The Marketer’s Guide to Amazon Advertising

This guide to the rising opportunities in Amazon advertising will give you a birds-eye view of why you should be running ads on Amazon, the media placements that are available, and a few tricks of the trade to get your wheels spinning on how you can leverage the tremendous opportunities for advertising on Amazon.

---

The COVID-19 pandemic has affected the workings of most businesses worldwide, with marketing strategies particularly upended. As consumers pivoted their interests (and finances) in new directions in 2020, marketers had to discover how they could appeal to them. It was a problem that marketers had to solve and still have to address as the pandemic continues.

Fortunately, out of a tough situation came abundant opportunities.‌

By far, the biggest online trend that arose during the early stages of the pandemic was the rise of eCommerce. In fact, eCommerce’s share of global retail trade rose from 14% in 2019 to about 17% in 2020. As individuals stayed inside to remain safe from the COVID-19 virus, they turned to online retailers to meet their product-buying needs, with one company benefiting the most: Amazon. The online retail giant saw tremendous growth during the COVID-19 pandemic in 2020, increasing profits nearly 200%. And part of that incredible boost came from Amazon advertising.

As a result, many businesses turned to Amazon marketing to elevate their business success and continue to do so in 2021. Thanks to its user-friendly functionality and abundance of advertising opportunities, you too can use this hot advertising trend for your business.

ECOMMERCE IS THE FUTURE OF RETAIL: Read Why in This Free Creative Guide

What is Amazon Advertising?

When it comes to what advertising opportunities exist on Amazon, the list is extensive. Amazon advertising launched over 40 new advertising features in its second-quarter alone in 2021, allowing all kinds of eCommerce companies to help their customers discover their brand’s products and services. Moreover, advertising on Amazon has assisted brands in receiving greater brand engagement and customer loyalty. As such, there are a few advertising opportunities that reign supreme on the largest online marketplaces.‌

PRODUCE MORE CONTENT, FASTER THAN EVER: Scaling Your Video Content

Sponsored Ads

The most common form of Amazon advertising is sponsored product, sponsored display, and sponsored brand ads. These are all self-service, cost-per-click tools that are found in various places on the Amazon website. For instance, sponsored products may appear in a customer’s search results or on product details pages. Conversely, sponsored displays, which show products based on certain criteria such as a customer’s browsing or purchase history, can display on the top, bottom, left, or right of any website page.

‌

Amazon Advertising Capabilities

More recently, Amazon has launched additional advertising capabilities that reach more users over diverse platforms. ‌

These include: 

• Video and audio ads
• Live streams
• Stores
• Customized ad campaigns
• Amazon Demand-Side Platform
• Amazon Attribution‌

Deciding which advertising opportunity is best for you will ultimately depend on your central business goal. 

If your target is to reach a wider audience, you could benefit from sponsored brand ads to expose users to your brand and its message. Alternatively, you can consider creating an audio ad and advertise it on Amazon’s Alexa to reach an audience that may be interested in audio-related products.

Why is Amazon Advertising Popular?

Besides the increased intrigue in eCommerce in general, many businesses wonder why there is such an enormous surge in the popularity of Amazon ads. After all, 10.3% of the entire US digital ad market in 2020 was claimed by Amazon, surpassing former ad giants Google and Facebook. On why this may be the case, CFO Brian Olsavsky believes that introducing new products and improved user functionality may be the cause.

Moreover, Amazon continues to sign deals and make investments in new technologies and partnerships. For instance, Amazon-owned IMDb TV and Universal Filmed Entertainment Group (UFEG) recently announced a multi-year licensing deal which will give the streaming platform an exclusive network window to releases from the film company. As IMDb TV is completely secured by ads, this is another huge slot at advertising for the company. 

HARNESS THE POWER OF STREAMING SERVICES: The A to Z of CTV & OTT

Marketing Tips for Amazon Advertising

The vast Amazon advertising options offered can first seem intimidating, but following a few key marketing tips while you start your journey can help set you up for success.

Learn More: Social Media Video Ad Specs & Placements Guide

Start With Automatic Targeting Before Going Manual

If deciding to make a sponsored product campaign, one of the most popular choices of Amazon advertising, you will have two options for targeting: either automatic or manual. With automatic targeting, Amazon does most of the heavy lifting for you. You will select the products you want to advertise on the site, and Amazon will choose the best matches for keywords and relevant products to display. ‌

Alternatively, with manual targeting, a seller has to select every keyword to use and choose targeted products. Amazon advises starting with automatic to learn the process and see which keywords bring you the most conversions. After gathering data, you can develop a more educated strategy with manual targeting.

‌KEY TRENDS: Driving Amazon Sales with Video

Write Audience-Focused, Compelling Ad Copy

While products, keywords, ad placement, and budget are imperative components of Amazon ads, many businesses overlook the importance of writing strong copy. Your product title should detail what exactly your product is without being overwordy, enticing readers to want to read more. Your product description should consist of either bulleted or numbered lists as well as an engaging description of what your product can do for a potential customer. ‌

Many product descriptions that fail on Amazon are filled with an overstuffed list of features and benefits without providing any sense of urgency to the customer.

‌

Make Use of Advertising Metrics and Reporting

Another incredibly useful advertising tool that Amazon offers is its metrics and reporting. Advertising metrics on the site include advertising cost of sales (ACOS), return on ad spend (ROAS), and analytics on impressions, clicks, page views, campaign reach, and cart adds. By viewing and studying these in-depth reports, you can develop an optimal marketing strategy that elevates the results you see for your brand.

‌

Amazon Advertising: The Takeaway

While 2020 may have seen a complete change in consumer behaviors and trends thanks to COVID-19, it also brought many new marketing opportunities for brands. It seems that, as the pandemic continues, eCommerce will continue to grow, causing companies to rethink their digital advertising strategies. And, above all, Amazon marketing continues to remain the most profitable avenue for marketing strategists.‌

As such, digital marketing opportunities range from everything from written ads to images to video. Luckily, QuickFrame can assist you with creating videos that provide high-quality production and have a high-performance rate at a cost-effective price. You can then use these videos for advertising and getting higher engagement. Learn more about what QuickFrame can do to boost your video marketing presence. 

DATA PRIVACY REGULATIONS GOT YOU SHOOK? Get a birds-eye view of the changes in our Marketers Handbook.