by Ecommerce continues to dominate several industries as more businesses shift to online marketplaces, like Amazon, to reach a broader market and drive sales greater than ever.
With more than 300 million active users worldwide, Amazon has become an effective tool for companies looking to market their products to a bigger audience. However, competition is getting tougher every day. As such, businesses must find ways to stand out and give themselves a competitive advantage.
Let’s take a closer look at the ecommerce giant and how to use its capabilities to boost metrics and reach your advertising goals.
How Does Amazon Advertising Work?
Amazon Advertising places products in front of the right people. This service allows businesses to reach potential customers and increase the likelihood of conversions. To do this, Amazon holds biddings on relevant keywords so that when a shopper searches for them, their algorithm will display winning ads on the results pages.
The platform also offers several advertising options depending on your goals. After launching, you can monitor ad performance to adjust and optimize for greater return on investment (ROI).
Common Types of Amazon Advertising
As mentioned, Amazon has several advertising options, each with unique features and benefits. Choosing the right one based on your target audience and goals is essential to ensure a successful campaign and minimize unnecessary expenses. Here are some of them.
Sponsored products
This widely used advertising approach displays keyword-targeted ads at every step of their customer journey, from shopping results to product detail pages. Ads appear like regular product listings but with a ‘Sponsored’ label. This option provides optimal visibility and control over the campaign’s cost and duration.
Sponsored brands
This format displays keyword-targeted product listings, headlines, and logos in search results and other site locations. It’s an effective way to boost visibility and brand awareness for a more engaging customer shopping experience.
Sponsored display
Displays and banners target potential customers inside and outside of Amazon. It uses customer interests and browsing behavior to determine where to list ads. Sponsored displays are best for customers in the consideration stage of the customer journey to make your products stand out over competitors.
Video ads
Amazon allows businesses to promote their products through targeted video content on its ecommerce platform and devices, such as Alexa and Fire TV. It’s a more engaging way to connect with customers and works best with other formats for more comprehensive advertising capabilities.
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Benefits of Amazon Advertising
With a revenue of $32 billion in 2022, advertising on Amazon is proving to be a successful endeavor for enterprises worldwide. Let’s explore some benefits to expect from using the ecommerce giant to grow your brand.
Targeted advertising
Amazon enables ad targeting based on customer search queries, browsing and purchase history, demographics, and other pertinent factors. This level of targeting allows businesses to place their campaigns in front of shoppers more interested in their products. In effect, they can increase the likelihood of conversions.
For example, pet products businesses can target ads specific to shoppers who have recently searched for pet food or toys.
High-intent shoppers
Many shoppers are on Amazon to look for and buy something. These high-intent shoppers are more likely to convert into paying customers, which means they’re more likely to be interested in and engage with relevant ads. Leveraging Amazon lets organizations reach this customer type, thus, increasing conversion rates and reaching their advertising goals sooner.
Product visibility
Thanks to its large user base, Amazon presents an opportunity for ecommerce enterprises to access a broad market to boost sales. The ad formats discussed earlier and Amazon’s search engine optimization (SEO) tools can place products in front of the right people. This way, they can improve visibility to customers actively searching for similar products.
Cost-effective advertising
Amazon operates on a pay-per-click (PPC) model. Advertisers only need to pay each time a shopper clicks on their ad. Advertisers may also set budgets—reaching them takes the advertisement off the platform, preventing overspending. This system makes Amazon a cost-effective option, benefitting small businesses and entrepreneurs looking to build their foundations online.
5 Amazon Advertising Best Practices
Do you want to enjoy Amazon Advertising’s benefits? Here are some considerations for launching a successful campaign on the ecommerce platform.
1. Set a realistic budget
Before drafting any campaign, the first thing to do is set a budget. Going too low may limit the ad’s reach, while too high may result in overspending and lower ROI. To determine your ideal budget, consider your advertising goals. Are you looking to increase sales or drive brand awareness? Goals should guide budgeting strategies, as some campaigns require significant investments.
2. Conduct thorough keyword research
Good keywords take your campaign to the right customers. Keyword research is essential to identify the most relevant and high-traffic search terms related to your products, typically including well-known competitor keywords. For instance, if you sell hiking bags, consider using “Decathlon hiking backpacks” to target Decathlon’s search visibility.
3. Write compelling ad copy
A persuasive copy is critical to any campaign because it encourages audiences to add the product to their carts for purchase. So, you must first study and understand your target customers. Doing so can help you tailor the copy to what resonates with them. Then, use action-oriented terms, like “buy” or “now,” to create a sense of urgency in your call to action.
4. Experiment with other ad formats
While the formats discussed earlier are the most popular on Amazon, others may better meet your advertising goals. For example, Amazon Stores offer merchants a branded URL and storefront customization to highlight their enterprise and provide metric tools for more hands-on performance tracking.
Also, consider combining different formats if you have the budget for more comprehensive campaigns.
5. Monitor campaigns regularly
After launching the campaign, monitor its performance regularly to determine what works and what doesn’t. This information lets you adjust the copy, format, placement, and budget for better ad optimization.
Next, measure your metrics, such as click-through rates and conversions. These details can give you a thorough idea of the ad’s development, letting you adjust bidding strategies and campaign settings accordingly.
Elevate Your Business with Amazon
Undoubtedly, Amazon has sophisticated and budget-friendly advertising capabilities. This eCommerce giant helps businesses resonate with their audience and achieve their goals. The platform is a powerful tool for companies looking to improve their marketing strategy, drive more sales, and grow their business over time.
Hence, it’s no surprise that Amazon’s user base is constantly growing. The time may come when it becomes necessary for success—so implement the best practices discussed in this guide to Amazon advertising, giving your brand an edge as early as today.
