How to Boost Your Sales with Amazon Sponsored Products: A Complete Guide

By Cepy 9/14/2023 Post a Comment

Hi everyone, welcome to our blog where we share tips and tricks on how to grow your online business. In this article, we will talk about one of the most effective ways to increase your visibility and sales on Amazon: Sponsored Products.

Sponsored Products are ads that appear in shopping results and product pages on Amazon, and help customers discover and purchase products that you sell. They are cost-per-click (CPC) ads, which means you only pay when customers click on your ads. Sponsored Products can help you reach more shoppers, drive more traffic to your product pages, and ultimately boost your sales.

Why You Should Use Sponsored Products

Amazon is the largest online marketplace in the world, with over 300 million active customers and billions of products sold every year. It is also a highly competitive platform, where thousands of sellers are vying for the attention and trust of buyers. How can you stand out from the crowd and get your products in front of the right customers?

That's where Sponsored Products come in. Sponsored Products can help you achieve several benefits, such as:

Increase your product visibility

Sponsored Products ads can appear at the top of, alongside, or within shopping results and on product pages, on desktop and mobile devices. This means that your products can get more exposure and reach more potential buyers who are searching for items like yours.

According to Amazon, products that run Sponsored Products campaigns see an average weekly lift of 30% in glance views (the number of times customers view your product detail page) within the first year of launching a campaign.[^1^]

Boost your sales and organic ranking

Sponsored Products ads can also help you increase your sales and improve your organic ranking on Amazon. When customers click on your ads, they are directed to your product detail page, where they can learn more about your product and make a purchase decision.

According to Amazon, products that run Sponsored Products campaigns see an average weekly lift of 50% in units ordered (the number of units sold) within the first year of launching a campaign.[^1^] More sales also mean more reviews and ratings, which can enhance your product reputation and credibility.

Moreover, one of the biggest factors in organic search rank on Amazon is sales velocity (the number of sales per unit of time). If Sponsored Products help you make more sales, they also help your products rank higher organically. It's a win-win situation.

Control your costs and performance

Sponsored Products ads are cost-per-click (CPC) ads, which means you only pay when customers click on your ads. You can set your own budget and bid (the maximum amount you are willing to pay for a click) for each campaign, and adjust them at any time based on your goals and results.

You can also track your ad performance using various metrics, such as impressions (the number of times your ad is shown), clicks, click-through rate (CTR), cost per click (CPC), advertising cost of sales (ACoS), return on ad spend (ROAS), and more. These metrics can help you measure the effectiveness of your ads and optimize them for better outcomes.

How to Create Sponsored Products Campaigns

Creating Sponsored Products campaigns is easy and fast. You can start running ads in minutes with simple campaign creation. Here are the steps you need to follow:

Step 1: Login to your Seller Central account

To create Sponsored Products campaigns, you need to have a professional seller account on Amazon. If you don't have one yet, you can sign up here[^2^]. Once you have an account, login to your Seller Central dashboard and click on Advertising > Campaign Manager.

Step 2: Choose Sponsored Products

On the Campaign Manager page, click on the Create campaign button and select Sponsored Products from the drop-down menu. This will take you to the campaign settings page, where you can configure your campaign details.

Step 3: Select products to advertise

The first thing you need to do is select the products you want to advertise. You can choose one or more products from your catalog, or use the suggested products based on your best-selling or low-performing items. Make sure that the products you select are eligible for advertising and have complete and accurate information on their detail pages.

Step 4: Customize campaign name and budget

The next thing you need to do is give your campaign a name and set a budget. The campaign name should be descriptive and easy to remember, so that you can identify it later. The budget is the maximum amount you are willing to spend per day on your campaign. You can start with a low budget and increase it gradually as you see results.

Step 5: Select targeting type

The targeting type determines how your ads are matched to customer searches and products on Amazon. You can choose between automatic targeting and manual targeting. With automatic targeting, Amazon will automatically select the most relevant keywords or products to show your ads, based on your product information. With manual targeting, you can choose your own keywords or products to target, and set different bids for each of them.

Step 6: Add keywords and bids

If you choose manual targeting, you need to add keywords and bids for your campaign. Keywords are the words or phrases that customers use to search for products on Amazon. You can use the suggested keywords provided by Amazon, or enter your own keywords based on your product and market research. You can also choose the match type for each keyword, which determines how closely the customer search query must match your keyword to trigger your ad. There are three match types available: broad, phrase, and exact.

Bids are the maximum amount you are willing to pay for a click on your ad. You can set a default bid for all keywords or products in your campaign, or customize the bid for each keyword or product individually. You can use the suggested bids provided by Amazon, or enter your own bids based on your goals and budget.

Step 7: Launch campaign

Once you have completed all the settings, you can review your campaign and launch it. Your campaign will go through a review process by Amazon, which usually takes less than 24 hours. Once approved, your ads will start running and appearing to customers on Amazon.

How to Optimize Your Sponsored Products Campaigns

Creating Sponsored Products campaigns is only the first step. To get the most out of your ads, you need to monitor and optimize them regularly. Here are some tips on how to improve your campaign performance:

Use negative targeting

Negative targeting is a feature that allows you to exclude certain keywords or products from triggering your ads. This can help you avoid wasting money on irrelevant or unprofitable clicks, and focus on the most relevant and profitable ones. You can use negative targeting for both automatic and manual campaigns.

For example, if you sell coffee mugs, you might want to exclude keywords like "coffee beans" or "coffee maker", or products that are not related to coffee mugs. This way, you can prevent your ads from showing up to customers who are not interested in your products.

Manage budgets and bids

Budgets and bids are two of the most important factors that affect your ad performance and costs. You should always keep an eye on your budgets and bids, and adjust them as needed based on your goals and results.

For budgets, you should make sure that you have enough budget to run your campaigns throughout the day, and avoid running out of budget too early or too late. You can use the budget utilization report[^3^] to see how much of your budget is spent each day, and identify any opportunities to increase or decrease your budget.

For bids, you should make sure that you are bidding competitively and efficiently, and not overpaying or underpaying for clicks. You can use the bid optimization report[^4^] to see how your bids affect your impressions, clicks, sales, and ACoS (the percentage of attributed sales spent on advertising), and identify any opportunities to increase or decrease your bids.

Measure your impact

To optimize your campaigns, you need to measure their impact on your business. You can use various metrics and reports to track and analyze your ad performance, such as:

Impressions: The number of times your ad is shown
Clicks: The number of times customers click on your ad
CTR: The percentage of impressions that result in clicks
CPC: The average amount you pay for a click
Sales: The total sales generated from clicks on your ads
ROAS: The ratio of sales to ad spend
ACoS: The percentage of attributed sales spent on advertising
Campaign performance report: A summary of key metrics for each campaign
Search term report: A list of customer search terms that triggered your ads
Advertised product report: A list of products that received impressions, clicks, and sales from your ads
Placement report[^5^]: A breakdown of metrics by different ad placements, such as top of search, rest of search, or product pages

You can access these metrics and reports from your Campaign Manager dashboard, or download them as CSV files. You can use these data to evaluate your campaign performance, identify what works and what doesn't, and make data-driven decisions to optimize your campaigns.

A Detailed Table Breakdown Related to Amazon Sponsored Products

To help you better understand how Sponsored Products work, we have created a detailed table breakdown that shows the different components and features of Sponsored Products, and how they affect your ad performance and costs. You can use this table as a reference guide when creating and optimizing your campaigns.

| Component | Description | Example | Impact || --- | --- | --- | --- || Product | The item that you want to advertise on Amazon. It must be eligible for advertising and have complete and accurate information on its detail page. | Coffee mug with funny quote | Determines the relevance and attractiveness of your ad to customers. || Campaign | The main unit of organization for your ads. It contains one or more ad groups, which contain one or more products. You can create different campaigns for different goals, products, or strategies. | Campaign for coffee mugs | Determines the budget and targeting type for your ads. || Ad group | A sub-unit of a campaign that contains one or more products that share the same targeting settings. You can create different ad groups for different products or keywords within a campaign. | Ad group for ceramic coffee mugs | Determines the keywords and bids for your ads. || Targeting type | The method that determines how your ads are matched to customer searches and products on Amazon. You can choose between automatic targeting and manual targeting. | Automatic targeting for coffee mugs | Determines the relevance and reach of your ads. || Keyword | A word or phrase that customers use to search for products on Amazon. You can use keywords to target customers who are looking for items like yours. You can choose the match type for each keyword, which determines how closely the customer search query must match your keyword to trigger your ad. There are three match types available: broad, phrase, and exact. | Broad match keyword: coffee mug
Phrase match keyword: "funny coffee mug"
Exact match keyword: [ceramic coffee mug] | Determines the relevance and reach of your ads. || Product attribute | A characteristic or feature of a product that customers use to filter or refine their search results on Amazon. You can use product attributes to target customers who are looking for specific aspects of your product. For example, color, size, brand, etc. | Product attribute: color = white | Determines the relevance and reach of your ads. || Product targeting | A feature that allows you to target specific products or categories on Amazon that are similar or complementary to yours. You can use product targeting to reach customers who are browsing or buying products that are related to yours. For example, you can target products that have a low star rating, a high price, or a similar style to yours. | Product targeting: ASIN = B07X9J4L5W (a competing coffee mug) | Determines the relevance and reach of your ads. || Negative targeting | A feature that allows you to exclude certain keywords or products from triggering your ads. This can help you avoid wasting money on irrelevant or unprofitable clicks, and focus on the most relevant and profitable ones. You can use negative targeting for both automatic and manual campaigns. | Negative keyword: tea mug
Negative product targeting: ASIN = B07X9J4L5W (a competing coffee mug) | Determines the relevance and efficiency of your ads. || Budget | The maximum amount you are willing to spend per day on a campaign. You can set your own budget for each campaign, and adjust it at any time based on your goals and results. You can also use portfolio budgets to group and manage multiple campaigns under a single budget limit. | Budget: $10 per day | Determines the cost and exposure of your ads. || Bid | The maximum amount you are willing to pay for a click on your ad. You can set your own bid for each campaign, ad group, keyword, product attribute, or product targeting, and adjust it at any time based on your goals and results. You can also use dynamic bidding strategies to automatically adjust your bids in real time based on the likelihood of conversion. There are three dynamic bidding strategies available: dynamic bids - down only, dynamic bids - up and down, and fixed bids. | Bid: $0.50 per click
Dynamic bidding strategy: dynamic bids - up and down | Determines the cost and exposure of your ads. || Placement | The location where your ad appears on Amazon, such as top of search, rest of search, or product pages. Different placements have different levels of visibility and competition, and may affect your ad performance and costs. You can use placement adjustments to increase or decrease your bids by a percentage for specific placements. | Placement: top of search
Placement adjustment: +20% | Determines the exposure and cost of your ads. || Ad format | The way your ad is displayed to customers on Amazon, such as sponsored product or sponsored brand. Sponsored product ads show a single product with its title, price, rating, and prime badge. Sponsored brand ads show your brand logo, a custom headline, and up to three products. | Ad format: sponsored product | Determines the attractiveness and click-through rate of your ads. |

FAQs About Amazon Sponsored Products

What are the requirements to run Sponsored Products campaigns?

To run Sponsored Products campaigns, you need to have a professional seller account on Amazon, and sell products that are eligible for advertising. You can check the eligibility of your products in your Campaign Manager dashboard, or use the bulk upload feature to check multiple products at once. You also need to have complete and accurate information on your product detail pages, such as title, description, images, price, etc.

How much does it cost to run Sponsored Products campaigns?

Sponsored Products campaigns are cost-per-click (CPC) ads, which means you only pay when customers click on your ads. You can set your own budget and bid for each campaign, and adjust them at any time based on your goals and results. The actual cost of each click depends on several factors, such as the competition, the relevance, the placement, and the dynamic bidding strategy of your ads. You can use the advertising reports to track and analyze your ad costs and performance.

How long does it take for Sponsored Products campaigns to start running?

After you create your Sponsored Products campaigns, they will go through a review process by Amazon, which usually takes less than 24 hours. Once approved, your ads will start running and appearing to customers on Amazon. You can check the status of your campaigns in your Campaign Manager dashboard, or use the bulk operations feature to check multiple campaigns at once.

How can I measure the success of my Sponsored Products campaigns?

You can use various metrics and reports to measure the success of your Sponsored Products campaigns, such as impressions, clicks, sales, ROAS, ACoS, campaign performance report, search term report, advertised product report, placement report, etc. These metrics and reports can help you evaluate your campaign performance, identify what works and what doesn't, and make data-driven decisions to optimize your campaigns.

How can I improve the performance of my Sponsored Products campaigns?

To improve the performance of your Sponsored Products campaigns, you need to monitor and optimize them regularly. Here are some tips on how to optimize your campaigns:

Use negative targeting to exclude irrelevant or unprofitable keywords or products from triggering your ads.
Manage your budgets and bids to ensure that you have enough budget to run your campaigns throughout the day, and that you are bidding competitively and efficiently for each keyword or product.
Measure your impact using various metrics and reports to track and analyze your ad performance and costs.
Test different targeting types, keywords, products, bids, placements, ad formats, etc. to see what works best for your goals and audience.
Use best practices for creating and optimizing your product detail pages, such as using high-quality images, clear and concise titles and descriptions, competitive prices, etc.

What are the best practices for creating Sponsored Products campaigns?

Here are some best practices for creating Sponsored Products campaigns:

Create different campaigns for different goals, products, or strategies.
Create descriptive and easy-to-remember campaign names.
Start with a low budget and bid, and increase them gradually as you see results.
Use automatic targeting for new products or keywords that you are not familiar with.
Use manual targeting for products or keywords that you have more control and experience with.
Use broad match keywords to reach a wide audience and discover new opportunities.
Use phrase or exact match keywords to target specific customers and increase relevance.
Use product attributes or product targeting to target customers who are looking for specific aspects or related products.
Use dynamic bidding strategies to automatically adjust your bids in real time based on the likelihood of conversion.
Use placement adjustments to increase or decrease your bids by a percentage for specific placements.

What are some common mistakes to avoid when running Sponsored Products campaigns?

Here are some common mistakes to avoid when running Sponsored Products campaigns:

Setting your budget or bid too high or too low, which can result in overspending or underexposure.
Using too many or too few keywords or products, which can result in low relevance or low reach.
Using irrelevant or generic keywords or products, which can result in low click-through rate or low conversion rate.
Not using negative targeting to exclude unwanted keywords or products, which can result in wasted clicks and costs.
Not monitoring and optimizing your campaigns regularly, which can result in poor performance and missed opportunities.
Not testing different variations of your campaigns, which can result in suboptimal results and lack of insights.
Not following the best practices for creating and optimizing your product detail pages, which can result in low attractiveness and low conversion rate.

Conclusion

Sponsored Products are one of the most powerful ways to boost your sales on Amazon. They can help you increase your product visibility, reach more customers, and improve your organic ranking. However, to get the most out of your ads, you need to create and optimize your campaigns effectively. You need to follow the best practices, avoid the common mistakes, and use the metrics and reports to measure and improve your impact.

We hope this article has given you a comprehensive overview of how Sponsored Products work, and how you can use them to grow your online business. If you have any questions or feedback, please feel free to leave a comment below. And if you want to learn more about other advertising options on Amazon, such as Sponsored Brands or Sponsored Display, check out our other articles on our blog. Thank you for reading!

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