Amazon is a behemoth in the world of online shopping. Nearly half (46.7%) of US internet users started their product searches on Amazon. Help them find your brand.
For sellers, utilizing Amazon Advertising to capture a customer’s attention. Studies show that when customers visit Amazon, they’re already “in a buying mood.”
Capturing the eyes (and wallet) of a customer already inclined to spend money is huge.
Amazon offers product photos, descriptions, Q&A, and customer reviews in one place. As a result, customers use the site as a product research resource.
In fact, 80 percent of Amazon customers say they use the internet retailer as the place to identify new products or a new brand.
Annually, Amazon ships more than 5 billion items. More than 100 million people in the United States alone pay for Amazon’s Prime membership.
Those who do pay for a Prime membership spend an average of $1,400 a year on the site, compared to $600 for none members.
But what does all this mean for your business? How can you get your products in front of those millions of Amazon shoppers?
The solution is Amazon Ads. For vendors and sellers, Amazon Advertizing offers a trio of advertising options: Product Display Ads, Sponsored Products and Headline Search Ads.
At Team WTI, we’re experts who can help you navigate the world of Amazon Ads to ensure your business connects with customers.
After all, Amazon customers want to discover new brands. Why not yours?
Advertising executives and retail marketers at some of the nation’s biggest companies agree – Amazon Advertising is on the rise.
Nanigans and Advertiser Perceptions surveyed 100 ad executives at large US retailers. All surveyed represented companies that generated annual online sales of $100 million or more.
When it comes to digital ad budgets, Amazon ranks behind Google and Facebook, but are rising quickly.
Half of the advertisers surveyed said they plan to increase what they spend on Amazon Advertising. On average, ad executives and marketers said they plan to spend 25 percent more on Amazon Advertising, with many shifting funding from Google or Facebook to Amazon.
Of those who didn’t plan to increase their spending, 47% said they intended to keep their spending the same.
Marketers surveyed were focused on results. A total of 39% said their Return on Advertising Spend (ROAS) was better with Amazon Advertising than it was with Google or Facebook.
Those that advertise on Amazon said 30% of their total online sales come from the site. Adding the size of the Amazon audience was a major factor in their decision to advertise with the e-commerce giant.
Plus, as several noted, when shoppers visit Amazon, they’re “already in a purchasing mindset.”
Let Team WTI show you what multi-million dollar retailers already know, utilizing Amazon Advertising is an ideal way to reach shoppers and turn those shoppers into buyers.
Using Amazon Ads will help build your brand while connecting your products with shoppers searching for products like yours.
For vendors and sellers, Amazon Advertising offers a trio of advertising options: Product Display Ads, Sponsored Products and Headline Search Ads.
Amazon Ads are available to companies selling on Vendor Central (the invitation-only wholesale program Amazon has for brand-owning manufacturers and distributors) and Seller Central (the Marketplace program Amazon has for third-party sellers who may or may not own their brands and who sell directly to Amazon consumers). (Note: A third seller category, Vendor Express, was discontinued Jan. 1, 2019.)
Product Display Ads are triggered by a product or a buyer’s interest. Ads show up in multiple places, based on the product trigger or buyer interest you’ve selected.
When targeting a specific set of products, your ad is set with a narrow target approach. If your company sells jewelry, for example, your ad for emerald earrings could appear on the page of a competitor’s emerald earrings – usually near the “other sellers on Amazon” section.
Interest-based ads are broader. You might set your ad to target “emerald jewelry” in general. More people will see your ad, but it might not convert as well. Your ad showing emerald earrings might be seen by a shopper searching for an emerald ring, but not clicked on.
When utilizing Product Display Ads, you may select either “product” or “interest-based,” but can’t combine the two in a single ad. You could create two ads, one for a specific product and one aimed at a buyer’s interest to then see which performed better.
Amazon automatically generates the creative for the campaign through the Amazon ad builder. You are required to add a custom headline and logo before submitting the ad for review.
Amazon’s Product Display Ads can be viewed on desktop, mobile web, and mobile app platforms.
When a customer searches for one or more of your target keywords, your ad is eligible for display. A sponsored product ad for emerald earrings might be displayed when keywords such as “green earrings” or “May birthstone” are searched. Clicking on your sponsored product will take customers to the product detail page.
Using Amazon’s campaign manager, you can track the performance of keywords, adjust bids and add or remove keywords.
The ads are keyword-driven and feature your brand logo, a custom headline and up to three of your products. You decide which keywords to target and how much you want to bid for clicks.
Headline Search Ads can be linked to your Amazon store page, where a customer can browse all of your items.
According to The Motley Fool, an estimated 80 million people are members of Amazon Prime, spending an average of $1300 annually. That’s out of the 300 million Amazon users that are exposed to advertising on the Amazon website.
Facebook may know what we like and Google may know what we search for, but Amazon knows what we BUY. All of these advertising platforms have their place in your marketing plan, but Amazon is a great place to advertise that hasn’t been promoted as much as the others.
Information is the best tool that anyone can have, so here is some background on Amazon Ads: what they are, why you should use them, and how to get started.
When a potential buyer puts an item in the search bar, a list of products appears. Listed among the organic listings are sponsored posts with small “Sponsored by Widgits Inc.” or just “Sponsored” along with an entry that includes an image and details about the product being advertised.
If you want to promote your items and have them appear alongside the organic search results, you can bid on keywords. By bidding on the keyword, your product will appear higher in the Amazon search results. You won’t be charged until a shopper clicks on your ad.
Another location that your ad may appear is on individual product pages. The ads will coincide with products that have similar keywords. Your ad may also appear in a slider on the page with ads from other businesses. These are usually under the heading “Sponsored products related to this product”
This is just a basic overview of the types of ads you may find on Amazon.
Now, not every business is going to be a good fit for Amazon Ads, you need to have a real item that someone can purchase online. Services wouldn’t work on Amazon, for obvious reasons. By putting your product on Amazon, you will have the eyes of millions of users that are shopping right at that moment.
In addition to having the Amazon Marketplace at your disposal, if you use Amazon Ads, your organic listings will also improve. Part of the reason for the increase is that you should see an uptick in the number of sales that come from the Amazon Ads. Sales history influences your ranking greatly; the more sales an item has, the higher Amazon will rank it.
The costs of Amazon Ads vary, just like Google Adwords, but the amount is usually a lot less than Google. According to a quick search, the prices were comparable to the lowest prices on Facebook Ads. Like we said at the beginning, these people are ones that are actively shopping, so there should be a better ROI than on other platforms.
WTI has the experience, strategy, and knowledge to help you get started with Amazon Ads, so contact us when you’re ready to start.
According to Third Door Media, 80% of Amazon advertisers are planning to increase their spending there. The same study showed that nearly half of the respondents were currently using Amazon Ads. Of the advertisers that said they were going to increase their spending, 20% of them were going to increase their Amazon budgets by 50% or more!
Make sure that you are competing on an even playing field (or have the advantage). If you aren’t currently advertising on Amazon, you should do yourself a favor and look into it. The Digital Marketing team at WTI is here to answer any questions and get you set up if you decide to gain on your competitors. Contact us today to learn more about all the ways that you can use Amazon Ads to your advantage.