With nearly two million sellers on the marketplace, advertising on Amazon is necessary for standing out, being seen, and making sales. If you’ve not yet dipped your toes into Amazon Advertising, jump straight in with our easy-to-follow guide to setting up your first campaign.
What is Amazon advertising?
Amazon Advertising works in a similar way to Google Ads - paying for your listings to appear with a “sponsored” tag at the top of relevant search results and on similar product pages.
Like Google Ads, Amazon ads work on a cost per click (CPC) basis, where you’re only charged when a shopper clicks on your ad. They’re considered essential to your success on Amazon because of:
Your listings get an instant visibility boost onto the first page of Amazon’s search results - helping you to counteract poor organic ranking.
Increased visibility gets your listing seen by more customers searching for products like yours - increasing your clicks and consequent sales.
Unlike traditional advertising, Amazon’s CPC ads give you control over your budget and overall spend - enabling you to tweak your campaigns for maximum ROI.
The flywheel effect
Increased visibility and sales generate more brand awareness and customer reviews, which increase your seller and organic ranking - allowing you to benefit from the flywheel effect of marketplaces.
Setting up your first Amazon Advertising campaign
Setting up your first Amazon Advertising campaign is also really easy. Simply follow our step-by-step instructions, and you’ll be topping the search results in no time.
1. Choose your campaign type
First, you need to choose your campaign type. There are four main types of advertising campaigns on Amazon:
Amazon Sponsored Products improve the visibility of individual products, returning them on the first page of the search results and on individual product pages. Sponsored Products are ideal for generating awareness, increasing demand, and promoting seasonable items.
Amazon Sponsored Brands are ads featuring your logo, a custom headline, and up to three of your products. These appear on the search results page and are great at attracting high-intent customers to your brand.
An Amazon Sponsored Store is your unique Amazon URL multi-page store on Amazon, where you can showcase your brand, story, and products. Amazon Stores are perfect for high-volume Amazon sellers with a wide range of products.
Other Amazon advertising products
These are the main three Amazon Advertisements that we’ll cover, but it’s useful to know that Amazon also offers:
- Display ads - appearing on other Amazon websites, apps, and devices;
- Video ads - displayed on Amazon websites and devices;
- Custom ads - tailor-made advertisements; and
- Amazon DSP - a demand-side platform for reaching your audience programmatically.
Register at advertising.amazon.com/register and from the 'Advertising' tab, select 'Campaign Manager' and select your campaign. For this guide, we’re going to seller Sponsored Products.
2. Give your campaign a name
Your campaign name is only seen by you, so pick something descriptive and easily identifiable. We recommend naming your campaign based on the type of products you’ll be including.
3. Choose a start and end date
Select a start and end date for your campaign - this can be in the future. We suggest running your first campaign for at least a week without any adjustments, allowing it to take effect and giving you time to gather and understand the results.
4. Set your daily budget
Your daily budget is the amount you are willing to spend on a campaign in one day, and it is averaged out over one month.
5. Pick your targeting
Targeting determines when and where your ads are shown to shoppers. There are two types of targeting:
With automatic targeting, Amazon decides the keywords for your advertised product, based on relevant shopper searches. It then splits your budget over different match types, which you can later tailor:
Close match: Search terms closely relating to your products.
Loose match: Search terms loosely relating to your products.
Substitutes: Shoppers who view the detail pages of similar products to yours.
Compliments: Shoppers who view the detail pages of complementary products to yours.
Automatic is the easiest way to begin Amazon Advertising, as it involves less management, and helps to generate data for using in future campaigns. However, it is a broad approach which, at times, can lead to imprecise targeting.
With manual targeting, you choose the keywords, negative keywords, and match type for your advertisement, including:
Broad match: Search terms containing all of the keywords in any order, including plurals, related searches, and close variations. You can also add broad match modifiers for words that much appear in the search by adding a “+” symbol before the word.
Phrase match: Search terms containing the exact phrase or sequence of words.
Exact match: Search terms exactly matching the keyword, including close variations.
Amazon has recently released an update to Sponsored Product targeting that allows you to target ASINs, brands, and categories, as well as keywords.
Manual targeting is more precise than automatic advertising, but ideally requires previous experience with targetted advertising.
Top tip: identify the most profitable keywords for your advertising campaign with these top Amazon keyword tools.
6. Pick your product
Next, you get to select the products for your first campaign. We recommend starting with one product that’s already performing well. Enter the ASIN or product name into the search bar and click to add.
7. Set your default bid
If you’re new to CPC campaigns, think of them as an auction - a shopper enters a search and Amazon runs an auction to determine which relevant ads appear where. Your default bid is the maximum you are willing to pay when someone clicks on your ad, which is then deducted from your daily budget. Enter your default bid or use Amazon’s suggested figure.
Before submitting your advertisement, do one final review to check that all of the information is correct, and then you’re ready to launch your campaign.
Once your campaign has been running for one week, it’s time to monitor the results. Log into the Campaign Manager to download detailed performance data to understand your ROI and, if necessary, guide any tweaks to your campaign.
Running a successful Amazon Advertising campaign is much more than finetuning your keywords, targeting, and bids. It’s about ensuring that your clicks convert to sales with:
Optimize your listing content using descriptive titles, accurate descriptions, and hi-resolution listing photographs.
Increase your customer review rating by delivering outstanding customer service, ensuring that products arrive intact and on time, and dealing with complaints quickly and effectively.
Amazon Advertising - wrap up
Advertising on Amazon isn’t a question, it’s a requirement. Follow this simple step-by-step guide to get started, increase your visibility, and boost your sales today.