Beginner’s Guide to Amazon Advertising in 2022

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    You may be looking to boost branding awareness or increase awareness of your brand, product, or service, boost sales, or boost loyalty; we’ll offer you the tools needed to choose the best advertising solution to aid in achieving measurable results.

    Amazon Advertising, earlier called Amazon Marketing Services (AMS), is the general term that describes Amazon’s entire range of advertising services.

    To make things easy, We’ll highlight all the Amazon advertising programs available to sellers who have registered with brands and other advertising options such as one that doesn’t require registration with a brand.

    Here’s a glimpse of what we’ll be covering:

    • What Is Amazon online Advertising?
    • Types of Amazon Ads
    • how does amazon advertising work
    • Amazon advertising costs
    • Amazon advertising fees
    • Amazon Ads Strategy

    What Is Amazon Advertising?

    Amazon Advertising
    What Is Amazon Advertising?

    Similar to the way Google search functions similarly, when you type an appropriate keyword into the Amazon search box, and results are displayed at the top, some of the results will be sponsored classified as Amazon ads. They are identified by subdued “sponsored” or “ad” text, like in the picture below.

    Advertisers looking to get more exposure for their products on Amazon can purchase these spots by bidding on certain keywords. This can result in a higher ranking on Amazon SERPs. Amazon SERPs. The advertiser will be accountable for each time a buyer visits their ad. You could think of Amazon’s advertising platform like the Amazon alternative to AdWords.

    Amazon advertisements can also be seen on the individual pages of products. For instance, if I look at the bottle of water below, I can see an advertisement for sunglasses on the right-left-hand side of the screen.

    When I scroll down the page, I’ll come across more advertisements!

    There are many kinds of Amazon advertising options that go beyond sponsored search posts, a few of which we’ll look at in this article.

    Types of Amazon Ads

    When choosing the type of advertisements to run the campaign, Amazon sellers have many advertising formats and locations to pick among, e.g., Amazon Sponsored Product, Sponsored Brand, and others. Below is more information on the different ads kinds.

    1. Sponsored Products.

    Sponsored Products

    Aamazon advertising products are the usual listing of products that appear in search results and the product’s detail pages. They’re pay-per-click, targeted advertisements that display specific products. The link takes you to the listing of product information page.

    To gauge the effectiveness of your sponsored product ads, Use a tool for reporting that displays your advertisements’ clicks and sales, expenditures, and the advertising cost of sales (ACoS).

    2. Sponsored Brand Campaigns.

    Sponsored Brand Campaigns let promote targeted keywords of several products above, beneath, and in conjunction with search results. They are based on a pay-per-click auction-based pricing system. The shopper can be directed specifically to your custom website or Amazon Store.

    You can include three different products in your ads. Make your ads more customizable and test them with the headline image along with the landing page.

    To assess the effectiveness of your ads, there’s an option to report on the number of clicks your ads get and sales. It also shows the amount spent estimates of win rates for specific keywords and ACoS (Advertising Cost of Sales).

    3. Product Display Ads.

    Product Display Ads.

    Products Display ads are PPC ads designed to upsell or cross-sell your clients. This kind of inventory, unlike other types, are available to any advertiser, not only those who sell through the platform. Amazon divides this category into video, display, and custom.

    Display ads are featured on the product’s detail pages, review pages for customers at the top of the listing page, and search results below. They are also displayed on abandoned cart emails. Follow-up emails and recommendation emails.

    To gauge your performance, you can utilize an analytics tool that reports the clicks of your ads and sales and spend advertisements cost of sale (ACoS) and detail page views, the average cost-per-click (ACPC), and more.

    4. Video Ads.

    Video Ads

    Video ads can be displayed on Amazon-owned sites such as or IMDb, Amazon devices like Fire TV, and various properties all over the web. To purchase Amazon video advertisements, it is unnecessary to sell items on Amazon.

    5. Amazon Stores.

    Customers can advertise their brand or product through the multi-page of their personal Amazon Store. Brands are given the Amazon URL and can view the traffic statistics.

    6. Amazon Native Ads.

    Amazon Native Ads are put on a company’s website. They include recommendations ads as well as search ads, and personalized ads.

    Benefits of Amazon Advertising

    Advertising on Amazon offers many advantages:

    • A safe, quality environment that advertisers desire
    • Reduce the cycle of sales
    • Enhancing sales history and product visibility
    • Improved brand recognition
    • The ability to gain valuable insight into shifting consumer preferences and making sure campaigns are reaching an even more specific audience
    • An abundance of data on who your buyers are and the way they shop
    • Finding the most effective ways to gain customers at any moment at the moment
    • The ability to track your results and be competent to make decisions based on data.

    Amazon Advertising Costs

    Amazon Advertising Costs

    After we’ve covered nearly everything you need to know about Amazon advertisement, you might be wondering what advertising cost on Amazon?

    The answer is it all depends.

    Although you may be able to consider the various averages used on the web, some aspects can influence the cost of advertising on Amazon:

    • Goals (you can set goals for either impressions or clicks);
    • Types of ads and placements;
    • Level of competition (a lot is determined by the amount your competition is willing to invest);
    • Keywords; and
    • Overall budget.

    Amazon advertising is built on an auction-based model, which means that it’s the second-highest bid that ultimately determines the final cost of your advertisement. What is the reason? If you’ve set your bid to $1.50 per click, and the second-highest bidder is willing to pay $0.80, then you’ll be the winner and make a single cent more, $0.81.

    This might sound simple However, the access bar for Amazon advertising depends on the type of advertisement and the location.

    Advertising Fees on Amazon

    Advertising Fees on Amazon

    The most straightforward way to go with Amazon marketing is, to begin with, self-service advertisements – they typically offer the lowest bid levels as well as budgets:

    The budget minimum for sponsored product advertisements is $1. However, the price per click can depend on the selected keyword and your competitors’ strategies for advertising.

    For sponsored brand advertisements, you’re limited to the minimum bid amount of $0.10 without any restrictions on the budget.

    When you use sponsored display ads, you cannot bid less than $0.02 on your offer as well as the budget minimum starts to set at $1. In this case, you’ll be able to select between CPC as well as CPM models.

    In the case of alternatives to Amazon ads, you must be able to afford bigger budgets since they are subject to stricter rules:

    To launch your advertisement using Amazon DSP, you will require a minimum of $35,000.

    Video and audio ads require a minimum budget ($25,000 and $35,000 for each).

    If you’re selling globally, be sure to look into Amazon’s new regulatory Advertising Fees, which could add cost to your ads based on the country that the clicks originate from.

    Amazon Advertising Strategy

    While we’ll be talking about five distinct kinds of Amazon ads that are different, Here are 7 general suggestions to create a winning Amazon advertisement approach:

    1. Set your goals.

    If you’re trying to increase sales or increase the brand’s visibility, Amazon can match your goals to your objectives. For example, you can define your advertising Cost of Sales (ACoS) as your measure of success if you’re focused on increasing sales.

    You can also consider impressions as a performance measure if you’re working on increasing brand recognition.

    Luckily, Amazon divides its product page in “Objectives” if it’s easiest for you to decide what Amazon advertising product is the most effective for you based on the goals you’re trying to achieve. For example, videos or audio ads, display advertisements, and custom-designed marketing solutions can be highly recommended when you want to build brand awareness.

    When you reverse your objectives, you’ll be able to ensure that the method you use on Amazon is best suited to your company’s needs.

    2. Select the appropriate products to promote.

    Promoting your most loved products will give you the best chance to turn clicks into a purchase. Also, make sure the products you advertise are in stock and priced reasonably.

    Perhaps you’ve got an innovative product or service you’d like to raise awareness of. When deciding on the best product or service to promote, it is important to keep your goal in mind and ensure that you’ve conducted your research to decide the possibility that Amazon is the ideal platform to promote your product at all.

    3. Craft clear, concise, and compelling product detail pages.  

    Amazon advertisements can draw buyers to go to your page detailing your product; however, the page detailing the product ultimately converts these shoppers into buyers. To create a compelling description page for your product, think about using descriptive and accurate descriptions, images of high-quality and pertinent and valuable details about the product.

    4. Choose where you want to place your ads.  

    Amazon provides a range of options within its advertising portfolio. For example, you can design voice ads that you can display on Alexa-enabled devices, video ads that stream across Fire TV or Amazon-exclusive sites such as IMBD, or use display ads to draw Amazon customers to your business.

    Once you’ve decided whether voice or video is the best option for you, you’ll need to explore different possibilities, including advertisements for sponsored brands versus product advertisements (which we’ll talk about in the next section).

    Be aware that there are plenty of possibilities to display your ads across different devices or websites affiliated with Amazon; therefore, you should think about being imaginative. For example, maybe an audio-based advertisement that runs on devices enabled by Alexa is the best choice for your business. Or might you get the greatest return on investment using Amazon DSP that lets Amazon customers see you on both Amazon-owned as well as third-party websites and applications?

    5. Test out sponsored brands versus sponsored products.  

    To examine the distinctions between sponsored brands and sponsored products, we’ll look at the following case.

    If I type “baby food” on Amazon, The first sponsored post I come across will be Gerber’s sponsored brand posts that highlight various Gerber products that help increase brand recognition and boost sales:

    Consider the consequences of clicking the individual Gerber baby food item. The bottom left of the screen for the product, just beneath”Buy Now” or the “Buy Now” button, I will see a happy family organics advert for a specific product stage 4 fiber & Protein infant food bags:

    It is the main difference between a brand that is sponsored and the sponsored product posts. Simply stated, a sponsoring product post will showcase some of your items or services. It is ideally suited to companies seeking to raise recognition for a range of products.

    A different approach is that it’s possible to use a promoted products post: an expense-per-click (CPC) advert that advertises the individual listings of products on Amazon. If you’re trying to drive sales to a specific item or if you’d like to appeal to specific groups of customers (for instance, anyone who has had the pleasure of clicking on a product from a competitor), This could be the right choice for you.

    6. Use category-specific targeting.  

    Amazon provides advanced targeting features that allow you to show your product alongside highly-rated items and even related, tangentially connected products. For instance, if your business sells K-cups to a Keurig and you want to display your ad to Amazon users who’ve typed in “Keurig,.”

    Utilizing product Attribute Targeting, you’ll be capable of displaying advertisements to customers who have expressed interest in other products from your sector. This targeted feature lets you increase the efficiency of your advertising. Additionally, it lets you boost the recognition of your brand by targeting large viewers.

    For instance, if I look up basketballs on Amazon then click a Wilson item, I will be able to scroll down and find an item titled “Sponsored products related to this item”:

    Athletes who have a passion for basketball are to be more likely to check out knee cones or braces, which makes this an effective advertising strategy. Even if the customers aren’t on the lookout for the

    even if I’m out of the market now, I’ll keep these brands in my mind even in the future.

    7. Utilize negative keywords to limit wasted expenditure.

    It is important to avoid wasting your advertising budget by using negative keywords or keywords you do not want to be appearing so that you can avoid serving your ads to those who aren’t likely to be converted.

    Think about, for instance, the distinction between a search that says “granola bars” and a search for “KIND granola bars.” You shouldn’t be appearing in a search that includes “KIND granola bars” in the event that the user is intent on finding a particular brand of granola.

    This is why it is possible to include brands such as “KIND” or “Chewy” in your list of negative keywords to ensure that your advertisement will be targeted to people who have a greater curiosity about a variety of brands of granola.

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