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Amazon Advertising

The Ultimate Guide to Amazon Performance Advertising: Everything You Need to Know 

Reading Time: 6 minutes

What is Performance Marketing on Amazon? 

Amazon ranks among the largest eCommerce platforms worldwide, attracting over 300 million Prime members and 2.2 billion visitors each month. 

This extensive reach offers sellers a unique chance to promote their products. 
Yet, there’s a challenge. 
With a multitude of competitors offering similar items, getting your product in front of the right customers can be tough.
This is where Amazon performance advertising steps in! 
It’s designed to improve product visibility and drive sales on Amazon.
This blog will explore all the essential aspects of Amazon performance advertising. 

Types of Amazon Performance Ads

Amazon provides four key forms of performance advertising on Amazon: 

Advertising options include Sponsored Products (SP), Sponsored Brands (SB), Sponsored Display (SD), and the Amazon Demand-Side Platform. 

Each type has certain characteristics, benefits, and best practices. Let’s look at them in more detail. 

Sponsored Product Ads 

Sponsored Product ads are the most popular type of advertisement, appearing in search results and on product detail pages. 

Unlike other types of PPC ads, sellers don’t need to register their brand to create Sponsored Product ads. 

These ads typically show up at the top of the Amazon search results page, throughout the organic search results, and on product listing pages. 

Recently, Amazon announced that Sponsored Product ads will also be displayed on premium apps and websites such as Pinterest, BuzzFeed, Hearst Newspapers, Raptive, Ziff Davis, Lifehacker, Mashable, and others. 

Sellers don’t need to take any additional steps to have their ads appear on these platforms. They can track the performance of these placements using the Sponsored Products placement report. 

Amazon Targeting Options 

Automatic Targeting 

Amazon’s Automatic Targeting feature uses keywords from your product listing. It’s an excellent way to start advertising on Amazon, especially if you’re unsure where to begin. 

Manual Targeting 

This option lets you choose specific keywords or products to target, set custom bids, and define keyword search parameters like broad match, phrase match, or exact match. Manual targeting provides sellers with greater control over their advertising budget and effectiveness. 

The manual targeting campaign includes two forms of targeting: 

Keyword Targeting: Allows you to select specific terms to target with your ads. 

Product Targeting: Let’s target certain products so your ads appear under the “Products related to this item” section of the targeted product. 

Sponsored Brand Ads

Sponsored Brand ads, formerly Amazon Headline Search Ads, provide advanced advertising options for sellers enrolled in the Brand Registry programme. 

These ads aim to boost brand awareness by driving traffic to the customised Amazon storefront. 

Like Sponsored Product ads, Sponsored Brand ads also offer three ad formats: 

Product Collection for Amazon Performance Marketing. 
Product collection ads are the most prevalent sort of Sponsored Brand ads. They allow you to showcase up to three products from your catalogue, as well as your company logo and a custom headline. 

They typically appear above the Amazon search results. 

When customers click your ad, they are taken to a dedicated brand storefront where they can learn more about your products and brand. Product collection ads are ideal for driving visitors to your store while also promoting newer or less popular products alongside your best-sellers. 

Spotlight advertising is a newer type of Sponsored Brand ad that lets you highlight multiple product categories in a single ad, along with your brand logo and a unique headline. 

However, it’s important to note that the Store Spotlight ad format is only accessible to customers who have a customised Amazon storefront. Spotlight ads are great for introducing new products or showcasing bestsellers. 

Amazon’s performance advertising strategy involves video ads.
Video advertisements are another advanced sponsored business ad type that allows you to promote your business and products through captivating video content. You can upload a video or use Amazon’s video builder to create one. 

Amazon video ads display below the fold on the search results page and begin playing when they take up 50% or more of the screen. When customers click on your video ad, they are directed to either the product detail page or a landing page of your choosing. 

Video ads are ideal for communicating your brand’s story and displaying product features and benefits. 

Learn more about it in the Sponsored Brand Ads guide. 

Sponsored Display Ads 

Sponsored Display is a relatively new feature of Amazon’s self-service advertising toolbox. 
It enables advertisers to engage with relevant audiences on and off the Amazon platform.
Unlike Sponsored Products and Sponsored Brands, this technology enables advertisers to target potential buyers based on their preferences, purchasing habits, and previous interactions with the advertised product’s description page. 
Sellers or merchants must first register their brand on Amazon in order to access Sponsored Displays. 

Sponsored Display advertising allows advertisers to target audiences based on their interests and browsing behaviours, rather than just keywords or competitors’ items. 
This provides an opportunity to retarget clients who have previously seen the product details page or purchased similar products. 

Sponsored Display has three main targeting options: 

Product targeting ads: This enables you to target clients who are browsing your products, competitors’ products, or similar categories. It also displays advertisements directly on rivals’ listings. 

Audiences: Views Remarketing: Use this option to re-engage your target audience who have previously visited your product details page or comparable items and categories. The look-back period for this option is 30 days. 

Audiences’ Interests: This targeting method is appropriate if you want to increase brand awareness and recognition. This option allows you to contact clients who have browsed or are interested in comparable products within the segment. The look-back period for this target is 90 days. 
More information can be found in the Sponsored Display Ads guide. 

Where do Ads in Performance Marketing Campaigns Appear? 
Ads in Amazon’s performance advertising campaigns can be displayed in a variety of prominent spots across the platform, with the goal of increasing visibility and engagement. 

Product advertisements are sponsored. 
The majority of Sponsored Product ads display at the top of the search results page and throughout the remaining pages. 

Amazon Performance Advertising Advantages 
Aside from that, Sponsored Product adverts show on the product information page of comparable or rival products. 

Amazon performance advertising solutions. 
Sponsored brand advertising frequently appear at the top of search results pages. This location contributes to increased brand visibility and consideration among shoppers.
How to Boost Sales with Amazon Performance Advertising 
Aside from that, they appear at the center and bottom of the search results page.
Sponsored Display ads can show up on and off Amazon, providing a unique benefit. They can be found on Amazon’s product detail pages, search results pages, and other relevant areas. 
Off Amazon, these ads can be displayed on third-party websites and apps such as Twitch, Prime Video, and Alexa, expanding their reach beyond the Amazon ecosystem. 

What are the advantages of Amazon performance advertising? 
Amazon performance advertising is an effective method to enhance your online visibility and engage with new customers. Here are some of the benefits of utilising this service: 

Enhanced visibility. 
Through performance advertising, your products can feature prominently at the forefront of search results and on product detail pages. This heightened visibility attracts potential clients and drives sales. 

Precise targeting 
Performance advertising allows advertisers to target specific keywords, customer interests, and demographics. It ensures that their advertisements reach a targeted demographic that is likely to convert. 

Enhanced Brand Awareness 
Sponsored Brands enable brand-registered sellers to market their brands and products to customers. This promotes brand awareness among customers and adds to long-term brand recognition.

Cross-Platform Reach 
Sponsored Display advertising have the distinct advantage of reaching beyond the Amazon platform. Advertisers can target potential customers via third-party websites and applications, broadening their reach to new-to-brand shoppers. 

How can you get started with Amazon Performance Advertising? 
Beginning with Amazon performance advertising is not difficult. It entails a sequence of steps, including: 

Step 1: If you do not already have an Amazon Advertising account, create one. You may use your current Amazon Seller or Vendor Central account or create a new one. 

Step 2: Make your listing more discoverable and appealing by including a descriptive title, description, bullet points, A+ content, and other elements. 

Step 3: Make sure your brand is registered on Amazon. Otherwise, you won’t be able to make use of several great advertising features, such as Sponsored Brand ads. 

Step 4: Clearly identify your advertising goals. Whether you want to improve sales, raise brand awareness, or promote new items, knowing your goals will help you plan your campaign.
Step 5: Conduct rigors keyword research to uncover suitable keywords for your products. Use tools like Reverse ASIN to find high-performing keywords to target with ads. 

Step 6: Select the ad type that best fits your goals and budget. Sponsored Brands are appropriate for increasing brand awareness, while Sponsored Products are effective for advertising specific products. 

Step 7: Determine your daily or campaign budget based on your company’s revenue and profit objectives. 

Step 8: Based on the ad type, select your targeting options. You can target Sponsored Products based on keywords or products. Consider targeting Sponsored Brands and Sponsored Display advertising based on audience interests, product categories, or specific goods. 

Step 9: Once your settings have been configured, start your campaign. 

Regularly analyse performance indicators and alter your campaigns based on data such as click-through rates (CTR), conversion rates, ACoS, and ROAS. Optimise your keyword targeting and bidding techniques to increase campaign effectiveness. 

Closing Remarks 

This guide to Amazon performance advertising aims to provide you with a clearer understanding of the various types of Amazon advertising and how to execute a successful PPC campaign. 

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