1. Definition: Amazon's advertising solutions that can be utilized both on and off Amazon
2. History of Amazon Advertising
2012 - Amazon Advertising launched
2014 - Sellers begin using it on a non-professional level
2017 - Introduction of advanced ad products such as Amazon Display Ads, Video Ads, and Sponsored Products
2019 - The platform reaches maturity, becoming essential for brands3. Importance of Amazon Advertising
- Amazon Advertising grows alongside the digital advertising market
- Market share in the digital advertising space is increasing
- Consumer goods brands are the most ideal fit for Amazon Advertising, though there are many opportunities for other businesses as well
- Amazon ads significantly impact sales by appearing at the top of search results
- As of 2020, approximately 30% of a brand's total revenue is derived from Amazon Advertising
- It is difficult to get products on the first page of Amazon search results without advertising
- Advertising can be used to drive consumers to websites outside of Amazon
1. Sponsored Products
- The most fundamental form of Amazon advertising
- Average weekly ASIN orders increased by 40% within the first year of creating a Sponsored Products campaign
- Average weekly ASIN views increased by 54% within the first year of creating a Sponsored Products campaign
- Automatic and manual targeting options
- Automatic targeting: The campaign uses Amazon's data to automatically select keywords and ASINs for targeting
- Manual targeting: Control your targeting by adding specific keywords, categories, and ASINs
- Ad placement:
- Search results pages
- Product detail pages
2. Sponsored Brands
- Great ads for showcasing your brand and products
- Campaigns allow you to choose between 3 products or your brand store
- Use images and headlines to make your ads stand out
- Manual targeting options only
- Where ads are displayed:
- Search result pages (top)
- Product detail pages
3. Sponsored Brand video
- Sponsored Brand ads that utilize video
- Effective for increasing click-through rates (CTR)
- Advertisers using Sponsored Brand Video ads saw an average CTR 108.1% higher than those using only standard Sponsored Brand ads
- Where ads are displayed:
- Search result pages (middle and bottom of the page)
4. Sponsored Display
- Ads that target based on consumer interest and behavioral data
- Targeting methods:
- Contextual targeting: Using products and categories
- Audience targeting: Selecting consumers using Amazon audiences, views remarketing, and purchase remarketing
- Ad bid optimization can be set for reach, page visits, and conversions
- Highly effective for increasing impressions and reaching new customers:
- On average, campaigns using Amazon's contextual targeting recommendations saw a 2x increase in impressions and a 1.5x increase in clicks
- When advertisers use Sponsored Display audience targeting, new customers account for 82% of sales on average
- Where ads are displayed:
- Amazon home page
- Search result pages
- Product detail pages
- 3rd-party sites
5. Amazon DSP (Demand Side Platform)
- Ads displayed to consumers both on and off Amazon
- Ad types:
- Display
- Video
- Audio
- Available even to advertisers who do not sell on Amazon
- Where ads are displayed:
- Amazon website
- Amazon-owned websites (Audible, IMDb, Twitch, etc.)
- Third-party websites
- Amazon-owned apps
- Amazon devices (Amazon Echo, Fire TV, Kindle, etc.)
6. Audio Ads
- Short audio ads played between songs on Amazon Music
- Allows targeting of many consumers who do not use paid music services
7. Storefronts (Brand Stores)
- A page to showcase your brand and all your products within the Amazon space
- Helps explain your brand story to consumers and provides a better shopping experience
- Customizable layout where you can add images, videos, text, etc.
- Sales and traffic data can be collected for reporting and optimization
- Brand stores with 3 or more pages see 83% higher dwell time and 32% higher attributed sales per visitor
8. Posts (Currently in Beta)
- Amazon's social media platform
- Create lifestyle images and product-related content to share on the Amazon Post feed
- Where they appear:
- Brand's Amazon Post feed
- Product detail pages
- Category-specific Amazon Post feeds
- Product-related Amazon Post feeds
9. Amazon Live Video
- Amazon's live shopping platform
- Introduce products, offer discounts, and interact with viewers via live chat
- Accessible via the Amazon Live Creator app
- Brands should run ads 1-4, 5, and 7 simultaneously to achieve the best results from . Amazon PPC advertising
- If your advertising budget is limited, we recommend running ads 1-4 and 7 together
- Running only one type of ad is significantly less effective than running them in combination
- For certain businesses, ads 6, 8, and 9 may also be effective
1. Current State of Amazon Advertising
- Amazon's current advertising landscape is comparable to Google's about 6 years ago
- The interface and platform are quite rudimentary
- Competition for advertising within Amazon is quite intense
- Many brands advertise at a loss to improve their rankings
- Advertising placements:
- Amazon website
- Amazon-owned websites (Audible, IMDb, Twitch, etc.)
- Third-party websites
- Amazon-owned apps
- Most advertising spend is allocated to Sponsored Products and Sponsored Brands
2. The Future of Amazon Advertising
a. Key Future Keywords
- More control - More options for choosing who sees ads, when they see them, how campaigns are segmented, platforms, and placements
- More creativity - While previously it was just about selecting products, the future will require more creativity. Visual content and catchy phrases will become increasingly important
- More interaction - There will be more ways for sellers and buyers to interact (e.g., real-time chat with sellers on Amazon Live)
- More traffic - Traffic is expected to continue growing
b. The Future of Amazon Advertising
- Creative ad materials and methods will become more important
- More discovery-oriented options will emerge (e.g., Live, Posts)
- Video will become increasingly vital
- Posts and creative ad copy will gain more importance
- More opportunities will arise for businesses beyond consumer goods
- The platform will become more sophisticated and granular for advertisers
- Amazon advertising is expected to see exponential growth
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