How to Boost Your Sales with Amazon Third Party Advertising

By Cepy 9/02/2023 Post a Comment

Hi everyone, welcome to another article on how to grow your online business. In this article, we will talk about one of the most effective ways to increase your sales and visibility on Amazon: third party advertising.

Amazon third party advertising is a type of advertising that allows you to display your products on other websites and platforms that are part of the Amazon network. This way, you can reach more potential customers who are browsing for products similar to yours, or who have shown interest in your product category.

What is Amazon Third Party Advertising?

Amazon third party advertising is also known as Amazon Advertising Network (AAN) or Amazon DSP (Demand Side Platform). It is a service that lets you create and manage display ads that appear on websites, apps, and devices that are part of the Amazon network. These include:

Amazon.com and other Amazon-owned sites, such as IMDb, Zappos, Audible, and Goodreads.
Third-party sites and apps that partner with Amazon, such as The New York Times, CNN, ESPN, and Spotify.
Amazon devices, such as Fire TV, Fire tablets, Kindle e-readers, and Echo speakers.

By using Amazon third party advertising, you can target your ads to specific audiences based on their browsing behavior, purchase history, demographics, interests, and more. You can also measure the performance of your ads and optimize them to achieve your goals.

Benefits of Amazon Third Party Advertising

Amazon third party advertising offers many benefits for sellers who want to boost their sales and brand awareness. Some of the main benefits are:

You can reach millions of shoppers who are already in the buying mode. According to Amazon, more than 300 million active customers visit its sites every month. By showing your ads to these customers, you can increase the chances of converting them into buyers.
You can leverage Amazon's data and insights to target your ads to the right customers. Amazon has access to a wealth of information about its customers' preferences, habits, and behavior. By using this data, you can create personalized and relevant ads that match your customers' needs and interests.
You can optimize your ads based on your objectives and budget. Amazon third party advertising allows you to choose from different types of ads, such as banner ads, video ads, native ads, and more. You can also set your own budget and bidding strategy, and adjust them as needed. You can also track the performance of your ads and see how they affect your sales and return on ad spend (ROAS).

How to Get Started with Amazon Third Party Advertising

If you want to start using Amazon third party advertising, you need to have an active seller account on Amazon. You also need to register for an Amazon Advertising account, which is separate from your seller account. Once you have an Amazon Advertising account, you can access the Amazon DSP dashboard, where you can create and manage your campaigns.

To create a campaign, you need to follow these steps:

Select your campaign objective. You can choose from awareness, consideration, or sales.
Select your campaign name, start date, end date, and budget.
Select your ad format. You can choose from display ads or video ads.
Select your targeting options. You can target your ads based on audience segments, contextual segments, or remarketing segments.
Select your creative assets. You can upload your own images or videos, or use the ones provided by Amazon.
Select your bidding strategy. You can choose from fixed CPM (cost per thousand impressions), dynamic CPM (based on the value of each impression), or CPC (cost per click).
Review and launch your campaign.

A Detailed Table Breakdown of Amazon Third Party Advertising

To help you understand the different aspects of Amazon third party advertising better, we have prepared a detailed table breakdown that compares it with other types of advertising on Amazon. Here is the table:

Type of Advertising	Description	Where It Appears	How It Works	Pros	Cons
Amazon Third Party Advertising	Display or video ads that appear on websites, apps, and devices that are part of the Amazon network.	Amazon.com and other Amazon-owned sites, third-party sites and apps that partner with Amazon, and Amazon devices.	You create and manage your campaigns using the Amazon DSP dashboard. You can target your ads based on audience segments, contextual segments, or remarketing segments. You can choose from different ad formats, bidding strategies, and budget options.	You can reach millions of shoppers who are already in the buying mode. You can leverage Amazon's data and insights to target your ads to the right customers. You can optimize your ads based on your objectives and budget.	You need to have a minimum budget of $35,000 per month to use the Amazon DSP. You need to register for a separate Amazon Advertising account. You may face more competition from other advertisers.
Sponsored Products	Product ads that appear on search results pages and product detail pages on Amazon.com.	Search results pages and product detail pages on Amazon.com.	You create and manage your campaigns using the Sponsored Products dashboard. You can target your ads based on keywords or products. You pay only when someone clicks on your ad.	You can increase your product visibility and sales. You can control your costs by setting your own bids and budget. You can measure your campaign performance and optimize your ads.	You need to have an active seller account on Amazon. You need to have products that are eligible for the Buy Box. You may face more competition from other sellers.
Sponsored Brands	Brand ads that appear on search results pages and product detail pages on Amazon.com.	Search results pages and product detail pages on Amazon.com.	You create and manage your campaigns using the Sponsored Brands dashboard. You can target your ads based on keywords or products. You pay only when someone clicks on your ad.	You can increase your brand awareness and loyalty. You can showcase your product portfolio and value proposition. You can drive traffic to your store or landing page.	You need to have an active seller account on Amazon. You need to have a registered trademark for your brand. You may face more competition from other brands.
Sponsored Display	Display ads that appear on product detail pages, search results pages, and other placements on Amazon.com and third-party sites and apps.	Product detail pages, search results pages, and other placements on Amazon.com and third-party sites and apps.	You create and manage your campaigns using the Sponsored Display dashboard. You can target your ads based on products or audiences. You pay only when someone clicks on your ad.	You can reach customers who are browsing or buying products similar to yours. You can retarget customers who have visited your product pages or store. You can create ads quickly and easily using Amazon's templates.	You need to have an active seller account on Amazon. You need to have products that are eligible for the Buy Box. You may face more competition from other advertisers.

FAQs about Amazon Third Party Advertising

What is the difference between Amazon third party advertising and Google Ads?

Amazon third party advertising and Google Ads are both types of online advertising platforms that allow you to create and display ads on various websites, apps, and devices. However, there are some keydifferences between them, such as:

Amazon third party advertising uses Amazon's data and insights to target your ads to customers who are already in the buying mode, while Google Ads uses Google's data and insights to target your ads to customers who are searching for information or solutions.
Amazon third party advertising allows you to display your ads on Amazon.com and other Amazon-owned sites, as well as third-party sites and apps that partner with Amazon, while Google Ads allows you to display your ads on Google.com and other Google-owned sites, as well as third-party sites and apps that partner with Google.
Amazon third party advertising requires a minimum budget of $35,000 per month to use the Amazon DSP, while Google Ads does not have a minimum budget requirement.

How do I measure the effectiveness of my Amazon third party advertising campaigns?

You can measure the effectiveness of your Amazon third party advertising campaigns by using the reports and metrics available on the Amazon DSP dashboard. Some of the key metrics that you can track are:

Impressions: The number of times your ad was shown to customers.
Clicks: The number of times customers clicked on your ad.
CTR (Click-Through Rate): The percentage of impressions that resulted in clicks.
Conversions: The number of times customers completed a desired action after clicking on your ad, such as purchasing your product, visiting your store, or signing up for your newsletter.
ROAS (Return on Ad Spend): The ratio of revenue generated by your ad to the amount spent on your ad.

How do I optimize my Amazon third party advertising campaigns?

You can optimize your Amazon third party advertising campaigns by using the tools and features available on the Amazon DSP dashboard. Some of the ways that you can optimize your campaigns are:

Test different ad formats, creative assets, targeting options, and bidding strategies to see what works best for your objectives and audience.
Use the performance reports and metrics to analyze your campaign results and identify areas for improvement.
Use the optimization recommendations and suggestions provided by Amazon to enhance your campaign performance.
Adjust your budget and bids based on your campaign performance and goals.

What are some best practices for creating effective Amazon third party advertising ads?

Some of the best practices for creating effective Amazon third party advertising ads are:

Use high-quality images or videos that showcase your product features and benefits.
Use clear and concise text that highlights your unique selling proposition and value proposition.
Use a strong call-to-action that encourages customers to take the next step, such as "Buy Now", "Shop Now", or "Learn More".
Use relevant keywords or phrases that match your target audience's search intent and interests.
Use consistent branding elements, such as colors, fonts, logos, and slogans, to build trust and recognition.

What are some common mistakes to avoid when using Amazon third party advertising?

Some of the common mistakes to avoid when using Amazon third party advertising are:

Using low-quality images or videos that are blurry, pixelated, or irrelevant.
Using too much text that is confusing, misleading, or grammatically incorrect.
Using a weak or vague call-to-action that does not motivate customers to take action.
Using irrelevant or generic keywords or phrases that do not match your target audience's search intent and interests.
Using inconsistent or conflicting branding elements that create confusion or distrust.

How do I create an Amazon Advertising account?

To create an Amazon Advertising account, you need to follow these steps:

Go to [Amazon Advertising] website and click on "Sign in" at the top right corner.
If you already have an Amazon seller account, sign in with your email address and password. If you do not have an Amazon seller account, click on "Create your Amazon account" and follow the instructions.
Once you sign in, you will be redirected to the Amazon Advertising console, where you can access the different advertising services offered by Amazon, such as Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP.
To access the Amazon DSP dashboard, click on "Display & Video" under "Advertising Services" on the left sidebar. You will need to fill out a form with some basic information about your business and advertising goals. You will also need to agree to the terms and conditions of the Amazon DSP service agreement.
After you submit the form, you will receive an email from Amazon confirming your registration. You will also be assigned an Amazon Advertising account manager who will help you set up and launch your campaigns.

How do I create an Amazon seller account?

To create an Amazon seller account, you need to follow these steps:

Go to [Amazon Seller Central] website and click on "Start selling" at the top right corner.
Select your country or region and click on "Create a new account".
Enter your name, email address, and password and click on "Create your Amazon account".
Verify your email address by entering the code that was sent to your email.
Enter your legal name, address, phone number, and bank account information.
Choose your selling plan. You can choose between the Individual plan or the Professional plan. The Individual plan charges $0.99 per item sold, while the Professional plan charges $39.99 per month regardless of the number of items sold.
Agree to the terms and conditions of the Amazon Services Business Solutions Agreement.
Complete the identity verification process by providing a valid government-issued ID and a bank statement.
Add your products to your inventory and start selling.

What are the requirements for selling on Amazon?

The requirements for selling on Amazon vary depending on the product category, the selling plan, and the country or region. However, some of the general requirements are:

You must be at least 18 years old.
You must have a valid bank account and a credit card.
You must have a valid tax identification number or social security number.
You must comply with Amazon's policies and guidelines for sellers, such as the Seller Code of Conduct, the Selling Policies and Seller Agreement, and the Product Detail Page Rules.
You must comply with the applicable laws and regulations for your country or region, such as the tax laws, the consumer protection laws, and the intellectual property rights laws.

What are the benefits of selling on Amazon?

Selling on Amazon offers many benefits for online sellers who want to reach a large and loyal customer base. Some of the main benefits are:

You can access millions of customers who shop on Amazon every day. According to Amazon, more than 300 million active customers visit its sites every month.
You can leverage Amazon's reputation and trust. According to a survey by [Morning Consult], Amazon is the most trusted brand in America, with 86% of customers saying they trust Amazon to do what is right.
You can take advantage of Amazon's fulfillment and customer service. By using Fulfillment by Amazon (FBA), you can store your products in Amazon's warehouses and let Amazon handle the packing, shipping, and customer service for you.
You can grow your brand and business. By using Amazon Brand Registry, you can protect your brand from counterfeiters and unauthorized sellers. By using Amazon Storefronts, you can create your own branded store on Amazon. By using Amazon Advertising, you can promote your products and increase your sales.

What are the challenges of selling on Amazon?

Selling on Amazon also comes with some challenges that sellers need to be aware of and overcome. Some of the main challenges are:

You may face high competition from other sellers who sell similar products or offer lower prices.
You may have to pay high fees to sell on Amazon, such as referral fees, closing fees, subscription fees, storage fees, fulfillment fees, advertising fees, and more.
You may have to deal with negative reviews or feedback from customers who are unhappy with your products or service.
You may have to follow strict rules and regulations set by Amazon, such as the performance metrics, the product quality standards, and the seller policies. If you fail to comply with these rules and regulations, you may face penalties or suspension from selling on Amazon.

How do I increase my sales on Amazon?

There are many strategies and tactics that you can use to increase your sales on Amazon. Some of the most effective ones are:

Optimize your product listings. Use high-quality images, clear and concise titles, detailed and informative descriptions, relevant and competitive keywords, and accurate and comprehensive product information.
Encourage customer reviews. Customer reviews are one of the most important factors that influence customers' buying decisions. Ask your customers to leave honest and positive reviews for your products. Respond to customer reviews promptly andpolitely and professionally. Address any issues or complaints and offer solutions or refunds.
Use Amazon Advertising. Amazon Advertising can help you increase your product visibility and sales by displaying your ads on Amazon.com and other Amazon-owned sites, as well as third-party sites and apps that partner with Amazon. You can choose from different types of ads, such as Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP.
Use Fulfillment by Amazon (FBA). FBA can help you improve your customer service and satisfaction by letting Amazon handle the packing, shipping, and customer service for your products. FBA can also help you increase your sales by making your products eligible for Prime shipping, free shipping, and other benefits that customers love.
Expand your product portfolio and market reach. You can increase your sales by offering more products that cater to different customer segments, needs, and preferences. You can also increase your sales by selling your products in different countries or regions where there is a high demand for your products.

Conclusion

Amazon third party advertising is a powerful way to boost your sales and brand awareness on Amazon. By using this service, you can display your products on websites, apps, and devices that are part of the Amazon network. You can also target your ads to specific audiences based on their browsing behavior, purchase history, demographics, interests, and more. You can also measure and optimize your ads based on your objectives and budget.

We hope this article has given you a comprehensive overview of Amazon third party advertising and how to use it effectively. If you have any questions or comments, please feel free to leave them below. And if you want to learn more about how to grow your online business, check out our other articles on this website. Thank you for reading!

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