The Different Types of Amazon Ads That Will Ignite Your Sales

More than 50% of shoppers head to Amazon to find a product they need. But the increase in shoppers means that there are more sellers than ever to compete with as an increasing number of businesses see the potential of the marketplace.

So how do you gain a competitive edge?

Amazon ads help you stand out, get your products in front of new customers, and build a brand presence.

There are several different types of Amazon ads to leverage, each of which brings different benefits. If you’re wondering which type of ad you should use to maximize sales and reduce your ACoS, keep reading.


The Different Types of Amazon Ads

1. Sponsored Product Ads

Sponsored product ads elevate your listings so they show up top in relevant search results. When a shopper types in a keyword or phrase related to a product you’ve created an ad around, it’ll show up on the right side of the search results, at the bottom of the search results, or on the product details page.

This is prime real estate for Amazon products, and the prominent position of sponsored product ads helps you reach new buyers who are actively looking for products just like yours.

You can manually or automatically target keywords that are relevant to your products and buyers – the latter lets Amazon determine the most popular keywords, while the former lets you have a say on the words and phrases you want to include.

Sellers only pay for sponsored product ads when a shopper clicks on them, which means you have complete control over your ad budget and the bid amount you place on relevant keywords.

Sponsored product ads are identified by the “Sponsored” tag at the top of the listing in search results.

Why Use Sponsored Product Ads?

Sponsored product ads help you reach shoppers who are actively searching for products like yours. This means that they’re already a decent way through the sales cycle and are therefore more likely to buy. They also give you insights into the keywords your target audience uses when searching for similar products.

2. Sponsored Brand Ads

You might have also seen sponsored brand ads referred to as sponsored headline ads. Amazon rebranded this type of ad fairly recently in order to better capture its purpose.

The recent surge in online shopping has seen sellers on Amazon increasing their sponsored brand ad spending by more than 160%. Essentially, these types of Amazon ad shine a spotlight on your brand and up to three products of your choosing. Again, like sponsored product ads, you pay when a shopper clicks, not when Amazon displays the ad.

Keywords are a major component of sponsored brand or headline search ads, and you can bid on relevant keywords that you want your ads to show up for. Keyword research forms an important part of the optimization process in our services at Urtasker, and we take the time to dig into the most common words and phrases shoppers use.

Similarly to sponsored product ads, you can run automatic or manual campaigns, which gives you the choice of how much control you have over your ad campaigns.

You’re likely to see sponsored brands ads appear above the search results for specific, relevant search terms, below the search results, or to the left of search results. If a shopper is using the Amazon app on their mobile device, they might see your ad appear within the search results too.

Sponsored brand ads often have the seller’s logo in the corner and three product listings below it.

Why Use Sponsored Brand Ads?

Sponsored brand ads drive awareness for your brand and allow you to promote multiple products at once. This gives shoppers an overview of the products you sell, which maximizes your exposure and encourages more sales.

3. Product Display Ads

Product display ads present a competitive advertising choice for Amazon sellers. Instead of operating on a keyword search term basis, they focus instead on how your products relate to shopper interests as well as select categories. This gives your product valuable exposure to shoppers who are actively seeking what you’re selling and are already in “buy mode”.

Product display ads don’t appear in search results. Instead, they show up on related product detail pages, on customer review pages, and in merchandising emails. They can also be served outside of Amazon, including on Amazon-owned websites like IMDb, Amazon-owned devices like Amazon Fire TV, and on the Amazon Demand-Side Platform.

The sheer number of places a product display ad can be shown means you can reach a much wider audience – some of whom haven’t even made their way to Amazon yet.

There are often lots of sponsored display ads on product listing pages.

Why Use Product Display Ads?

Product display ads give you the opportunity to cross-sell and upsell your products to interested shoppers. This helps you reach a wider audience and connect with shoppers that are interested in buying or are already buying from your competitors.

At Urtasker, we specialize in creating and optimizing Amazon ad campaigns using the different types of Amazon ad to help you reach more customers. Get in touch today to find out which ad type is best for you and how to leverage the benefits of each of them.

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Omer Riaz August 26, 2020 0 Comments

The Truth About Amazon Advertising Costs

Amazon is a fantastic place to sell your products and attract more buyers. Millions of shoppers head to the platform every day to purchase items in almost every category imaginable.

There is a lot of competition for sellers, which drives up the costs of Amazon ads unless they have been properly optimized.

By taking advantage of Amazon’s advertising options, you can maximize visibility on your products and reach a wider range of people who are interested in what you’re selling.

If you’re new to selling on Amazon or your business is still on the smaller side, you might be worried about how much advertising will cost and whether it’s really worth it. The truth is, the Amazon advertising costs can vary wildly depending on several different factors.

At Urtasker, we’ve worked with brands of all sizes that sell all manner of products, so we know that the cost of ads truly depends on what you’re selling, who you’re targeting, and what budget you have in mind.

Amazon ads work in a similar way to Google Adwords in that the higher you bid (or the higher your budget is per click), the more likely it will be that your product shows up in a relevant search.

How much you spend on your campaigns is entirely up to you, and you can set your budget to be as much or as little as you like. Obviously, a seller who has a huge budget will experience different results to a seller that has a much smaller amount to spend, but it can still be a fruitful way to generate leads.

Product type is a huge cost indicator, too.

For example, if you’re selling something like a t-shirt or a television, you’ll experience a much higher rate of competition than if you were selling something a little more obscure. The general rule is that the more listings there are competing for attention, the higher the price will be to advertise similar items.

Amazon Advertising Costs: The Average

Despite there being many different factors that go into determining how much your Amazon ads will cost, there are some guidelines you can go by.

Research has been carried out to identify the average costs of ad campaigns on Amazon, as well as the average cost per click and the average daily ad spend.

Here are some of the most important findings:

The Average Cost Per Click (CPC) is $0.97

The average cost for a click across the board is almost $1. CPC refers to how much it costs when a customer actually clicks your ad, not when a customer simply sees your ad in their feed and scrolls past it.

Amazon CPC is an auction-based process, which means the price that you end up paying is always just a cent higher than the next bidder. If your bid can beat $0.97 per click, there’s a high chance you’ll see good results.

Again, this cost will also be determined by the product you’re selling and its competition. Some products might see an average CPC that’s much lower than this, while others might be much higher.

The Average Daily Ad Spend is $381.48

This is the average for high volume Amazon sellers who advertise on a daily basis. If this seems high, don’t panic – you can always set your budget to a much lower amount and measure your results from that.

Your daily spend is completely determined by you and it can be measured in a number of different ways, including by base keyword cost or by ad groups.

The Average Number of Daily Conversions is 35

Amazon sellers that run daily ads see an average of 35 conversions a day. That’s a pretty decent number, although we can safely assume that this is based on the average daily ad spend listed above. If your daily ad spend is lower, you’ll likely experience fewer conversions and if your ad spend is higher, you’ll probably enjoy a lot more.

Amazon Advertising Costs Aren’t Set in Stone

There is no one-size-fits-all rule for Amazon advertising costs. Here, we’ve simply listed the averages that research has shown, but this can vary dramatically depending on the categories you’re selling in and the keywords you’re targeting.

The amount of competition you have and the budget you can set aside for ads has a huge impact on how much money you’ll spend and the results you’ll reap. If you want to compete with big-name brands for highly-competitive keywords, the cost is going to reflect that. It’ll essentially lead to a bidding war between brands, which will eventually drive up the average CPC.

If you have a limited budget, it can be a wise idea to lower your CPC and target less competitive keywords. For example, if you just have $500 to spend on a campaign, you can set your bid to $1 instead of $5. This means you’ll get 500 clicks at $1 per click or 100 clicks with $5.

It really depends on the goal of your campaign, too. If you simply want to boost brand visibility, going for the higher amount of clicks can work well. However, if you want to get more sales, you’ll need to target keywords that are further through the sales cycle which are often more expensive.

Our team at Urtasker are experts at running and optimizing successful Amazon advertising campaigns. Our thoughtfully designed Amazon PPC services help individual sellers reach the right people and sell more products without spending over the odds. To find out more about how we can help, book a free 30-minute chat with us at a time that suits you.

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Omer Riaz August 26, 2020 0 Comments