How To Advertise on Amazon: Your Guide to Amazon Advertising

Have you noticed how everyone seems to be shopping on Amazon these days? It’s no surprise! MarketWatch reports that a whopping 83% of U.S. households shop on Amazon.  

For businesses, big and small, this is a massive opportunity. It’s like having millions of potential customers in one place, ready to buy. And if this trend excites you, Amazon Ads can help you get your products noticed by shoppers browsing the platform. 

But are Amazon Ads really the solution your brand needs? Let’s look closely at how to advertise on Amazon effectively, so you can decide if it’s the right tool to grow your business. 

What are Amazon Ads? 

Amazon Ads are a type of advertising where you pay each time someone clicks on your ad. They are part of Amazon’s larger marketing services. 

These ads help businesses reach more customers by showing their products to people already searching for similar items. Amazon Ads can increase sales by making products more visible in places like search results and product pages. With this system, you can control your budget and connect with the right audience at the right time. 

Here’s how Amazon Ads can work for your business: 

• Engage customers. Guide shoppers through every phase of their buying experience.
• Drive sales. Increase product visibility and turn shoppers click into conversions. 
• Reach new audiences. Tap into Amazon’s diverse and global customer base.  

If you’re still stressing over the tough online marketplace competition, Amazon Advertising is the way to go. With Amazon Ads, you’ll have a simple and effective way for your business to gain footing and connect with a larger audience. 

The pay-per-click (PPC) model on Amazon 

Amazon Ads, also referred to as Amazon PPC ads, operates on a pay-per-click (PPC) model. It’s like paying for a prime spot on a busy street where you only pay when shoppers click on your ad. This model helps you connect efficiently with potential customers and gauge the effectiveness of your advertising goals. 

To make the Amazon PPC model work, Amazon Ads relies on a bidding system. This approach allows advertisers to compete for ad placements. Since the bid amount determines where the ad appears, it’s necessary to set the right bid that balances visibility and cost-efficiency. The higher the bid, the more prominent placement your ad gets.  

Where do Amazon Ads appear? 

Amazon Ads are strategically placed to capture shoppers’ attention. Here’s where they can show up: 

• Search results. When a customer searches for a product, your headline search ad or display ads can appear prominently in search results. 
• Product detail pages. Your ad can be displayed on the detail page of a relevant product.
• Off-Amazon placements. Your search ads can show up on other websites and apps in Amazon’s display network. 

These placements empower you with the most convenient advertising solutions to expand reach and connect with shoppers wherever they browse. 

Overview of ad types   

Amazon Ads come in different types that serve specific advertising needs. Check out these ad types that you can use today:  

Sponsored products ads 

These ads promote individual product listings on Amazon. They’re ideal for increasing sales and are displayed in search results and product detail pages. Sponsored products campaigns are great for advertisers who want to boost the visibility of specific items.  

• Purpose. Promote individual product listings. 
• Placement. Search results and product detail pages. 
• Ideal for. Increasing sales of specific products. 

Sponsored brands campaigns 

Formerly known as Headline Search Ads, sponsored brands campaigns are designed for brand awareness. They feature a custom headline, brand logo, video ads, and a collection of products. Sponsored brands ads help customers discover and engage with a brand’s product portfolio.  

• Purpose. Enhance brand visibility and awareness. 
• Placement. Top of search results. 
• Features. Tailored headline, brand logo, and a collection of products. 
• Ideal for. Promoting a brand’s product portfolio. 

Sponsored display ads  

These ads appear not only on Amazon but also on third-party websites and apps. These ads extend your reach beyond Amazon. They retarget shoppers who visited your product pages but didn’t make a purchase. Pairing these ads with a strong landing page can help you re-engage customers. 

• Purpose. Retarget customers who have shown interest in your products. 
• Placement. Amazon’s display network, both within Amazon’s ecosystem and on external apps and sites. 
• Ideal for. Recapturing lost sales and driving repeat purchases. 

Note: It’s important to know the different ad types and what they’re good at. This will help you use Amazon Ads effectively, grow your store, and learn how your campaigns are performing. 

Setting up your first Amazon Ads campaign 

New to Amazon Advertising? Don’t worry! Launching your first product targeting campaign is easy. Follow these steps to jumpstart your journey in showcasing your products to millions of new customers. 

1. Access the advertising console 

Start by logging into the advertising console of your Amazon Seller Central. Click the “Create campaign” button within the “Campaign Manager” dashboard to get started. 

2. Choose your campaign type 

Decide which campaign type best suits your advertising goals. You may consider sponsored brands campaigns for broader visibility or sponsored products ads for specific item promotion. After selecting the campaign type, you can move forward to picking the specific products you want to advertise. 

3. Create ad groups and name your campaign 

When setting up your campaign, organize your products into ad groups. This helps you manage your ads more effectively and target specific audiences. 

4. Set your budget 

Decide on your daily budget to ensure your sponsored ads have enough reach to get noticed. Amazon recommends a minimum daily budget, which varies by marketplace.  

5. Choose your duration 

You can let your campaigns run continuously without an end date. This ensures your products stay visible year-round, especially during peak shopping seasons. 

6. Select your targeting type  

Start with automatic targeting for your first sponsored products ads. This allows Amazon to match your ads to relevant shopping queries based on your product information. Automatic targeting also updates dynamically with changes in shopping trends. 

Amazon Advertising best practices for beginners 

Amazon Advertising can feel overwhelming at first, but here’s how you can set yourself up for success as a beginner: 

• Start slow. Begin with a small budget and gradually increase as you gain experience. 
• Monitor your campaigns. Keep a close eye on your campaign performance and make adjustments as needed. 
• Test and learn. Experiment with different bidding strategies, keywords, and ad copy to find what works best. 
• Utilize Amazon Insights. Take advantage of Amazon’s built-in analytics tools to gain valuable insights into your campaign performance. 
• Stay updated. Keep up with the latest Amazon Advertising updates and best practices. 

5 advanced Amazon Advertising strategies  

To drive better outcomes with your Amazon Ads, take note of these strategies:  

Manual vs. automatic targeting keywords 

Keyword targeting is essential for effective Amazon Advertising. It helps you use the right words to make your product or service easier to find online. So, carefully select and optimize keywords to improve your product’s visibility and drive more targeted traffic. Consider using both manual and automatic keyword targeting strategies to maximize your reach.  

To understand this better, here’s a quick peek at both strategies:  

Manual targeting campaigns 

• When to use. When you have a clear understanding of your target audience and product offerings. 
• How to use. Manually select specific keywords and create targeted ad groups. 
• Benefits. Greater control over ad placement and bidding. 

Manual targeting is ideal for experienced advertisers. It allows you to select specific keywords related to your product and create targeted ad groups.  

Automatic targeting campaigns 

• When to use. When you’re new to Amazon advertising or want to quickly expand your reach. 
• How to use. Let Amazon’s algorithm automatically select relevant keywords. 
• Benefits. Easier setup and broader reach. 

With automatic targeting, Amazon matches your ad with keywords and products similar to your listing based on shopper searches. This approach helps you start your campaign quickly while reaching the right audience. 

Pick what works for your current journey or combine them to have flexibility and a balanced approach. When you implement these keyword targeting strategies, you can optimize your Amazon advertising campaigns and drive significant results. It also pays to utilize Amazon’s Keyword Research Tool to identify targeted keywords and analyze your Search Term Report to determine the high-performing terms.  

Refining keywords 

Remember to use a combination of broad, phrase, and exact match types to fine-tune your targeting. Here’s what you need to know about these three keyword match types.  

Match Type	Description	Example Keyword	Potential Search Matches
Broad match	Captures a wide range of search terms, including synonyms, related searches, and misspellings.	“website builders”	website builders, best website builders, cheap website builders, how to build a website, etc.
Phrase match	Matches searches that include the exact phrase, but can include words before or after.	“website builders for eCommerce”	website builders for eCommerce, eCommerce website builders, best website builders for eCommerce, etc.
Exact match	Triggers ads only when the user’s search query exactly matches the keyword.	“Network Solutions’ AI website builder”	Network Solutions’ AI website builder

Now that you’ve had the idea, here are some smart moves to refine your keyword strategy and target the right audience in sponsored products.  

Think of yourself as an archer to get a clearer picture of these strategies.  

Refine your aim 

• Analyze your shots. Check which keywords are hitting the bullseye (high performance) and which are missing the mark (low performance). 
• Adjust your bow. Refine your keyword match types to get more precise results. 

Expand your target 

• Keep an eye on the trends. Monitor the Search Term Report to see what shoppers are searching for. 
• Add new targets. Identify high-performing search terms and add them to your list. 

Avoid distractions 

• Identify irrelevant queries. Figure out which search terms aren’t relevant to your products. 
• Block distractions. Set these irrelevant terms as negative keywords to keep your ads focused. 

These steps won’t only improve the accuracy of your Amazon Ads but also maximize your return on investment.  

Bid management tactics  

Actively manage your bids by regularly reviewing ad performance and the competitive landscape. Adjusting your bids helps to ensure optimal ad placement and efficient use of your budget. This approach can enhance ad visibility while controlling costs.  

Leveraging seasonal trends with A/B testing 

Capitalize on seasonal trends and holidays by adjusting your ad campaigns to align with these periods. A/B testing is a proven technique to optimize your Amazon Ads during peak seasons. You can test different elements, such as: 

• Keywords 
• Ad copy 
• Visuals 
• Bids 

This way, you can discover what resonates best with your audience. For example, try experimenting with holiday-themed graphics, festive taglines, or various discount offers.  

Monitoring key metrics 

To get the most out of your Amazon Ads, focus on tracking these key metrics: 

• CTR (click-through rate). Shows how many people clicked on your ad after seeing it. 
• ACOS (advertising cost of sale). Tells you how much you’re spending on ads compared to your sales. 
• ROAS (return on ad spend). Measures how much revenue you’re earning for every dollar spent on ads. 

These metrics help you understand what’s working and what needs improvement. 

That said, use the key advertising metrics data to fine-tune your advertising campaigns. If your CTR is low, test new ad copy or visuals to grab attention. A high ACOS might mean it’s time to refine your targeting or bids. For ROAS, work on improving your product pages to increase conversions. Keep reviewing these metrics regularly and make small tweaks to see better results. It’s all about finding what clicks with your audience. 

Troubleshooting common issues with Amazon Ads 

Running Amazon Ads can boost your product’s visibility, but you might encounter some challenges. Here’s how to address them: 

Why ads aren’t showing 

If your sponsored ads aren’t showing, consider these factors: 

• Budget caps. Ensure your daily budget isn’t too low, which can limit ad display. 
• Low bids. Bidding too little may prevent your ads from winning placements. 
• Irrelevant targeting. Misaligned keywords or audience settings can hinder ad visibility. 

Review your “Campaign Manager’ settings to align with your advertising goals. 

Low CTR or conversion rates 

A low click-through rate (CTR) or poor conversions can stem from: 

• Unattractive product listings. Enhance images and descriptions to engage shoppers. 
• Ineffective keywords. Experiment with different keywords in your sponsored product ads to better match search intent. 

Regularly update your listings and test keywords to improve performance. 

High ACOS 

A high advertising cost of sale (ACOS) indicates inefficiency. To reduce it: 

• Refine targeting. Focus on high-performing keywords and relevant audiences. 
• Adjust bids. Lower bids on underperforming keywords to control costs. 
• Improve ad copy. Deliver powerful messaging that appeals to your audience. 

Monitoring and tweaking these elements can enhance your return on investment. 

Low sales despite ads 

If ads aren’t translating into sales: 

• Enhance product detail pages. Ensure they are informative and appealing. 
• Test pricing strategies. Competitive pricing can influence purchasing decisions. 
• Refine audience targeting. Reach customers more likely to convert. 

Analyzing these aspects can help turn ad clicks into sales. 

Important note: Address these issues proactively to improve your Amazon Ads. This will help you achieve better performance and drive increased sales. 

Scaling and growing your Sponsored Product Ads 

Scaling your ad campaigns is an essential step in driving sustainable growth for your Amazon business. To scale effectively, it’s important to recognize when your campaigns are ready and implement strategies to maximize performance. 

When and how to scale 

When expanding your ad campaigns, consider adding sponsored brands campaigns to increase brand visibility. Create a unique landing page for these ads to showcase your product range and engage potential customers effectively. 

Here are signs that your campaigns are ready to scale: 

• Consistent ROI. Your product targeting campaigns are consistently delivering a positive return on investment. 
• Profitability. Your products are generating healthy profits. 
• Strong performance metrics. You’re seeing high click-through rates (CTRs), conversion rates, and low cost-per-click (CPC). 

Tips for scaling 

• Gradual budget increases. Incrementally increase your daily budgets to avoid overwhelming your campaign performance. 
• Test automated bidding. Experiment with automated bidding strategies to let Amazon’s algorithms optimize your bids. 
• Monitor performance closely. Check key metrics frequently to ensure your campaigns remain profitable. 

Maximizing ROI 

To make the most of your investment, focus on refining your campaigns with consistent improvements. 

Continuous optimization 

• Regularly analyze performance. Use Amazon’s reporting tools to identify trends and opportunities. 
• Iterate on ad copy and keywords. Test different ad copy and keyword combinations to find the most effective messages. 
• Leverage negative keywords. Exclude irrelevant search terms to improve campaign efficiency. 
• Utilize product targeting. Target specific products to capture additional sales. 

With these strategies, you can effectively scale your Sponsored Product campaigns and foster sustainable growth for your Amazon business. 

Wrapping up: Your path to success with Amazon Ads and Network Solutions

Dominating the eCommerce landscape requires a powerful marketing strategy. Amazon Ads empowers sellers like you to reach millions of active shoppers searching for products just like yours. 

With well-defined targeted campaigns, effective keywords, and optimized bids, you can deliver your product directly to its ideal buyers. So, if you’re ready to maximize your Amazon Ads potential, take advantage of the platform’s vast customer base now and see how your business propels forward.   

Consider taking your advertising beyond Amazon, too. Network Solutions’ reliable Pay-Per-Click Advertising solutions can help your products show up on Google search results with the help of a Google Ads Certified Expert. Subscribe to our solutions today and bring targeted traffic to your site!  

Frequently asked questions