How Advertising on Amazon Works

When sellers think about advertising on Amazon, they usually think of Sponsored Product Listings. While this is the most popular choice for advertising on Amazon, there are other options available that could help maximize your sales performance. Whether you want to increase your sales, get your products discovered, or clear inventory, there are a few ways to use advertising on Amazon to achieve your goals.

How Advertising on Amazon Works: Sponsored Product Listings

Since this is the most popular choice for sellers, let’s start by digging into Sponsored Product Listings.

Basically, Sponsored Product Listings help sellers get their products placed higher in search results in the hopes of getting clicks and sales.

sponsored product listings

Sellers running these ads are charged per click, called pay-per-click or PPC. Using this kind of advertising on Amazon doesn’t cost anything up front, but when someone clicks on that listing in their search results, you are charged for that click. This can range from five cents to a dollar or two. It all depends on how competitive the keywords are that you are targeting. You have the ability to determine what keywords you are targeting if you are running a Manual campaign, which allows you to choose the keywords. An automatic campaign will bid on keywords that are (hopefully) relevant and profitable for your listing based on what keywords are in your description, title, etc.

For a deeper dive into Sponsored Product Listings, check out our blog post!

How Advertising on Amazon Works: Headline Ads

Another popular way to advertise in search results is by using headline search ads. These ads show up in the area directly below the search bar in a customer’s search results. These ads are different from Sponsored Product Listings because rather than sending a customer to a product listing when they click on the ad, they are sent to a specific page on Amazon.

advertising on amazon - headline search ads

This page is usually a customized page that is branded. As with Sponsored Product Listings, these ads are also keyword targeted and PPC, but allow sellers to advertise 3 or more products at once. One other big difference is that headline search ads only allow two keyword match types: phrase and exact. Minimum campaign budgets for headline search ads is $100, with a limit of $1 spent each day. You can schedule these ads to run up to four months in advance, so you can plan ahead of time for things like holidays, season changes, etc. This kind of advertising on Amazon is great for brands with Amazon Storefront pages to help drive traffic to peruse through their full line of product offerings.

advertising on amazon - headline search ads gif

How Advertising on Amazon Works: Product Display Ads

Product display ads are like Sponsored Product Listings, but they can show up in a number of places besides search results. They feature one picture of the product along with the product title, price, and Prime indicator (if the product is sold through Amazon Prime).

advertising on amazon - product display ads

These ads can show along the edge of search results, as well as on review pages, under the bullet points of a product listing or under the Buy Box section of a listing.

Product display ads are great for advertising on Amazon because they allow you to reach a broader audience through targeting customer interests. Sellers typically use product display ads to help boost product exposure to more customers who are looking at similar products. When executed properly, product display ads can increase the amount of quality traffic your listings get, garner a better return on investment (ROI), and help Amazon target all of your ads better later on.

Pro tip: Amazon lets you use a maximum of 5 keywords to target for each product you are advertising with product display ads.

No matter how you decide to take on advertising on Amazon, it can make a huge difference in how successful you can be selling on Amazon. Not only does it help boost your sales, but it can help your organic rankings. If you’re looking to get started, it’s best to with advertising products that you know already sell well to give them even more of a boost!

Meet the Author: Jessica McCune

Jessica's creative problem solving skills, combined with her background in digital and social media marketing and her experience in community management makes her a perfect liaison between Marketing and Sales. When she's not brainstorming new ideas across the organization or developing and delivering solutions for sales and their clients, she likes to spend time with her husband and daughter.

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