2. Choose from Various Ad Formats
Amazon offers several different ad formats that allow you to showcase your products in different ways, such as in search results, on product detail pages, or even off-Amazon sites and apps.
There are three main types of PPC ads displayed prominently on (and off) Amazon:
- Sponsored Product Ads (SPA): SPA can appear between, to the right of, and below organic search results, as well as on product detail pages. This ad format, known as the most popular among Amazon PPC options, effectively promotes individual products.
- Sponsored Brand Ads (SBA): SBA is displayed above, to the left of, and below search results. With SBA, you have the opportunity to showcase multiple products under your brand, along with your logo.
- Sponsored Display Ads: These ads can be displayed both on and off Amazon, including on third-party websites with relevant content. On Amazon itself, they appear on other product detail pages.
Regardless of the ad type you choose, your campaigns will be foregrounded on search results pages, thus capturing the attention of potential customers. Especially during product launches, Amazon PPC is an invaluable tool to raise brand awareness.
3. Highly Targeted Campaigns
Amazon provides powerful targeting options to ensure that your products are placed in front of the right audience. In other words, they will be shown to people who are most likely to be interested in them, thus increasing the likelihood of conversion.
These targeting options include:
- Keyword Targeting: Advertisers can target specific keywords that are relevant to their products. When users search for those keywords on Amazon, the ads will appear alongside the search results for those actively looking for similar products.
- Product Targeting: You can choose to target specific products or product categories, and so your ads will appear for customers who are viewing or purchasing similar products.
- Interest Targeting: The platform also provides interest-based targeting, allowing you to reach audiences with specific interests related to their products. This gives you the option to target users who have historically shown an affinity for particular product categories.
- Demographic Targeting: Advertisers can target their ads based on demographic factors such as age, gender, and location. This feature enables them to tailor their ads to specific customer segments and deliver personalised messaging. For example, check out our blog on PPC geo-targeting.
- Remarketing: With remarketing ads, you can retarget users who have previously interacted with your products or visited your product pages. Using the Amazon Demand-Side Platform (DSP), relevant ads will appear to users as they continue browsing Amazon and other websites within Amazon’s advertising network.
In 2022, Amazon unveiled an exciting addition to its advertising arsenal: expanded product targeting. This feature allows advertisers to go beyond targeting a single product and extend their reach to related products.
For example, let’s say a company is promoting a skincare product. By enabling expanded targeting, their ads will automatically encompass substitute skincare products, complementary items like moisturisers or serums, and frequently co-purchased products. In turn, this will open the doors to a broader audience interested in a range of skincare offerings, thereby enhancing the potential for conversions.
The beauty of expanded product targeting lies in its dynamic nature. It continuously updates the selection of related products, aligning them with the performance of the individual product target and thus eliminating the need for constant manual campaign management.
4. High Purchase Intent
Unlike search engines, social media, and other advertising channels where users may have diverse search intent, Amazon is a platform that people where people go exclusively to search for, learn about, and/or buy products.
When users see your ads on Amazon, they are already in a shopping mindset. In other words, Amazon users tend to have a high purchase intent.
When we compare Amazon Ads with Google Ads in the next section, we will delve deeper into this advantage!
5. Valuable Insight Into Your Audience
Amazon Ads provides valuable data insights that are otherwise inaccessible. By analysing your campaign reports, you can gain a better understanding of your customers’ preferences e.g. the keywords that drive the most conversions to your product. This information enables you to optimise your listing content, refine your targeting, and improve your overall advertising strategy.
For instance, if you’re selling high-end home theatre systems on Amazon, you may find that the keyword ‘4K OLED TV’ generates a significant number of sales compared to other keywords. Given that customers searching for this specific keyword have a higher likelihood of purchasing your premium home theater systems, you can focus more of your ad budget on this audience.
Moreover, you can glean insights into the specific features and attributes your customers are seeking, allowing you to incorporate these findings into product development and presentation.
To use the same example, you might find that customers who purchase these systems also show a preference for built-in smart capabilities and compatibility with popular streaming services. Armed with this information, you can incorporate these findings into future product development. This will ensure that your home theatre systems align with the desires and expectations of your target customers.