E-Commerce companies that operate within Amazon’s environment have a number of tools at their disposal including “Amazon Sponsored Products” advertising to stimulate demand for the product.
Is it then worth investing in Amazon advertising? Is it possible to earn money with Amazon Sponsored Products?
Of course, the answer is yes! What’s more, Amazon’s Sponsored Products options for advertising are not only convenient for sellers on this famous marketplace, they are must-haves for performance as well. If a company is aspiring to develop its operations in eCommerce, advertising on Amazon should be included in the plans to ensure its growth, and through an ecommerce marketing agency in Jaipur you can achieve higher goals and heights of your product sales.
Advertisers have their own managed Amazon Sponsored Products campaigns as well but this option is only available to professional sellers, book vendors Kindle Direct Publishing KDP authors, and agencies. Ads are usually shown at the top of the search results or at the top/bottom of product pages.
Benefits of Amazon Advertising
Here are some benefits of Amazon advertising.
Improves Overall Ranking
Incorporating Amazon Sponsored Products ads can further assist you in improving your position within the hierarchy of the marketplace. The Amazon system works on the A9 algorithm which is responsible for ranking the products on a particular page and who gets rated, in particular, the first position which is most contested for.
In particular, the A9 algorithm takes into account the title of the product, its click through rate (CTR), the conversion rates, and product ratings among many others that would assist in ranking the product in the Amazon cloud.
So here, the click-through means the ratio or percentage of individuals who clicks your product to the total number of viewers, while the conversion rate is the number in which the clicks result in actual purchases.
What is this information suggesting? It is clear that from Amazon’s point of view, there is not any discrimination as to the way clicks are obtained and the manner conversions are made. After all, one’s advertisement can easily place one’s products at the very first page of the site which can be viewed by hundreds if not thousands of potential buyers thereby also increasing the organic exposure of the products. This in turn can achieve more clicks, sales, and if the products are actually good, more and better verified reviews as well.
With respect to the Amazon eCommerce market, the key issues of attaining an organic first-page position is a very uphill task not only because of high competition but also the fact that it is hard to win the Buy Box in order to sell more. Therefore, utilizing the paid services from Amazon to promote the business can aid greatly in enhancing the overall performance of the business.
Revenue is also obtained through advertising on Amazon
An additional intriguing aspect that must be noted about Amazon advertising is the possibility of earning revenue from it.
While we have examined the benefits of Amazon ads in improving the exposure of your products organically, it is crucial to note that these are ads which bring in traffic by themselves. Then, is Amazon advertising good in the end when you factor in the expenses?
Amazon Sponsored Products uses a pay-per-click (CPC) or cost-per-click model which implies that one has to pay every time an ad is clicked. Control over the cost is also given to the advertisers whereby a limit on daily spending for promotions can be done. You can also manage costs so that you do not go above your preferred spending level by bidding on certain keywords. Apart from that, Amazon also has other ad options such as broad, phrase, and exact match allowing you to narrow down on the particular keywords you want to target.
You can decide how much of your money to put in Amazon advertising, and expect that it will not dent your business’s earnings. With a proper advertising tactic in place, you can even be able to earn more in ad revenues than what you have spent, hence a significant ROI. Using the Amazon advertising report, for example, you would be able to sift through the figures and find keywords that are not useful for your purposes. Thus, these keywords can be added to the negative keyword list of your advertisement campaign to eliminate non-sensitive clicks and improve on your ACoS.
Final Thoughts
In one of the previous sections, we indicated that Amazon performance is a multifaceted strategy, which means that besides focusing on the organic performance – product titles, description, rating, bullet points, etc., which are all significant for your ads. At this stage, these factors are in place, and you are ready for Amazon advertising.
With Amazon Sponsored Products, unlike Google PPC, there is no need for extra ad copy; you only need to turn it on since Amazon will use whatever product details you have provided.
This is why it is very easy to use Amazon ads for people who are not comfortable with the idea of using a paid strategy. Sponsored Products are also suitable for those who want to promote their product or brand but do not wish to overextend their resources. Though it is easy to set up the ads, making regular modifications and changes, and using the data for improvement, will over time give better performance for advertising results.
