How to Advertise on Amazon: A Complete Guide for 2023

By Cepy 9/19/2023 Post a Comment

Hi everyone, welcome to our article on how to advertise on Amazon. If you are a seller, vendor, author, app developer, or agency who wants to reach more customers and grow your brand on the world's largest online marketplace, then this article is for you.

In this article, we will cover everything you need to know about Amazon Ads, the advertising platform that offers a range of products and information to help you achieve your advertising goals. We will explain what Amazon Ads is, how it works, how much it costs, what kind of reports and optimization tools are available, and how to create effective campaigns for different types of products and audiences. We will also answer some of the most frequently asked questions about Amazon Ads and provide some tips and best practices for advertising success.

What is Amazon Ads?

Amazon Ads is the advertising platform that allows you to promote your products and brand on Amazon and beyond. Amazon Ads offers a variety of solutions that can help you reach customers who are shopping, reading, listening, or watching on Amazon or other websites and apps. You can use Amazon Ads to increase your visibility, sales, and customer loyalty by creating ads that appear in relevant places and deliver messages that matter.

Amazon Ads has three main categories of products: sponsored ads, display ads, and video ads. Each category has different features and benefits that suit different advertising objectives and budgets. Let's take a look at each one in more detail.

Display Ads

Display ads are banner or image ads that appear on Amazon or other websites and apps. They are designed to help you reach customers who are interested in your products or category, regardless of whether they are shopping on Amazon or not. Display ads can help you increase your brand awareness, traffic, and sales by showing engaging creatives to relevant audiences.

Display ads can be created and managed through the Amazon DSP (Demand Side Platform), a programmatic advertising platform that allows you to buy display ad inventory across Amazon sites and apps as well as third-party publishers. You can use the Amazon DSP to access exclusive Amazon audiences based on their shopping behavior, interests, demographics, or segments. You can also use the Amazon DSP to measure the impact of your display ad campaigns on various metrics such as brand lift, sales lift, or return on ad spend (ROAS).

Video Ads

Video ads are video-based ads that appear on Amazon or other websites and apps. They are designed to help you capture the attention of customers who are watching video content online. Video ads can help you showcase your brand story, product features, or customer testimonials in an immersive way.

Video ads can be created and managed through the Amazon DSP or with the help of an Amazon account executive. You can use video ads to reach customers across various devices and platforms such as Fire TV, IMDb TV, Twitch, or third-party publishers. You can also use video ads to measure the effectiveness of your video ad campaigns on various metrics such as viewability, completion rate, or brand recall.

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 product, the bidding strategy, the competition level, the targeting options, and the campaign duration. However, there are some general principles that can help you understand how much you can expect to pay for advertising on Amazon.

First of all, most of the ad products on Amazon are based on a cost-per-click (CPC) model, which means that you only pay when customers click on your ads. This means that you have control over how much you spend on each click and each campaign. You can set your maximum bid, which is the highest amount you are willing to pay for a click, and your daily budget, which is the maximum amount you are willing to spend per day. You can also adjust your bids and budgets at any time based on your performance and goals.

Secondly, the actual cost of each click is determined by an auction process, which means that you compete with other advertisers who are targeting the same customers or keywords as you. The winner of the auction is the advertiser who has the highest ad rank, which is a combination of the bid and the quality score. The quality score is a measure of how relevant and attractive your ad is to the customer. The higher your quality score, the lower your CPC and the higher your ad rank.

Thirdly, the average CPC varies by ad product, category, and market. For example, according to Jungle Scout, a leading Amazon research tool, the average CPC for Sponsored Products in the US was $0.97 in 2021, while the average CPC for Sponsored Brands was $1.35. However, these numbers can change depending on the seasonality, demand, and competition level of each product and category. Therefore, it is important to monitor your CPC and performance regularly and optimize your campaigns accordingly.

Finally, some of the ad products on Amazon have different pricing models or minimum spend requirements. For example, display ads and video ads can be priced based on cost-per-thousand impressions (CPM), which means that you pay for every 1,000 times your ad is shown to customers. Audio ads are priced based on cost-per-mille (CPM), which means that you pay for every 1,000 times your ad is heard by customers. Advertising through a managed-service option with an Amazon account executive (display ads, video ads, and ads that are run through the Amazon DSP) typically require a minimum spend of $50,000 (USD). You can create a Store for free.

How to Create an Effective Amazon Ad Campaign?

Creating an effective Amazon ad campaign requires planning, execution, and optimization. Here are some steps that can help you create a successful campaign for your products and goals.

Step 1: Define Your Advertising Objectives

The first step is to define your advertising objectives. What do you want to achieve with your advertising campaign? Do you want to increase your product visibility, sales, or brand awareness? Do you want to reach new customers or retain existing ones? Do you want to launch a new product or promote a seasonal offer? Your advertising objectives will help you choose the right ad product, targeting strategy, budget, and metrics for your campaign.

Step 2: Choose Your Ad Product

The second step is to choose your ad product. Based on your advertising objectives, you can select the most suitable ad product for your campaign. For example, if you want to increase your product visibility and sales on Amazon, you can use sponsored ads such as Sponsored Products or Sponsored Brands. If you want to increase your brand awareness and reach customers across different platforms and devices, you can use display ads or video ads through the Amazon DSP or with an account executive.

Step 3: Set Up Your Campaign

The third step is to set up your campaign. Depending on the ad product you choose, you will need to provide different information and settings for your campaign. For example, for sponsored ads, you will need to choose your products or keywords to target, set your bids and budgets, and write your ad copy or headline. For display ads or video ads, you will need to create or upload your creative assets, choose your audience segments or placements, set your bids and budgets, and write your call-to-action or landing page.

Step 4: Launch Your Campaign

The fourth step is to launch your campaign. Once you have completed all the required steps and settings for your campaign, you can submit it for review and approval by Amazon. The review process usually takes up to 72 hours for sponsored ads and up to five business days for display ads or video ads. Once your campaign is approved, it will start running on Amazon or other websites and apps according to your settings.

Step 5: Monitor and Optimize Your Campaign

The fifth step is to monitor and optimize your campaign. After launching your campaign, you should track its performance and results using various tools and reports provided by Amazon Ads. You should also compare your results with your objectives and benchmarks to evaluate the effectiveness of your campaign. Based on your analysis, you should make adjustments and improvements to your campaign such as changing your bids, budgets, keywords, products, creatives, audiences, or placements. You should also test different variations of your campaign elements to find out what works best for your productsand customers. You should also monitor your competitors and market trends to stay ahead of the game.

A Detailed Table Breakdown Related to Amazon Ads

To help you understand the different ad products and options available on Amazon Ads, we have created a detailed table breakdown that summarizes the main features and benefits of each ad product. You can use this table as a reference guide when planning and creating your campaigns.

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Ad Product	Ad Format	Pricing Model	Placement	Targeting	Measurement	Benefits
Sponsored Products	Product listing	CPC	Amazon shopping results and product pages	Keywords or products	Impressions, clicks, sales, ROAS, ACOS, etc.	Increase product visibility and sales on Amazon
Sponsored Brands	Brand logo, headline, and multiple products	CPC	Amazon shopping results and product pages	Keywords or products	Impressions, clicks, sales, ROAS, ACOS, brand metrics, etc.	Increase brand awareness and loyalty on Amazon
Sponsored Display	Product or interest-based banner	CPC or CPM	Amazon or other websites and apps	Audiences or products	Impressions, clicks, sales, ROAS, ACOS, etc.	Reach customers throughout their purchase journey on and off Amazon
Display Ads (Amazon DSP)	Banner or image	CPM or CPCV (cost per completed view)	Amazon or other websites and apps	Audiences or placements	Impressions, clicks, sales, ROAS, brand lift, sales lift, etc.	Increase brand awareness and reach customers across different platforms and devices
Video Ads (Amazon DSP)	Video (6-120 seconds)	CPCV or CPM	Amazon or other websites and apps (Fire TV, IMDb TV, Twitch, etc.)	Audiences or placements	Impressions, views, completion rate, sales, ROAS, brand recall, etc.	Showcase your brand story or product features in an immersive way
Audio Ads (Amazon DSP)	Audio (10-30 seconds)	CPT (cost per thousand listens)	Amazon Music free tier or other audio streaming services	Audiences or placements	Listens, completion rate, brand lift, etc.	Capture the attention of customers who are listening to music or podcasts online
Stores (free)	Customizable multi-page website on Amazon with your own URL (amazon.com/yourbrand)	N/A (free)	N/A (free)	N/A (free)	Traffic sources, page views, sales, etc.	Create a unique and engaging shopping experience for your brand on Amazon

Google Ads Guide