Amazon Ads Explained. Is It Worth It?

By Just Digital Team
Amazon Ads Explained- Is It Worth It

Amazon Ads, the undisputed king of the online advertising jungle, is a powerful tool that can help sellers get their products seen by millions of shoppers.

In this day and age, it’s hard to escape the bombardment of ads everywhere we go. It’s everywhere, from billboards to social media feeds. And one platform that has really been dominating the online advertising game is none other than Amazon ads.

With their massive online marketplace and millions of users worldwide, Amazon has become a go-to destination for both shoppers and sellers alike. But with all the buzz around Amazon ads, the big question on everyone’s mind is: is it worth it?

In this blog post, we’ll dive into the world of Amazon advertising and explore whether it’s worth your time and money.

Amazon ads defined

Amazon Ads Example

What is Amazon advertising? Amazon, the king of online shopping with a whopping 200 million shoppers visiting its site each month, is like a digital shopping mall that’s always bustling with activity. With over 600 million products listed on its US site alone, it’s a crowded marketplace where you need to stand out like a unicorn in a herd of horses.

So, how can you make sure your product catches the eye of shoppers? Enter Amazon Advertising, a.k.a. the superhero of product promotion that can give your brand the boost it deserves.

Amazon Advertising, formerly known as Amazon Marketing Services or AMS, is a platform that lets you advertise your products to Amazon’s massive audience and showcase them to the world. Think of it as a megaphone for your brand that can help increase your sales, boost your brand awareness, and enhance your product visibility.

These Amazon Ads are available worldwide in most countries where Amazon has a presence. And if you’re wondering which products can be promoted, the list is long and inclusive. From books to beauty products, electronics to fashion, toys to pet supplies, you name it, and chances are, you can advertise it on Amazon.

However, there are some limitations to using Amazon Ads. For example, you can only advertise on Amazon if you’re an Amazon vendor or a third-party seller. But, hey, that’s still a massive audience to tap into, and the good news is that Amazon is always expanding its reach and features.

As Shareen Pathak in Digiday put it, “Google has search data, and Facebook knows interest levels, but Amazon has real power because it knows what people are buying and how they’re doing it.”

And with Amazon Advertising, you can tap into that power to drive more sales, build your brand, and achieve your business goals.

The Amazon advertising model

Amazon Ads operate on a PPC funding model. What does that mean, you ask? Well, it means you only pay when someone clicks on your ad. Seems fair, right?

Now, let’s talk about the relationship between ads and organic search on Amazon. Think of it this way: Amazon’s goal is to make sales, and the best way to achieve that is by showing high-converting and best-selling products that are relevant to the search query. So, if your product has a good sales history and positive feedback, it’s more likely to appear higher in organic rankings.

But here’s where it gets interesting. Did you know that investing in Amazon ads can actually boost your product’s organic ranking? Yup, you read that right. As your sales and feedback improve through Amazon ads, your product climbs higher in organic rankings.

So, if you’re looking to get your product seen by more eyes on Amazon, investing in advertising ads is definitely worth considering.

Who can run Amazon ads?

Well, let’s cut straight to the chase, shall we? Anyone with a Seller Central account can advertise on Amazon. But to really take advantage of the Amazon Advertising game, you’ll want to upgrade to a Vendor Central account. It’s like getting the premium package, the deluxe edition, the creme de la creme of advertising ads on Amazon.

If you’re still on the fence about whether Amazon Advertising is worth your time and effort, consider this: if you’re selling anything tangible online, then the answer is a resounding yes! Amazon provides a massive platform to showcase your products and reel in more potential buyers.

But, if you’re still not convinced, start small with a product you know sells well online. It’s like dipping your toes into the water before jumping in headfirst. For example, if you sell sports gear and tennis rackets are your bread and butter, start by advertising your top-selling racket. Once you see a return on investment, you can expand your campaign to include other brands and types of rackets.

Vendor vs. seller

First off, Sellers are responsible for listing, pricing, and marketing their own products, while Vendors sell their products directly to Amazon. This means that Vendors get to take advantage of the “Sold by Amazon” tag on their products, which can increase consumer trust and lead to more sales.

Another big difference is that Sellers have to pay various fees, such as referral fees and fulfillment costs, while Vendors only pay a small monthly fee that covers fulfillment and gift wrapping options.

But the biggest difference is in the marketing opportunities available to Vendors. With a Vendor account, you get access to the full range of Amazon Advertising options, including Sponsored Products, Sponsored Brands, and Sponsored Display. This means you can create targeted ads that reach your desired audience, boost product visibility, and ultimately drive sales.

So, is it worth it to go for a Vendor account? It depends on your business goals and resources. If you’re looking to scale up your sales and take advantage of all the Amazon Advertising options, then a Vendor account might be the way to go. But if you’re just starting out or have limited resources, a Seller account might be a better fit.

How much is Amazon advertising

If you’re wondering how much it will cost you to run ads on Amazon, the good news is that it won’t break the bank! In fact, according to Adbadger, Amazon ads are often more cost-effective on a CPC basis. That’s compared to search ads on AdWords or Bing Ads.

Plus, with an average cost per click of less than $0.91, you won’t have to dip too far into your piggy bank to get started. And with the added benefit of Amazon’s high commercial intent searches, you’ll be sure to get a solid return on your investment.

Amazon ads pricing plans

If you’re planning to sell on Amazon, they’ve got a bunch of pricing and plan options that can work for you. But here’s the deal: if you’re a first-party seller, you need an invite to sign up as a vendor. Otherwise, you’re a third-party seller through Amazon Seller Central.

Independent sellers have access to pricing options on Seller Central, including a pay-as-you-go plan or a pro option for those with high sales volume. Amazon also offers pro merchant sellers the choice to manage shipping, returns, and customer service.

If you’re uncertain which plan to choose, Amazon has a Vendor Express option that may be worth exploring, especially if you want to become a vendor but haven’t received an invitation.

After selecting the appropriate plan and logging into your Amazon account, you can create your ad campaigns. Remember, with Amazon ads, you only pay when someone clicks on your ad. So, with the right plan and a great ad campaign, you could see some serious ROI.

You can check out Amazon’s pricing plans here.

How does Amazon ads work?

Similar to how Google AdWords work, Amazon Advertising lets you bid on specific keywords to gain more visibility for your products on Amazon’s search engine results page (SERP).

This means that numerous ads are competing against each other behind the scenes, with budget being just one factor in the equation. Amazon also uses a ranking system to select the most profitable ads. If your ad is selected, it will be displayed on Amazon’s search page, and you only pay when someone clicks on it.

When a shopper types in a relevant keyword, your ad may appear among the top results, marked with subtle “sponsored” or “ad” text. And when a shopper clicks on your ad, you’ll be charged for it. But don’t worry, you only pay for what you get, and it’s worth it when you consider the potential increase in sales and revenue.

Amazon ads can also appear on individual product pages. As you scroll down the page, you’ll find even more ads popping up, which means more opportunities to showcase your brand.

When you start advertising on Amazon you have to remember to target your audience correctly to ensure that your ad is displayed to the right people, otherwise, Amazon will lower its ranking and display other ads instead, even if you’ve bid high.

To target your audience, you can select specific keywords that people might use when searching for your product. You can also select interests or categories to target potential customers based on their shopping habits, introducing yourself to a larger audience. Lastly, you can choose to target similar products that relate to your own.

What are the benefits of Amazon ads?

There are plenty of reasons why it’s worth investing in Amazon Ads:

First off, you get a quality, brand-safe environment that will make advertisers’ hearts sing. No more worrying about your ads being displayed next to questionable content. And with Amazon’s reputation for reliability and trust, you can be sure that your brand is in good hands.

But it’s not just about avoiding the bad stuff – advertising on Amazon can also reduce the sales cycle, which means more sales in less time. By reaching shoppers who are already in the mood to buy, you can skip the usual steps of building brand awareness and driving traffic to your website. It’s like skipping the appetizers and going straight for the main course – delicious and efficient!

And speaking of brand awareness, Amazon Advertising can improve it too. With Amazon’s massive user base and sophisticated targeting options, you can get your brand in front of the right people at the right time. And as you gather more data about your shoppers, you can continue to optimize your campaigns to reach an even more targeted audience.

Plus, with Amazon Advertising, you get access to tons of shopping journey data about who your shoppers are and how they shop. This kind of data is like gold for any marketer – it lets you learn the best ways to acquire customers at a given time, and track your results so you can make data-driven decisions about your campaigns.

Self serve ads vs. premium ads

It all depends on your goals and budget. Self-serve ads are a great option for advertisers with a smaller budget or for those just starting out.

They give you the ability to target specific keywords, products, and interests, and to set a daily budget as low as $1. With self-serve ads, you have control over your campaigns and can make adjustments in real-time based on how they’re performing. On the other hand, premium ads are a good option for advertisers with larger budgets who want to reach a wider audience. They allow you to reach customers who are not actively searching for your product, but may be interested in it based on their browsing history.

With premium ads, you can create visually engaging campaigns that can be displayed across multiple platforms, increasing your brand’s visibility.

Whether you choose self-serve ads or premium ads, advertising on Amazon can be a great way to increase your brand awareness, improve your sales history and product visibility, and gain valuable insights on consumer behavior.

Types of Amazon ads

Types of amazon ads

When it comes to advertising your products on Amazon, you have a range of options to choose from. Here are the different types of Amazon Ads:

Amazon sponsored brand ads

Amazon Sponsored Product Ads

Amazon Sponsored Brand Ads, previously known as Headline Search Ads, are ads that can help brands promote multiple products and drive traffic to their Amazon Store or a custom landing page. These ads are displayed at the top of search results in green and can be useful for brand building. However, sellers who want to use Sponsored Brand Ads need to be accepted into the Brand Registry program.

Amazon sponsored product ads

Amazon Sponsored Product Ads

Amazon Sponsored Product Ads are the most popular and effective ads on Amazon. They can be targeted based on specific keywords or subject matter and appear on search results pages, both above and within the search results on desktop computers and above or below on mobile. By targeting your competition, you can direct potential customers to your page instead of theirs.

Amazon product display ads

Amazon product display ads

Amazon Product Display Ads are another type of ad that appears on the bottom right of a product listing, below the “Add to Cart” area. These ads are an effective way to cross-promote your own products or target specific products sold by your competitors. Unlike Sponsored Ads, which can feature multiple products, Product Display Ads only feature one product, giving you more control over your ad placement.

Video ads

Amazon Video Ads

Amazon’s Video Ads can be placed on various web properties, as well as on Amazon-owned sites like IMDb and Amazon.com. They are a great way to grab your audience’s attention and increase engagement.

Amazon stores

Amazon stores

If you want to create a customized shopping experience for your customers, Amazon Stores is the perfect solution. With Amazon Stores, you can promote your brand or products and monitor traffic analytics. Brands are also provided with an Amazon URL.

Amazon native ads

Amazon native ads

Amazon Native Ads include recommendation ads, custom ads, and search ads. They can be placed on your website to monetize it and earn additional revenue.

No matter which type of Amazon Ads you choose, it’s important to carefully target your audience and use eye-catching ad copy to grab their attention. With the right strategy and targeting, Amazon Ads can be an effective way to drive traffic to your products and increase sales.

How to choose the right Amazon ad for your business

First things first, let’s get one thing straight: Amazon Ads is not a one-and-done deal. It’s a continuous process that requires constant monitoring and tweaking.

Amazon offers different types of ads, each with its own unique set of features, so it’s up to you to figure out which one works best for you. The good news is, you don’t have to limit yourself to just one type of ad. You can combine them to create a powerful ad campaign that suits your business needs.

Remember, once you’ve chosen the perfect type of ad for your business, it’s important to keep an eye on your metrics and make adjustments as needed. Fine-tuning your campaigns on a regular basis will help you get the most out of your Amazon Ads.

It’s clear Amazon Advertising is a cost-effective way to build your brand and increase traffic to your product pages. By combining the different types of ads and constantly optimizing your campaigns, you can create a powerful advertising strategy that drives sales and boosts your business.

Tracking your Amazon ads

Okay, so you’ve got your Amazon Ads up and running, and you’re eagerly waiting for those sales to start rolling in. But how do you know if your ads are actually worth the investment? Well, Amazon has got you covered with a metric called ACoS (Average Cost of Sale). This little nugget of information tells you how much each sale is costing you.

The lower your ACoS, the better: if you’re selling a product for $20 and spending $10 on Amazon Ads, your ACoS will be 50%. This means you’re spending half of your product’s sale price on advertising, which might not be ideal for your profit margins. But, if you’re spending $5 on Ads for that same product, your ACoS would be 25%, giving you a healthier profit margin of 75%.

Amazon also provides monthly data that allows you to sort your sales by date. This makes it easier to test your campaigns and fine-tune them for maximum effectiveness. So, keep an eye on that ACoS, and use Amazon’s metrics to track your progress and tweak your campaigns as needed. And before you know it, you’ll be raking in the sales like a pro.

Optimizing Amazon ads: Make your advertising worth it

Optimizing Amazon ads-Make your advertising worth it

Amazon ads have the potential to give your business a great return, but only if you have a solid strategy in place. Here are six tips to optimize your Amazon ads and make sure they’re worth the investment.

Structure your campaigns

To make sure your Amazon ads are on point, start by structuring your campaigns and ad groups by product category. Break each category into its own campaign and then make more specific ad groups within each one. Then, create ads that are tailored to each keyword grouping. This way, your ads are targeted and relevant to the right customers.

Make your ad copy compelling

The Amazon marketplace is pretty crowded, so your ads need to be creative and engaging to grab people’s attention. Inject a bit of humor or urgency into your ad copy to make sure it stands out from the crowd.

Be specific

Be sure to include all the important details in your ad copy, like product size, weight, and features. When potential buyers know exactly what they’re getting, they’re more likely to make a purchase. Plus, including those details can help increase your conversion rate.

Bid on popular brands

If your products are similar to those from popular brands, bid on keywords related to those brands. This can help you get more exposure and attract buyers who are looking for well-known names.

Experiment with all ad formats

Amazon has a few different types of ads available, so give them all a try to see which ones work best for your business.

Use negative keywords

Using negative keywords is essential for avoiding wasted ad spend from irrelevant clicks. Use match types that are conservative and do some research to ensure you’re targeting the right keywords.

By following these tips, you can optimize your Amazon ads and make them worth the investment.

Is it worth it?

It’s definitely worth the shot. First of all, Amazon is a behemoth in the e-commerce world. It’s the go-to platform for millions of shoppers looking for everything from books to blenders. And with over 197 million monthly visitors, it’s safe to say that advertising on Amazon could potentially give your business some serious exposure.

But exposure alone doesn’t pay the bills, right? Well, here’s the good news: Amazon ads can be incredibly effective at driving sales. According to a study by Marketplace Pulse, 73% of Amazon shoppers said they clicked on a sponsored product ad in the past six months. And when it comes to the bottom line, businesses have reported up to a 10x return on ad spend with Amazon ads.

So, are Amazon ads worth it? Absolutely. But, like any advertising platform, it’s not a magic bullet. It takes a bit of strategy and experimentation to see the best results. You’ll want to optimize your campaigns by structuring them well, using specific and compelling ad copy, and bidding on popular brands in your niche.

And don’t forget to monitor your campaigns closely and adjust as needed. The beauty of Amazon ads is that you have access to real-time data and can make changes on the fly.

In conclusion, if you’re looking to boost your visibility and sales on the world’s largest e-commerce platform, Amazon ads are definitely worth considering. With a little effort and a lot of creativity, you can tap into the massive audience that Amazon attracts and drive some serious revenue for your business. So, what are you waiting for? Get those Amazon ads up and running!

Let Just Digital manage your campaigns for you.

Are you feeling overwhelmed by the idea of managing your Amazon ads on your own? Don’t worry, you don’t have to go it alone! Just Digital can manage your campaigns for you, so you can focus on other important aspects of your business.

Why choose Just Digital as your Amazon ads management partner?

Comprehensive Solutions: Just Digital offers end-to-end PPC management services, from keyword research to performance tracking. They cover everything so that every aspect of your campaign is expertly handled.

Industry Expertise: With more than 10 years of experience, Just Digital has a team of experts that can manage your Amazon ads campaign regardless of your business type. They have a deep understanding of different markets, which allows them to tailor their strategies to meet the unique needs and challenges of your business.

Cutting-Edge Technology: Just Digital uses the latest tools and technology to optimize your Amazon ads campaigns. This ensures that your ads are always relevant and competitive in the ever-changing digital landscape.

Dedicated Support: Just Digital prides itself on providing exceptional customer service. You can expect ongoing communication, regular updates, and a dedicated account manager who will work closely with you to ensure the success of your Amazon ads campaigns.

Transparent Pricing: Just Digital offers transparent pricing structures with no hidden fees or unexpected costs. This means you can trust that you’re getting the best possible value for your advertising budget.

By partnering with Just Digital for your Amazon ads management needs, you can relax knowing your campaigns are in the hands of experts who are committed to helping you achieve your advertising goals. So, why wait? Contact Just Digital today and experience the difference that exceptional Amazon ads management can make for your business.

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