What Are the Different Types of Amazon Advertising?

types-of-amazon-advertising

What kind of advertising options does Amazon offer? It turns out there are several, each with its own unique advantages and disadvantages. So before you start spreading the word about your product or service, be sure to familiarize yourself with all the different types of advertising on Amazon. 

This will help you find the right one to suit your business goals and budget. So, you don’t waste any money on advertising that doesn’t provide value to your Amazon business.

How Big Is the Amazon Network?

According to recent estimates, more than 300 million active users on Amazon. And about half of those users visit at least once a month, or six times per year. For advertisers, that’s an enormous audience you can now reach directly without going through Google and Facebook for advertisers. 

That said, if you want to advertise on Amazon, it can get quite pricey depending on your budget and ad type. But while these costs might seem high at first glance, there are often some pretty substantial benefits behind them. 

So let’s take a look at how you can use advertising on Amazon to get more sales for your business.

Why People Would Want to Advertise on Amazon

Most of us think of Amazon when we shop online. The reason is that people like to buy on Amazon because it’s convenient and cheap. So when you advertise on Amazon, you’re reaching people who are in buying mode and ready to make a purchase. 

But that’s not all, here are other reasons why people advertise on Amazon:

1. Target potential customers – When you advertise on Amazon, you’re reaching a broad range of demographics, and not just people who are on your website or actively looking for your product/service. The audience is constantly growing with new shoppers and buyers from around the world. 

2. High intent – When people buy on Amazon, they’re often in an informed buying mode where they have done their research and are ready to make a purchase as soon as possible.

3. Lower advertising costs – Advertising on Amazon is relatively cheap compared to other advertising platforms (at least at present). 

4. Different types of ads – There are plenty of different ad formats you can choose from on Amazon that allow you to target specific users within your budget: video ads, banner ads, and product links. You can even choose between sponsor products or general content based on what you think will perform best for your brand/business goals. 

5. High-quality traffic – The audience visiting Amazon is made up mostly of people who do their research before making a purchase. They aren’t just buying something because it looks cool; they’re looking for quality and a good deal. If you have a good service or product at a great price point, these shoppers will likely be your customers.

Types of Amazon Advertising

There are various types of advertising that you can take advantage of on Amazon, and it’s essential to decide which one is best for your business:

Sponsored Products

Amazon Sponsored Products

Most people think of Amazon’s Sponsored Products program when they hear Amazon advertising. Many sellers think that Sponsored Products is a company-wide term for Amazon advertising; it isn’t. 

So let’s get clear: When we talk about Sponsored Products, we refer to paid search ads only. There are two ways to run these ads—either using Amazon Marketing Services (AMS) or managing them directly through Seller Central.

Sponsored Brands

Amazon Sponsored Brands

Amazon’s Sponsored Brands advertising service (also called Amazon DSP) offers a unique opportunity for brands to reach Amazon customers while they shop across desktop, mobile, and Fire devices. 

Whether you want to drive awareness, generate consideration, or increase engagement with your brand, Sponsored Brands can help. They can also be used alongside other Amazon Marketing Services (AMS) such as Search Ads and Product Display Ads. 

Through Sponsored Brands, marketers create bids based on specific terms that their products appear in; these bids are then matched against searches by consumers to provide display ads against relevant product searches when users search using relevant keywords.

Sponsored Display

Amazon Sponsored Display

Sponsored ads are a great way to promote your products or services to prospective customers. But, of course, the prices depend on what you want to advertise. To help determine if sponsored ads are suitable for you, here are some questions to ask yourself: Do I know how much my product is worth in advertising dollars? How much will I need to budget for that ad campaign?

With sponsored products, you bid for keywords that match your product listing. For example, if you sell running shoes and have a new pair of trainers to trade, you might bid for women’s running shoes to show your ad when people search for that phrase. The amount you pay per click depends on how many competitors bid to show their ads. You want bids that are affordable but also get a lot of clicks.

Video Ads

Amazon Video OTT Ads

These pre-roll ads play before your video, and viewers can choose to skip them after five seconds. This form of advertising is not only practical, but it’s also cheap because a shopper has already demonstrated that they are interested in your product. 

That could be a great way to promote your new product as soon as it is available or boost sales by increasing exposure for existing products. For best results, make sure you include a link to buy now within your video ad. 

Then, when viewers see an exciting product during their favorite show, they won’t have to look very far to add it to their cart! A word of caution: Studies show that longer pre-roll ads lead more often to viewer abandonment—typically around 30 seconds.

Audio Ads

Amazon Audio Ads

Advertise through Amazon’s audio-based text-to-speech feature. This platform allows you to create a custom advertisement (up to two minutes in length) read aloud and played back as a voice message for customers. In addition, audio Ads can be explicitly targeted to particular audiences using speech recognition software. 

Because it’s a form of text-to-speech advertising, Audio Ads typically cost much less than other forms of advertising, such as video ads. That said, you need to know what keywords or search terms your target audience is likely to use when they search—or browse—Amazon, which requires some level of research and planning ahead of time.

Amazon Stores

Most people think of this when they talk about advertising on Amazon—and it’s by far the most common form. A store is a listing that you can create in Seller Central in its simplest form. But, of course, the item must be available for sale, and your inventory must match up with what’s being advertised. 

Your store will appear in search results and in various places throughout Amazon (see below). Of course, you pay to promote your stores just like any other PPC ad. 

When someone clicks through from your store and buys something, you get paid a commission.

Its main feature was its blogroll along one side of all full pages, which linked to external blogs relevant to specific current news stories.

Amazon DSP

Amazon DSP

DSP is short for a demand-side platform. DSP platforms aggregate and serve online ads for demand sources like advertisers and agencies. You can access these demand sources through a DSP, enabling you to scale your advertising program to unprecedented levels of performance.  How do they work? 
Well, let’s look at two types of demand: fill rate (CPM) and volume (impressions). Fill rate describes how many ad impressions are delivered per every thousand ad requests by an advertiser or agency; in other words, it shows how quickly an ad impression becomes available when someone visits your website. 

The volume of ad impressions will depend on how many people are viewing your ads each day.

You’ve got two choices when it comes to advertising your products on Amazon. First, if you have a large enough budget, you can run campaigns through their dynamic-search-pricing ads- otherwise known as DSP.

And if you don’t have that kind of cash on hand, you can use sponsored product ads, which are less flexible but cost much less. Which one should you choose? It depends entirely on your specific needs and goals. Here’s what each option has to offer.

Custom Advertising

Marketers can create custom ads to target existing customers or acquire new ones. Custom PPC ads are entirely managed by merchants, including costs and keyword selection. When a shopper clicks your ad, they’re taken directly to your product page and not to a third-party website, so it’s easy for them to make a purchase. 

Unlike ordinary click-to-buy ads that offer only shipping information as an option, you have several choices available in creating custom PPC ads: multiple photos (or none), brief descriptions, videos, detailed descriptions- the works! 

If a customer prefers not to be marketed to in any way (or has just plain had enough), an opt-out option is also available for custom PPC ads.

Measuring Your Amazon Ads: Amazon Marketing Cloud

Amazon offers numerous ways to measure and track your marketing effectiveness, including those through its suite of advertising tools, or AMS. AMS provides insights that are useful in determining which ads and campaigns drive revenue. 

For example, it helps you determine which placements and keywords result in sales, along with how much to spend per day and where you should advertise your products. One key component is measuring product performance and conversion rates from advertisements—so how do you know if a campaign is successful or not?

The Bottom Line

And that’s just scratching at what’s available on Amazon. With so many options, you can get your product or service in front of an enormous audience with relative ease. 

While there is a lot of competition on The Amazon network, being aware of who your target audience is and how they use search makes it easier to differentiate yourself from everyone else. From there, it’s about knowing how to use everything available to you and telling your story using great copywriting, visual design, and video content.

You don’t have to be an Amazon advertising expert to benefit from the platform, but if you’re an Amazon seller looking to drive more sales, having some knowledge of how advertising on Amazon works can help you make smart decisions when using it.

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