Amazon is a gigantic marketplace that hosts millions of sellers. Whether you are launching your first product or a veteran selling your 22nd product, Sponsored Product Ads are your best bet to introduce a new product to prospective buyers among other Amazon sponsored ads. Because Sponsored Products ads blend in so seamlessly with Amazon’s natural search results, users frequently aren’t even aware that they are viewing an advertisement. In fact, out of the whole range of Amazon advertising offerings, these are the kinds of ads that customers prefer the most.
Getting those first few sales for a freshly launched product is crucial to a rise in organic search results. Ads that target relevant keywords can help your products rank at the top of the search results page right away. Even if you are not experienced in advertising, they are pretty straightforward to set up.
What is a Sponsored Products ad?
Sponsored Products adverts are an example of Amazon pay-per-click (PPC) advertising. From the day your product launches, they let you bid on specific keywords to maximize your exposure in Amazon search results. You have to pay a modest price for each click on your advertisement, as the name “PPC” implies. Because of their on-page prominence and resemblance to an organic listing thumbnail, Sponsored Products ads are especially appealing.
The most popular ad kind on Amazon is Sponsored Products since, unlike Sponsored Brands, Sponsored brand videos, or Sponsored Display advertisements, you do not need to be a registered brand to use them.
How do Sponsored Products Ads work?
As a PPC advertising format, sponsored product ads pit you against other vendors in a bid to get visibility to potential buyers. You have complete control over your daily advertising budget since you may choose the click-through rate for each specific target.
To start, you specify a range of specific items or keywords that you want your advertisement to show up for in Amazon search results. You want people to notice your advertisement when searching and click on it to get to your product description page. Next, through a process called “bidding,” you inform Amazon of your desired cost per click. An algorithm then determines where your advertising will appear on search results pages.
Your ultimate goal is to appear at the top of search results, where you have the best opportunity of reaching as many people as possible, therefore raise your bid high enough to achieve this. If you bid too little, your advertising might not show up at all.
Regardless of whether the buyer buys your product or not, you will be paid the amount of your keyword bid once they click your advertisement.
Targeting Options
Sponsored Products allow you two targeting options to choose from: automatic targeting and manual targeting.
Automatic Targeting:
Based on the details of your listing, Amazon can choose which products or keywords to target with your campaign by using the automatic targeting option. It’s crucial to conduct in-depth keyword research before creating your listing if you wish to employ automatic targeting so that Amazon chooses genuinely relevant targets.
The four keyword match types available to sellers with the automatic targeting option are as follows:
- Close match: These ads appear when shoppers use search terms that are related closely to the product you’re advertising
- Loose match: These ads appear when shoppers search loosely related keywords
- Substitutes: They target shoppers who are considering products that are similar to your product, but sold by a different brand
- Complements: They target shoppers viewing detail pages of products that complement yours
An automatic campaign can be set up in a matter of minutes, which makes it a fantastic choice for first-time sellers. Your campaign will eventually gather enough data for you to utilize in future campaigns.
Automatic campaigns can also be an ingenuous means of conducting further keyword research because Amazon might target a term you’ve never considered. You will be able to view each automatically-created target, the amount spent on each, and the number of sales that each target generated within your advertising campaign.
Manual Targeting:
You have more control over the goods or keywords that your campaign will target when you choose the manual option. Additionally, you have the option to choose targets from a list of recommended keywords that Amazon offers, or you can generate your own. Even custom bids can be established for each term.
When you are aware of the precise search words that buyers use to find your kind of product, apply keyword targeting. With a program like Keyword Scout, you can locate high-volume, relevant keywords.
You can target particular rival ASINs, brands, categories, or other product qualities with product targeting.
Bidding Strategy
You must decide on your campaign bidding strategy—or how you want to pay for ad clicks—for both automatic and manual campaigns.
But first, precisely what is a bid?
When a customer clicks on your advertisement, the bid is the amount you are willing to pay. Your real click-through-rate will be determined by the bids of your rivals. The most you are willing to spend for a single click is represented by your bid.
Three bidding tactics are available for you to select from, based on your budget and desire for Amazon’s algorithmic assistance.
Dynamic bid-down only: If Amazon determines your ad is less likely to result in a sale, they will reduce your bid. You will save a small amount of money on each click with this method.
Dynamic bid-up and down: If your ad is more likely to result in a sale, Amazon will automatically increase your keywords bid by up to 100%. If the ad has a lower conversion rate, it will also automatically reduce your bid. You might not want to choose this option if you have a tight budget.
Fixed bids: Your bids will remain the same until you modify them; Amazon will not alter them on your behalf. Use down-only dynamic bids or fixed bids if you know the maximum amount you want to spend each click.
Are Sponsored Products Ads worth it?
To put it succinctly, sure! But bear in mind that there is no “set it and forget it” approach when it comes to advertising on Amazon. To make sure your campaigns are operating profitably, you need to monitor them closely. You can be paying too much for clicks that don’t result in sales if you ignore them or don’t check them often enough.
Get in touch with eStore Factory, the top Amazon account management agency, to learn more about Amazon Sponsored Ads.