The sleeping giant has awoken. Coming in just a few paces behind Google and Facebook ads, Amazon is now the third largest digital ad seller, and it seems like they may just be getting started. Product marketers are already beginning to form teams specific to advertising on Amazon which is an obvious sign of what’s coming.

How does advertising on Amazon work?

The concept is very similar to what we’ve come to know from digital advertising. Your company would create campaigns based on products that you’re selling through Amazon, set a spending budget, and then measure and optimize your ads based on how they perform. But let’s dive in a little deeper so you can determine if this retail giant is the right place to spend your advertising dollars.

Sponsored Products vs. Sponsored Brands

Amazon ads come in two forms: Sponsored Products and Sponsored Brands.

Sponsored Products are ads that promote your individual products, appearing in the search results on Amazon. When a shopper clicks on the ad, they are taken to the product detail page where they could then make their purchase. These are typically best for companies looking to promote a new or specific product offering, an item on clearance, or even seasonal promotions.

Here’s an example of a Sponsored Product in a general search for wireless speakers:

Sponsored Brands are ads that include a custom headline, logo and a collection of your company’s products. When someone clicks on the Sponsored Brand ad, they are taken to a product landing page or Store, as opposed to the single product description page. These ads are best for increasing visibility and sales for your brand and accompanying product collections.

Here’s an example of a Sponsored Brand in the same general search for wireless speakers:

Setting up your ad campaigns

As we previously mentioned, the process of setting up Amazon ads is very similar to Google and Facebook ads:

  1. Choose the products you want to advertise
  2. Pick a budget based on how much you’re willing to pay per click (Amazon experts recommend at least a $10 per day budget)
  3. Select the keywords that you want to target
  4. Launch your campaign
  5. Measure results and optimize ads as needed

According to Search Engine Land, 80% of Amazon advertisers are planning to increase their ad spends in 2019, which is a great sign that these companies are seeing positive results from their ad campaigns. Even more interesting is that some of these businesses are planning to move part of their ad budgets from more traditional search advertising and paid social. Could this mean Google and Facebook are going to see a dip in ad spending? We’ll have to let the numbers tell the story next year.

Don’t forget that when you’re shopping on Amazon to support a great cause by using AmazonSmile. This is a separate website operated by Amazon, but has all the same products and pricing as their regular site. The only difference is that when you shop through AmazonSmile, the AmazonSmile Foundation will donate a percentage of your purchase to a charity of your choice. Some of our non-profit clients, including Spectrum Health Systems and the Li-Fraumeni Syndrome Association, are already benefiting from this program. Click here to learn more about AmazonSmile.

As always, continue to check back here on the Sabre blog for the latest marketing and advertising strategies to grow your brand.