Amazon Advertising: The ultimate guide

With an ability to draw in the appropriate audience at the optimum time, it is no surprise that Amazon Advertising is expanding exponentially. In 2021, the advertising service produced $31.2 billion in sales, with its rapid growth resulting in a 32% increase in Q4 alone. As Amazon continues to develop new ad formats and technological capabilities, the platform's success remains optimistic for the foreseeable future. 

What is Amazon Advertising?

Amazon Advertising is an advertising platform that works similarly to Google Ads. Its approach enables Pay Per Click bidding with various ad kinds, such as:

  • Sponsored product ads 
  • Sponsored brand ads 
  • Product display ads 
  • Sponsored display ads 
  • Video ads
  • Audio ads 

The platform employs an algorithm to ensure customers view the most relevant products. For advertisers, this means that the products with the most substantial sales, favourable feedback and relevant keywords win the most ad auctions.

One notable difference to Google Ads is Amazon's established customer loyalty. As indicated in a recent publication by Forbes, 89% of customers are more likely to purchase products from Amazon than any other eCommerce site. So, with the right strategy, a business can utilise Amazon's Advertising service to increase sales conversions.

Benefits of Amazon Advertising

  1. Access to a large audience: Every month, Amazon receives 2 billion visits from the US alone. Numerous users interact with its products and apps. Additionally, your advertising budget won't be wasted because users only see highly relevant adverts due to the Amazon strategy.
  2. Extremely engaged shoppers: Amazon browsers are highly likely to make a buy because Amazon is the preferred channel for finding products; users aren't searching for informative blogs or how-to videos. Amazon is the origin of 74% of all US product searches.
  3. Trackable results: When using Amazon Advertising you will have access to an abundance of useful data. While display ad reports include Amazon Costs of Sale (ACOS) insights, sponsored product ads provide sales numbers and keyword performance. These reports can show shifting consumer behaviour, consumer journey information, and trends in customer acquisition, helping marketers in making data-driven decisions for their company.

Getting Started with Amazon Advertising

When getting started with Amazon Advertising there are a few steps to follow:

  1. Create goals: Depending on whether you want to enhance sales or brand awareness, you can choose an Amazon advertising product that fits your objectives.
  2. Select ad types: Amazon highlights which advertisements are effective for various goals, so knowing your objectives will make this easier. For example, increasing brand recognition works best with video, display, and audio advertisements.
  3. Perfect your ad creatives: Product pages should be optimised by brands utilising sponsored product advertisements, brand ads, and product display ads because these have a significant impact on conversion rates. On the other hand, compelling landing page designs and ad images are necessary for video and display advertisements.

Final thoughts

Starting your Amazon Advertising journey can be daunting. With the wide variety of ad types and tools available, it is understandable why marketers can quickly become overwhelmed trying to establish the right strategy. However, with the average conversion rate close to 10%, we encourage investing time in learning how to utilise the platform. 

If you are interested in how the BDO Eaton Square eCommerce team can help your brand to succeed on Amazon, click here.