Amazon gives sellers a massive opportunity to reach a broad audience, but standing out on such a competitive platform does demand more than a good product listing. Using Amazon’s advertising tools can skyrocket your product visibility and sales, seeing as Amazon ads reach more than 275 million unique users every month in the US.1
With the right tactics, you can help your products reach the right customers, generate clicks, and convert those clicks into sales. But don’t let it overwhelm you. With a little know-how and the right approach, you can set up ads that work for you and help your products get noticed.
Learn how to advertise on Amazon by creating, optimizing, and measuring campaigns that actually drive results.
Understanding Amazon’s Ad Types
Before diving into campaigns, let’s talk about the different kinds of ads available through Amazon. Each ad type helps you reach your audience in different ways, and choosing the right one can elevate your ad strategy.
Learn the differences between Sponsored Products vs. Sponsored Brands, vs. Sponsored Display. Here’s how each one helps you connect with customers.
- Sponsored Products: Think of these as the “featured” items you see when you’re browsing Amazon. They show up in search results and product pages, right alongside the regular listings. When someone searches for something similar to what you’re selling, your product could pop up as a paid ad, giving it that extra nudge. Sellers who used Sponsored Products spent 13% to 79% less per click compared to other advertising options.2
- Sponsored Brands: These ads are a little more flashy. They allow you to feature your logo, a custom headline, and multiple products in a single ad. They show up at the top of search results, making them great for raising brand awareness and getting people to check out your storefront or product listings.
- Sponsored Display: These ads are perfect for staying top of mind. They let you retarget customers who have looked at your products but haven’t bought them yet. These ads can show up on Amazon and even on other websites, helping you reach people when they’re browsing around outside of Amazon.
Creating a Winning Amazon PPC Campaign
The key to making your chosen ad campaign perform well is building a solid plan and a clear strategy from the start. It’s all about knowing your goals, setting a realistic budget, and targeting the right audience.
How to Set the Right Budget & Bidding Strategy
When it comes to Amazon PPC strategy, budgeting and bidding are very important. Get these right, and your campaigns will be much more successful.
- Budgeting: Start by deciding how much you want to spend each day. You can always adjust it as you go. If a campaign is doing well, bump up the budget to capture more clicks. If things are slow, you can scale back a little.
- Bidding: Bidding is how much you’re willing to pay for each click on your ad. For Sponsored Products and Sponsored Brands, you’re bidding on specific keywords. The more you bid, the better your chances are of securing a top spot.
Remember: It’s not just about how much you bid. Your ad’s relevance and performance matter too. Start with automatic targeting, let Amazon do some of the work, and as you get more comfortable, you can experiment with manual targeting to fine-tune your approach.
Finding the Right Audience for Your Ads
With the money you’ll pour into these ads, you need to make sure they are reaching the right people instead of getting ignored by ill-fitting audiences. There are a few different ways to target your ads, depending on what type you’re running.
- Keyword Targeting: This is the most common way to target people. You bid on keywords that are relevant to your product, and when someone searches for those terms, your ad shows up. Do your research to find the keywords that make the most sense for your product and your target audience. (Or have a partner like Amplifyy handle that for you.)
- Product Targeting: If you’re running Sponsored Brands or Sponsored Display ads, you can target specific products or categories. This lets you show your ads to people who are browsing similar products. It’s an effective way to steal attention from competitors.
- Audience Targeting: With Sponsored Display, you can target people based on their shopping behaviors. For example, if someone looked at your product but didn’t buy it, you can retarget them with a display ad to remind them to act. You can also target people based on things like interests and previous shopping habits.
Measuring & Optimizing Your Amazon Ad Performance
Now that you’ve set your ads up, it’s time to see how they’re doing. The beauty of Amazon ads is that you can track exactly how they’re performing, and that data can help you tweak your strategy as you go.
Metrics to Track for Success
To know if your ads are working, you need to keep an eye on a few important metrics:
- Impressions: This is how many times your ad is shown to people. It’s a good sign that your ad is reaching people, but it doesn’t tell you if they’re actually clicking or buying.
- Click-Through Rate (CTR): CTR shows you how many people clicked your ad after seeing it. A high CTR means your ad is interesting and relevant to the audience. If it’s low, maybe your copy or targeting needs some adjustments.
- Conversion Rate: This tells you how many clicks led to a sale. If your conversion rate is low, it might mean your product page needs some work (better images, descriptions, etc.) or that you’re not targeting the right people.
- Advertising Cost of Sales (ACoS): ACoS is how much you’re spending on ads compared to the sales they’re bringing in. A lower ACoS means you’re spending efficiently. If it’s too high, it could be time to adjust your bids or try different keywords.
Strategies for Amazon Ad Optimization
To get the best bang for your buck, you’ll want to dedicate a good amount of resources toward Amazon ad campaign optimization. Here are a few tips:
- A/B Testing: Try different versions of your ads to see which ones perform best. Test out different headlines, images, and calls to action. It’ll help you figure out what your audience responds to most.
- Use Negative Keywords: Negative keywords help you avoid wasting money on irrelevant clicks. For example, if you’re selling high-end products, you might want to exclude keywords like “cheap” or “discount.”
- Refine Your Targeting: After running a campaign for a while, take a look at which keywords and audiences are performing best. Double down on the ones that are working, and adjust or drop the ones that aren’t.
Partner with Amplifyy to Simplify Amazon Advertising
Amazon advertising is a powerful tool for increasing visibility, driving traffic, and boosting sales. By understanding Amazon PPC strategy, choosing the right ad types, targeting your ideal customers, and tracking key metrics, you can create campaigns that deliver real results.
And again, advertising on Amazon doesn’t have to be intimidating. With a bit of testing and optimization, you can make your ads work for you and start seeing the results you want. A partner like Amplifyy can simplify things even further—we can handle ad research, setup, implementation, and optimization for brands that want to see more ROI.
Contact us to learn more about our Amazon advertising services and our full range of capabilities for marketplace success.
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