Benefits of Amazon Sponsored Products

Driving traffic and maximising conversions is crucial for brands looking to succeed on the Amazon platform, and with millions of products vying for attention, standing out from the crowd can often prove challenging.

Amazon Sponsored Products are a powerful tool made available to businesses utilising Amazon’s advertising options, working to significantly boost visibility, increase overall sales, and drive online success.

These Amazon Sponsored Products help to create a fool proof Amazon advertising strategy when combined with SEO as part of a broader Amazon strategy, ensuring that your products reach your potential customers both organically and via advertising.

The individual advertisements that define Amazon’s sponsored products campaigns appear in search results as well as product detail pages, enabling you to target customers who are actively searching for your product, or similar products, by showcasing your product in search results.

In the article below, we will discuss some of the ways a Sponsored Products campaign could benefit your business. But first we’ll define what Amazon Sponsored Products are in more detail, and how these differ from Amazon Sponsored Brands.

Amazon Sponsored Brands

Unlike sponsored products, Amazon Sponsored Brand ads drive traffic to your Amazon brand page instead of individual product pages. Appearing at the top of a search result page, brand ads show your brand name/logo, tagline and a selection of products that you want to highlight. Clicking on this ad takes the user to your Amazon storefront, which you can customise however you see fit – showcase your latest releases, your most popular products, seasonal items and more.

Amazon sponsored brands can expect to see the following benefits:

  • The ability to create a custom shopping experience specifically for your Amazon customers
  • Easy to monitor spend with CPC method
  • Only pay for clicks on your ad
  • In-depth reporting
  • Puts your brand name and logo in a hard to miss, prominent position
  • Can be customised with branded videos to be even more engaging

Amazon Sponsored Products

One of the simplest advertising types on offer by Google, Amazon sponsored product ads use the classic CPC (cost-per-click) method to advertise your products in prominent positions, assuming your bid wins the auction. Product ads are tagged as ‘Sponsored’ and appear at the top and bottom of search result pages for relevant keywords, as well as occasionally on the right-hand side of the page and on product detail pages.

Amazon sponsored product ads target customers who are ready to buy and show them products they may be interested in based on their search history, buying behaviour and Amazon’s very own algorithm that is based on billions of real sales.

Amazon sponsored products are popular amongst advertisers as they can help brands accomplish a range of different goals whilst providing maximum control over spend, so brands can see exactly where their budget is being spent. Such control gives you an in-depth insight that you can use to distribute budget more effectively between campaigns, save money on underperforming campaigns and see your true ROI.

But what benefits can advertisers expect to gain from Amazon Sponsored Products?

Increased product visibility

Setting up keyword targeting in your campaign determines how and when your Sponsored Product ads appear in the search results. Amazon Sponsored Products will propel your brand to high-ranking position, which is quicker than relying solely on organic search keyword targeting. So, if you’re currently struggling to reach page one of the search results, investing in Amazon advertising helps you get to the top of the page in a few simple clicks.

Stock clearance and seasonality

Businesses with a growing list of products often need to sell stock that they are discontinuing to make room for new or updated ranges. Amazon Sponsored Products will increase visibility, ensuring your ads are seen by more people and sell faster. Sponsored ads are also a popular advertising method for businesses selling seasonal products, such as Christmas decorations or Easter hampers, as you can set up time-sensitive campaigns.

New product showcase

It can be difficult to drive product listing clicks and generate sales for newer products that haven’t been reviewed yet. Sponsored Product ads help you launch with a bang, showcasing your new products to people looking to buy them or something similar. This kind of advertising can be especially successful for businesses selling highly sought-after products.

Pay for results

Sponsored ads are a results-driven advertising method, so you only pay when a shopper clicks on your ad rather than per view. To help you maximise your budget, you are able to decide how much you are willing to pay per click and set a maximum daily budget.

Do Amazon Sponsored Products Sell Better?

It’s easy to see why so many brands still try to drive sales via their own website. They’ve already invested time and money in its creation and maintenance. And it’s a platform they understand, so it’s easy and relatively stress-free. But if you want to truly compete, you need to get your brand in front of an audience that’s ready to shop, and that means advertising further afield rather than waiting for customers to just come to you.

No matter how much SEO you focus into your website, you will never be able to compete with the amount of traffic Amazon receives on a daily basis. Amazon is the largest marketplace in the World and still expanding, having grown a further 50% in 2021 alone! Users on Amazon are ready to buy and are actively seeking the right product at the right price. You just need to entice them into buying your product above a competitor. And that’s where Amazon’s product advertising techniques come into play.

Unlike Google, where potential customers spend a lot of time doing research into further product information and competitors, Amazon is used solely for shopping. So, when paying for Google Ads, you may be paying for a click that ultimately leads to a sale for your competitor or irrelevant traffic from a user in the discovery phase of your product. As a result, conversion rates on Amazon are far higher due to Amazon’s extensive targeting options which help get your products directly in front of motivated buyers.

And don’t be put off by Amazon fees. As we tell our clients, the vast customer base Amazon gives you access to could increase sales so drastically, that the ROI is a no-brainer.

When set up and managed correctly, Amazon sponsored product ads can achieve a great ROI and become an essential part of your Amazon advertising strategy.

Want to hear more about Amazon Sponsored Products and how Amazon advertising services can work for your business? Get in touch with our Amazon agency at Melody now!

Melody Agency, Runway East Bloomsbury, 24-28 Bloomsbury Way, London, WC1A 2SN, United Kingdom
+44 (0)203 923 4750

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