

Target ACoS = Profit Margin Before Ad Spend Target Profit Margin After Ad Spend

Tip: Your break-even ACoS is calculated automatically for all your campaigns, ad groups, and keywords in the Sellics Advertising module. Immediately pinpoint the campaigns, ad groups, or keywords that are unprofitable and losing your money.

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How Can You Create An Amazon Sponsored Brands Campaign

If you are already using Sponsored Products, this step is as easy as ABCs for you. The only thing you need to keep in mind is that each campaign should include at least three products of the same brand.

Log into your and go to Advertising. Under that select Campaign Manager and click Create Campaign. As we are creating Sponsored Brands, click on the Sponsored Brands.

1. First brick in the wall: The name of the campaign

Dont worry your campaign name is only visible to you, thats why you can name your campaign whatever resonates best with you.

Sponsored Brands: Create Campaign Settings

2. Start and End Date: Do you really need one?

With the special promotions such as Christmas offers and Valentines Day sales, we would suggest you set a start and end date. If your ads are running only for Prime Day, setting the 16th of July as an end date would be wise.

If you wish to run your Sponsored Brands campaign longer, you can set it as no end date. Therefore, your ads will be running constantly.

3. Choose the Right Budget: Lifetime Budget/ Daily Budget?

When determining our budget, we want to make sure that our ads do not only run throughout the day but also that they are displayed on the top of the search results.

If you are running your ads for special times like the Holiday Season, Prime Day, etc., you can select the lifetime budget.

Please note: With the lifetime budget, the minimum amount you assign is 100.

Amazon lifetime budget

Amazon daily budget for Sponsored Brands

How To Set Goals For Your Amazon Sponsored Ads Campaign

Amazon Sponsored Products (Amazon PPC) – Step by Step: Create Your First Sponsored Products Ad

Advertisers running Amazon Sponsored ads ads will already know that it can be very easy to incur a loss on your product if youre not tracking the performance of your campaigns against your costs.

In order to evaluate the performance of your Amazon PPC campaigns, you need to be clear about your goals for running Amazon ads from the outset.

Typically advertisers go for:

  • Maximizing sales or maximizing impressions . In this case, the costs are typically kept at a break-even level which is reflected by the so-called target KPI break even ACoS
  • Generating incremental saleswhile achieving a certain profit margin which is reflected by the so-called target KPI target ACoS.
  • Campaign goal
    General campaigns Calculate your target ACoS

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    Get The Most Out Of Amazon Sponsored Products

    The increase in CPC has become a new trend in 2019 and continuously trending in 2020. As an Amazon seller, you can take advantage of Sponsored product ads by setting specific goals, such as:

    Increase visibility with Sponsored product ads, you can position your ads on the top of search results. This means increasing your visibility significantly. If you use the right keywords to target these ad placements, you can convert more potential buyers and generate more sales.

    Pay only for clicks You only pay when your ads are clicked. This will save you from paying hefty amounts when your ads arent clicked.

    Also, you can use sponsored products as part of brand awareness.

    Why Use Sponsored Ads

    If you want to grow your brand awareness and yearning to build your marketing power then you should certainly start to utilize Amazon sponsored ads effectively.

    Amazon advertising has experienced remarkable growth in 2019. Its market share has jumped up, occupying 50% of the total share in the e-commerce industry. This only shows that the Amazon sponsored product ads and brand ads are the most powerful advertising tools for brands to increase their discoverability and drive more sales.

    With recent changes in the sponsored ads, Amazons footprint in the digital world is picking up. Presently, Amazon offers three different types of advertising solutions.

    • Amazon Sponsored Products
    • Amazon Sponsored Brands
    • Amazon Sponsored Display

    It has become extremely crucial for sellers to outsmart their competitors using paid advertising campaigns mainly because the competition is becoming tighter. As more and more sellers start their business on Amazon it is best to use strategies that will make you rise above them all.

    This article will allow you to see an in-depth analysis of how Amazon Sponsored Products and Sponsored Brands work, as well as all the things you need to know to get started with sponsored ads.

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    Should I Use Amazon Sponsored Products

    The short answer is yes!

    Amazons SP campaigns are very easy to set-up if you have experience with keyword research, or have used a similar advertising platform, such as Adwords or FB advertising in the past. Amazons campaign manager is actually a lot easier to use too. As you do not have to create any specific ads, all that changes is the product listing is shown with the only difference being a sponsored tagline above the product. See the screenshot below.

    The majority of products on top of competitive search terms have sponsored products on top. These companies pay a fee per click through to their products and a certain percentage convert into customers.

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