A beginner’s guide to Amazon Sponsored Products

Amazon is the market giant and a global leader in the world of e-commerce. Today, selling on Amazon is no longer an option but has become a necessity if one wants to be visible in the monstrous e-commerce web.

Amazon, singlehandedly, is the largest employer in the whole of United States, with about 550,000 full time and part time employees and there is only one reason for the higher employment rate and that is increased in demand for the products and subsequent sales. There are about 350 million Amazon users all around the globe buying everything ranging from stationary to groceries to fashion to stocking up the daily needs and requirements. After introducing Amazon Prime, there has been a surge in the number of users and buyers on Amazon.

The sellers are benefitting not by just selling on Amazon but also, through the advertising feature of Amazon.

What are Amazon Sponsored products?

Amazon has a special pay per click feature that allowed products that are being advertised to appear in organic search results. When a person keys in the keywords for a product he is looking for, say – shoes, Amazon will bring forward products that are being advertised under the shoes category and meets the keywords that have been keyed in. The sponsored product will appear on top of the search result page and will be denoted by words either ‘Sponsored’ or ‘Ad’.  These ads are far more effective and cheaper than other ad mediums as there are more chances of purchase since the user is searching the product with the intent to buy.

Where do the ads appear?

The Amazon Sponsored products ads appear on the first page of the search result page, either on top, middle or near the searched product, to be easily visible to the buyers.

Amazon Sponsored Ads

Why Amazon sponsored products ads are important?

If you have released a new product or a new line of products, Amazon sponsored ads are the best way to reach the potential customers. They will appear on the search result page and will prompt the buyers to at least have a look and this might, in turn, result in a purchase.

How Amazon sponsored products ads work?

The PPC platform within the Amazon marketplace is a powerful tool to help in discovering products. It appears as a bidding war with the highest bidding seller wins the keywords that will help his products to appear on the first page of the search result pages. Also, it is important to have a creative and quality ad in order to win against other ads in the same field.

Sponsored ads are keyword oriented, thereby meaning that your ad should contain relevant and effective keywords in order to gain Amazon’s automated run through the products. Also, the seller will be charged only when a customer clicks on the ad.

Cost of Amazon Sponsored products ad

When compared too other social media advertising platforms like Google, Facebook, Bing and such, Amazon advertising is far cheaper. Usually, an Amazon PPC ad costs only $0.35, proving to be cost effective. It is also a better option for serious commercial sellers since the customers’ intent is to make a purchase.

Well, one question asked too many times is ‘how much should one spend on Amazon PPC advertising?’ There is, really, no limit to how much should one spend and if you were to ask three different business owners their views on Amazon advertising budget, you are bound to get three different quotes.

How can one measure the performance of the ads?

There are a few indicators or parameters that will help a seller to determine the performance of the advertising campaign on Amazon.

measure the performance of the Amazon ads

  • The number of times the ad has been displayed.
  • The number of times the ad has been clicked.
  • The number of times the ad converted into a purchase. (usually within a week)
  • The number of times the ad created an interest in the minds of the buyers.
  • The Advertising Cost of Sales (ACoS), i.e. the cost incurred – the revenue.

Tips for beginners

If you are a beginner and looking to run your first Amazon sponsored products ad, it is advisable to run both manual and automatic campaigns simultaneously. This will help you determine which keywords work best for you.

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