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Amazon Sponsored Ads – The Amazon Seller Podcast Ep. 19

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Amazon Sponsored Ads – Why Use Sponsored Ads?

Amazon Sponsored Ads is Amazon’s advertising platform that allows sellers to advertise their listings to customers directly on Amazon.  Using Sponsored Ads gives us an opportunity to reach customers on the first page of search on the most powerful shopping platform in the world! Needless to say, we think using Amazon Sponsored Ads (or PPC) on Amazon can be hugely beneficial.

Before Using Amazon Sponsored Ads:

If you have a private label product you are selling on Amazon, we recommend that you optimize your listing before using Sponsored Ads. If you don’t have good images and copy on your listing, you may end up just wasting money driving traffic to your listing that doesn’t end up converting. Also, having good and relevant keywords in the front-end & back-end of your listing is important to have the Amazon A9 search algorithm show your ad for the search results you want.

Offense & Defense: Amazon Sponsored Ads

Amazon Sponsored Ads not only can be helpful for trying to generate sales, they can be used tactically in other ways. One way that we use PPC defensively is to take up more real estate on an Amazon page. You can see below that Sponsored Ads can take up a lot of space and is often times the first thing customers see.

amazon sponsored ads pictureIn some cases, when searching for “BBQ Gloves”, the only listings you initially see are Sponsored Ads. We can see the headline ad (that can be used with AMS) and then the first two Sponsored Ad listings. That’s Powerful! The beauty of this is that you can potentially advertise your listing on the first spot of search for a brand new listing.

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The Cost Of Amazon Sponsored Ads

We know Sponsored Ads are valuable, but they also cost money. In the past, we could typically set up automatic PPC campaigns and forget about them, and they could still perform well. However, over time as sellers realize the power of Sponsored Ads,  the bid price for these Ads has gone up. For that reason, it is more important than ever to have a good understanding of how Sponsored Ads work.

ACOS stands for Advertising Cost of Sale. This number is the percentage of sales that you spent on advertising and the lower your ACOS is, the better. This is calculated by dividing total ad spend by total sales.

Automatic & Manual Campaigns

When setting up campaigns for Amazon Sponsored Ads, you have the option to create both automatic and manual campaigns.  We recommend that you first set up an automatic campaign and let it run for a few weeks so that you can collect data. Once you have the data in your search term report for your automatic campaign, you can analyze the keywords that are performing well and create a manual campaign on those that more specifically targets certain keywords.

Liran goes much more in depth with Amazon Sponsored Ads, PPC & how to optimize your advertising campaigns in the PPC Blueprint Course.

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