Ultimate guide to Amazon advertising campaign types for sellers and advertisers doing PPC on Amazon Advertising Console updated in Q2 2020 with new ad types, targeting options and strategies to maximize your amazon advertising performance.
Amazon advertising campaigns are the number 1 tool to generate more sales and grow your brand.
A solution by Amazon for vendors and sellers on Amazon to advertise their products in a Pay-per-click advertising model. The different campaign types give the advertisers opportunity to showcase ads on and off of Amazon.
Amazon advertising (previously known as Amazon Marketing Services a.k.a. AMS) experienced explosive growth in 2020, with an estimated $9.85 billion in sales predicted by the end of the fourth quarter.
It’s the number 3 digital ad seller in the United States after Google and Facebook. And as Amazon has over 50% of the e-commerce market-share in the U.S. Amazon advertising isn’t simply a nicety, it’s a necessity.
In this guide, you will learn all the different campaign types in amazon advertising and available targeting options in each.
Additionally, we’ll also share how you can maximize your Amazon advertising performance with our tried and tested Amazon PPC best practices.
Sponsored product ads help you to promote products to shoppers actively searching with related keywords or viewing similar products on Amazon.
Sponsored Products campaigns work great because Amazon shows these ads in-front of people with a high buying intent, and they almost look the same as the organic results.
The most prominent real estate for these ads is the search results page when a buyer searches for a product using Amazon’s top search bar with a relevant product keyword.
The following screenshot shows how a sponsored products ad looks on the search results page.
Sponsored Products campaigns allows advertisers to utilize Amazon AI to automatically show ads at relevant places for the advertised product.
With automatic targeting you just have to provide ASINs of your products that you want to advertise, and of course the daily budget you want to spend. And Amazon will automatically show ads to customers on relevant search terms and product pages.
Sponsored Product automatic targeting campaign is usually the first campaign to create for your product.
We at MountAZ test a lot on Automatic Sponsored Products campaigns to get the most out of Amazon AI. It’s always a good practice to test multiple variations of Automatic Targeting Sponsored Products campaigns with different Bidding Strategies* and Bids by Placement* adjustments to find the best performing campaign for your product.
Here is an Automatic Targeting Sponsored Products campaign from MountAZ portfolio that we set up earlier this month.
Sponsored Products manual targeting campaigns is where you as an advertiser have more control, and you can target specific keywords and products for which you want your ads to appear.
If you have done Keyword Research, you would have a good idea of what phrases and terms your target customers are typing to find the product your are selling. Obviously, you would want to display your product in front of those customers, and this is where this ad type will work for you.
Manual targeting further allows you to specifically target Keywords or Products.
Keyword targeting allows you to manually add specific keywords you want to target.
You can use 3 different match types (Broad, Phrase, Exact) to get the right kind of traffic for your campaign objective. Also, you can utilize Negative Keywords* to exclude unwanted traffic.
It’s a good practice to separate brand and non-brand keywords to avoid muddying performance metrics and analyze the KPIs effectively.
With product targeting you have two additional options: Category and Individual Products.
With category, you can target the whole categories relevant to your product, while individual products allows you to target both your individual products as well as your competitors’ to show ads on their product pages.
Product targeting can be used both as a defensive campaign (showing ads on your own products) and as an aggressive campaign (targeting competitor products).
Formerly known as Headline Search Ads, Sponsored Brands campaigns allow you to showcase your brand and products on Amazon with rich and engaging creatives.
The ad incorporates native-looking elements familiar to the Amazon shopping experience, such as product images and titles, and appears prominently in search results while the customer is in the shopping mind-set.
Note: To use Sponsored Brands, a seller must be a brand owner and can only promote ASINs that are registered to the brand the seller owns.
Sponsored Brands are great to generate brand awareness and increase product discoverability. They also provide an opportunity for you to sell complementary products and drive incremental sales.
Sponsored Brands have 3 options when it comes to ad formats.
- Product Collection
With this ad format you can either promote a collection of products from a Store page, or create a custom landing page with a minimum of 3 ASINs to promote.
- Store Spotlight
This ad type is for Mobile only and allows you to promote your Store on Amazon.
Videos beta ad format was launched in Q4 2019 and has been a great addition to Amazon Advertising.
You can promote a Single ASIN with an autoplaying video of the product, this brings great results and we recommend you have Video campaigns running for all of your eligible products.
With Sponsored Brands, Keyword and Product targeting options are available for the different ad formats and they function the same as Sponsored Products.
Sponsored Display is another recent beta launch by Amazon in late 2019. This campaign type is perfect to grow your brand as it allows to reach target customers on and off Amazon.
Sponsored display ads help drive customer engagement from shoppers who previously viewed your products and directs them to your detail pages.
Note: Sponsored Display is only available for sellers enrolled in Amazon’s Brand Registry and Vendors.
Sponsored Display Targeting
Sponsored Display has 2 targeting options, Audiences and Products.
With Sponsored Display, Amazon allows you to target audiences based on their shipping behaviors.
You can target Shoppers who have viewed the detail pages of your advertised products or similar products.
These ads will show up off amazon. There is no creative customization available for this at the moment, you can just add the ASIN to advertise, and Amazon will automatically build the ad with the basic details like Title, Main image, Rating and Price from the product detail page.
You can also target shoppers who have shown interests in related categories. This ad will show up on Amazon and you will have the ability to customize the ad creative with Brand Name, Logo and Headline (commonly referred as Ad Copy).
This targeting was previously only available in the Amazon Advertising Console (AMS) and not in Seller Central. It was known as Product Display ads back in those days.
Now, it has rolled out to be available for all who can access Sponsored Display.
With this targeting, you can target individual products or categories.
This particular targeting in Sponsored Display performs much better than Sponsored Products product targeting, as these ads show up higher on the targeted product pages with rich and customized creative.
Amazon Advertising Campaign Types
This is it for this chapter of our Amazon Advertising Guides. We’ve covered Campaign Types and the different targeting options available in Amazon PPC Advertising.
Sponsored Products campaigns have 3 bidding strategies that you can choose from.
- Dynamic bids – down only
Amazon will lower your bids in real time when your ad may be less likely to convert to a sale.
- Dynamic bids – up and down
Amazon will raise your bids (by a maximum of 100%) in real time when your ad may be more likely to convert to a sale, and lower your bids when less likely to convert to a sale.
- Fixed bids
Amazon will use your exact bid and any manual adjustments you set, and won’t change your bids based on likelihood of a sale.
Bids by Placement
In addition to your bidding strategy, you can increase bids by up to 900% with bids by placement adjustments.
- Top of Search
Top of search (first page) refers to the Sponsored Products ads at the top row on the first page of search results.
- Product Pages
Product pages refers to Sponsored Products placements on the product details page, and all non-search placements such as the add-to-cart page.
You can adjust bids by placement to show ads they would maximize on the engagement and get you the desired results according to your KPIs.
Negative keywords prevent your ads from displaying when a shopper’s search terms match your negative keywords.
We recommend using negative keywords from the launch of your campaign to keep the ACoS at an optimum level and not spend any dollars on irrelevant search terms.