Amazon is not currently being used to its full potential by most advertisers. However, the American Web store has a lot of potential. For example, Amazon is one of the largest online stores in the world with quarterly sales of $51 billion in early 2018, and a 43% increase over the same period in 2017. The platform has grown very much in popularity in recent years in European countries such as Germany, Italy and France. Since 2020, Amazon has also been trying to improve its position in the Dutch market. For example, the offer has been adapted to the needs of Dutch consumers.
What exactly does advertising on Amazon entail? How do you set up a successful campaign? What does advertising through Amazon add to your marketing mix? In this blog, I describe what ad types you can use and how to boost sales of your products with Amazon.
How can you advertise on Amazon?
Amazon advertising works in a similar way to advertising through Bol.com or Marketplace advertising. A consumer is looking for a particular product and enters a search term. Amazon then displays the most relevant products. These search results consist of both organic and sponsored results. As with Google Adwords, the visibility of your ad is determined by a CPC bid. When you bid the highest amount on a search term, your ad appears at the top of Amazon's results.
There are 3 different ways you can advertise on Amazon; through sponsored product listings, headline search and product display ads. Read on quickly to find out what all the ad types entail.
1.Sponsored product listing.
The first opportunity to advertise on Amazon is through a sponsored product listing. This is the most commonly used method of advertising and is similar to advertising on Marketplace, for example. How exactly does this work? Amazon offers companies the opportunity to post sponsored products. Potential customers use the search function in Amazon after which relevant ads appear above or below the results. The ads are activated only for relevant searches. So don't forget to include important search terms in the ad title. When website visitors click on your sponsored products, they are redirected to the webshop. This way, you can increase your company's visibility and generate more sales. Especially if you want to appeal to international consumers, advertising via Amazon is a good option. Amazon offers you the opportunity to reach an international target group.
2. Headlinesearch
In this method of advertising, a large banner appears above the search results. The advantage of this method is that you can show three different products. Thus, visitors are more likely to be interested in one of the products. A disadvantage is that you have to select very specific search terms. Also, you pay per click. The moment many people click on the ad and few people make a purchase on your website, the costs go up. In addition, with headline search, it is important that you know what potential customers are looking for.
3. Display ads
Unlike the first two ad types, product display ads are shown on product pages of similar products. Visitors are redirected to your website the moment they click on the ad. You pay for each click. To reach the right target audience, you choose from a list of interests and characteristics. To do this, it is important that you know exactly who your target audience is.
In short, advertising on Amazon has many benefits and can be a valuable addition to your company's marketing mix. Because Amazon is the largest online store in the world, you can reach a huge (international) audience. Amazon has grown in popularity recently and we expect this to increase even more in the coming years. Another advantage of the platform is that you can get started even with a small budget. The costs are relatively low because you only pay when a consumer actually clicks on the ad. Finally, it is possible to choose from different ad types. This way you can place an ad that fits well with the organization's goals.
Want to sell products on Amazon, too? With our years of expertise in feed marketing at Economy, we can help further. Learn more about advertising on Amazon here.
Next blog: 3 key online marketing trends of 2018
Written by
Jasper Koch
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015 750 36 56
