A Beginner’s Guide To Amazon Advertising

A Beginner's Guide To Amazon Advertising
A beginners guide to Amazon Advertising

Is Amazon Advertising taking over the world of online shopping? We believe so when you consider the figures!

There are almost 400 million active Amazon users globally, and this number is growing every day since it is easy to buy and sell things through Amazon Advertising.

It’s primarily because 2022’s technologically savvy shoppers will spend half of their income on Amazon purchases, and there will be no stopping them.

It’s difficult to resist the ease and affordability of Amazon, whether it’s stocking up on tissue rolls, purchasing random kitchen items, or ordering our favorite munchies with a click of a button. So, it only makes sense to list your products on Amazon and see your sales skyrocket!

Today, with the help of our Blue Dragon Digital Marketing professionals, we will provide you with a detailed beginner’s guide to advertising on Amazon.

What Is Amazon Advertising?

What Is Amazon Advertising?
What is Amazon Advertising?

Let’s start with the figures to truly comprehend how businesses might benefit from Amazon ads.

​​Although it only accounts for a small portion of Amazon’s revenue (about 7%), advertising is one of the divisions expanding the fastest, with a 32 percent increase in the fourth quarter when the company first separated its ad business. 

The tech behemoth keeps reducing marketers’ search costs, primarily going to Google.

Both Google and Amazon use similar algorithms for ads. Let us break it down.

Amazon search engine works similar to that of the Google search engine.

When you enter a query into the Amazon search bar, and results emerge, some of the top results will be sponsored products, referred to as Amazon Advertising/Amazon advertisements.

You can identify the sponsored search result by checking for the term “Sponsored” or “Ad” near the search result.

By placing bids on specific keywords, advertisers can purchase top spots and raise their products’ visibility on Amazon, increasing their visibility in the Amazon SERPs (Search Engine Results Pages). 

When a customer clicks on the advertiser’s ad, the advertiser will subsequently be charged. 

A product’s page can also contain Amazon advertising. An advertisement for sunglasses, for example, can typically be seen on the far right side of the website when looking for a hat. 

There are even more ads as you scroll down the page! Beyond these sponsored search posts, Amazon offers a variety of advertising possibilities, some of which we’ll go through in this guide.

Why Choose Amazon Advertising?

Why Choose Amazon Advertising?
Amazon Advertising can help you boost your sales.

You might assume that investing in Amazon Advertising is unnecessary if you are already on track with Digital Marketing and have a website where you sell your products and services. 

You could be right, but allow us to explain why we don’t think only having a website is enough. 

Or, even better, read on to know more about the advantages of starting your own Amazon Advertising campaigns and selling your goods on Amazon.

According to studies, most users begin their product searches on Amazon directly, skipping Google or any other search engine

As a result, you will lose out on potential customers because they won’t even get the chance to view your products. 

Additionally, consumers don’t only shop on Amazon; they visit the page to find inspiration. 

In other words, even if consumers decide not to buy your products, they will still see them, which helps create brand awareness. 

The Mechanics Behind Amazon Advertising

 

The Mechanics Behind Amazon Advertising
Understanding the mechanics behind Amazon Advertising in detail

The Amazon Marketing Service (AMS) is a self-serving platform provided by Amazon where you can advertise your goods. 

You don’t need to set up a separate account to use Amazon Marketing Service, which is just one of its many unique selling points. As long as you’re selling your products on Amazon, you’re good to go.

There Are Three Types Of Amazon Advertising

  1. Headline Search Ads – You can advertise at least three products, which will appear on top in the search results.
  1. Sponsored Product Ads – They can appear at the bottom of the page and at the top of the search results.
  1. Display Product Placement – These advertisements show on the side of the page.

Since the first two types of ads rely on keywords, you must think carefully while selecting keywords and placing bids on Amazon Advertising. 

The lowest bid you can place is $0.10 per click. The customer’s interest drives the Display Product Placement ads instead of keywords. 

In other words, they focus on the products that might convert a lead into a customer.

Amazon Advertising also offers three different categories of bidding for sponsored ads:

  1. Dynamic Bids, Down Only – When you choose Dynamic Bids, Down Only, Amazon will lower your bids when it’s doubtful that a click will result in a sale automatically, effectively saving you money.
  1. Dynamic Bids, Up, and Down – Amazon will automatically change the bids, like the previous type of bid, but it will do so whenever the chances of a sale increase or decrease. 

The bid will increase when the odds are favorable and decrease when the odds are unfavorable. 

  1. Fixed Bids – As the name implies, these bids are fixed unless you manually change them.

You can choose between a manual and an automatic advertising campaign as one of the many features that Amazon Advertising offers. 

You can choose the maximum daily budget and Cost Per Click (CPC) for the automatic campaign, set it to run, then sit back and let amazon do the job. 

However, with the manual campaign, you are required to place bids and conduct your own keyword research.

You can begin optimizing your Amazon Advertising campaigns once you’ve launched one or more of your products, which brings us to our next point.

What Should You Consider Before You Start Amazon Advertising?

What Should You Consider Before You Start Amazon Advertising?
Consider these things before you start Amazon Advertising.

One of the most important business decisions you must make is whether to automate your current online ad campaigns rather than starting Amazon Advertising.

This is where we will introduce you to Adspert.

The core idea of Adspert is to use artificial intelligence to automate profit maximization. Adspert skillfully uses these new technological opportunities from advertising platforms’ ongoing growth to benefit their clients.

The main objective of Adspert is to simplify the process for users while optimizing ad campaigns across many platforms. 

This involves balancing the use of data obtained from numerous platforms against the ideal budget established at a level above each platform.

Adspert will take your Amazon Advertising campaigns and optimize them, ensuring they contain the necessary keywords with its keyword harvesting feature. 

Additionally, Adspert regularly forecasts the effectiveness of commercials; consequently, your bids are suitably modified, shielding you from financial loss.

What’s more? You don’t need to be an expert in PPC (Pay Per Click) because their Plug & Play feature is easy to understand and use.

You can enable Adspert to manage your ad campaigns while attending to your company’s demands with a few clicks.

Adspert allows you to test all the features during a 30-day free trial to determine if it’s the correct fit for you and your company.

Should You Advertise on Amazon Advertising?

Should You Advertise on Amazon Advertising?
Should you invest in Amazon Advertising?

Do you offer tangible goods that customers can buy online? If the answer is yes, then you should definitely advertise on Amazon! 

Amazon Advertising will give the chance to increase product visibility and, presumably, increase sales.

If you’re hesitant, start small with a product you know sells well online, like an advertisement for your best-selling shoes.

Add other companies and different brands of shoes to this advertisement once you start to see a Return on Investment (ROI) to broaden your campaign.

Another persuasive argument in favor of Amazon Advertising is the chance that if you use Amazon PPC (Pay Per Click) method, your organic Amazon rankings will also rise. 

Those keywords that successfully rank high in Amazon PPC advertisements will aid your organic campaigns to rise significantly. This is partly because “Amazon AdWords” increased sales, improving the product’s sales history. 

A very important ranking component is the sales history. If a product sells well, Amazon will simply add it to the search results list.

So, investing in Amazon Advertising can help increase not just the sales of your products but also their organic ranks on Amazon. 

One of the best strategies for increasing sales and brand awareness of your products in the e-commerce world is using Amazon Advertising. 

A well-configured advertising campaign will result in a favorable Return On Advertising Spend (ROAS) that continuously brings in money for your company

This brings us back to where we started; if you have an online business and want to increase your sales, creating an Amazon Advertising account is a sensible business decision. 

With is we hope that our beginner’s guide for Amazon Advertising was fruitful, and we wish that aspiring Bhutanese businessmen and women make use of these digital platforms to gain worldwide recognition! 

As you know by now, Amazon and Google’s marketing procedure is similar, so why not also learn about What Does The Google Search Console Do to get a wider prospect of the field?

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