Tuesday, September 27, 2022

What Is Sponsored On Amazon

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The Weird Thing About Auto

What are Amazon Sponsored Products Ads? | Amazon 101

We just stressed that an ad group needs to be either a product targeting or a keyword targeting ad group, but that doesnt apply for auto-campaigns.

With an auto-campaign, you can have an ad group with product targeting AND keyword targeting. On a search term report for an auto-campaign, you will see both search terms and ASINs. The ASINs are coming from complements/substitutes and search terms on the report come from close-match and loose-match targets. Learn more about close-match and loose-match targeting options here.

However, while both targeting types can be used in an auto-campaign, negative targeting for auto-campaigns still only applies to keyword targeting.

So how do you use this information and actually create the right campaigns and ad groups?

We recommend that sellers treat complements and substitutes as dead when it comes to auto-campaigns. Only let your auto-campaigns target close-match and loose-match search terms.

To deal with ASIN targeting, create a manual campaign that targets categories that would be complements and substitutes for your product. Do some RPSB with your results, and you should be set.

How To Make A Video

Again, a product video is not cinema verite. You can use your phone to record the product in action. Alternatively, you could take a couple of photos to assemble in a slide show. There are a variety of apps available, many of them free, to edit your raw footage and add text. Keep in mind that the file format must be .MOV or .MP4. Once you are satisfied with the production, you can set up the video ad with Amazon.

Launching Products Is Easier With Amazon Sponsored Products

As we mentioned earlier, launching a new product on Amazon is difficult because your product will only rank in the search results after you make sales, but sales are tough if the product doesnt rank.

Fortunately in this case, you can buy a seat at the top. In five minutes you can set up your Sponsored Products campaign and get shown to hundreds of thousands of Amazon customers per day. Thats a lot.

Once you prove to Amazon that customers want your product, youll see improvements in your organic ranking and sales will follow. Remember, Amazon just wants happy customers so if your product sells, they will reward it with ranking.

This is why the quality of your listing is so important. Quality listing = high rankings that last. You will have to pay more for ads during your launch but it will pay off later in organic sales.

To illustrate: We recently helped launched a brand new product into a competitive market. With a strong S ponsored Products campaign, we moved up to Page 2 within one week and Page 1 within 16 days for one of our main keywords. Were still on Page 2. This would never had worked without Sponsored Products.

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What Is Changing For Sponsored Products Targeting

Sponsored Products has expanded to include several new keyword and product targeting capabilities including:

  • Enhanced Auto Targeting , only available in auto SP campaigns
  • Product Attributes Targeting , only available in manual SP campaigns

Now there are 4 different default targeting options within auto campaigns including:

  • Loose Match / Close Match: This option allows your ad to be shown in the search results if your ad product closely or loosely matches searches results from shoppers.
  • Substitutes / Complements: This option shows your ad on the detail pages of products that are substitutes or complements of your ad products.

Introducing Product Targeting: The first big change is that advertisers will be able to target customers by product . Advertisers will be able to target either specific ASINs or categories and apply refinements by price, brands or star rating.

Improvements for Auto-targeting: The second new feature is an improvement to Sponsored Products auto-targeting. Now, negative targeting will allow advertisers to choose product auto-targeting or keyword auto-targeting.

You can learn more about these recent targeting options via our recent announcement:

Bulk Operations And Product Targeting

New Amazon Sponsored Display Ads: 2020 update

Bulk operations for keywords are super easy, but ASINs are a little different. For ASINs, there are some formatting changes that youll have to do when adding ASINs to bulk operations.

If you just put the ASIN in the target section of the spreadsheet, you will get an error when uploading because the target section is *usually* for keywords.

When adding ASINs to your bulk operations file, youll have to put the right stuff in the Product ID, Target, and Match Type boxes.

  • Product ID: ASIN = The specific ASIN you are targeting
  • Target: ASIN = The specific ASIN you are targeting
  • Match Type: Targeting Expression
  • For a negative ASIN: Negative Targeting Expression

In addition, you cant create a product targeting ad groups in bulk operations. If you are creating a new campaign in a bulk operations file, you can pick between keyword or product targeting. For ad groups, this choice doesnt exist and the ad groups must be created manually in Amazon.

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Are Amazon Sponsored Products Worth It

Amazon charges a monthly subscription fee of $39.99 for your Professional selling plan. This is mandatory for Amazon Sponsored Products.

Is the subscription cost plus the CPC costs for ads worth it? Is the ROI justified?

Think of it this way, if you plan to sell fewer than 40 items a month, the Individual plan may be best for you. There is no monthly subscription fee. Instead, Individuals pay $0.99 per item

However, if you do sell 40 items or more a month the Professional Plan is well worth it . As far as the Ad costs go, the average CPC on Amazon is substantially low compared to Google, Bing etc.

The low Cost Per Click along with the fact that more than 44% of buyers search for products on Amazon first, this isnt an opportunity you want to miss out on.

When done right, Amazon Sponsored Products give great ROI and are well worth it.

Sponsored Brand Ads Updates

Taller Mobile Carousel

Since the majority of people are using their mobile phones frequently, Sponsored brand ads changed the way they appear on the mobile platform. The ads are bigger and are available in the mobile carousel format. This format is also a bit similar to the format available on the Facebook platform.

Suggested Bids

In sponsored brand ads, suggested bids will give an understanding of the visibility of the keywords that have at least one click and how they performed. The suggested bids will help you to identify the keywords that go well with the buyer search criteria.

Amazon Store Spotlight

Amazon storefronts stand as a mini-version of your websites. Thus, the need to create brand stores is of utmost importance.

Amazon store spotlight is a new ad format that creatively highlights a brands store. This will enable you to drive more traffic to your brands store and its subpages. Its up to you to decide which pages or categories you want to drive more traffic.

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Upgrade To A Professional Seller Account

  • Go to your Seller Account.
  • Under the Settings heading, click the Account Info link.
  • On the Seller Account Information page, go to the Selling Plan section and click the Modify Plan button.
  • On the next page, click the Upgrade button.
  • Review the information on the next page and click the Proceed to Upgrade button to accept the terms and switch your plan.

After clicking theProceed to Upgrade button, you will be returned to your Seller Account Information page and see a message indicating that the upgrade process has begun.

Your subscription to the new selling plan will begin immediately, and additional links to Professional seller tools will appear on your Seller Account page.

Some billing features may take up to 30 minutes to become effective. After you upgrade to a Professional Seller Account, Amazon no longer charges 0.99 cents per item sold via ads.

How Much Does It Cost To Run A Sponsored Products Campaign

What is Amazon PPC Campaign & Sponsored Ad Strategy Guide for Beginners in 2020

Sponsored Products run on a cost-per-click pricing model. This means that the overall cost of your campaign is dependent on how much you decide to bid for each click. Youâll only need to pay once a shopper has clicked on your ad.This auction-style model means that the higher a bid, the better the chances of your ad being surfaced upon a given search. Therefore, set your bid to the maximum youâd be willing to spend per click.Keep in mind that product relevance remains crucial here. No matter how high the bid, a hat will never surface under a search for a kitchen appliance.Now that weâve covered all the basics of Amazon Sponsored Products, letâs dive into how you can get your first campaign up-and-running.

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How To Create An Amazon Sponsored Products Campaign

As a company who employs several Amazon PPC experts, weve written a lot on the subject of and in general. This is our speciality. But Amazons PPC & advertising platforms are a massive opportunity when implemented correctly.

Before we get started on how to actually build an Amazon-sponsored products campaign, we wanted to take care of some FAQs that get asked by clients. Generally speaking, Amazon PPC optimisation is an incredibly effective way to generate sales at a very low ACoS. As a result, we recommend all Amazon sellers build a campaign.

This is especially the case in the early days, as a successful PPC campaign will allow you to boost your organic rankings in the long term.

What Is Conversion Rate

Conversion rate on Amazon is the percentage of clicks on your ad that convert into sales.

The average conversion rate on Amazon is 9.87%. Of course, like all metrics, these averages are widely different based on the niche. This percentage is the most up-to-date number, taken from the Ad Badger App that serves hundreds of different niches.

Its important to note that more expensive products will typically have lower conversion rates as customers like to shop around and compare products before making their final decision to purchase.

Average Amazon PPC Conversion Rate

9.87%

NOTE: the average eCommerce conversion rate for websites other than Amazon is about 1.33%. This means an average conversion rate of 9.89% speaks volumes about the power of Amazon. These audiences are coming in hot at the bottom of the funnel and ready to buy.

Furthermore, according to the graph below, conversion rates are routinely in 7-10% range, which is by far better than the previously mentioned 1.3% stat from non-Amazon sites.

Conversion Rates in Context

  • Larger time frames and sample sizes increase the accuracy of conversion rates. After all, more data is always better.
  • Strong and numerous competition lower conversion rates because customers have more quality options to choose from.
  • Profit is king. No matter how good your conversion rate, it doesnt matter if you arent making any money. Always check to make sure higher conversion rates are actually pulling in enough revenue to offset any expenses.

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What Do Sponsored Display Ads Look Like & Where Do They Show

Based on the targeting options you select, your ads can run on Amazon desktop and mobile, both on detail pages and across other Amazon pages.

Your ads can be configured to reach audiences off Amazon across third-party publishers. Amazon uses brand safety tools to help deliver your ads to trustworthy placements next to appropriate and relevant content. When shoppers click your ads, they are directed to the product detail page.

Campaign reporting shows campaign performance alongside Sponsored Products and Sponsored Brands.

Sponsored Display Ads can show up in the same ad placements as traditional SP Product Targeting Ads and Display Ads . The ad placements available to Sponsored Display ads are currently above the fold on product detail pages and can show up below the product information bullets or below the buy box.

Courtney Macfarlane, Senior Amazon Specialist at Tinuiti

Sponsored Display Ads are often prioritized over SP Product Targeting Ads for the above the fold ad placements. SP Product Targeting ads now appear more often in the Sponsored Products related to the carousel and on the SERP based on the relevancy of targeted products or categories. Because of these changes, launching Sponsored Display ads targeting ASINs is a no-brainer, explains Macfarlane.

Amazon Sponsored Products Ad Benchmarks Data

Amazons Sponsored Display is Finally Available for Sellers!

Sponsored Products have always been an important part of any sellers marketing strategy. Their valueand the demand for themhas been increasing in recent years.

According to Tinuitis Amazon Benchmark Report for Q3 sales revenue attributed to Amazon Sponsored Products grew 30% year-over-year, with spend increasing by the same figure driven by an 18% increase in clicks and 10% increase in cost-per-click .

Source:

Increases in average CPC have been the norm in 2019, which isnt necessarily a bad thing. The costs are increasing, but so is the value for Sponsored Product Ads. Brands are paying more for their sponsored ads, but the payoff is growing exponentially greater.

At AdDiego, Pat Petriello, Director of Amazon Strategy shared the story of one Tinuiti customer whose CPC rose by 23%, but whose ad sales rose by 261%.

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Stage 2 Implementing Keywords

This is essentially on-page optimisation for the listing. If you do not have a well-optimised product page, then you will not convert very well. This all means that you will be spending a lot of money to make very few sales. We get fully onto CRO and what needs to be in place before you launch a campaign in the next stage. However, for your listing to convert for the keywords you found, they will need to be in the listing from the start. For instance, if we have a bunch of keywords we want to rank in Amazons search engine, then prospects search this, they would expect to see these keywords in your title, bullet points etc. It is not only important from an Amazon rankings point of view, but also for a customer conversion too.

We will be writing a full guide on how to implement keywords into a listing, as well as perfect on-page optimisation in the near future, so watch this space.

Amazon Dsp Vs Sponsored Display

One of the exciting yet overwhelming aspects of is the number of available ad types. Amazon regularly adds new ad placement options for advertisers such as Sponsored Display ads and DSP.

and Sponsored Display ads are especially important for increasing reach and targeting ads both on and off Amazon. Both of these ad types support advertising on different platforms other than Amazon.com, such as third-party exchanges, published partners, Fire TV, Kindle, , streaming services, and other apps. However, they differ in terms of eligibility, cost structure, and the amount of control advertisers have over creative.

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The Figures On Amazon Sponsored Ads

According to advertising tool Ad Badger, businesses spend an average of 34c on Amazon ads to make $1 in sales.

It would appear that retailers are pleased with this level of return, as a recent study showed that 40% of retailers believed sponsored ads on Amazon have a better ROI than ads on Google or Facebook.

Amazon sponsored ads do seem to have a higher conversion rate than other platforms. Merkles Digital Marketing Report for 2019 found Amazon significantly outdid Google Shopping.

Of course, whether or not you invest in sponsored ads on Amazon will depend on your budget and business model. If youre operating within very tight margins, it may not be suitable.

Ad Badger says the average Cost-Per-Click of Amazon Ads was 97c in 2019. Whereas, ecommerce merchants spent an average of $1.16 per click on Google search ads and 45c per click for ads within the Google Display Network. This should give you an idea of how other sellers allocate budget relative to other PPC channels.

Why Should I Use Video In Sponsored Brands

Amazon Sponsored Products (Amazon PPC) – Sponsored Products: Amazon’s PPC Advertising

There are many good reasons to use video in general, but the Sponsored Brands program is especially attractive for the following reasons:

Differentiated Video in sponsored ads will allow you to both stand out more to mobile / desktop users and telling your brand story in a more complete and compelling way.

Relevant You can more easily reach customers searching for similar products through the effective use of keyword targeting.

Integrated If you know how to use the Sponsored Ads creative builder, then video ads are easy to set up. Simply upload your completed video the same way you would do so for your other creative assets.

If a shopper is looking for a specific product, make sure your Sponsored Brands ad gets them to that product. If its broad, its best to get them to page with a greater selection to help them make their decision.

Courtney Macfarlane, Senior Marketplace Channel Analyst at Tinuiti

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Amazon Sponsored Products: Everything You Need To Know

for the past few years, helping them to dominate the search results. If theres one thing we learned, its that Amazon Sponsored Product Ads are one of the most effective ways to increase conversion rates and discoverability for your products. Thats why we incentivize sellers to have ads on Amazon and sponsored products.

, search results competition will likely dramatically increase over the next few years.

If you learn how to work the ins-and-outs of a Sponsored Product Ads strategy now, youll be well ahead of your competitors.

In fact, Amazon has tons of success stories on how their customers used SPAs to scale their business. Some of my favorites include Empire Cases and ExportX. According to a report from Merkle:

Sponsored Products accounts for the majority of ad revenue, 88 percent, that Amazon makes from search-based advertising.

Merkle

As you can see, SPAs live up to the hype and The Badger is going to teach you how to master it. You can look forward to learning about:

  • Ad Badger simplifies your Sponsored Product campaigns
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