Amazon Ads offers powerful and versatile advertising tools to help those who sell online promote their products within the marketplace (and beyond): with a combination of advanced technologies, consumer behavior data and customizable formats, the platform allows you to create targeted campaigns to increase product visibility, increase sales and consolidate brand value.
In this article, we will discover how Amazon Ads works and what strategies you can adopt to effectively promote your products, making the most of the different types of ads available.
What is Amazon ADS and how does it work
Amazon Ads is Amazon’s advertising platform that allows companies to promote their products, services or brands within the marketplace. Thanks to a combination of precise data and advanced segmentation, it helps sellers reach the right customers at the moment they are looking for or considering a purchase. It operates through an ad system based mainly on a cost-per-click (CPC) model, in which sellers only pay when a user actually clicks on the ad. However, some formats such as Sponsored Display may be based on different cost models (for example, cost per thousand impressions – CPM). Ads can appear in different strategic positions, such as the search results page, product detail pages, the Amazon homepage or even on external platforms such as Twitch, Fire TV or affiliate websites. The advertising system uses an automated auction that allows advertisers to bid on specific keywords or audiences, with the aim of positioning their ad in front of competitors.
One of the strengths of Amazon Ads is the ability to leverage Amazon’s proprietary data, derived from customer purchasing, search and browsing behaviors: this allows you to create targeted and optimized campaigns to engage users with the greatest possible precision. The combination of different ad formats and access to up-to-date data allows for constant optimization of campaign performance. The ability to monitor results immediately makes the platform accessible and advantageous for both small business owners and large companies.
Types of Amazon ADS
Amazon Ads offers a range of advertising solutions to help sellers and brands promote their products and strengthen their presence in the marketplace. Each type of ad is designed for specific objectives, such as increasing sales, improving brand awareness or engaging new audiences. Let’s discover together, below, the main types of ADV that you can activate with Amazon Ads:
- Sponsored Products: this is an advertising solution based on a cost-per-click (CPC) model, designed to promote individual products. These ads appear in search results or on product detail pages, making them visible to shoppers at the exact moment they are looking for similar items. Sponsored Products is particularly effective for increasing the visibility of specific products, increasing sales and improving the position in search results. Advertisers can choose the keywords to use as a target or let Amazon automatically select the most relevant ones, ensuring dynamic positioning of the campaign.
- Sponsored Brands: these ads put your brand in the spotlight, allowing you to promote a set of products or direct traffic to your Brand Store on Amazon. They typically appear at the top of the search results page, offering premium visibility. With customizable creative content (such as logos, headlines, and images), Sponsored Brands helps build brand awareness and guide customers along the path to purchase. It is an ideal solution for those who want to create a strong visual impact and promote the full range of products while strengthening the brand identity.
- Sponsored Display: These ads are designed for retargeting and reaching audiences both inside and outside of Amazon. They appear on product detail pages, the Amazon homepage, and third-party websites and apps. They use Amazon purchasing and behavior data to show highly relevant ads to users who have already interacted with your product or category. Sponsored Display is ideal for increasing conversions and keeping your brand visible to potential buyers. It is especially effective in retargeting users who have viewed related products or made purchases in the same category.
- Sponsored TV: With this type of adv you can bring your ads to the biggest screen in the house, reaching viewers while they are streaming content on platforms like Fire TV and Twitch. These campaigns allow you to create video ads designed to increase brand awareness by reaching viewers while they are streaming content. Thanks to the billions of purchase and streaming signals collected by Amazon, Sponsored TV helps you identify and reach highly relevant audiences, offering a greater impact than traditional advertising formats.
Difference with Amazon DSP
Although both are advertising solutions offered by the Bezos ecosystem, Amazon Ads and Amazon DSP (Demand-Side Platform) differ in how they work, their objectives and their target audience. While Amazon Ads focuses on more immediate and targeted advertising campaigns mainly within the Amazon ecosystem, Amazon DSP offers a more advanced and programmatic approach to managing ads, both on Amazon and on third-party websites and apps.
Amazon Ads is designed to increase the visibility of products or brands directly within the marketplace. Advertisers have direct control over advertising campaigns and can launch ads quickly, choosing a cost-per-click (CPC) model and leveraging keywords or targeting based on purchasing behavior.
Amazon DSP, on the other hand, is a programmatic advertising platform that allows advertisers to conquer advertising spaces in a centralized and automated way. DSP uses Amazon’s first-party data, such as browsing and purchase behavior, to segment audiences and show ads in highly relevant contexts. Unlike Amazon Ads, DSP expands the reach of ads to thousands of websites and third-party streaming platforms.
In addition, Amazon Ads is a solution that can be easily used by sellers and businesses of all sizes. Amazon DSP, on the other hand, is primarily managed by dedicated teams. Furthermore, Amazon DSP can be used by those who sell physical products directly on the Amazon platform, as well as those who offer services outside of its ecosystem.
When to use Amazon ADS
Amazon Ads offers a variety of effective and flexible advertising tools, ideal for supporting a wide range of business objectives. Whether you want to attract new customers, generate more traffic to your products, increase sales or consolidate customer loyalty, this advertising platform represents a strategic opportunity to grow your business. The key to success is selecting the type of advertising that best suits your needs and objectives: let’s discover together everything you can do with this resource.
Reach more customers
If your goal is to expand your customer base and increase awareness of your brand, campaigns focused on brand awareness are the best choice. Tools such as Sponsored Brands and Sponsored Display help you reach targeted audiences, using captivating visual content or ads strategically placed within Amazon pages and on external platforms. Sponsored TV is another effective solution for reaching a large audience on streaming platforms such as Fire TV and Twitch, perfect for increasing brand visibility at scale.
Increase traffic
To drive traffic to your product detail pages or Brand Store, you can use Sponsored Brands, which directs users directly to your online store, or Sponsored Products, which places your items in relevant search results or product pages. These campaigns are especially useful for attracting interested users and increasing the chances of conversion. Plus, with Sponsored Display, you can use retargeting to bring customers who have already shown interest back to your product, increasing qualified traffic.
Increase sales
If you want to increase sales quickly, Sponsored Products is the ideal format. These ads promote your specific products directly on search and product detail pages, reaching shoppers at the moment they are most likely to make a purchase. You can also use Sponsored Display to intercept customers who have visited your product page or viewed similar items, helping you convert interest into sales. For brands with a diverse product range, combining Sponsored Products and Sponsored Brands can be an effective strategy to increase sales volume.
Increased customer loyalty
Acquiring a new customer is much more expensive than retaining an existing one: many studies show that acquisition costs can be five times higher than retention costs. For this reason, investing in targeted strategies to strengthen the relationship with existing customers can lead to greater profitability and reduce operating costs. Sponsored Display can be used to show promotions or new products to customers who have already purchased from you, encouraging them to purchase again.
The advantages of Amazon Ads
One of the strengths of Amazon Ads is its flexible and customizable formats: the platform offers a wide range of advertising options, each with features that can be adapted to the specific objectives of the business. Ads can include images, text, videos and even interactive content, offering the possibility of telling the story of the brand or highlighting unique features of the products. This flexibility allows you to create tailored campaigns that capture the attention of the audience and fit perfectly with the brand strategy.
Another advantage is the ability to customize the budget so that the platform is accessible to all types of businesses, regardless of how large and structured it is. Thanks to the cost-per-click (CPC) model, sellers can decide how much to invest in each campaign and calibrate spending based on the results obtained. This approach allows you to manage costs effectively.
Speed of execution is another distinctive element: the platform, in fact, allows you to set up and launch advertising campaigns in just a few minutes. Thanks to the intuitive interface and automation tools, even sellers with little experience can quickly set up effective campaigns. However, to optimize performance, it is necessary to regularly monitor and adjust campaign settings.
Finally, Amazon Ads offers access to real-time data: through the reporting dashboard, advertisers can monitor metrics such as clicks, impressions, conversions and return on investment (ROAS). This visibility allows you to analyze user behavior, identify the best-performing campaigns and make changes in real time to strategically improve results. This makes Amazon Ads a highly dynamic and performance-oriented tool, capable of rapidly adapting to the needs of an ever-changing market.
Amazon Ads Costs
Before starting an advertising campaign, it is important to understand the various costs and the ways in which they will be used that will influence your budget and campaign management.
As mentioned, Amazon Ads is primarily based on a cost-per-click (CPC) model for most types of ads: with this model, sellers only pay when a customer clicks on their ad. This allows for greater control over your budget, because the cost is tied to user interaction and not simply to the display of the ad. In practice, you can set the daily or total budget for each campaign, determining how much you are willing to pay per click and managing the overall amount optimally based on the results obtained.
The cost of a campaign depends on several factors, including keyword competition and the relevance score assigned by Amazon based on the quality and relevance of the ads. Some industries may have higher costs per click than others, as the value of each click can vary depending on demand and competition.
Launch your advertising campaign on Amazon with BrandOn Group
If you want to get the most out of your advertising campaigns on Amazon, BrandOn Group is the ideal partner: with over 10 years of experience in managing online sales and optimizing performance on the main web marketplaces, we offer consulting and support to create, manage and optimize your advertising campaigns in a strategic and customized way.
Whether you are looking to increase the visibility of your products, increase sales or strengthen the relationship with your customers, our team knows how to best use Amazon Ads tools to achieve your goals with precision.
Our personalized approach will guarantee you continuous support: from planning your advertising strategy to the daily management of your campaigns. Contact us and find out how to start or optimize your advertising on Amazon to get the visibility you deserve and increase sales.
