Sponsored Ads

Amazon Sponsored Product Ads (SPAs) are Amazon ads that promote the sales and visibility of your desired product listing in Amazon search results. These are one of the most effective ways to increase conversion rates and discoverability for your products. That’s why we incentivize sellers to have ads on Amazon and sponsored products. These are one of the most powerful tools for driving incremental sales for any catalog. As more sellers enter the Amazon marketplace, search results competition will likely dramatically increase over the next few years. 

Here are the reasons why Amazon Sponsored Products Ads are so great for Amazon Pay Per Click:

  • Sponsored Product Ads are the most popular type of ad for Amazon Pay Per Click
  • They are essential to the buyer’s customer journey as they appear on almost every page
  • Sponsored Product Ads have a high conversion rate (~10%)
  • They can appear on product detail pages and organic searches

SPAs are really hard to miss on Amazon and can be easily seen because they appear at the top of the search results page, to the right, at the bottom, and even on the product detail page. 

When you type in a keyword in the Amazon search box and results appear, some of the top results will be sponsored posts—these are considered Amazon Ads. They are denoted with subtle “sponsored” or “ad” text. Sponsored Product Ads are extremely substantial to the sellers since they appear in so many places and almost everywhere on Amazon. Customers just can’t get away from them. They even appear on product detail pages (bottom part). 

How to set up a Sponsored Product Ads campaign

There’s no doubt that Amazon Sponsored Products is one of the most lucrative advertising tools out there today. Check out the steps below on how to set them up:

Step 1: Log in to Amazon Seller Central and go to Advertising > Campaign Manager > and under that click on > View campaign then click on Create campaign.

Step 2: Choose your campaign type: Sponsored Products or Sponsored Brands. Sponsored Brands are shown at the very top of the search results page, and tend to be more expensive than Sponsored Products. Which of the two campaign types you choose depends primarily on which products you want to promote. 

Sponsored Products promotes the individual products you sell on Amazon. You choose which products to advertise, assign keywords or product attributes to target, and enter a cost-per-click amount. When a shopper searches for one or more of your targets, your ad is eligible for display. When shoppers click your Sponsored Product, they are taken to the product detail page of the advertised product.

Sponsored Brands increases awareness of your products. The ad creative you build includes a headline, logo, and product images. When shoppers click your Sponsored Brand, you can specify whether they will go to the Amazon Store for your brand, or any page that displays your products on Amazon.

If you are at the beginning, you usually do not have the necessary performance data for your products to start with Sponsored Brands. So a clear recommendation: start with Sponsored Products.

Step 3: Fill out all required information on the Campaign Settings page. Set your campaign name, budget, duration. For campaign names, it is recommended to include the sponsored products name along with your Target ACoS. 

The daily budget is the average amount you are willing to spend on a campaign in one day. It is spread out over one month, and applied across all the days in that month. In setting your daily budget, remember that the more you spend on a campaign, the more visible the ads will be because you will get charged per click. If you are not sure about how much you want to spend on the campaign, you can change your daily budget anytime in campaign settings.

Step 4: Decide if you want to run an automatic or manual targeting campaign. ( In automatic – Amazon chooses the search terms, In manual – you can input the key terms). Then Press Continue to the next step.

Step 5: Create an Ad group. (You can add several groups, and the budget will get split to those groups.) Then select the products you want to advertise (it is recommended to use only one product per ad group).

Step 6: The next step is to select your default bid type. Higher bid means more product visibility.

With “dynamic bidding-up and down” we now have the option of having Amazon adjust bids in both directions. If you are starting out with Amazon Ads, it is recommended that you keep your hands off the new campaign bidding strategies at first. Instead, choose the previous default “Dynamic Bidding – down only” or for full control: “Fixed bids“.  The latter option is especially recommended if you regularly keep an eye on the keyword bids – and adjust them according to their performance.

Step 7: Enter your keyword and product targets and bids. Select the key terms you want to be visible for (anyone who will type the key terms on Amazon search box will get to see your listing). Keyword targeting allows you to choose keywords to show your products in customer searches and detail pages. (Use this strategy when you know the search terms that shoppers use to search products similar to yours.) Product targeting allows you to choose specific products, categories, brands, or other product features that are relevant to the product in your ad. (Use this strategy to help shoppers discover your product when browsing detail pages and categories, or for Sponsored Products and Sponsored Brands, when searching products on Amazon. You can target categories and products individually or target a combination of categories and brands in the same campaign.)

If you have no idea which pitfalls to consider when searching for your products, negative keywords can also be entered later.

Step 8: Submit your ad. Before submitting, review all of your information to ensure you’re happy with the results. Your campaigns are generally eligible to go live 1 to 2 hours after you submit them.
Note: If you’d prefer to submit your campaign later, you can save it as a draft. You can use drafts to build a campaign over multiple sessions. You can access your saved drafts in the drafts page in the campaign manager.