Amazon Advertising Ad Types: A Complete Guide for Sellers
Hi everyone, welcome to our article on Amazon Advertising Ad Types. If you are a seller on Amazon, you might be wondering how to use the different ad products and formats that Amazon offers to promote your products and brand. In this article, we will explain everything you need to know about the various types of Amazon ads, how they work, and how to use them effectively.
Amazon Advertising is a powerful tool that can help you reach millions of customers who are searching and shopping on Amazon. Whether you want to increase your sales, boost your brand awareness, or grow your customer loyalty, Amazon Advertising has a solution for you. But with so many options and features, it can be hard to navigate the complex world of Amazon ads. That's why we have created this comprehensive guide to help you understand the different types of Amazon ads and how to use them for your business goals.
What are the types of Amazon ads?
Amazon Advertising can be divided into two main categories: self-service and managed-service. Self-service ads are pay-per-click (PPC) ads that you can create and manage yourself using the Amazon Advertising Console or the Amazon Advertising API. Managed-service ads are cost-per-thousand impressions (CPM) ads that are created and managed by Amazon's team of experts using the Amazon Demand Side Platform (DSP).
Within these two categories, there are three main types of Amazon ads: Sponsored Products, Sponsored Brands, and Sponsored Display. These are the most popular and widely used types of Amazon ads among sellers. Let's take a closer look at each of them.
Sponsored Products
Sponsored Products are self-service PPC ads that showcase individual product listings in the search results and on the product detail pages on Amazon. They are designed to help customers discover and purchase products that are relevant to their search queries. Sponsored Products can help you increase your visibility, sales, and organic ranking on Amazon.
To create Sponsored Products campaigns, you need to choose the products you want to advertise, set your daily budget and bid amount, and select your targeting method. You can target customers by keywords or by products or categories. You can also use automatic targeting, which lets Amazon choose the best keywords or products for your ads based on your product information. You only pay when customers click on your ads, and you can track and optimize your campaign performance using various metrics and reports.
Sponsored Brands
Sponsored Brands are self-service PPC ads that showcase your brand logo, a custom headline, and up to three products in the search results on Amazon. They are designed to help customers discover and learn more about your brand and product portfolio. Sponsored Brands can help you increase your brand awareness, consideration, and loyalty on Amazon.
To create Sponsored Brands campaigns, you need to have a registered trademark in the Amazon Brand Registry. You also need to choose the products you want to advertise, set your daily budget and bid amount, and select your keywords. You can also use automatic keyword suggestions based on your products. You only pay when customers click on your ads, and you can track and optimize your campaign performance using various metrics and reports.
Sponsored Display
Sponsored Display are self-service or managed-service CPM ads that display relevant product or brand messages to customers on and off Amazon. They are designed to help customers discover and purchase products that they have viewed or searched for on Amazon, or products that are similar or complementary to those products. Sponsored Display can help you reach customers at different stages of their shopping journey and drive them back to Amazon.
To create Sponsored Display campaigns, you need to choose the products you want to advertise, set your daily budget and bid amount, and select your audience type. You can target customers by views (customers who have viewed your products or similar products), searches (customers who have searched for keywords related to your products), or purchases (customers who have purchased your products or related products). You pay when customers see your ads, and you can track and optimize your campaign performance using various metrics and reports.
How do the types of Amazon ads compare?
The types of Amazon ads differ in several aspects, such as their goals, placements, formats, eligibility, targeting methods, bidding strategies, optimization options, and reporting features. To help you understand these differences better, we have created a table that summarizes the main characteristics of each type of Amazon ad.
| Type of ad | Goal | Placement | Format | Eligibility | Targeting method | Bidding strategy | Optimization option | Reporting feature |
|---|---|---|---|---|---|---|---|---|
| Sponsored Products | Drive sales and organic ranking | Search results and product detail pages on Amazon | Product listing | All sellers, vendors, and agencies | Keywords or products/categories | Dynamic bids (down only, up and down, or fixed) | Adjust bids by placement | Campaign performance dashboard, advertising reports, and retail analytics |
| Sponsored Brands | Drive brand awareness, consideration, and loyalty | Search results on Amazon | Brand logo, custom headline, and up to three products | Sellers, vendors, and agencies enrolled in the Amazon Brand Registry | Keywords | Dynamic bids (down only or fixed) | Add negative keywords | Campaign performance dashboard, advertising reports, and brand analytics |
| Sponsored Display | Drive customers back to Amazon at different stages of their shopping journey | Amazon home page, product detail pages, shopping results pages, third-party websites, and apps | Product or brand message with custom image and headline | All sellers, vendors, and agencies for views campaigns; vendors and agencies for searches and purchases campaigns | Views, searches, or purchases | Dynamic bids (up and down) or fixed CPM bids | Add negative products or categories | Campaign performance dashboard and advertising reports |
FAQs about Amazon Advertising Ad Types
What are the benefits of using different types of Amazon ads?
The benefits of using different types of Amazon ads are that you can reach more customers at different stages of their shopping journey, increase your exposure and visibility on Amazon and beyond, showcase your products and brand in different ways, and achieve different goals for your business. By using a combination of Sponsored Products, Sponsored Brands, and Sponsored Display ads, you can create a holistic advertising strategy that covers the entire customer funnel.
How do I choose the best type of Amazon ad for my products and brand?
The best type of Amazon ad for your products and brand depends on your advertising goal, budget, and target audience. Generally speaking, Sponsored Products are best for driving sales and organic ranking for individual products. Sponsored Brands are best for driving brand awareness, consideration, and loyalty for your product portfolio. Sponsored Display are best for driving customers back to Amazon at different stages of their shopping journey.
How do I create effective Amazon ads?
To create effective Amazon ads, you need to follow some best practices, such as:
- Select the most relevant products for your ads based on their popularity, profitability, and seasonality.
- Choose the most appropriate targeting method for your ads based on your goal, budget, and audience.
- Use relevant keywords or products for your ads based on your product information and customer search behavior.
- Optimize your bids based on your target cost-per-click (CPC) or cost-per-acquisition (CPA).
- Test different ad formats, images, headlines, and messages to see what works best for your products and brand.
- Monitor and analyze your campaign performance using various metrics and reports.
- Adjust and optimize your campaigns based on the results and feedback.
How much does it cost to advertise on Amazon?
The cost of advertising on Amazon depends on several factors, such as the type of ad, the targeting method, the competition level, the bid amount, the click-through rate (CTR), the conversion rate (CVR), and the advertising cost of sales (ACoS). There is no minimum or maximum amount that you need to spend to advertise on Amazon. You can set your own daily budget and bid amount for each campaign. You only pay when customers click on your PPC ads or see your CPM ads. You can also control your spending by using various tools and features, such as campaign end dates, budget caps, bid modifiers, negative keywords or products.
How do I measure the success of my Amazon ads?
To measure the success of your Amazon ads, you need to use various metrics and reports that are available in the Amazon Advertising Console or the Amazon Advertising API. Some of the most important metrics are:
- Impressions: The number of times your ads are shown to customers.
- Clicks: The number of times customers click on your ads.
- CPC: The average amount you pay when customers click on your ads.
- Sales: The total sales generated by yourads.
- ACoS: The percentage of sales that you spend on advertising.
- Return on ad spend (ROAS): The ratio of sales to advertising spend.
- New-to-brand metrics: The number and percentage of customers who purchased your products for the first time after seeing your ads.
You can also use various reports to get more insights into your campaign performance, such as:
- Campaign performance report: A summary of the performance of your campaigns, ad groups, and ads.
- Search term report: A list of the search terms that customers used to see and click on your ads.
- Product performance report: A breakdown of the performance of your products by ad type, targeting method, and placement.
- Placement performance report: A breakdown of the performance of your ads by placement type, such as top of search, rest of search, or product detail pages.
- Brand analytics report: A set of tools and insights that help you measure and improve your brand performance on Amazon.
Conclusion
We hope you enjoyed reading our article on Amazon Advertising Ad Types. We have covered the main types of Amazon ads, how they work, how to use them effectively, and how to measure their success. By using a combination of Sponsored Products, Sponsored Brands, and Sponsored Display ads, you can create a powerful advertising strategy that can help you reach more customers, increase your sales, and grow your brand on Amazon and beyond.
If you want to learn more about Amazon Advertising and how to optimize your campaigns, check out our other articles on this topic. We have a lot of useful tips and tricks that can help you take your advertising game to the next level. Thank you for reading and happy selling!
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