AMAZON ADVERTISING BASICS
Amazon’s advertising ecosystem comprises four unique types of ads, each offering distinct advantages
Sponsored Display Ads These ads are shown both on and off Amazon.com. In addition to having access to the vast consumer-centric and purchase-prone buyer base of Amazon, you will also have access to thousands of Amazon’s partner websites and apps with Sponsored Display Ads.
Sponsored Product ads These promotions highlight individual product listings on Amazon with ad placements in search results and on product pages. Sponsored Products ads are considered one of the most effective strategies to boost the visibility of your product listings. They can comprise up to 80% of the total PPC budget because of their effectiveness.
Amazon Demand Side Platform (DSP): This advertising tool taps into Amazon’s comprehensive customer base, operating both on and off Amazon. DSP serves as an integrated advertising platform that includes Amazon OTT (over the top), video ads, and streaming ad placements on platforms like IMDB and FireTV. This ad type comprises typically less than 10% of the total PPC budget given its low clickthrough rate and conversions compared to other ad types.
Sponsored Brand Ads These custom banner and video ads promote your brand as a whole. They showcase your brand logo, tailored headline, and multiple products of yours. Strategically positioned in relevant shopping search results, they boost your overall brand visibility among consumers who are interested in brands and products similar to yours.
FREQUENTLY ASKED QUESTIONS
In recent years, Amazon has significantly intensified its focus on advertising. Consequently, paid placements on the marketplace have multiplied dramatically, and it’s common to see all “above-the-fold” search results dominated by paid advertisements. Your competitors are certainly leveraging this approach, advertising within search results and even on your product pages.
Without an advertising strategy in place, your market share is at risk of gradually diminishing. Hence, if you aspire to expand your business on Amazon, advertising becomes a crucial component of your strategy.
Let our customer-centric team manage your advertising account and tailor an Amazon strategy that aligns with your growth objectives. With our expertise, we’ll ensure your brand thrives amidst the competition.
Several comprehensive reports are available that gauge various Key Performance Indicators (KPIs), assisting you in tracking the progression towards your advertising objectives. Basilio Inc employ advanced software tools to assemble, visualize, and monitor this data over time. This approach not only helps you comprehend the implications of these metrics, but also equips you with actionable insights, empowering you to make data-driven decisions for your advertising strategy.
For the majority of brands, we propose a minimum monthly budget of $5K for Sponsored Advertising on Amazon. However, if you’re an Amazon seller contemplating a foray into Demand Side Platform (DSP) advertising, or a non-endemic advertiser where DSP is your only viable option, we suggest a budget of $10K/month. This level of investment allows you to properly exploit the advantages offered by the platform.
No, Amazon Advertising isn’t confined to specific categories. Given Amazon’s status as the premier marketplace in the U.S, it draws in a diverse array of consumers. This broad user base generates vast shopper data that can be harnessed to benefit nearly any industry. This remains true regardless of whether your products are sold on Amazon or not.
When executed skillfully and in conjunction with listing conversion rate optimization, Amazon advertising can markedly augment both traffic and conversions. Furthermore, many key performance indicators on the platform are intrinsically linked to advertising. Consequently, achieving success in areas such as SEO becomes challenging without the support of a complementary ad campaign. So, in short, a well-strategized and effectively implemented Amazon advertising campaign is indeed a worthwhile investment.