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 marketplace’s potential.
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 actively looking for products 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.
The “Sponsored” tag identifies sponsored product ads at the top of the listing in search results.
Why Use Sponsored Product Ads?
Sponsored product ads help you reach shoppers actively searching for products like yours. This means they’re already a decent way through the sales cycle and are, therefore, more likely to buy. They also give you insights into your target audience’s keywords 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 capture its purpose better.
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 ads 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 brand ads appear above the search results for specific, relevant search terms, below the search results, or to the left of the 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 them.
Why Use Sponsored Brand Ads?
Sponsored ads drive your brand’s awareness and allow you to promote multiple products at once. This gives shoppers an overview of your products, 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 on how your products relate to shopper interests and select categories. This gives your product valuable exposure to shoppers actively seeking what you’re selling and already in “buy mode.”
Product display ads don’t appear in search results. Instead, they show up on related product detail pages, customer review pages, and 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 allow you to cross-sell and upsell your products to interested shoppers. This helps you reach a wider audience and connect with shoppers interested in buying or already buying from your competitors.
At Urtasker, we specialize in creating and optimizing Amazon ad campaigns using the different types of Amazon ads 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.