Why Amazon Sellers Are Increasing Advertising Spend on Amazon?

This article is part of a 5-article series covering some inside tips and tricks for Amazon PPC as a guide. When you type a keyword into the Amazon search box and get results, some of the top results will be supported content, which is classified as Amazon ads, similar to how Google search functions. They’re identified by text that says “funded” or “ad.”

Advertising on Amazon 

Advertisers who want their goods to be more visible on Amazon can pay for these spots by bidding on unique keywords, which will increase their exposure in the Amazon SERPs. When a shopper clicks on the advertiser’s ad, the advertiser will be paid. Amazon’s advertisement site is the Amazon equivalent of AdWords. Amazon advertisements can also be seen on individual product pages. 

Should I Advertise on Amazon?

Are you selling a physical product that people can buy online? If you answered yes, then you should be advertising on Amazon! Amazon would simply provide you with another avenue to increase the number of people who see your goods and, therefore, the number of people who will purchase them.

If you’re afraid to take the plunge, start small with a product you already know that sells well online. Start with an ad for your top-selling racket if you sell sports equipment and tennis rackets have always been your top-selling online commodity. Once you see a return on your investment with this commercial, extend your campaign by adding more brands and styles of rackets.

Amazon PPC

Another good reason to advertise on Amazon is that doing so would almost certainly boost your organic Amazon rankings. “We’ve seen that organic ranking has increased significantly for those keywords that were successfully used in Amazon PPC ads,” Sellics says. “This is due in part to additional sales driven by ‘Amazon AdWords,’ which have boosted sales. This is due in part to additional revenue driven by ‘Amazon AdWords,’ which has improved the product’s sales history. A high-ranking factor is sales history. If a product sells well, Amazon will position it higher in the search results ranking.”

So, investing in Amazon advertising can not only help you increase product revenue, but it can also help you improve your organic rankings. People can also check Amazon PPC guide to get more information.

Amazon Advertising Costs

According to Practical Ecommerce’s Rob Sieracki, Amazon’s average cost per click is rarely more than $0.35, making it more cost-effective than search advertising on AdWords or Bing Ads and equivalent to some of the lowest CPCs on Facebook ads or Google show. Considering how many Amazon searches have a commercial motive, those are encouraging figures! 

Self-Serve Ads vs. Premium Ads

When you begin exploring Amazon’s public advertising information pages you might be a bit confused about the difference between self-serve and premium ads.

Amazon Self-Serve Ads

When you first start looking through Amazon’s public advertising information pages, the distinction between self-serve and premium ads may be a little confusing. The simplest explanation is that self-service ads work similarly to Google search ads that appear on search result pages (as seen in the screenshots above), while premium ads work more like display ads.

Premium ads are still available on Amazon, but they appear in the form of more visual banners and sidebar ads, such as the one below. They can also be found on other websites, such as google networking.

Amazon Advertising Report 2021

As Amazon’s ad revenue soars, Jungle Scout’s latest report examines over 560,000 ad campaigns and 3,500 brands to see how brands, agencies, and third-party retailers are spending their ad dollars on the platform.

As Amazon’s ad revenue soars, Jungle Scout’s latest report examines over 560,000 ad campaigns and 3,500 brands to see how brands, agencies, and third-party retailers are spending their ad dollars on the platform. Amazon’s rise is being fueled by shifts to eCommerce.

Revenue Growth

The “Everything Store” has become the starting point for the majority of shopper journeys; 74 percent of consumers launch their product searches on Amazon. Amazon’s ad revenue is increasing at a rapid rate. Amazon’s ad revenue in Q4 2020 was $7.95 billion, up 66 percent from the previous year. Sixty-six percent of Americans agree that if they could only purchase items from one store, it would be Amazon. In the United States, 37% of the population is under the age of 35.

Sixty-six percent of Americans agree that if they could only purchase items from one store, it would be Amazon. Although total spending in the United States may be lower than normal, 37 percent of consumers say their online spending has increased. Amazon Advertising is attracting interest from brands, agencies, and third-party vendors.

Seller Investment

Targeting shoppers with Amazon ads helps sellers to reach out to potential buyers when they are ready to purchase, and it’s a tactic that many sellers already use; 75 percent of Amazon sellers use at least one form of PPC advertising.

In 2021, Amazon sellers expect to spend much more on strategic ads than in previous years; 34% of Amazon sellers plan to spend more on strategic advertising than in previous years. Supported product advertisements are giving way to sponsored display and brand ads, which have a higher return on investment.

On Amazon, advertising has become an essential part of running a company and makes it much simpler than other major advertisers, such as Facebook or Google, to attribute a company’s advertisement spend to real conversions. Additionally, Amazon brands should take advantage of Amazon’s growing success as a product search engine to increase the number of people who see their products.

Jungle Scout

Jungle Scout is the leading all-in-one site for sale on Amazon, with annual revenue of more than $8 billion. Jungle Scout, which began as the first Amazon product analysis platform in 2015, now offers a comprehensive suite of best-in-class business analytics tools and valuable market intelligence resources to assist entrepreneurs and brands with their eCommerce businesses. To check more details, visit olifantdigital.com.

Types of Amazon Ads

So, your creative team has created some cool banner advertising for branding purposes that you’d like to support, but you’re still trying to increase e-commerce revenue with Google Shopping-like ads.

Fortunately, you’ve arrived at the right place because Amazon offers a variety of choices! Funded merchandise ads, headline search ads, and pay-per-click ads are the three main forms of ads you can set up on the Amazon app.