Given Amazon’s expertise in digital customers purchases, advertising with Amazon Ads can work wonders for small to large-scale businesses. So, let’s understand what these Amazon Ads are and how they can be used for turning our business models of different organizations into profitable ones. Know more about Amazon ads’ appearance, performance and engagement by clicking here
Types of Amazon Ads
As a globally renowned brand, Amazon has a lot to offer to standalone vendors, independently owned businesses and big corporations through its three types of ads for reinforcing their digital marketing strategies:
Sponsored Product Ads
Sponsored Product Ads are usually aimed at displaying particular products across vast search results and the product detail pages. Sponsored Product Ads work as a pay-per-click (PPC) advertising solution enabled to promote one specific product. Sponsored Product Ads assist businesses in both manually and automatically targeting keywords that are most relevant to their target shoppers. If the business owner decides to use automatic keyword targeting, Amazon then subsequently determines and targets the most commonly used keywords for the company’s products.
Amazon marketing has different types of sponsored ads.
Similar to PPC advertising options, companies will only pay for their chosen Sponsored Product Ads when their target or potential shoppers click on the advertisements. This feature works for companies looking for economical ad spending to exercise optimal amazon advertising costs. It also lets business owners have maximum control over their quarterly or annual advertising budget and bidding for keywords.
Sponsored Product Ads invite massive consumer attraction and boast of unbelievable conversion abilities, making most companies across the globe advertising with Amazon, prefer the sponsored product ads for their company marketing strategy. Its popularity is increasing exponentially, as is evident from the report which says companies have increased their marketing budget for spending on Sponsored Product Ads by 165% in the past few months.
Sponsored Brand Ads
Sponsored Brand Ads are another feature of Amazon Ads wherein it functions as a PPC advertising solution highlighting a specific brand in addition to promoting up to three products.
Similar to other types of Amazon ads, Sponsored Brands are based solely on the PPC advertising model where only when a shopper clicks on the ad, then can Amazon charge the business for the particular ad. Amazon doesn’t charge a fee for displaying the advertisement, it is only when a user clicks on it then they must pay Amazon under the sponsored brands advertising type.
Keywords are a major component of Sponsored Brands leading to its higher amazon advertising cost. Sponsored Brands targets and bid on keywords most relevant to their products. For instance, if someone is selling a goat milk soap, they will target specifically “goat milk soap,” and not just “soap” or “goat soap” or “milk soap” or “camel milk soap” for the ad campaign. Due to this feature, most vendors have popularized Sponsored Brands as Headline Search Ads.
Sponsored Brand Ads are very popular among merchants.
Sponsored Brands also feature both automatic and manual bidding. Under automatic bidding, Amazon will optimize the keywords bids automatically by lowering them and never increasing the bid. Whereas in manual bidding, the business owner’s team or an advertising agency will oversee the company’s keyword bids.
Product Display Ads
While small and medium-sized enterprises usually prefer either Sponsored Brands or Sponsored Product Ads, the most competitive choice for Amazon advertising is Product Display Ads. Product Display Ads focus on how the product relates to target shoppers’ interests, promising the product a more valuable exposure.
Product Display Ads utilize the PPC model for promoting a particular product or similar products like it for targeting shopper interests. Amazon often classifies Product Display Ads into two categories – interest-based advertising and product-based advertising.
- Interest-based advertising – Better known as interest-based targeting, in this type, the business owner’s team targets potential shoppers as per their broader interests. This helps the company engage with a wider audience and build the brand image leading to a positive impression of the company.
- Product-based advertising – Also popular as product-based targeting, the business owners target similar, complementary, and competitor products on the Amazon listing under this ad type. This marketing strategy is hugely successful if brands are looking to undercut their opponent’s promotions and compare their own product’s usefulness with it.
Product Display Ads utilize shopper interests and product categories and bid on clicks instead of bidding on keywords.
Advertisement Costs for Amazon Ads
Now, let’s dive into the amazon advertising cost for different types of Amazon ads:
Cost for Sponsored Product Ads
A minimum daily budget of $1 should be reserved by companies and individual business owners looking to spend on Sponsored Product Ads. Since the main role is of keywords here, if the company wishes to bid on keywords with a high cost-per-click (CPC) for raising their competition level, they can expect to pay more for this campaign.
Cost for Sponsored Brands
Amazon charges a minimum daily budget of $1 for a month as amazon advertising cost for Sponsored Brands. However, if the business is looking to grow their reach they must remember that Amazon features over five million product sellers, which means one business owner is competing with various other similar brands in getting their ad displayed. So, one can expect more ad expenses if they want to place more competitive bids for keywords that are most relevant to their brand.
Cost for Product Display Ads
Product Display Ads cost $2or more per day with no charge until the target shoppers start clicking on these ads. Also, Amazon bills the business owners throughout the advertisement, versus at the end of the ad campaign. This is so because Product Display Ads, like Sponsored Brand ads and Sponsored products, don’t rely on keywords but there are several other factors influencing the campaign costs. For instance, if the business is targeting a saturated product market, it might have to look for the most competitive bids for reaching the target shopper.
With its huge resource of millions of global customers accounts for various products and services, Amazon has mastered an in-depth understanding of consumer behavior, audience segmentation, shoppers engagement and other relevant marketing data and business owners can avail this as per amazon advertising cost preferences for reaching their target shoppers.