Amazon Advertising 101: Everything You Need to Know

January 19, 2023January 22, 2023 marym Amazon Ads, Amazon Advertising

Remember big billboards with catchy phrases and eye-drawing pictures on the roads? Since we are now in a digital era, we can see such content on websites and social media.

When we surf the net, we are hooked by bright and inviting ads, be they with text, images, or video. We choose online shopping because it is easy, fast, and gives wider options. The future holds more digital activity and it is believed that there will be around 280 million online shoppers in the USA alone by 2024.

Obviously, the number will be so high because we are a consumerist society and thirst for spending and hoarding. Amazon got the right idea and its advertising strategy has been benefiting businesses since 2018. Amazon has made a revolution in the way we shop and put digital advertising to the next level.

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Are you running a business and wondering about how Amazon advertises? Cast your doubts away because with Amazon ads your business will get better optimization, analytics, and exposure.

Remember that we at UAWC would be always happy to assist you with any of your Amazon marketing needs. To learn more, follow this link: https://uawc.agency/amazon-ads-services/amazon-advertising/

What is Amazon Advertising?

If you are not new to promoting your business on the Internet then you must be familiar with Google Ads. This basic knowledge of it will be useful when running ads on Amazon. Amazon has a PPC/CPC model that works the same as Google ads. In simple words, you should not be afraid if your product will be sold or not, you only pay for clicks.

Not all advertising is considered to be Amazon advertising. When typing keywords in the Amazon search bar you get an endless list of results among which are sponsored posts. Those are Amazon Ads. They are easy to detect, with the marks “sponsored” and “ad” next to them. To get more exposure and visibility, make sure to bid on the keywords you expect customers to use when searching for your product.

Why Amazon Advertising

As we mentioned earlier, promoting a product or a service on Amazon is easy. On top of it, Amazon’s marketplace is popular worldwide. Only in the U.S. Amazon had roughly 2.5 billion monthly visits in 2021.

Here are the reasons why so many eCommerce businesses are flocking to Amazon:

Larger customer base

When setting up Amazon ads you will have access to customers worldwide, it will be easier for you to work with data like keywords and impressions.

Moreover, Amazon, as a marketplace, has the global trust of customers.

Awareness

Amazon equals trust. When you choose trustworthy platforms you automatically raise the bar for your ads. Shoppers will not think twice before visiting your site directly.

Currently, approximately 60% of brands advertise on Amazon. Join in!

Capture the attention

Running ads on Amazon means that you’ve already covered shoppers who will get interested in your product. But you can get creative and ensure that your ads will lead shoppers straight to the cart.

Try including video ads. Sometimes, still images are not enough to tell the full story behind your product. Plus, as the recent trends show, displaying how products can be used will increase the chances that your ads will work. Create video ads for Amazon and sell your products more effectively.

If that is not enough to persuade you, there is also something called Amazon Advertising Attribution, a tool that allows you to track how well your non-Amazon marketing channels perform for your Amazon products.

Amazon Acronym Deciphering

For those with an eCommerce business, setting up Amazon advertising is not rocket science. It is true, however, that the Amazon advertising landscape can be rather cumbersome and you have to keep track of Amazon advertising acronyms. How does Amazon advertise? Find the answer below.

AMS

Amazon is swiftly growing and rapidly expanding the ads business. Amazon Marketing Services, AMS in short, help to get eCommerce businesses the best deals.

AMS is a set of advertising tools that help sellers run and manage their ads on the Amazon platform. You can come across another term for AMS – Amazon Advertising Console.

AMS manages ad campaigns for PPC performance and offers different types of Amazon ads: Sponsored Products, Headline Search Ads, and Product Display Ads.

AAP/DS

AAP can be deciphered as Amazon Advertising Platform, formerly known as Amazon DSP. AAP works with all ads which are delivered to sites owned by Amazon.

With AAP you can choose a target audience for your ads. It will be easier since Amazon collects all the data for it. The biggest advantage of AAP lies in retargeting.

Where do AMS and AAP Fit in Your Marketing Funnel?

AMS and AAP are a part of Amazon, though they are used for different purposes and have certain specifics.

AMS is used for lower funnel sales conversions. In this case, the customer is ready to buy the product they are browsing Amazon for.

AAP shows products to the whole marketing funnel. AAP works for top-of-funnel targeting and focuses clients’ attention on product and brand awareness. AAP attracts interest for products with a longer purchasing journey.

Types of Amazon Ads

Sponsored Products

Sponsored products are the most popular type of ads that show up on the search result and product details pages. Such ads are guaranteed to make the individual products visible and to drive buyers to the specific product which is sold on Amazon. Sponsored ads have target keywords and will surely direct customers to the product detail page.

You can run them automatically and manually. When you do it automatically, Amazon chooses the keywords to put in the ad. With a manual option, you can have everything under control.

Headline Search Ads

Headline Search Ads are for third-party sellers. An Amazon Ads campaign like that helps sellers promote products and brands through headline banner ads that appear on Amazon listings. HSAs are a CPC ad type and lead searchers to specific pages on Amazon. Headline ads are also mobile-friendly.

Product Display Ads

Product Ads work with your relevant audience and are useful when you want to boost your brand awareness. PDAs are also PPC ads and will always put the name and logo of your business when you run them.

Note: Even though Product Display Ads are a part of AMS, they are considered to be a vendor tool.

Video Ads

Videos on platforms like Youtube and TikTok are going viral daily. So, it is a great opportunity for your business to invest in unconventional advertising. Earlier we briefly mentioned why video ads are getting in more demand. With stellar video ads, you can show better results in competition and be featured on other Amazon shopping platforms, like Amazon Echo. Storytelling is the contemporary tool of brand awareness.