Amazon Ads: What, How, and Why

Amazon’s potential as an international e-commerce platform is unquestionable. Companies from various sectors have turned to this giant, which has gone from being a “nice-to-have” to a “must-have” in digital sales strategies.

Both the supply and demand for products are growing at the breakneck pace of this e-commerce giant, and one of the main avenues for expansion is advertising. In fact, it’s estimated that Amazon spends around 25,000 millones de dólares annually on digital marketing—which is almost nothing…

The team at Dendary—a MioGroup agency specializing in brand management and growth on Amazon—introduces us in this post to Amazon Ads, the primary advertising platform for businesses that already sell on the e-commerce platform.

Amazon Ads offers several ad formats that can be used individually or in combination to achieve and promote various advertising goals.

Amazon Ads offers three different types of ads:

#1. Sponsored Products: These are ads that appear in keyword search results and on product pages. They are managed using a CPC (Cost Per Click) bidding strategy and are used to improve visibility and encourage purchases. These campaigns can be automated (based on Amazon’s algorithm) or manual; in the latter case, we can bid on keywords, categories, or ASINs (identifiers used to appear on other product listings).

Sponsored Products is the perfect format for reaching users who demonstrate a clear intent to purchase, since they are on Amazon looking for a product with specific characteristics that they have defined through their search terms.

It does not require customization of ad creatives and allows advertisers to choose their daily budget, bid, and campaign duration.

 

#2. Sponsored Brand: This format is only available to sellers who have their brand registered on Amazon and own a Store (if you’d like to learn more about this topic, be sure to check out this post by Dendary). These ads include the brand logo, a title, and either a carousel of three products or a video. They can redirect to the Store and to product pages. This makes them a useful option for increasing both brand awareness and direct sales.

 

#3. Sponsored Display: It is the newest format and the main focus of the three ads for Amazon Ads sellers, which is rolling it out to offer a wide range of options tailored to different impact strategies.

Sponsored Display allows you to target specific products and categories (in this case, ads would appear on Amazon) or specific audiences, enabling you to retarget users who have made a purchase or visited certain pages and extending your reach to other channels outside of Amazon. It also offers more bidding options, allowing you to pay per CPC or per VCPM based on different objectives: reach, page views, or conversions.

 

All three ad types are created, optimized, and analyzed through the Amazon Ads console, which allows you to view both overall and specific results, thereby facilitating decision-making.

 

The possibilities are vast and allow you to address different objectives within an overall strategy, for both vendors and sellers. It’s all about analysis and expertise, so if you want to grow your brand on Amazon, contact us and our team at Dendary—part of MioGroup—will get to work. Shall we talk?

 

Carmen Guerrero

Amazon Performance Manager at Dendary