With millions of products sold on the Amazon marketplace, sellers need a competitive edge to stand out and ultimately increase sales on Amazon. This is where Amazon PPC (Pay Per Click) advertising comes in. It is important for Amazon sellers to get their advertising strategy in place to minimize costs and maximize results.
If you are new to Amazon advertising, you need to understand the basics of Amazon’s advertising solutions to create effective advertising campaigns and optimize every penny spent.
In this guide, we will look at how to increase conversion rate on Amazon using Amazon advertising. Here’s what we’ll cover:
Amazon PPC (Pay Per Click) Ads, also known as Amazon Sponsored Ads is an Amazon advertising platform that allows sellers to increase their product’s visibility and amplify Amazon sales. With Amazon PPC, you pay only when a customer clicks on your Amazon advert.
The Amazon advertising platform is easy-to-use and allows sellers to set up different types of advertising campaigns in just a few minutes.
Advertising your products on Amazon is important if you want to expand your business and rake in significant sales. Let’s highlight a few benefits of leveraging Amazon advertising solutions:
Perhaps one of the most obvious benefits of running PPC ads is to increase product sales. This is the major objective (whether short-term or long-term) for any Amazon seller. Running ad campaigns provides wider audience reach and specific targeting which ultimately increases your conversion rate and product sales.
Leveraging Amazon Advertising exposes your product and brand to millions of potential customers. This exposure increases your customer and sales ratio. It also increases views, impressions, and conversion rate within a short time.
We all know that products that have the most sales are at the top of search results. If you have a new product, the chances of ranking high for major keywords are very slim. Running PPC campaigns is a great way to improve product organic ranking and sales potential.
With Amazon advertising, you can reach a wider audience and get your product in front of interested customers. The more people get to know about your product through Amazon ads, the easier it is to find your product and ultimately increase your conversion rate.
Online retailers selling on Amazon can reach potential customers and increase sales using these types of Amazon PPC Ads:
Sponsored Product ads are one of the most common ads used by almost every seller. With Sponsored Products, you don't need to be brand-registered. They appear at the top of search results and on organic search results.
You can use Sponsored Products to target product ASINS and specific keywords.
You can do two types of targeting with Sponsored Products: Automatic targeting ads and Manual targeting ads.
With automatic targeting, Amazon decides on the keywords to target based on your product. This is especially helpful if you are new to Amazon advertising and don't know which keywords to target. On the other hand, Manual targeting ads give you full control. You can decide which keywords to target and bid on.
To use Sponsored Product ads, you only need to have a Professional Seller Account. Unfortunately, sellers with an Individual Seller Account do not have access to Sponsored Product ads. Also, to use Sponsored Products, your product needs to be Buy-Box eligible.
Sponsored Brands ads formerly known as Amazon Headline Search Ads help you promote your brand and advertise your products.
Sponsored Brands are banner ads that feature your brand logo, thumbnails of three of your products, and a tagline. It is more advanced and only available to sellers enrolled on the Amazon Brand Registry.
This ad helps to increase brand awareness, allowing sellers to advertise up to three products at once. They usually appear on Amazon search results above the Sponsored Products ads.
Sponsored Brands ads can appear in three different formats:
Amazon Display ads are a powerful advertising tool that can reach customers both on and off Amazon. This means you can advertise to customers on apps and third-party websites.
With Display ads, you target customers based on factors like shopping behavior and interests, instead of keywords or competitor products.
With Amazon Display ads you can reach customers no matter where they are on their buying journey.
For example, you can use Display ads to retarget customers who viewed your listing but couldn't make it to the checkout section.
There are three types of targeting with Amazon Display ads:
To start advertising your products on Amazon, you only need to go through three simple steps:
There are important metrics to help Amazon sellers measure their results and optimize advertising campaigns. Here are a few advertising metrics to look out for:
Amazon continues to provide tools and solutions to help sellers grow their business and increase sales and revenue.
With Amazon Advertising, you can get your products in front of targeted customers, increase brand awareness and sales. There are different advertising types you can choose from.
When registered under Amazon Brand Registry, you have access to Sponsored Brand ads and Display ads which allow you to create video ads and retarget customers off Amazon. If you are not brand-registered, you can still leverage Sponsored Product ads to reach potential customers.