Because Amazon is widely regarded as an online retailer, companies and marketers often overlook the site as a potential platform when crafting marketing strategies. However, Amazon is quickly closing the gap between itself and the two biggest online advertisers, Google and Facebook. E-commerce businesses may want to begin looking at this international giant for future marketing needs. Here, we share with you the ins and outs of Amazon’s online marketing services.
Traditional Ad Options
Amazon’s ad platforms provide two distinct options that focus on sponsored products or sponsored brands. Choosing either of these options can be effective for generating quick sales and offering a positive return on investment. Both sponsored product and sponsored brand ads pop up while a user is searching for their prospective purchase on Amazon.
Most ecommerce retailers choose to go with the sponsored product ad, because this ad specifically captures the exact item users are interested in buying. This ad works both in the Amazon app and on the website. Product ads fit almost organically within non-purchased listings but do contain the ‘ad’ demarcation. These run at a cost-per-click and businesses will only charge the advertiser when the ad is clicked on.
Sponsored brand ads place up to three of your brand’s items in a banner ad. Advertisers will also pay for these on a click-per-click basis. Once a potential customer clicks on the banner ad, they may be funneled to your company’s Amazon page, where they will see more of your company’s products.
Demand-Side Platform Ads
Companies and marketing agencies can run this type of ad without being a designated Amazon retailer. DSP ads give companies and marketers access to Amazon’s customer data, including purchase history, product searches, next possible purchase, and more. Companies can even implement this type of ad to capture audiences from Amazon and funnel them to their own company site.
These ads aren’t only generated by direct product searches; they can appear when a potential customer is searching for a totally different product. The ad pops up at the top or bottom of a product page as a reminder that they were looking for your item earlier (a remarketing technique). These ads may also appear on any of the seven sites that are part of Google Ad Exchange.
This ad model uses a cost-per-mille model and requires advertisers to spend a minimum of $15,000 – $35,000 per month to utilize this service. DSP ads work especially well for large-scale businesses because they can implement targeting campaigns. For previous buyers, the company can reach out with a targeted ad that offers these former customers a look at the brand’s other products. DSP targeting campaigns can also focus in on a competitor’s product, popping up when someone searches the competition’s item, and redirecting them to yours.
Amazon’s online marketing services, including traditional and demand-side ads, are fantastic tools that help generate buzz around your product and funnel prospective customers to your page. Regardless of your sales goals, Amazon’s ad platforms are vital to a comprehensive online marketing strategy.
We understand the importance of implementing Amazon ads to drive traffic to your product page and increase sales. For questions regarding online marketing strategies, including advertising with Amazon, contact us today.