Sponsored Ads: Sponsored Advertisements on Amazon
As part of the article series on Amazon Advertising, we now present Sponsored Ads on Amazon.
Sponsored Ads (sponsored advertisements) include both Sponsored Products and Sponsored Brands advertisements.
While the former focus on individual products, Sponsored Brands put the brands and their products in the foreground. Together, both advertising solutions target potential buyers who are already on Amazon. This is a very interesting target group, as they have already shown a concrete purchase intent with their search query, making high conversion rates likely. These ads encounter potential buyers in search results or on relevant product pages. Sponsored ads are displayed on laptops, tablets, and mobile smartphones. Through a click, there is direct forwarding to the product detail page or to a store if it is set up.
Sponsored Ads are billed on a Cost-per-Click basis
Further similarities between Sponsored Products and Sponsored Brands are billing based on Cost-per-Click (CPC) and keyword-based targeting. Costs arise for both advertising media when a potential buyer clicks on the ad. Thus, no costs are incurred if a product or brand is advertised but the customer does not engage with it. Amazon awards ad placements on an auction basis. When creating an advertising campaign, the bid per keyword or product category is determined. A bid is the maximum price you are willing to pay for users to click on your ad. The more competitive your own bid, the more likely the ad will be displayed. In competitive markets, precise keywords are important and higher costs per click are to be expected.
With Sponsored Ads, the target audience is targeted via keywords
The keywords are determined by the advertiser and uploaded to Amazon Advertising. When users enter these terms in Amazon's search field, the advertised product is displayed. Three match types are possible. With an exact match, the advertised product is only displayed in search results when the searcher has entered the specific keyword without deviation (exact match). Second, product ads can also be displayed for phrases (phrase match). So both when the searcher enters the exact keyword and when they add additional words before or after the keyword. Third, very broad keywords can be allowed (broad match). This displays the ad for search queries when the keyword is searched in the same or in a modified but similar form. For example, plural instead of singular or in combination with additional phrases. An advantage of broad keywords is that the product is displayed for a wider variance of search queries and thus potentially more potential buyers see the product. A disadvantage of this broader distribution is possibly higher costs, as the match is less specific. It is up to the advertiser to decide which keyword strategy they choose.
Learn more about Amazon Advertising
This article is part of the series: Amazon Advertising - What Advertising Formats Does Amazon Offer?
In addition to their similarities, both advertising media have their specific characteristics. In the following article: Sponsored Products, you'll get a more detailed insight into sponsored products on Amazon.
