Amazon Ads: Importance, Types, and Tips for Creating High Converting Ads

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If you have an Amazon account and you sell your goods and services on the platform you should have noticed a trend. Several products that might be similar to the ones you offer are displayed first on the website or mobile app. Are wondering how they got there? Well, it is simple!

Those products are displayed first because they were promoted, which means the businesses that own those products have paid for those spots. As a result, when people search for those products, the promoted ones will be displayed first.

In case you are wondering what the term ‘Amazon Ad’ means, it simply means Amazon advertisement. Anyone that sells on the Amazon platform is eligible to run ads on the platform. But the issue is being able to run high-converting ads.

Most persons go as far as hiring an ads manager for this purpose. However, others who are familiar with the system and algorithm run the ads successfully by themselves. You can check CanopyManagement.com to get help on professional Amazon Ads management.

Importance of Running Amazon Ads

Nothing comes free. There are always costs applied to running adverts on every platform. Running ads is not a compulsory factor in owning a business on Amazon; however, it is a necessary move. Some of the reasons why you need to run an ad for your product or store are:

Top Product in Search Results

Products that appear first after a search are products that have been sponsored (boosted products). To ensure your products come out top in search result pages, you have to sponsor them. This would project the product to the top of the list and make it easier and faster for buyers to find them.  However, this is very dependent on how much you can manipulate the search algorithm. This is because a lot of persons are also boosting similar products from their stores.

Increased Sales and Profit

If more people can find out about your product, there is a high possibility that more people would purchase them, leading to increased profit for you. It is a known fact that more people purchase products that appear on the first search page more than those on the second search page. Projecting your products to the top can lead to massive sales and, in turn, more profit.

Boost Organic Ranking

The more your products appear first, and more people purchase them, the more the search engine ranking algorithm displays them first even without boosting. This also affects other platforms like Google and Facebook. This is because the algorithm believes that more people are satisfied with that product, so it keeps displaying it to others for a particular period. You can click here to read more about organic ranking.

Types of Ads Available on Amazon for Sellers

Amazon runs an Ad system referred to as the PPC Ad model. PPC is an acronym for pay-per-click. It is a method of advertising in which a seller is charged a certain amount of money or credit for each click on the boosted product.

This Ad model is divided into four categories on the Amazon platform and is available to every seller. They include sponsored brands, stores, sponsored displays, and sponsored products.

Sponsored Products

This Ad package is specifically for those who only want to promote a single product for their store. The products that are boosted are displayed first on the Amazon search page. Here, you need to choose what keyword will trigger the search for the product. This Ad has a minimum running duration of 24 hours, and you can select a budget depending on the range of people you want to reach.

Sponsored Brands

Just like sponsored products, your product is shown at the head of the search. However, the major difference is that your brand is the one being promoted. That means your store logo, as well as over three top products from your store, are displayed on the search.

Once a customer clicks on your logo, it takes them to a landing page that you have customized or your store itself. This has more advantages compared to sponsored products.

Sponsored Display

This kind of Ad uses a completely different structure as the images, prices, and ratings of your products appear on similar product pages instead of appearing on search pages. This way, customers might be able to easily compare the products they intended to purchase with yours. You only need to choose your daily budget, audience, and price while Amazon handles the rest.

Stores

Creating an Amazon store is another way of getting your products promoted for free. However, this method is not highly effective, but it is an easier way to start. There are already prepared templates to help ease the creation process. All you are required to do is upload the templates and customize them to your taste.

Tips for Creating High Converting Ads

With the development of automation and new technologies, most technical things have been made easier. You do not require so many technical skills. As a result, setting up an Ad for your product has been made much easier, thanks to Amazon. However, you might want to do the following to ensure maximum results.

Utilize the Automatic Targeting Algorithm

When running an Ad, you would be required to submit a keyword or a list of them. Before now, this was done manually. However, the Amazon team has come up with an algorithm that can do that for you.

The algorithm compares and runs through highly searched words for that product and brings out a list of words that would be more effective. Not many persons know of this feature. Utilizing this makes your Ads stand out and increase the chance of better result.

Ensure Your Campaigns Are Organized

Running multiple campaigns can be messy. You need to monitor and adjust each one if need be. However, this could be less stressful if they are sectioned.

You could use a spreadsheet or document for recording each campaign. You can arrange them according to their duration or product category. This will help save time and help you track your Ad’s progress.

Keep Track of Your Ads’ Effectiveness

You should keep track of your product’s progress and how much the sales have increased. This would let you know if your Ads are doing well or if they need some more adjustments.

Conclusion

Amazon Ads is a great way to get your product or brand out there. With the wide range of Ads available and the ease of setting up these Ads, you can increase sales as well as profitability. Remember, setting up high converting Ads is the goal as we would not like to spend money on Ads that do not bring returns.

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