Amazon’s advertising budgets have been increasing with over 50% of Amazon shoppers searching for new products. This question is about what types of Amazon ads you should use to increase sales and decrease the Advertising Cost of Sale (ACoS). This guide will explain how to understand Amazon ads in each category. A personal recommendation can be requested. Contact us online Contact us Talk to one of our award-winning strategists at Amazon’s advertising agency.
What kinds of Amazon ads do you have?
Amazon Advertising has three types of ads:
- Sponsored Product Ads
- Sponsored Brands
- Display ads for products
You can read more about each ad below. Read on to learn more about each ad, from its purpose and cost to its appearance.
Sponsored Product Ads
This Amazon advertisement promotes products in search engine results. Due to increased consumer attraction and the potential for conversion, these ads have seen an increase in spending on Sponsored Product Ads.
What’s sponsored product advertising?
Sponsored product advertisements are pay-per-click (PPC) advertising that promotes one product.
Sponsored product ads let you target keywords that are relevant to your target customers. Automatic keyword targeting allows you to target keywords related to your products.
You pay only when people click on your sponsored product ads.
Where can sponsored product ads be found?
Amazon offers Sponsored Product Ads on Mobile and Desktop Devices at the Following Locations
- The search results will be displayed on the right side
- Scroll down to the bottom of the search results
- On product details pages
Sponsored product ads allow you to target your audience by appearing at the top search results. These product ads encourage buyers and sellers to purchase your product in the end.
Who is eligible to sponsor product ads?
Sponsored product ads can only be viewed by the following parties:
Amazon requires that you have an Amazon account regardless of whether you are a seller or author. To use Sponsored Product Ads, you must ship to all U.S. addresses.
Register to become a vendor to use this type of Amazon ad:
- Hardlines vendor
- Softlines vendor
- Media vendor
- Books vendor
- Consumables vendor
- Vendor Express, Supplier Express vendor
You must meet three standards to promote any product with Sponsored Products Ads.
Products must be new and eligible to receive the Buy Box. Sponsored product ads can be found for over 30 product categories including electronics and pet supplies.
The majority of products are eligible to receive Amazon Sponsored Product Ads.
How much does sponsored product advertising cost?
Amazon requires that Sponsored Products Ads not exceed $1 per day. Companies spend an average of $1 per day to promote products.
Keywords are the most important element in determining the cost of Sponsored Product Ads. If you bid on keywords with a high cost-per-click (CPC), and high competition, expect to pay more.
With marketing technology such as ContentGeniusFX, your team can optimize the ACoS.
Kobe Digital clients are the only ones who can access this software. This software uses machine learning to predict high-value keywords and make recommendations for advertising strategies.
Why use sponsored product ads?
Sponsored product ads let you reach shoppers as they search for products. These products are most likely to be the products that shoppers want to buy. Reporting software can help you track the performance of your ads.
Sponsored product advertisements are another reason to make use of them.
Green Gobbler illustrates this. This company wanted to reach more people looking for a sustainable and affordable way to maintain their homes.
Green Gobbler achieved its goal using sponsored product ads.
Sponsored Product Ads now earn 30% of the company’s monthly volume.
How do you create sponsored product ad campaigns?
These steps will assist you in creating a sponsored product ads campaign.
- Log in to your Amazon Advertising Account — also known as Amazon Marketing Services.
- Select “Choose Campaign Type” then “Sponsored Products”.
- You have two options to search for products that you wish to promote: a search or a list.
- Enter your campaign name, average daily earnings, campaign length, and campaign duration.
- Bids are placed for keywords that you recommend from Amazon or your custom keyword list.
- Click “Launch Campaign”.
Your campaign should be visible across the platform within one hour of being launched.
What are some best practices for sponsored product ads?
These tips will allow you to get the most from your sponsored product ads
- Use negative keywords. You can decrease low-value clicks by adding a negative keyword to your Sponsored Products Ads. Stop Amazon from showing ads for certain keywords.
- If you have never advertised on Amazon before, automatic targeting can be a great option. This information is valuable for your business, especially if you have never advertised on Amazon before.
- Bid+ is a great option. Bid+ increases your bid by 50 percent so that your ads are more competitive and appear in search engine results.
Get assistance with optimizing sponsored product ads and your whole Amazon advertising strategy by Kobe Digital.
Sponsored Brands
Many vendors and sellers are more familiar with sponsored brands as Headline search ads. Amazon has changed the name of this advertisement to better reflect its purpose.
What is a sponsored brand?
Sponsored brand advertising is a way to highlight your brand and up to three products.
Sponsored brand ads follow the same PPC advertising method as other types of Amazon ads. Users click on your ad but it doesn’t cost Amazon anything.
Sponsored brand keywords also include keywords. You might target keywords such as “goat soap”, but not “camel soap”.
Amazon ads can feature manual or automated bidding. Manual Bidding: Your advertising agency will manage your keyword bids.
Where can sponsored brands be found?
Amazon displays Sponsored brands at the following locations
- These are the results from your search
- Search results will be displayed to the left
- These are the results from your search
Sponsored brands are also displayed in search results when you open the Amazon app for your mobile device.
Sponsored brands can be accessed by anyone.
Amazon allows professionals and retailers to use sponsored brands to advertise new products.
Additional requirements for Professional Buyers
- Register in Amazon Brand Registry
- Account active
- All addresses within the U.S. can be shipped
If you’re a Retail Sales Seller, you must meet at least one of these requirements:
- Hardlines vendor
- Softlines vendor
- Vendor Express, Supplier Express vendor
- Media vendor
- Books vendor
- Consumable vendor
- KDP author
What’s the cost for sponsored brands?
Amazon requires Sponsored brands to have a minimum daily budget. This means you can expect to spend no more than $30 per campaign.
Most likely, your team will spend more than $1 per day on their Sponsored brands campaign.
It’s important to bid on keywords that are relevant to your brand or product.
This allows your team to identify low-competition keywords and high-value keywords. A better keyword strategy can help your company optimize its bids, lower its ACoS, and maximize its success using Sponsored Brands.
Sponsored brands – Why should you use them
A sponsored brand allows your company to raise brand awareness and increase sales. This increases the visibility of your advertisement over search results.
You also have the option to create your landing pages
A landing page is a way to make your brand stand out. Creating a landing page allows you to make it easy for customers to find you and your products.
Sun Products is a manufacturer and distributor of household care products, such as fabric softeners and laundry detergent. Sponsored Brands are revolutionizing Sun Products’ Amazon sales.
Sun Products spent more than $23,000 advertising on Amazon last year, which resulted in a 500% ROI.
This also confirms the value of advertising on Amazon Sun Products.
How do you create a sponsored campaign for your brand?
These steps will assist you in launching a sponsored brand campaign.
- Log in to your Amazon Advertising account
- Click “Choose Campaign type” and then “Sponsored Brands”.
- Choose your Sponsored Brands landing page. This page can be your Amazon Store or any eligible product.
- You can set your campaign name, budget, and bid
- Select your campaign length and pace
- Add keywords to and bid
- Your headline for your ad
- Upload your ad image, at least 100×100 pixels
- Submit your sponsored brands to
Amazon approves sponsored brands within 24 hours. It can take up to 72 hours.
What are the best practices for Sponsored Brands?
These tips will help you increase the profitability and performance of your Sponsored brands.
- Target 30-40 keywords. Amazon recommends that businesses target between 30-40 keywords when it comes to Sponsored Brands. This will allow your business to reach a wide audience of people who are likely to buy your product.
- A/B Testing can be used to improve ads. You can try different headlines or images. You can also test the products within your Sponsored Brands.
- Use actionable headlines. Make actionable headlines.
These best practices apply to Amazon advertising campaigns to increase sales and ACoS.
Product Display Ads
Sponsored Brands and Sponsored Product Ads are a popular focus for many businesses. Product Display Ads are a great way to advertise on Amazon. These ads highlight specific products and categories that will help you get your product noticed.
What’s Product Display Advertising?
Product Display Ads use PPC to promote products, targeting shoppers’ interests and similar products
These targeting options can be referred to as product or interest-based targeting from Amazon
- Interest-based targeting: This is where your team targets customers based on their larger interests. It allows you to reach a wider audience and helps build your brand. This can have positive impacts on your bottom line.
- Product-based Targeting: You can target similar products to your competitors or market your product as an add-on.
Product Display Ads offer a new approach to Sponsored Brands and Sponsored Products Ads. These ads target your target customer in a new way than Sponsored Brands or Sponsored Product Ads. Instead of focusing on keywords, they look for similarities between your product and shopper’s interests, product categories, and individual products.
Product Display Ads function in the same manner as Sponsored Brands or Sponsored Products Ads. They use a PPC advertising model, so you don’t have to bid for keywords.
Where are product display ads found?
Amazon displays Product Display Advertisements at the Following Locations
- Related product detail pages
- Customer Review Pages
- Merchandising emails
View Product display ads on Amazon outside of Amazon:
- Amazon websites, including IMDb
- Amazon devices, like Amazon Fire TV
- Amazon Demand-Side Platform (DSP)
Product Display ads can help you reach a wider audience.
Who can display product ads?
Only the following Amazon sellers can view product display ads:
- Hardlines vendors
- Softlines vendors
- Vendor Express and Supplier Express vendors
- Media vendors
- Book vendors
- Consumable vendors
- KDP authors
How much do Product Display Ads cost?
Amazon will require that you have a minimum daily budget of $1 for Product Display Ads. Amazon does not bill your company at the end.
Keywords do not affect product display ads. Keywords are not the only thing that affects product display ads’ cost.
Experience is key to navigating the complicated world of Product Display Ads. We have over 225 Amazon Marketing Specialists available to assist your company with creating a Product Display Ads budget.
Why are product display ads used?
Product display ads allow you to cross-sell and upsell products to customers within your target market.
Linspa is a case that illustrates the immense value of Product Display Ads.
Linenspa is a brand of sleep products. Linenspa wanted to re-engage and convert customers who expressed an interest in their products. Linenspa used Product Display ads to accomplish this.
Amazon’s average daily sales doubled and their Return on Ad Spend was almost twice that of their search campaigns. This proves that Amazon advertising can be multifaceted to get the best results. It compensates for any gaps in an advertising strategy.
How do you create Product Display Ads campaigns?
These steps can help you create product display advertisements.
- Log in to your Amazon Advertising account
- Click “Choose Campaign Style” and then “Product Show”.
- Select between “Product targeting”, and “Interest-based Targeting”.
- Select the product you want to promote
- Choose the products and interests you want to target
- The campaign name, budget, and bid are all crucial.
- The start date and pace of your campaign are determined
- Your headline for your ad
- Upload your brand logo
- Send your campaign for review
Amazon approves Product Display Ads almost instantly, just as Sponsored Brands.
What are some of the best practices for product display ads?
These tips can help you increase your product display ads’ competition
- Add Vendor Powered Coupons to your Vendor Central Account (VPC). This allows your team to create VPCs and encourage people to click on your ad to buy your product.
- Amazon recommends that Product Display Ads are displayed continuously. More than 50% of Amazon shoppers purchase more than one time per month. A campaign that is active 24/7 has a higher chance of generating clicks or sales.
- Product- and interest-based targeting: To increase the reach of Product Display Ads, your team can create campaigns that combine product- and interest-based targeting.
These strategies can help your team maximize the effectiveness and performance of your campaign.
Want to make Amazon ads more effective and lower your ACoS?
Kobe Digital can improve your Amazon advertising.
