Amazon stands out as a juggernaut in the ever-evolving landscape of e-commerce with a vast user base dedicated to its platform for online shopping needs. This allegiance to Amazon among consumers has created a fiercely competitive landscape for sellers on the platform.
In response to this competition, Amazon Advertising has become increasingly crucial for sellers seeking to maximize their reach and return on investment (ROI). As a result, sellers require a well-defined and adaptable advertising strategy to navigate this competitive environment effectively. Seeking an Amazon Advertising Agency is a great way to incorporate Amazon Advertising into the content.
Amazon Advertising, previously known as AMS or Amazon Marketing Services, operates on a pay-per-click model similar to Google ads. Sellers are charged only when shoppers click on their ads, irrespective of whether a purchase is made or not.
While driving sales is crucial, protecting brands from unauthorized sellers, counterfeit products, and intellectual property infringements is equally essential. Amazon Brand Registry services empower brand owners to assert greater control over their product listings and intellectual property rights. Through Brand Registry, sellers gain access to advanced tools for monitoring and enforcing brand content, reporting infringement violations, and establishing brand authenticity.
Benefits of Amazon Advertising
There are many benefits of advertising on Amazon:
- Access to a brand-safe environment desired by advertisers.
- Shortening the sales cycle for products.
- Enhancing product visibility and sales history.
- Increasing brand awareness among potential customers.
- Obtaining valuable insights into evolving consumer behaviors and refining campaigns to target specific audiences effectively.
- Accessing extensive data on shoppers’ shopping journeys and preferences.
- Identifying optimal customer acquisition strategies based on real-time data.
- Monitoring campaign performance and making informed decisions backed by data.
Amazon Advertising Model
Amazon Advertising operates on a pay-per-click (PPC) model, which sets it apart from other marketplaces like eBay, where Promoted Listings follow a pay-per-sale (PPS) funding model.
On Amazon, there exists a correlation between ads and organic search results. The platform aims to drive sales by displaying products that are likely to convert well and have a strong sales history. Therefore, Amazon prioritizes products with positive feedback and a history of successful sales when responding to user queries.
Types of Amazon Ads
When deciding on ad types for campaigns, Amazon sellers have a range of options available, including Sponsored Products, Sponsored Brands, Product Display Ads, Video Ads, and Amazon Stores. Here’s more insight into each ad type:
- Sponsored Products:
These ads are standard product listings visible on search results and product detail pages. They operate on a pay-per-click model and target specific keywords, directing users to the product details page. Performance can be tracked using reporting tools that monitor clicks, spending, sales, and Advertising Cost of Sales (ACoS).
- Sponsored Brand Campaigns:
These campaigns allow the promotion of keyword-targeted ads featuring multiple products above, below, and alongside search results. Sellers can customize and test various elements like images, headlines, and landing pages. Performance metrics include clicks, spend, sales, estimated win rate for keywords, and ACoS.
- Product Display Ads:
These pay-per-click ads focus on cross-selling or upselling to customers and are available to all advertisers, not just Amazon sellers. They can appear on various Amazon pages, including product detail pages, customer review pages, and recommendation emails. Performance can be measured using metrics such as clicks, spend, sales, ACoS, and average cost-per-click (ACPC).
- Video Ads:
These ads can be displayed on Amazon-owned sites like Amazon.com and IMDb, as well as Amazon devices such as Fire TV. They are not exclusive to sellers on Amazon.
- Amazon Stores:
Users can create multi-page stores to promote their products or brand. Brands receive a unique Amazon URL and have access to traffic analytics.
These diverse ad options provide sellers with various ways to enhance their visibility and drive sales on the Amazon platform.
However, the brand needs to be registered on Amazon to reap the benefits of Amazon advertising. Moreover, brands need to be protected from counterfeit products, and registering the brand trademark with the Amazon Brand Registry is the best way to do so.
What is Amazon Brand Registry?
The Amazon Brand Registry is a platform tailored for sellers to register their brands on Amazon, offering them full authority over their brand identity and safeguarding against counterfeit products.
In addition to brand security measures, Amazon grants enrolled sellers access to a range of tools aimed at fostering brand development and promotion on the platform.
Once a brand is registered under the Brand Registry, Amazon provides access to free tools to assist with building the brand, marketing, and enhancing the customer experience.
These tools are:
- A+ Content
- Sponsored Brands
- Brand Stores
- Brand Dashboard and Brand Analytics
- Amazon Live
- Amazon Vine
Benefits of Amazon Brand Registry
- Brand Protection:
- Brand Registry allows for the protection of intellectual property and content on Amazon. It also safeguards brands by assisting with:
- Alerting authorities about any violations on the marketplace, such as manipulation of product reviews and complaints from customers regarding product descriptions.
- Notifying about any discrepancies in listings, such as inaccurate product details, incorrect product variations, and blocked listings.
- Initiating or withdrawing claims related to infringement of intellectual property.
- Noting any technical difficulties concerning page loading for product listings or navigating the Seller Central homepage.
- Seeking further assistance with previously filed claims.
- A+ content access
Previously known as the Enhanced Brand Content, the A+ Content Manager can be accessed by navigating to the Advertising tab in Seller Central. Improving brand content enables the incorporation of additional text, images, infographics, and distinctive modules into product listings, beyond the basic plain-text product description. It also lends a more professional look to the listing.
- Engaged customers
Being brand-registered also provides access to features that will distinguish the brand from others. Storefronts add value to the brand and establish the legitimacy of the business; they resemble typical ecommerce websites and consist of one or more pages, each comprising a header and footer surrounded by various content tiles.
An advantage of having an Amazon Store is the absence of distractions from competitor products. Additionally, the process of creating a store is simple. No specialized skills are required! Amazon simplifies the creation of content like storefronts. One can either choose from the provided templates or start from scratch! Opting for a template involves filling in the necessary information and media to initiate the construction of the store.
- Sponsored Brand Ads
Sponsored Brands offer another avenue for customer engagement, appearing as headline ads at the top of Amazon search results pages.
These ads can be leveraged to enhance brand visibility, employing tailored messaging to shape how shoppers perceive the brand. Since customers are actively searching for the product, utilizing these ads provides an effective means to capture their attention. Clicking on the brand name or logo directs them straight to the storefront while clicking on the product leads them directly to its product page.
- Amazon Live
With Amazon Live, sellers can now incorporate interactive, livestream video into their brand strategy through the platform’s Brand Registry.
This tool enables sellers to narrate their brand narrative, thereby expanding their reach to a broader audience of shoppers.
Livestream videos can be utilized to showcase product functionality or engage in real-time conversations with prospective customers to address inquiries.
- Customer insights
To fully leverage the advantages of Brand Registry, it’s crucial to have a clear understanding of customer demographics.
Having insights into customer base metrics will inform about the strategy and determine the relevance and utilization of each available tool and service.
- Search Query Performance (SQP): This feature offers insights into how customers interact with the brand through their search behavior. Metrics available include search query volume, brand share, click-through rate, cart add rate, and purchase rate.
- Market Basket Analysis: This tool reveals which products customers tend to purchase together, uncovering cross-selling and bundling opportunities as well as potential new product ideas.
- Repeat Purchase Behavior: Utilize this data to optimize marketing strategies aimed at encouraging repeat purchases and attracting new customers.
- Search Catalog Performance: Gain insights into how customers engage with the brand during their shopping journey on Amazon. Key metrics such as impressions, clicks, cart ads, and purchases are provided to better understand the sales funnel.
- Demographics: This section displays customer attributes such as age, household income, education level, gender, and marital status through charts. Users also have the option to select reporting date ranges and export data to CSV format.
