Amazon is the largest online go-to-market in 2021. With enormous competition on the platform, sellers must put in extra effort to achieve more sales from Amazon. Amazon marketing services become a significant ally for sellers like you. For effective advertising, you need to have a budget for running Amazon-sponsored ads.
What are the types of Amazon ads?
Amazon sponsored ads fall into a variety of categories. As an advertiser, you will learn that there are three main types of amazon ads: Sponsored product ads, Sponsored brands ads, and Product Display ads. For these ad types, they can be self-serve in nature or premium ads. For preliminary knowledge, you can understand that self-serve ads are the type of ads that are homogeneous to Google paid ads and can be viewed as the search results for a particular product. Premium ads are like Google display ads which you find as visual banners.
Amazon Sponsored Product Ads
These types of ads are pay per click ads where you can bid for relevant keywords that can allow your ads to rank higher. Amazon sponsored ads appear when a person searches for the targeted keyword, above the organic results. These ads come with a “sponsored” tag and they can also be found at the end of the page and in the middle of search results.
Amazon Sponsored Brands
These Amazon-sponsored ads come in handy while promoting an entire brand for the line of products that the brand sells. If you wish to promote your brand, then you can resort to these ads. Additionally, these ads are PPC in nature. The ad creatives involve your brand’s logo and headline along with a set of products from the brand. In these ads, you can control your targeted products and keywords.
Amazon Sponsored Display Ads
These Amazon sponsored ads focus on audiences that are on Amazon and off the platform. Additionally, it is an excellent tool for remarketing your targeted audience. These ads are CPC in nature. Potential customers who must have viewed the products from your brand. There are several technologies that assist in improving Amazon’s algorithm.
Amazon Demand Side Platform Ads
These ads enable you to buy ads on Amazon as well as on third-party platforms. These ads are audio and visual in nature as well as some additional types. These ads help you to acquire potential buyers from other platforms and bring them to Amazon. Even if you aren’t selling directly on Amazon, you can buy these ads.
Cost of Amazon Sponsored Ads
The cost of running ads on Amazon depends on your marketing budget and you can set your daily budget as per your preferences or allow Amazon to suggest it. Amazon sponsored product ads give you the option to enter an amount which would be your average daily amount to spend over a month. If you set your daily budget at $10, you may receive up to $310. Amazon recommends a minimum amount of $10 every day so that your ad campaigns do not pause at an unfamiliar time. Additionally, you will see the campaign performance results and metrics of impressions, clicks, and conversions. You can learn more about advertising budgets on Amazon to optimize your marketing costs.
Now, you need to understand that the average CPC for amazon advertisers pays $0.81 for every click that is done on your ads. This is to remember that the cost is not always set in stone as it also depends on your campaigning budget that rifts with your competition in the market as well. You need to be aware that your budget also affects your CPC as the limited flexibility of your budget will set your cost per click. This will help you understand the worth of your products with the chances of earning better and succeeding on Amazon.