Amazon’s market share has grown exponentially, with more brands shifting their attention to Amazon Advertising.
Brands can no longer ignore the power that Amazon has when it comes to marketing directly to consumers.
After all, $0.51 of every ecommerce dollar is spent on Amazon.
And more product searches are done on Amazon than on Google.
Over the years, Amazon has grown to become the third largest advertising platform – and for good reasons.
While initially, simply having your product on Amazon was enough to start to win sales, today, if you want to be successful on Amazon, you must participate in their advertising programs.
Why Brand Should Focus on Amazon Advertising
The Amazon search algorithm is complex.
Lots of factors come into play when trying to rank your products in Amazon search.
Also, Amazon has been cracking down on reviews and rank manipulation.
To stay compliant a lot of marketing energy that was previously focused on gathering reviews has shifted to advertising on Amazon.
Rather than focusing on discounted products for reviews – or, even worse, incentivized reviews – you can use Amazon Advertising to get initial conversions.
This leads to product reviews as your sales velocity increases.
This allows you to get the traffic and conversions you need for your product to be ranked organically.
When working with products on Amazon, the ranking problem is solved by combining Amazon advertising with different promotional offerings that Amazon offers (e.g., clippable coupons).
Initially, after launching a product, you will heavily rely on Amazon advertising to rank your product on the first page.
However, if your product is optimized correctly, your reliance on Amazon advertising will decrease with time.
Nevertheless, you might still need to carry on some advertising even after your products have ranked high to protect your digital real estate or from competitors who might still be using Amazon advertising.
The more niche your product is, the less you will likely have to spend on advertising on Amazon’s platform.
However, for most products, I have found that at present the cost to advertise on Amazon is significantly less than other advertising platforms like Google Ads.
Should You Advertise on Amazon?
If you already have a product that can sell online, then you can advertise on Amazon.
Amazon offers you a way to get your product in front of shoppers at a much lower cost than competing advertising platforms.
You can start with a product that already sells well and measures your ROI before adding other products.
Over the last several years, Amazon Advertising has had a variety of changes, and recently, they renamed some of their products.
Here are four ways to advertise on Amazon.
1. Sponsored Products
This is the most popular method of advertising on Amazon.
Brands have used this powerful tool for many years to automatically and manually target shoppers.
Here, you can use different match types that are familiar to you as an advertiser – broad, phrase and exact match, as well as negative keyword matching.
Any seller on Amazon Seller Central, Kindle Direct Publishing, or Vendor Central platform can participate in the Sponsored Products program.
Amazon has been rolling out additional targeting options on its Seller Central platform such as Product, Interest, and Category Targeting.
It is rumored that even more match types might be available to advertisers in the near future.
While the match types mimic Google’s advertising platforms, there are some nuances to Sponsored Products.
Before setting up your campaign, check the following to make sure that your campaign will run:
Own the Buy-Box
Your ad will not run if you do not have the buy box for that product.
This means if a brand is selling a product directly and there are third-party sellers in the buy box, the brand will be unable to run any Sponsored Products Ads for that product.
Before you create your campaigns, I recommend that you check your current Buy-Box percentage on a product.
You can view your Buy-Box percentage by viewing the Detailed Page Sales and Traffic by Child Report.
In Seller Central go to Reports > Tab > Detailed Sales and Traffic.
Here, you will see whether you have a significant percentage of the Buy Box to run ads.
It is possible to be the only seller of a product and still not have the buy box is if your item has a suppressed buy box.
In order to protect the customer experience, Amazon will sometimes suppress the Buy Box because Amazon feels that the price for that product is too high or they believe the product is available on another site for cheaper.
Your ad will only run for words that Amazon feels your product is relevant.
For any keyword you use, your product needs to be indexed for the keyword being targeted.
There are several tools on the market to check for keyword indexing on Amazon, and you can also check your keywords manually by doing a search for the ASIN plus the keyword you are looking to verify indexing.
Some Amazon PPC agencies use the keywords farmed while using an Automatic Sponsored Products campaign to verify indexed keywords.
2. Sponsored Brands Programs
Headline Search Ads were rebranded as Sponsored Brands in September.
The program is available to those on Seller Central who have registered their brand with the Brand Registry program and those on Vendor Central Platform.
Also read: 6 Best PPC Practices to Check Out in 2019