Increasing Revenue for Your Ecommerce Business: Amazon Advertising

If your ecommerce company currently sells its products on Amazon and you aren’t already running ads through the platform, you might want to reconsider your ad strategy. In 2020 alone, Amazon’s ad revenues in the United States came to 15.73 billion dollars — $15,730,000,000 — and by 2023, it’s expected to generate over 30 billion dollars in advertising. 

Amazon advertising isn’t for everybody, but if you have a decent margin on your products to make a significant return on your investment, it may be the right fit for you. Read on to learn why you should consider different Amazon ad formats for your ecommerce company and how they compare to Google Shopping ads

3 Reasons You Should be Advertising on Amazon

There are many benefits to running ads on Amazon, but we’ve laid out our top three reasons for launching digital advertising campaigns for your business on the platform here: 

1. There are ad formats for every level of the sales funnel.

No matter where your brand or customers are, Amazon has ad formats for every level of the funnel — awareness, consideration, conversion, and loyalty. For example, Sponsored Brand ads are available for brand awareness advertising if you’re not a well-known seller on the platform or are targeting a new audience, while Sponsored Product ads are conversion-based and available to reach people who have a higher purchase intent.

2. Your brand and product visibility increases. 

When running digital ads on any platform, specifically Amazon, visibility is increased for your brand and specific promoted products. This helps increase conversions and move your product faster.

3. Consumers are ready to make a purchase.  

While not everyone buys something off of Amazon when they browse the platform — can you imagine the mailman lugging all those boxes every day? — they do intend to research and, often, eventually purchase products. It’s different from running ads on Facebook, where people look to catch up with their family and friends, and Google, where they might be looking for information and just starting the research process. Amazon users also use more long-tailed keywords when searching the platform than in other places, especially when they know what they’re looking for. 

Types of Amazon Ads 

Sponsored Product Ads

Sponsored Product ads help customers discover products through ads that appear in shopping results and on product pages. These cost-per-click (CPC) ads promote your product listings and are used to gain visibility and increase sales.

How Amazon Sponsored Product Ads Compare to Google Shopping

You have similar control over ad creative when comparing Google Shopping and Sponsored Products since both are automatically generated from the product feeds. However, with Sponsored Products, you’ll have more control over targeting since you’re able to select your target keywords. This feature was previously available on Google Shopping but has since been omitted.

Sponsored Display Ads

Sponsored Display ads help reach relevant consumers (both on and off of Amazon) by placing ads on the Amazon home page, product detail pages, shopping result pages, and third-party websites and apps.

How Amazon Sponsored Display Ads Compare to Google Shopping

You have less control over ad creative when comparing Google Display and Sponsored Display since Amazon’s creative is automatically generated from the product feed and Google’s is not. Google Display has more of a robust set of options in terms of targeting, but Sponsored Display offers a few strong choices, including view targeting, product targeting, and interest targeting. They also can place Display ads right on Amazon, which is a feature excluded from Google’s platform. Both Sponsored Display ads and Google Shopping, however, allow for remarketing

Sponsored Brand Ads

Sponsored Brand ads are CPC ads appearing in relevant shopping results. These ads feature your brand’s logo, a headline, and multiple products available through your Amazon store.

How Amazon Sponsored Brand Ads Compare to Google Shopping

You have similar control over ad creative when comparing Google Shopping and Sponsored Brands since both are automatically generated from the product feeds. However, with Sponsored Brands, you’re able to display multiple products at once. This advertising option also allows for a customizable headline and provides more control over targeting since you can select target keywords.

Run Your Next Amazon Ad Campaign with Cosmitto

If you need support running an Amazon ad campaign for your ecommerce business or aren’t sure where to start, drop us a note, and our team of digital marketing experts will be in touch to strategize your next Amazon campaign.