Type of Amazon Ads

Types of Amazon Ads: What are they and why do you need them?

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Truth be told, if you aim at being successful on amazon in 2022 and in the next coming years, then it is of utmost importance that you have the best ad PPC strategy.

Being a part of the internal advertising system for amazon, it is possible to target various top brands and agencies, and more so, third-party sellers can also be able to target specific keywords and create product ads. This will then be visible to the search results of your target customers and the product listings of your competitors.

At the end of the day, with the right strategy, a seller can be able to get to potential customers that are ready to purchase a specific product. Additionally, the seller can be able to gauge the performance of their ad so that they can be able to know which ad gives the best conversion.

To make things easier for you, I’ll be taking you some of the critical aspects when comes to the different types of ads provided by amazon. Here goes, …

Amazon PPC vs DSP ads

Two of the main ad types offered by amazon include the DSP and the PPC ads each of which can be used in its way to help you register better sales.

Amazon PPC ads

The first thing I’d like to shed some light on is what exactly amazon PPC is. Amazon PPC stands for Pay Per Click. This is a method of advertising whereby, as a seller, you’ll be getting paid each time your ad is clicked by an interested customer.

Before we proceed any further, perhaps it would be worthwhile to have a look at the important Pay Per Click metrics that are used by Amazon.

  • Clicks

This is quite obvious. The clicks are simply the number of times your ad has been clicked by a potential customer. Additionally, once the click has been detected, Amazon will filter out the irrelevant clicks from your report at which point the clicks that have been registered in the past three days may be adjusted.

  • Attributed sales

 An is the cumulative total of the generated sales of products within a week of clicks on your product’s ads. One thing to bear in mind is that the data on your sales can take as much as 48 hours to be displayed. As a result, you most likely will not be able to see the results in real-time but rather in the previous day’s report

  • Impressions

An impression is the number of times your ad has been displayed to a potential customer. It is also worth mentioning that regardless of whether the ad is clicked or not, Amazon’s advertising will use the impression to gauge the performance of your ad.

  • Advertising cost of sale

Yet another important metric you should understand is the ACoS. This is the percentage of the sales that have been spent on advertising. For instance, say a product’s sale is $20 and you spent $4 on the advertising cost. From this, the generated ACoS will be (4/20) which results in 20%

Which is the best type of Amazon PPC ad for you?

With complete knowledge of the different ad metrics used by amazon out of the way, I can now take you through a comprehensive guide on what the different types of PPC ads are all about.

Let’s get started by looking into the sponsored product ads.

1.     Sponsored products

These kinds of ads can easily be confused with the usual product listings. The reason for this is that you can see them integrated into your search results. Because of this, it unsurprisingly is the most preferred which is why it’s used by over 50% of the third-party sellers on Amazon.

With this kind of ad, the chances of getting a click are quite high since most people won’t be able to tell the difference between the sponsored ad and an actual product at first glance.

Even better, …

Upon clicking on this kind of ad, customers will normally be redirected to the product’s purchase page. It’s also worth noting that you can set up either an automatic or a manual campaign for a sponsored ad. Let me take you through either of these.

Automatic ad targeting

With the automatic campaigns, amazon simply does all the heavy lifting for you. The automatic strategy mainly involves using target keywords that Amazon’s algorithm deems viable enough to be used depending on the kind of listing you have for your products.

This is normally refined over time after data collected from the clicks of potential customers is used to adjust the ads in such a way that they suit your listing best. In the long run, you’ll end up with an increased conversion rate.

Because of the way it works, this kind of ad campaign is recommended for new users. You can also choose between either of the 4 different types of keyword matches. These include:

  • Substitutes

This kind of keyword match type is designed to target the shoppers whose main area of interest are products that are more or less the same as yours but come from a different brand

  • Close Match

Close match ads will normally show when the customers use search terms closely related to the kind of products you are advertising. With these, it will be easier for the ads to be optimized more.

  • Loose match

Unlike the close match keywords, the loose match keywords will appear each time customers search the keywords that aren’t closely related to your product but are close enough.

  • Complements

Last but not least, another keyword match type you could employ is the complement one that is aimed at customers that check out the details of the products that can be used alongside yours. Such as a paint set to go with paint brushes, cooking sticks with cooking pots, and so on, …

Manual ad targeting

When you choose to go with manual campaigns, you’ll have to manually choose and upload keywords regarding the kinds of products you are interested in.

By using this approach, you will have the option to either do manual research on the keywords to use or use the keywords that stand out based on automatic ad campaigns you may have set up.

What makes this kind of campaign preferable to most people is that you will have a direct influence over the kinds of ads you are showing. To add icing on the cake, it should also be possible for you to customize each keyword bid, the target categories for specific keywords, and the placement of the ads.

I would recommend this kind of ad for you if you are more conversant with Amazon’s PPC platform since not only is it time-consuming but it’s also quite technical. As such, you must be as careful with your keyword research as possible.

There’s more, …

Researching the keywords, customizing them, and specifying the categories they should be used in is the easy part. The hard part comes in when you have to monitor the changes in the cost of the given keywords and also make adjustments where necessary. On the bright side, you will end up with more effective ads and even better you’ll spend much less on them.

2.    Sponsored brand ad campaigns

With this kind of ad campaign, you’ll be able to be a little more creative with your ads. Designed to be ideal for campaigns that are targeted at brand awareness. The reason for this is that you can be able to advertise your logo, upload custom images and add custom headlines.

With a sponsored brand campaign, you should also be able to add multiple products to your ads simultaneously which in turn gives you the ability to run video adverts as well.

With this kind of campaign, you’ll be able to redirect your target audience to your specific store page or even better, your own customized amazon landing page

Where to find sponsored brand ads.

Sponsored brand ads can be spotted in either of 4 different ad placement positions on the search results page. Normally, the first position is at the top of the search results and then the other three follow directly below the first one.

Considering this is unlike how the products are normally presented in the search results, it should be easy for customers to spot and if you’re lucky, click on the ads.

The brand ads can also be seen on the product details page right below the bullet points beside or under the product images and last but not least, with the video ads, you can easily spot these in the middle of the search results page as you scroll.

3.    Sponsored display ad campaigns

The sponsored display advertisements normally rely on both the CPM (Cost-Per-Impression Model) and CPC(Cost-Per-Click) models.

To stand out with sponsored display ads, the best thing to do would be to pay attention to the bid management while at the same time striving to target specific products of interest. It is also worth noting that the sponsored display ads can be visible on amazon affiliate sites as well such as Facebook, Netflix, Google as well as social media platforms.

With this kind of ad, you must, however, have a brand for you to use them. On the other hand, this type of ad features 3 different targeting options.

  • Purchases

with this option, you will be able to show your ads to potential customers depending on the purchases they have had in the last 3 months.

  • Searches

The search option, on the other hand, targets customers based on what they have searched for in the past 3 months.

  • Products

The product targeting option normally has the ads placed on the product details page as well as other amazon pages. Additionally, you can be able to have your ad placed on the product page of your competitors, quite convenient, right?

  • Views

With this option, your ad is going to be shown to the customers who have viewed details of your product or that of similar products but have not made a purchase yet within the past 30 days

Targeting your PPC campaigns: why is it necessary?

For you to generate leads of better quality with your PPC campaigns to increase your targeted sales, in the long run, there are various types of targeting you can use. Let me take you through some of the most effective ones guaranteed to give you the results you desire.

Keyword targeting

Keywords are normally what a seller will bid on whereas, on the other hand, search terms are the exact queries that customers will type in while shopping.

With keyword targeting, you can use both the sponsored product ads and the sponsored brand ads.

When using automatic campaigns with sponsored product ads, keyword targeting allows you to select the terms that are searched most and are relevant to your product(s). With manual campaigns, you will be choosing, formulating, and collecting keywords usable in your campaigns for you to match the search queries of shoppers.

When targeting keywords, there are 3 match types that you can choose from as well. Let’s break them down, shall we?

  • Exact keyword matches

With the exact keyword match, the search queries should be able to match, word-to-word, the keyword you have chosen. This, when used correctly will normally yield the best outcome.

  • Broad keyword match

Unlike exact keyword match types, a broad match aims at focusing on the search terms that are in close relation to the keywords of your choice. Even though it gives you access to a larger pool of potential customers, it has the lowest performance and should only be used if you’re getting started with PPC ads.

  • Phrase keyword match

Somewhat of an intermediate between broad and exact keywords, phrase keywords target the search terms that are also in your preferred keyword. Additionally, the search term should be in exact order.

For instance, if your keyword is ‘Backlit Computer keyboards’, an ideal match phrase for this could be ‘Backlit computer keyboards for office use’ or ‘Silent backlit computer keyboards’.

Product targeting

when it comes to product targeting, the focus is mainly on specific brands, categories, the product itself, and/or the features of the product related to what you’d like to advertise.

Let’s go through a quick breakdown of what product targeting is all about, …

By putting the products, you are marketing within the search results as they browse through either the search results or product details. If, for instance, you’d like to target the ‘Computers & Accessories category’, your ads will appear in the search results of this category as well as the product details page. Additionally, you can also go a step further to target a brand whose products are similar to the kind of product you have.

Can Amazon PPC be able to help my organic ranking?

Fortunately, the sales that you generate from Amazon’s PPC can directly influence the organic ranking of your product on amazon in future search results by potential customers.

As it turns out, this could be highly beneficial, especially if you have new products that don’t possess a sales history or even those that have fewer sales views. At the end of the day, with the right PPC strategy, it should be possible to increase the traffic of new products so that they’ll be more visible to potential customers even on the launch day.

In a nutshell, whereas the organic ranking is important, having the right PPC strategy will make your product a greater reach on amazon.

Advantages of having PPC Ads

Now that we’ve looked into the different types of PPC ads offered by amazon, how about we have a look at the advantages that come with adopting them?

You’ll have a higher product ranking

As I’ve already pointed out, with the right strategy, you can be able to impact the organic rating of your product positively as well as your ad revenue.

Amazon normally utilizes several factors such as the history of sales and sales velocity to rank your product. Because of this, the organic rating of a keyword of your choice should increase significantly when a customer clicks and buys one of your products via an ad after searching for a specific keyword tied to the ad and product.

With an increased PPC rating on amazon, it will also be possible for your organic ratings to increase.

Amazon’s SEO is optimized for your products.

The Pay Per Click works on the basis that you get a set of keywords that clients will use to find your product. Using either of these keywords, you can be able to boost your SEO by using these in your product listing titles, product descriptions, bullets, and even as backend keywords.

On the other hand, …

When used on amazon, PPC sales can be able to better your organic position. The general rule of thumb regarding these is that the more sales that are created using PPC ads, the more the organic ranking of the target product grows.

There is a higher product visibility

Looking for an efficient way to amplify the visibility of your products? PPC strategies are the way to go. Normally, without PPC strategies, you’d have to only depend on the organic ranking of your product which means you’d have to wait for quite some time1 before your products can be noticed.

Additionally, you’ll also have to keep up with the competition and in the long run, even though you may have the best product, it would take a while before you can optimize the sales.

With Amazon’s PPC however, it should be much easier to promote your products with few or no reviews/purchases. By employing this strategy, you’ll also be able to get a better organic ranking once your ads get a better rating.

Moreover, …

Amazon PPC also makes it possible for you to have better visibility for seasonal trends as well such as the Christmas holiday or even Halloween. Since it is during these times that most sellers on amazon tend to register peak sales in their products, amazon ads stand out to be one of the most effective ways to optimize sales.

Amazon DSP ads

With the DSP ads, otherwise known as the demand side platform ads, you’ll be using audio and video ads to market your products. With this option, you won’t have to buy an ad placement but instead, you’ll have to depend on the data intelligence of amazon to advertise your product (s) to the target audience.

The amazon DSP ads work by using data available to decide on the most suitable digital advertising place for you to purchase depending on the kind of product you are marketing.

In most cases, the ad console campaigns will only work towards increasing the chances of your product being purchased i.e., awareness-driven. With the DSP ads, however, the focus is both driving purchases and creating awareness by ensuring that your brand is always a top priority to target customers.

With the DSP kind of ads, you can choose from either of the 4 different options.

Static ads

With the static kind of ads, as the name suggests, you won’t be getting any dynamic elements instead, they will require a call to action. This would then serve as a means to draw in shoppers or create more awareness for your brand.

With these kinds of ads, the call to action should be as captivating as possible since it is meant to lead potential shoppers back to either your Amazon store, product details page, or a custom landing page.

Dynamic eCommerce ads

With the presence of the machine learning algorithm on amazon, the kind of offerings you get now are becoming more approachable and impressive with each coming day.

By opting for the dynamic type of eCommerce ad, you will be able to optimize creativity depending on the campaign tool you are using and your goal. to add icing on the cake, these ads give you the option to add coupon codes for use on your products during purchase.

The dynamic ads can also have customer reviews attached to them which play a huge role in creating awareness. One thing to note about the dynamic ads is that they can only be used in linking to a product details page

There’s more, …

With the machine learning algorithm on amazon, the dynamic ads work in an optimal way regarding what is shown to the customer; let me explain.

If a customer will most likely read a review before making a purchase, a dynamic eCommerce advert containing a review will be shown. On the other hand, if they normally make impulse purchases, they’ll have an ad with a button shown to them.

Over-the-top ads

With these kinds of ads, your primary target will be customers having a video playing on the amazon website or mobile app or the fire tablet screen. They are normally designed to pick the viewer’s interest which makes it easy to market your product in a captivating way.

In the video ad, you can also link to either your website or the product page on amazon. It is also worth mentioning that over-the-top ads cannot be skipped and are full-screen in nature. It is also possible for you to target specific customers.

Video ads via DSP

Video ads are quite an efficient way to share the story of your brand and upon doing so, generate an emotional connection with your customers.

These can normally be set up within the video as it is running which is otherwise known as an instream ad or as part of a display ad. You can link your video ads via DSP to the details of your product or website.

Amazon Live ads

With the amazon live creator app, you can create a live stream for your product. Alternatively, you can also collaborate with amazon so that they create a Livestream for you themselves. With amazon live, you can be able to make your product known to more shoppers.

When it comes to boosting your sales and reach especially in seasonal events such as black Friday, Cyber Monday, or amazon prime day, you couldn’t go wrong with this option.

Final Verdict

In conclusion, it’s quite clear that if correctly done, Amazon PPC and DSP campaigns will most definitely be an ideal way for you not only to boost your sales but also to attain the profits you desire. Depending on your business strategy, you can optimize either or both of the two to get the best sales returns.

Taking all the information we have looked at all at once may seem a little complex but with enough getting used to it, it should be possible for you to attain your goals as soon as possible.

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