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Advertising on Amazon Ads - the ultimate guide

May 26, 2021

63% of product searches start on Amazon. In other words, if your brand doesn't exist on the marketplace, you're missing out on 63% of potential consumers who buy online.

But then, how do you get visible on Amazon? Amidst the 6 million sellers on the site, how do you make your products stand out from the crowd?

First of all, by laying the foundations of your content and your product pages, and then by bringing traffic to them. In particular by using Amazon Advertising solutions. When used properly, advertising on Amazon is a very powerful visibility lever.

70% of consumers do not go further than the first page of search results on Amazon.

It is therefore in your best interest to promote your products via Amazon Sponsored Ads (ASA)! However, you have to do it in the best way. In this series of articles, Bizon explains everything.

Preliminary step: the basic functioning of ads on Amazon

Why advertise on Amazon?

According to a 2018 study by CPC Strategy, 70% of consumers don't go beyond the first page of search results in their decision-making process.

This first reason ties in with another one we mentioned in the introduction to the article: if the majority of searches start on Amazon, you need to be there. And if you are present there… you need to be visible!

💡 ACOS, for Advertising Cost of Sales, is the key performance indicator on Amazon when it comes to advertising campaigns. It measures the percentage of sales spent on advertising within a specified time frame for an ad campaign type.

It is calculated by multiplying the ratio of your ad spend and what you got from it by 100.

It is estimated that the average ACOS for media campaigns run by brands is around 20%, or a return on investment of about 5.

➡️ For 100€ invested in advertising on the marketplace, brands therefore, as a rule, get 500€ in revenue from it. As a result, for the majority of brands, advertising on Amazon is profitable… and that's the best reason to do it!

Amazon Advertising vs. Google Ads

If you are familiar with the Google Ads system, Amazon Advertising works on a similar model. You set a budget for your campaigns and pay per click on your ads.

Just like Google Ads, the ones on Amazon are distinguished from non-advertising content by the "sponsored" or "sponsored" statement next to the ad.

➡️ The fundamental difference between Google Ads and advertising on Amazon is this: Amazon Ads is not *just* search media. We're talking about retail media here.

To illustrate things simply: you should not, for example, promote a product that you no longer have in stock. If you try to promote a product that is out of stock, be aware that Amazon will automatically cut the promotion of your product.

In parallel to your ads, you must manage your stocks, the buy box of your products, monitor your resellers… and all the aspects encompassing the operational management of your sales.

This "retail" dimension is what makes advertising on Amazon so complex, and why we publish this guide.

Requirements for advertising on Amazon

You must:

  • Have an active Seller Professional or Vendor account (Amazon Ads is open to both types of accounts)

  • For Sponsored Brands and Sponsored Display, be registered with the trademark registry, for Sponsored Products, be eligible for the Buy Box

  • Be able to ship anywhere in France

  • Offer new products in one of the available categories defined by Amazon

Amazon Advertising: 3 basic formats to know

To begin the first article in this series, we will take the time to go over each format available to you on Amazon. Each one appears in different places on the platform, each one has its own specificities to know and will meet different objectives.

Amazon Sponsored Products

The first type of ads is the one most frequently encountered on the marketplace. The products promoted via Amazon Sponsored Products appear directly in the page results and on the product sheets.

This is the easiest format to understand. The targeting of your prospects is done by keyword, products or category.

➡️ The format pushes one product at a time and develops its visibility.

A Sponsored Products Ad

Amazon Sponsored Brand

Sponsored Brand ads are displayed at the top of the page, above the search results. This is the second most used format along with Sponsored Products.

➡️ Unlike the Sponsored Product format, it's not your products that you're showcasing here, but your brand, your Brand Store if you have one and a range of products.

It is possible to include marketing claims on this type of campaign: Amazon will ask you for a catchphrase when launching the campaign. However, it is impossible to include a "buy now" CTA on this format.

A Sponsored Brand Ad

Amazon Sponsored Brands Video

Sponsored Brands Video is the latest in this series of ad formats. First tested in beta in the United States, it is available in France since the end of 2020. Like Sponsored Product and Sponsored Display, it too appears in search results.

➡️ As its name suggests, it allows you to take advantage of video formats presenting your products.

➡️ According to our in-house tests, this is one of the most engaging formats, with a high CTR (click through rate) and a good ROAS.

A Sponsored Brands Video Ad

Amazon Sponsored Display

This ad format is displayed directly on the product sheets. It allows you to show your products on your competitor's or similar products' listings in your category.

➡️ For this reason, it is very useful as part of a conquest strategy… or to defend your brands by making your own products appear in your category.

A Sponsored Display Ad

Activate Amazon Advertising (and make the most of it)

Amazon's virtuous circle

How the virtuous circle between Owned Media, Paid Media and Earned Media works on Amazon

The purpose of all your actions on your Amazon account will be the same: to enter what we call Amazon's virtuous circle. A system where your content works in synergy and allows you to generate sales every day.

The idea is simple: if your product listings sell, Amazon's algorithm will highlight them. Over time, your products will be more visible in the search results and ultimately, will sell more. And so on.

If you use them well, the 3 formats we have just seen are a shortcut to this virtuous circle. They allow you to multiply your share of voice on the marketplace, drive more traffic to your products and increase your sales – including organic.

4 tips to make the most of Amazon Ads tools and reduce your ACOS

1. Get off to a good start

Your media campaigns will allow you to generate traffic on your product pages for sure. However, no matter how much traffic you get on your pages, if they're not ready to sell… there's no miracle.

Before you start Amazon Advertising, make sure that all your content is online, ready to receive traffic and convert your prospects.

2. Set an achievable goal for your campaigns

Depending on your brand awareness and how far along you are on Amazon, your goals will differ.

➡️ If your brand is fresh on the marketplace, lean more towards a campaign to increase your awareness. It will be less important to monitor your ACOS here. Your best indicators will be the number of impressions, visits you generate as well as your ranking in the top referrals.

➡️ On the contrary, if you already have some notoriety on Amazon, take an approach focused on ROI. Your ACOS will therefore be something to watch more closely.

3. Track your performance regularly

A good media campaign on Amazon requires regular monitoring. Whether it's the budgets you invest or the formats you decide to use, you need to control your campaigns on a daily basis, continuously.

Don’t leave your campaigns running alone and unattended.

4. Test all Amazon Advertising formats

Do you already know which of the 3 formats you are going to use? In principle, the answer should be "no". And that's normal! Depending on your objectives, you will go towards particular formats, but you should not restrict yourself to a specific format.

Test new formats, new campaigns: go for market share and activate the Amazon algorithm in several ways.

Finally, if you are lost in this universe (or if you don't have the time to devote to it), don't hesitate to call upon an agency whose medium it is. If you decide to take the plunge, we strongly advise you to use an agency specialized in retail media and Amazon.

Juliette Plachez

Online Acquisition Manager

Publicis Groupe
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