Amazon is a powerful sales channel to grow an eCommerce business because it has an estimated 66 thousand orders per hour and 1.6 million items shipped every day.
Amazon’s store setup is straightforward, but with this level of competition, it may take a long time before your store gains popularity and makes sales. In any case, all sellers should allocate at least some of their advertising budget to Amazon Ads.
The question is, which Amazon Ads suit your business need to maximize sales and minimize Advertising Cost of Sale(ACOS)?
Here you can explore each Amazon ad category to find out the answer to this question.
Types of Amazon ads:
You can choose from three types of Amazon ads:
Sponsored Products Ads
Currently, sponsored product ads are the most common type of Amazon ad and are a pay-per-click (PPC) based service.
To set up these ads, you must choose products you wish to advertise, select relevant keywords, and set the target cost-per-click (CPC).
Additionally, sponsored product ads can boost organic rankings through increased sales, which leads to an increase in overall revenue. As a result of Sponsored Product Ads consumer attraction and conversion capabilities, businesses are spending more on the ads by 165% over the past few months.
The following parties are eligible for sponsored product ads:
- Professional Sellers
- Kindle Direct Publishing(KDP) Authors
- Retail Vendors
Sponsored Brand Ads
Ads from Sponsored Brand, formerly known as Headlines, appear at the top, left, and bottom of search results pages. As opposed to Sponsored Products, Brand ads can send visitors to your store or custom landing page.
If you want to run Brand ads, you need to set up a vendor central account or a professional seller account with the Amazon brand registry.
The following parties are eligible for sponsored brand ads:
- Professional Sellers
- Retail Vendors
Sponsored Display Ads
In sponsored display advertising, ads appear both on Amazon’s site and other websites and are especially effective for retargeting.
Advertisers should not confuse Sponsored Display with the Amazon demand-side platform. Sponsored Display is a self-service option that automatically generates ads for products, pricing, and deals.
This ad does not target keywords, which makes it different from Sponsored Products and Sponsored Brands. You can target ads to your audience based on their interests and shopping behaviours, as well as if they have viewed your product details.
The following parties are eligible for sponsored display ads:
- Professional Sellers
- Retail Vendors
- Agencies with their clients selling on Amazon
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