When it comes to Amazon paid advertising, sellers have a surprising number of options. That’s what makes choosing a course so challenging. If you go with the wrong Amazon paid advertising approach, you might not get a great return on your investment.
Luckily, by understanding the difference between Amazon’s Sponsored Products, Sponsored Brands, and Sponsored Display options, you can make wise choices and boost your sales. If you want to make sure you’re using your Amazon paid advertising dollars wisely, here’s what you need to know.
In the simplest terms, Amazon paid advertising includes all of the retail giant’s main ad programs. They are paid services that allow you to get your listings in front of potential buyers, increasing the odds that they’ll choose your product over another option.
But Amazon’s paid advertising isn’t a single program. There are several approaches available, each with its own benefits and drawbacks. They function in slightly different ways, allowing you to select a method that best meets your needs.
However, to choose the right one, you have to know what each one offers. Here’s a look at what Sponsored Products, Sponsored Brands, and Sponsored Display paid advertising each bring to the table.
Amazon Sponsored Products allow you to bring a particular listing into the spotlight. You choose the product you want to promote, and Amazon will give it a prominent position in related search results and product pages.
For example, once a listing is an Amazon sponsored product, your chances of landing on the first page of a shopper’s search results go up. However, your listing won’t just appear randomly. Instead, it’s promoted when a shopper is actively looking for products like yours.
When you choose this campaign type, you get to define the target search keywords. If you aren’t sure where to begin with that, you can also use Amazon’s automatic targeting, allowing the system to decide what terms may be relevant.
When it comes to paying for a sponsored product ad, it’s fairly simple. Amazon relies on a pay-per-click (PPC) / cost-per-click (CPC) approach for this program. You’ll only pay when a customer actually clicks on your sponsored product listing.
With PPC, you get a lot of control over how much you spend. You can set a budget and choose how much you want to bid, allowing you to stay within your limit. However, if you bid too low, you could be outbid by other sellers, causing your listing to show up less often.
It also simplifies the creation of the ad. You don’t have to handle any of the design aspects; that’s all handled for you. That can make this a strong option for anyone new to Amazon paid advertising as the process is streamlined.
As long as you’re a professional seller, you can access the sponsored product program. However, your listing does have to fall into an eligible category and also qualify for the Featured Offer to use this kind of advertising.
With a sponsored product, you focus on individual listings. The sponsored brand program is different. It’s all about boosting the visibility of your entire brand.
With Sponsored Brands, the ads have additional features. Your logo will be in a prominent position, and you can create a custom headline. Instead of focusing on one product listing, you can highlight several.
Another one of the benefits of being a sponsored brand is having a custom landing page. You end up with an Amazon storefront where shoppers can find multiple products.
Like Sponsored Products, this Amazon paid advertising option also works with a PPC / CPC model. You set a bid amount and, if a shopper clicks on your ad, you’ll pay for that click. Additionally, you can choose your own keywords to ensure the right customers are targeted.
Since Sponsored Brands is about boosting awareness for your company, it isn’t a great match for sellers with just one or two listings, or whose products aren’t strongly related. However, if you have a portfolio of products that have a clear connection, like all being from the same product category, it could let you showcase more of what you have to offer.
Additionally, you have to be a professional seller who is part of the Amazon brand registry. If you haven’t applied for the brand registry program, you’ll want to handle that first.
Amazon Sponsored Display is a new Amazon paid advertising program. It gives sellers access to self-service advertising tools that they can use to reach shoppers both on and off the retailer’s platform.
Essentially, it gives sellers the ability to create display ads that they can use nearly anywhere. It relies on auto-generated creatives, making it accessible to anyone regardless of their ad creation experience.
Once an ad is created, it can be displayed on third-party websites or Amazon, depending on the approach you choose. You can reach people who have viewed your product pages before, or who viewed a similar item but didn’t make a purchase.
The program also lets you target shoppers who were checking out the categories you sell in, not just the exact product type. If you want, you can even try to capture attention from new audiences, such as people whose shopping behavior suggests they could be interested in your product, even if they haven’t actively searched that way.
Like Amazon Sponsored Brands, you have to be part of the Amazon brand registry. Additionally, this also uses a bid-based PPC / CPC approach, allowing you to set a budget to control your ad spend.
It’s no secret that many shoppers spend a ton on Amazon. With the 112 million U.S. Prime members, each one spends an average of $1,400 a year. Even non-members embrace the platform, handing over around $600 a year for Amazon purchases and, considering Amazon has over 200 million unique visitors every month, that’s a lot of revenue potential.
Plus, consumers trust Amazon. The vast majority of buyers – a whopping 89 percent – admit that they are more likely to spend their cash there than on any other e-commerce site. Numbers like that make it seem like connecting with customers is a breeze. However, that isn’t the case.
To say that sellers face a ton of competition is an understatement. There are millions and millions of products available, so it can be hard to stand out from the crowd.
Finding ways to bolster your Amazon sales is a must. While many sellers begin with classic options like email marketing software and leveraging social media, while also boosting your product listing’s SEO to drive sales, that isn’t always enough to grab attention on what’s likely the biggest shopping platform on the planet.
That’s why Amazon paid advertising can be such a valuable tool. It’s a chance to put your products or brand front and center, increasing the odds you’ll get noticed.
All three of the Amazon paid advertising options above can be beneficial. However, each one is better for different scenarios.
If you are just starting out on Amazon as a dropshipper, only have a couple of listings, or offer products that fall into different categories, then the Sponsored Products route is your best bet. You can highlight individual items, which could boost sales.
For sellers with a strong portfolio of related products, becoming a sponsored brand may be a smart move. You can increase visibility not just for your items, but for all you have to offer.
Amazon Sponsored Display ads is all about enhancing your reach. You’ll need to have a solid understanding of how to target the right audience, so this option might not be ideal for advertising novices. However, if you have a solid understanding of who your perfect customer is, it’s an easy way to get your products out there, allowing you to reach shoppers outside of the Amazon platform.
With each of the options above, you can access campaign performance metrics to help you see what’s working and what isn’t. That way, you can regularly reevaluate, allowing you to make quick adjustments that make it easier for you to achieve your goals. So, don’t feel like you’re stuck with one choice or another. You can always make changes, allowing you to alter your strategy to enhance your results.