Amazon is a veritable gold mine with high conversion rates and low cost-per-clicks. But most of the time, Amazon sellers are not even aware of the resources available for advertising. So the experts are here to let sellers know everything about Amazon marketing services that can help boost sales.
Amazon Marketing Services (AMS) encompasses a range of advertising options provided by Amazon for sellers. Within AMS, there are three main ways to promote products on the platform: Sponsored Products, Sponsored Brands, and Amazon Display Ads.
With over 300 million active customers worldwide, it comes as no shock that 75% of shoppers use Amazon to discover new brands. According to research, 50% of businesses spend more than $40,000 on Amazon ads every month. Amazon Marketing Services (AMS) has emerged as a popular option for numerous businesses, Amazon marketing agencies, and professionals. Some marketers are reallocating up to 60% of their advertising budgets from Google to Amazon. AMS provides an array of services designed to assist businesses in effectively reaching their desired audience through impactful advertising campaigns.
Here is a brief overview of Amazon Marketing Services(AMS).
Amazon Marketing Services (AMS), now known as Amazon Advertising Console, encompasses all of Amazon’s advertising offerings. Despite its name change, many marketers still refer to it as AMS. It comprises a suite of tools designed to assist sellers in creating, managing, and optimising their advertisements. This includes Sponsored Products Ads, Amazon Sponsored Brands, and Amazon Display Ads.
Through AMS, sellers can launch ad campaigns that appear in various locations across the Amazon platform, including search results and product detail pages. These campaigns can be customised based on criteria such as keywords, budget, geographical location, customer interests, and product category.
Furthermore, AMS provides robust reporting features that enable sellers to track key performance metrics like clicks and impressions. This data empowers sellers to evaluate the effectiveness of their campaigns and make necessary adjustments. By analysing customer behaviour and identifying high-performing keywords, sellers can optimise their campaigns to achieve maximum efficiency and return on investment.
Amazon Marketing Services offers different ads that can help sellers reach out to their target audience. Sellers can select from different types of ads: Amazon Sponsored Products, Amazon Display Ads, and Amazon Sponsored Brands.
Sponsored Product Ads
Sponsored Product Ads, also referred to as Product Display Ads, are concise text-based ads featured on Amazon. These ads are prominently displayed at the top of search results when customers input certain keywords or on product pages. Sellers have the flexibility to target these ads based on various criteria, including the customer’s interests, search history, and Prime membership status. Sponsored Display Ads can display images or videos, making them suitable
Sponsored Display Ads are available to sellers with Amazon Brand Registry, book vendors, vendors, and agencies with clients who sell Amazon products.
Sponsored Brand Ads
Previously known as Headline Search Ads, Sponsored Brand Ads appear at the top of search result pages when customers search for specific keywords. The ad units include a logo, custom headline, and multiple products displaying their price and high-level ratings.
Amazon Sponsored Brand Ads are available for sellers enrolled in Amazon Brand Registry, as well as vendors, book vendors, and agencies.
Video Ads
Amazon has two types of video ads. The first one is a regular video ad for products, and then there are Amazon OTT video ads.
These brief video segments are displayed within video streams, commonly seen on smart TVs, in content on platforms like Amazon Freevee, Twitch, TV channels, and apps from network broadcasters. Utilising these ads enables targeting of customers according to their search history and interests. The aim is to engage viewers with a straightforward yet impactful message, aiding Amazon sellers in broadening their audience and enhancing brand exposure.
Anyone can advertise using Amazon’s streaming ads, regardless of whether they sell a product or not, including brands, vendors, sellers, and agencies.
Amazon DSP
Amazon DSP (Demand Side Platform) allows brands and advertisers to buy ads programmatically. It allows them to craft personalised advertising campaigns suited to their objectives and desired audience, utilising a vast network of websites and mobile apps online.
DSP advertisements may take the form of images, videos, or audio, and they can appear both within and outside of the Amazon platform.
It is also available for vendors, sellers, agencies, or any other type of advertiser.
Amazon Attribution
Amazon Attribution is a robust tool that empowers brands and vendors to monitor the effectiveness of their campaigns across various channels. It provides insights into the performance of different campaigns, allowing them to assess their return on investment (ROI) and make more informed decisions regarding budget allocation.
Amazon Attribution is available for vendors, sellers, agencies, or any other type of advertiser.
How to optimise and manage Ads
Optimising and managing ads through Amazon Marketing Services (AMS) is a key step in ensuring ad campaigns are successful and getting the most out of the budget.
With AMS, there are several methods to optimise and manage ads, such as setting budgets and defining goals, segmenting audiences, testing creatives, tracking performance metrics, and more.
Here are some Amazon Ads best practices to keep in mind:
- Pay attention to the budget
When determining a budget, it’s essential to make sure to allocate sufficient funds for each campaign and product listing to effectively reach the target audience. This can be achieved by clearly defining the objective of each campaign, whether it’s aimed at driving sales or enhancing brand visibility.
- Use Amazon’s targeting tools
Using Amazon’s targeting tools such as “Automatic Targeting” or “Advanced Targeting” refines the audience that sees the ads based on different criteria.
- Test multiple times
Conducting A/B testing involves simultaneously running multiple versions of an ad to identify the most effective one for the target audience. This includes testing two different variations of an ad, which may include different copies, creatives, and ad formats, to determine which performs better.
- Focus on targeted audiences
Improving return on ad spend (ROAS) can be achieved by focusing on reaching customers who are more likely to be interested in offerings. This involves dividing audiences into segments based on factors like location, age, interests, and other relevant characteristics.
To effectively reach potential customers for particular products or services, it’s essential to develop a thorough keyword strategy.
- Analyse campaign performance
Regularly assessing and overseeing the effectiveness of campaigns is crucial to ensure the optimal utilisation of the advertising budget. Generating reports on Amazon advertising to monitor metrics like impressions, clicks, CPC, and CPM allows for gauging the performance of campaigns. Accessing real-time analytics through reporting dashboards within AMS enables marketers to swiftly adapt their strategies as required, facilitating the maximisation of ROI from ad spend.
- Test multiple ad formats
Different ad formats may perform better than others depending on the product or service being advertised. Experiment with different types of ads such as headline search ads, display ads, and sponsored product ads to determine which format leads to higher Amazon conversion rates and better ROADS.
- Optimise bids regularly
Another aspect of optimising Amazon advertisements involves managing bids effectively. Consider variables such as fluctuations in competition and keyword demand when refining the bidding approach. Automated rules within AMS can be employed to implement bid adjustments based on desired objectives, simplifying the process of modifying bids without the need for manual adjustments on an individual basis.
- Leverage negative keywords
Integrating negative keywords into campaigns minimises unnecessary ad expenditures and filters out irrelevant traffic. Regularly reviewing and updating keyword lists ensures alignment with market trends and shifts in search behaviour.
Final Thoughts
Amazon Marketing Services (AMS) is a powerful tool for businesses that cannot be overlooked. It enables businesses to reach their target audience and maximise ROI from advertising spend.
Utilising Amazon’s targeting features, experimenting with various ad formats, consistently adjusting bids, and incorporating negative keywords are strategies that enable businesses to effectively target their desired audience and attain their campaign objectives.
Ad optimisation is a full-time job and Amazon Marketing Services Australia is the best bet to optimise the ROI to the fullest.
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