With the ever-expanding range of products on Amazon, it can be difficult for new products to get traction as they have no sales history. As previously covered performance in the Amazon search is largely based on the historical performance of a listing i.e.:
- Sales history
- Conversion rate
Waiting to build a sales history through the natural search will take a long time and paying ads is a way to accelerate the process.
Why use Sponsored Products/Brands
You can use both Sponsored Products and Sponsored Brands together to drive sales, increase discoverability for a new product, and continue to capture engaged customers from display advertising campaigns.
How much does it cost?
Amazon promoted products are charged on a cost per click (CPC) basis. The merchant sets a daily budget at the campaign level which sets the maximum amount which will be spent per day.
The merchants should optimise their campaigns to keep their performance within an acceptable level. The level you are happy with will depend on your margins and also the your advertising goals. According to Adbadger the average Advertising cost of sale (ACoS) is 27.6% of sale value. This is on top of Amazon’s referral fee. ACoS is defined as Advertising cost/sale value.
Types of campaign
There are three different types of adverts on Amazon:
- Sponsored products. Promote products to shoppers actively searching with related keywords or viewing similar products on Amazon.
- Sponsored brands. Help shoppers discover your brand and products on Amazon with rich, engaging creatives.
- Sponsored display. Help shoppers discover your brand and products on Amazon with rich, engaging creatives.
Amazon Sponsored products allows merchants to drive traffic to individual products within their inventory. Charged on a CPC basis.
- Promotes individual products
- Appears within product detail pages and shopping results
- Clicking on the ad will direct to the product’s detail page
Sponsored brand allows brand owners (i.e. registered in brand registry) to drive traffic to collections of products or the brand store homepage.
- Promotes a collection of products
- Appears on product detail pages and at the top, within, and at the bottom of shopping results
- Features a custom headline and logo or image
- Clicking on a product featured will direct to product detail page
- Clicking on headline or logo will direct to the brand’s Store or page featuring a collection of products