Ads Are Powering Amazon Revenues and Can Help You Do the Same17 Nov, 2021 Read Time: 8 Minutes
There's no question that Amazon is the powerhouse in the e-commerce landscape, with 70% of users saying it is the first retailer they go to when purchasing a product. In the UK alone, 90% of shoppers use Amazon, with 15 million of those signed up to Prime.
Due to this emergence as an e-commerce superpower, it is no surprise that the company wanted to capitalise on the marketing income available through advertising. They have certainly achieved that aim, with Forbes predicting $26 billion in advertising revenues in 2021!
Amazon ads now provide sellers with an unrivalled opportunity to stand out on the platform and get ahead of their competitors by purchasing placements on a cost per click basis (CPC).
So, If you've already mastered the essentials of Amazon and have set up your Amazon store, the next step on the road to success has to be Amazon Ads.
Here, we show you how to get started!
Why advertise on Amazon?
Still need more convincing?
Here are the top 5 reasons why you need to be using Amazon advertising to grow your business:
1. Anyone can use it
Whether you are a small independent business or a large online retailer, Amazon has an advertising format that will fulfil your needs. Its simplified user interface ensures it is possible to set up a campaign in a small number of steps. Despite being accessible to beginners, it still has all the marketing features needed to create a highly targeted campaign.
2. Ready to purchase audience
Due to the nature of the platform, Amazon has a buy-now culture with users actively looking to purchase products as soon as they enter the platform. With users knowing exactly what they are looking for, they are likely to use long-tail search terms to describe the product they desire. This allows advertisers to target users at a granular level, which helps keep costs low and conversion rates high.
3. Off-Amazon advertising
Depending on the advertising format chosen, you can direct traffic to an off-site landing page of your choice. This is most similar to other advertising channels such as Facebook and Google. It is a really good option, if you are wanting to increase your brand awareness but not actively sell products through Amazon itself.
4. Mobile friendly
The ‘rise of the mobile’ is still very much present, with 50% of all internet traffic coming from mobile devices. Amazon offers mobile-optimised ad formats, such as; mobile display, banners and video ads. The ads automatically adjust their sizing and content for mobile devices. This ensures each user gets the best experience regardless of the device they are searching on, ultimately increasing CTR (click-through rate) and sales.
5. Unique behaviour insights
Due to Amazon being an all-encompassing platform with the majority of users remaining on the site from search to purchase, it has an abundance of customer data and behavioural insights that aren’t possible on other search engines. This is a huge flex for Amazon, and shouldn’t be underestimated. The more personalised a customer journey can be, the more likely someone is to purchase, which again will aid business growth.
How to advertise on Amazon
The simplicity of the platform ensures it is accessible for both beginners and experts alike. All you need to do to get started is:
1. Determine your marketing goal
A user's path to purchase is never linear and often involves 4 main stages. It is important to determine which stage you are wanting to target before creating your campaign.
Brand awareness refers to how well a user knows your brand, from its name to its culture. At this stage, users are discovering your brand for the first time, so it is important to provide good first impressions. At the end of this phase, customers should have your brand in mind when they come to make a purchase in the future.
At this stage, customers have already been exposed to your brand but are yet to make a purchase. They will likely be researching your brand/products and comparing them with similar products on the market. It is important to inform users about your products in this stage, to help them understand how your product meets their needs.
The aim of this phase is to encourage customers to purchase the product or service. At this point, users have decided on a product and are pretty convinced you are the right brand for them, they just need an extra little push. Good customer service or promotional messaging can help secure the deal.
This is where a user has already purchased a product or service but can be convinced to purchase again. A seamless user experience, good quality products, and nurturing existing relationships can all aid a second purchase.
2. Select an appropriate ad type
Amazon has a vast array of ad formats, all designed to showcase your product at different stages of the marketing funnel. The most common are:
i. Sponsored Brand ads
Sponsored Brands help boost brand awareness of a product. They appear on both the shopping results page and on product pages within Amazon. The ad is comprised of a customisable headline, brand logo and selected products.
ii. Sponsored Display ads
Sponsored Display helps drive consideration by engaging users who are in the mindset of purchasing, whilst browsing on and off amazon. The ad is automatically generated, displaying the product image, pricing, star ratings, and a ‘shop now’ button which links to the product detail page.
iii. Sponsored Product ads
Sponsored Products help drive conversion by increasing the visibility of individual products. Similar to Sponsored Brand, they appear on both the shopping results page and on product pages within Amazon. The ad is a picture of the product, which is relevant to the search query.
3. Select your product
Select the products that you want to advertise. These could be products that have the biggest margins if you are going after revenue, or they might be your best sellers if you are going after brand awareness.
4. Create an ad
Create an ad that is concise and persuasive. It should highlight both the key unique selling point of your product and align with your overarching marketing goal.
Amazon advertising is a unique platform that enables you to target high-intent users whilst they research products within the interface. The key to success is to ensure you target the right audiences, at the right time, with the most engaging messaging. Scaling advertisements on Amazon will also help sustain your organic ranking of the brand, due to increased brand awareness and repeat purchasers.
E-commerce continues to boom, with online shopping becoming increasingly more accessible. Amazon is at the forefront of this growth, so it is no surprise that sellers are eager to start advertising on the platform in order to get ahead of their competitors. Thanks to its abundance of data signals, it allows you to target and reach new users like no other platform. If you want to diversify your current advertising platforms, Amazon is definitely not one to be missed.
As with all ad platforms, investing in some training to get you started can save you significant sums in ad spend in the longer term. If you need some help getting started, check out our dedicated Amazon Advertising & Marketing course.