Amazon Sponsored Products ads are one of the most powerful for discovering and increasing sales for Amazon sellers. Amazon Sponsored Products are cost-per-click (CPC) ads that drive traffic to Amazon product detail pages. Ad ranking is proportional to Bid amount and CTR of the product which is further divided into many parameters.
Below you’ll get a deep dive into the Amazon Sponsored Products marketing techniques every seller should be leveraging, including targeting options, keyword match types, bidding options, data segmentation, keyword harvesting, and product targeting to maximize paid marketing conversion rate and reduce ACoS.
Amazon Sponsored Product Ads are pay-per-click (PPC) ads based on keywords and product targeting that drive traffic to a desired product detail page (ASIN) within the Amazon platform. Sponsored Products is a campaign type option located within Amazon Advertising console or seller central.
Sponsored Products impact a seller’s overall marketplace presence by accelerating the growth of newer or low-exposure ASINs, increase discoverability and drive revenue.
Amazon Sponsored Product Ads appear at the top and bottom of the search results page, within organic results and on the product detail pages.
Ad rank in Sponsored Products depends on Bid value of a keyword x CTR of the product. CTR is further calculated by measuring different factors such as product sale history, the number of reviews and ratings, product A+ content, product images, etc. CTR is calculated every time a user does search on Amazon
There are 4 different targeting options in Sponsored Product campaigns.
There are 3 different match types of keywords in Sponsored Product campaigns
Yes, sellers can add negative keywords in Sponsored Product campaigns in Phrase and Exact match type.
The Amazon search terms report provide sellers with data including how many impressions, clicks, sales, etc. each search term received. Sellers can filter keywords on the basis of sales and add them inside campaigns. From search term report sellers can also identify negative keywords and add them across campaigns.
Yes, Amazon sponsored product campaigns support Bulk operation feature. Sellers can create campaign structure in CSV format and upload inside the panel.
Sellers can measure the success of the Sponsored Product campaigns by looking at the Advertising Cost of Sale (ACoS). Here’s how ACoS is calculated.
ACoS = 100 ([total ad spends] / [total sales])
For example: If you spend $100 on advertising and it resulted in a sale of $500, your ACoS would be 100 (100/500) = 20%. A low ACoS is a good thing and rests it will vary by product to product.
There are 3 bidding options in the Sponsored Product campaigns.
Sellers can also make placement level bid adjustment in the sponsored product campaigns. This option is available for Top of search results and product pages placements.
Amazon Sponsored Products is one of the most lucrative advertising tools. However, success really depends on a sophisticated strategy that’s based on keywords, adjustments, and optimizations.
Therefore, we at NaranaTech use different tools for keyword harvesting and setting up campaigns. Ultimately, being able to analyze consumer and product data allows our Amazon team to build the most effective and profitable campaigns possible. Our team segment traffic types (branded, non-branded and competitor) with campaign structures which allow us to report on each segment and make swift adjustments based on different segment goals. Amazon Sponsored Products will only continue to increase in competition. It’s time to get an expert's hands-on strategy.