November 1, 2023

Amazon Marketing Services: All You Need to Know

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Amazon Marketing Services: All You Need to Know
Amazon Marketing Services: All You Need to Know

Amazon is a leading ecommerce platform with a variety of industries. Businesses and brands are constantly looking for ways to advertise their products on the Amazon platform and the Amazon Marketing Services have become the go-to for many businesses. 

Amazon Marketing Services offers a wide range of solutions that can help businesses reach their audience. These solutions include Amazon Sponsored Products, Amazon Sponsored Brands, and Amazon Display Ads. 

In this article, we will dive into what Amazon Marketing Services is and how you can take advantage of the various solutions to increase sales and revenue. 

What is Amazon Marketing Services (AMS)?

Amazon Marketing Services (now called Amazon Advertising Console) is a set of Amazon Advertising tools and solutions that help Amazon sellers run ads to get their products in front of relevant audiences. 

With AMS, sellers can create, manage, and optimize ads that will appear in Amazon search results and other areas on the Amazon platform. You can run advertising campaigns based on certain criteria including budget, keywords, geographical locations, customer interests, etc. 

As you run your ad campaign, you can also monitor metrics like clicks and impressions and make adjustments. 

Why do you need Amazon Marketing Services? 

With Amazon Marketing Services, you can make your product visible to interested shoppers. You can target specific consumers based on certain criteria and increase conversion rates. You can also identify specific high-converting keywords and target them in your product listing. 

Through AMS, you can also create unique shopping experiences and stand out from the competition using products like Amazon stores, Sponsored ads, and much more. Using unique landing pages, Amazon stores, and product pages, you can offer convenience to shoppers, build trust, and attract a loyal customer base. 

Who is eligible for Amazon Marketing Services? 

Amazon Marketing Services is only available to sellers who have any of these accounts: 

  • Amazon Seller Central Account 
  • Vendor Central 
  • Advantage Central
  • Kindle Direct Publishing (KDP)

You can also get access to Amazon Marketing Services as an agency representing a vendor or seller on Amazon. 

Types of Amazon Marketing Service Solutions 

Depending on what your goals and objectives are, Amazon Marketing Services offers various types of ads that can help you reach and engage your target audience. 

Here’s a list of ads and solutions available under Amazon Marketing Services: 

  1. Sponsored Product Ads
  2. Sponsored Brand Ads 
  3. Sponsored Display Ads
  4. Video Ads
  5. Amazon DSP
  6. Amazon Attribution 
  7. Amazon Stores 

Sponsored Product Ads

Sponsored Product Ads are Pay-Per-Click ads designed to increase the visibility of a product, making it more discoverable to potential customers. 

You can target a specific search term relevant to a potential buyer. The product ad appears on the buyer’s page and you only pay when a viewer clicks on your ad. These ads appear at the top and bottom of search results as well as on product detail pages. 

Once a buyer clicks on the ad, they are instantly redirected to the ad’s product page where they can make a purchase. 

To access Sponsored Product Ads on Amazon, you need to be a Professional Seller, Retail Vendor, book vendor, author on Kindle Direct Publishing, or agency. 

Cost: The minimum daily budget is $1 daily. However, Amazon recommends a minimum budget of $10 daily. 

Sponsored Brand Ads 

Sponsored Brand Ads previously called Headline Search Ads are a type of ad that allows you to increase your brand visibility. 

It is a cost-per-click ad that allows you to add a custom headline, brand logo, and multiple products. When customers click on your brand logo, they are redirected to the search result page with a variety of your products. If they happen to click on one of the products in your ad, they will be redirected to the product detail page of that particular product. 

With Sponsored Brand Ads, you can get your brand in front of target audiences that are looking for your product. 

Amazon Sponsored Brand Ads are available to Amazon sellers enrolled under the Amazon Brand Registry, agencies, vendors, and book vendors. 

Cost: You can run a Sponsored Brand Ad at a minimum budget of $1. It is a pay-per-click ad which means that when a viewer clicks on your ad, you will be charged. 

Sponsored Display Ads

Sponsored Display Ads are designed to reach your target audiences both on and off the Amazon platform. You can create simple and creative ads targeting specific audiences both on and off Amazon based on their shopping behavior. 

Sponsored Display ads are also effective for retargeting customers who have viewed your product or similar products. They are also great for increasing awareness of newly launched products. 

Sponsored Display ads are available for sellers with a professional account and enrolled under the Amazon Brand Registry. It is also available to book vendors, vendors, and agencies that sell their products on Amazon. 

Cost: Sponsored Display ads are pay-per-click ads. There are no minimum spending requirements. You can specify and change your bid whenever you want. 

Video Ads

Amazon OTT (over-the-top) video ads allow you to showcase your products alongside high-quality content like movies, live sports, curated news, and more. 

Amazon OTT ads typically appear on publisher channels, connective TVs, Twitch, Amazon Freevee, network broadcaster apps, and more. 

With Amazon OTT, you can capture your target customer’s attention, reach a wide audience, and increase brand awareness. 

Businesses and brands can advertise using Amazon OTT whether they sell products on Amazon or not. 

Cost: Amazon OTT video ads are charged on a cost-per-mille basis. This means you will pay for every 1000 views your ad receives. A self-service package costs a minimum of $10k. However, the managed service package costs a minimum of $50k. 

Amazon DSP

Amazon DSP (Demand Side Platform) allows brands to purchase ads programmatically. So, with Amazon DSP, you can create customized advertising campaigns targeting specific audiences based on specific goals while having access to thousands of mobile applications and websites. 

Your Amazon DSP ad can be an image, video, or audio. In addition, your ad will be displayed both on and off Amazon. 

Amazon DSP ads are available for sellers, agencies, vendors, and other types of advertisers. 

Cost: Amazon DSP pricing varies depending on your package option. For self-service options, you are in control of your ads so there are no management fees. 

However, if you choose the managed service option, you will need a minimum spend of $50k (this can vary depending on the country). 

Amazon Attribution 

Tracking advertising across multiple channels can become easy thanks to Amazon Attribution.

With Amazon Attribution, you can know what campaigns are working best, measure your ROI, and make more informed decisions. You can know what channels have the highest ROI and invest in those channels. 

Amazon Attribution is available to professional sellers enrolled on the Amazon Brand Registry, as well as vendors and agencies selling products on Amazon. 

Cost: Amazon Attribution is free. 

Amazon Stores 

Amazon Stores is a service available to sellers on the Amazon marketplace. With Amazon Stores, you can create a personalized shopping experience for your target audience, and showcase your products and brand. 

Amazon Stores works similarly to a website. You get a unique URL that customers can click on to visit your store. 

You can add visuals, videos, and product information that helps customers know more about your product and brand. 

Cost: Amazon Stores are free to use and to set up. However, you will need to be registered under the Amazon Brand Registry. 

Best practices for optimizing and managing ads on Amazon 

To ensure you get the most out of your budget and run successful ad campaigns, it is important to effectively optimize and manage your ad campaigns. 

Here are some best practices to help you get the most out of Amazon Marketing Services (AMS) no matter the option you choose: 

  1. Carry out proper research 

Before you decide to launch your campaign, the first thing to do is carry out in-depth research. First, you want to decide what kind of ad you want to focus on.

Next, you will need to carry out research on your target audience and find out their interests, motivations, pain points, and more.

Next, carry out keyword research to find the most relevant keywords and key phrases. You can use keyword research tools like Ahrefs and Jungle Scout. 

Lastly, you also want to identify opportunities to make your offer more attractive. For example, you can identify ways to upsell and cross-sell. 

  1. Choose the right products 

When creating an ad campaign, the type of product you showcase matters. You want to put out products that resonate with your target audience. These products could be best-sellers or seasonal products. 

The key to choosing the right product is knowing your target audience. This will help you choose the product(s) that they will find valuable. 

  1. Determine your budget 

When setting your budget, you want to ensure you have enough for your ad campaign and product listing to reach your audience. There are a number of boxes to tick before deciding on your budget. 

First, you want to decide on the goal of the campaign. Whether it is to increase brand awareness or generate sales. 

Next, you will need to consider the duration of the campaign. For longer campaigns, it is helpful to set daily budgets. This will help you stay on track with your ad spend and avoid spending too much or too little. 

You also want to consider the kind of keywords you are targeting as this will have a significant impact on your budget. 

  1. Segment your audience 

Segmenting your audience based on factors like age, interests, behavior, motivation, geography, etc. is a powerful way to target more relevant customers and increase your Return On Ad Spend (ROAS). 

You also want to use Amazon’s targeting tools like “Automatic Targeting” or “Advanced Targeting” to refine your audience targeting. With these targeting tools, you can choose audiences that see your ad based on certain factors. 

  1. Test different variations 

A/B testing is a simple yet effective method to test various versions of an ad to determine which resonates best with your target audience. This will help you make the most out of your ad and increase ROI. 

You can experiment with different ad formats, ads, copy, creatives, and more. 

  1. Analyze your campaign performance 

To ensure you’re getting the most with your ad spend, it is important to regularly monitor your campaign performance. 

You want to create Amazon advertising reports to track metrics like cost per click (CPC), impressions, cost per thousand impressions (CPM), etc. to find out how successful your campaign is. 

With these analytics, you can easily make adjustments to your ad campaign and maximize ROI from your ad spend. 

Final thoughts 

As an Amazon seller, you can leverage Amazon Marketing Services (AMS) to put your business on the world map. 

With AMS, you can reach a wider audience, bring in relevant traffic to your Amazon store, and increase sales on Amazon. 

Amazon targeting and analytics tools can also help you adjust your strategies and maximize your ROI with every ad spend.

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