Sponsored Product and Brand Ads on Amazon4 min read

Amazon PPC

One of the two products bought online in the USA is sold through Amazon. So it’s no secret that consumers start product research directly on Amazon. Disconnected from using Google as an all-purpose search engine, recently started in 2018. If users with shopping intent search on Google, they finally started to log in directly to Amazon, the platform they thought they would reach. Considering that the best price, the largest product catalog, and the fastest shipping are on this platform, this result is not a surprise.

The opportunity to advertise on a huge platform where half of all online product searches and purchases take place is not something that can be ignored by any brand owner. In the platform, which has the ability to predict user behavior and thus change the purchasing behavior, advertisement models also serve as an instrument in which the user data accumulated over the years are used most effectively.

Amazon, which is the third biggest advertising company after Facebook and Google, seems to surpass these two technology giants in the field of advertisement with the momentum it has caught. Services provided by Amazon in the field of marketing are provided under two titles: Amazon Advertising Network and Advertising on Amazon (Amazon PPC), which we will go into detail in this article. Amazon Pay per Click (PPC) ads, namely the ads you pay per click, are also divided into two as Sponsored Products and Sponsored Brands.

Question: Who can benefit from Amazon PPC ads?

Answer: Those who sell directly to Amazon (vendor) and third party sellers can sell ads in categories suitable for advertising (for example, adult products cannot be advertised) and those whose products are eligible to buy Buy Box. The vendors can manage these processes with the vendor panel, which is called seller central, and the vendors can manage their advertising processes with the panel called Advertising Console.

Question: How much does it cost?

Answer: As the name suggests, advertising payments are charged per click. You can think of it as the Amazon version of Google Adwords.

Question: What are the difficulties of advertising on Amazon?

Answer: 1. Brands must have a Buy Box, that is, the owner of the add to cart button. Otherwise, if the product you advertise is to be purchased from your competitor who sold the product, the advertisement has no meaning.

  1. Amazon is not a seller, it is a customer oriented platform and the seller panel is not a very user friendly panel. It is necessary to know the intricacies of this place.
  2. If you want to make profitable sales with advertisements, you need to have detailed information about all fixed and variable costs of the product. The advertising profitability values ​​you see in the vendor panel do not include the cost of the product.
  3. It is necessary to master PPC terms, especially ACoS, and develop correct strategies. Otherwise, you can lose with uncontrolled expenses as many brands do.
  4. It is necessary to determine the keywords and competing product pages to be advertised within a certain strategy and to target the advertising areas where the product can achieve good conversion values.

In short, taking advantage of PPC ads does not mean anything alone. It is necessary to make the most effective use of advertisements and to manage the advertising campaigns dynamically by following the changing market, competition, and seasonality conditions.

Sponsored Product Ads – Advantages

  • It is very difficult to make sales in Amazon when your products are not visible and ideally not at the top of the first page in the search results. The biggest advantage of sponsored product ads is that it acts as a kind of visibility enhancer and juxtaposes your product with organic or advertiser ‘top’ products.
  • Sponsored product ads are organic looking. So for many customers, it is impossible to distinguish them from organic search results. In this context, it allows you to reach customers who are really looking for your product and ready for purchase.
  • Sponsored product ads, which are visible on product pages, including competing products, have very high conversion values ​​compared to other types of advertising.
  • Sponsored product ads, besides providing sales, provide important data while determining your profitability strategy by delivering various data, especially which phrases customers want to reach your product.

Sponsored Brand Ads – Advantages

  • Sponsored Brand Ads on Amazon are ads that look more like traditional ads, that are separated from organic search results. However, it has very dynamic elements compared to the classic ‘banner’ ads. For example, when you click on the brand logo in these advertisements, you reach the Brand Showcase, and at the point where you click on the products, you reach the product pages.
  • Sponsored Brands are advertising campaigns where you have more visual control over the advertising area and contribute more to brand awareness due to their brand logo.
  • As with Sponsored Product ads, it allows brands to create strategies with campaigns targeted by search terms and to appear in their designated areas.
  • Referrals to the Brand Showcase enable cross-marketing, that is, to introduce customers to the products in the brand catalog.
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