Amazon Ads: How does it work

Amazon Ads works through paid ads both on and off the platform, allowing sellers to increase the visibility of their products and, consequently, boost sales.

In this article by Jordi Ordóñez we will discuss Amazon Ads, how they work, how much it costs to use this tool, and whether it’s profitable or not, so you can use it to your advantage for your Amazon business.

What are Amazon Ads

Amazon Ads are paid advertisements displayed both on and off the platform, helping sellers increase product visibility. Unlike other advertising systems, Amazon Ads is directly linked to purchase intent, making it one of the most profitable options in the e-commerce sector.

There are several types of ads on Amazon:

• Sponsored Products: Individual product ads that appear in search results and on product pages.
• Sponsored Brands: Brand ads featuring a logo and multiple products at the top of search results.
• Sponsored Display: Ads shown both on Amazon and external websites.
• Amazon DSP: A programmatic ad-buying platform that targets specific audiences inside and outside Amazon.

You may be interested in this article: How to Sell on Amazon? The Truth Behind the Marketplace Giant.

How does Amazon advertising work

Amazon Ads operates on a pay-per-click (PPC) model, meaning you only pay when a user clicks on your ad. However, the system is based on an auction format, where you compete with other sellers for the most relevant keywords.

The key factors that influence campaign success include:

1. Bid Amount: The amount you’re willing to pay per click.
2. Relevance: The relationship between your product and the selected keywords.
3. Conversion History: If your ad generates sales, Amazon is more likely to display it frequently.

To achieve good results, it's crucial to conduct keyword research and continuously optimize your bids.

What is Amazon’s advertising strategy

Amazon is one of the world's largest advertising platforms, and its strategy is based on extreme personalization and high conversion rates. Unlike Google or Facebook, where ads may target users in the discovery phase, Amazon’s ads reach users actively searching for specific products.

Amazon’s success in advertising relies on:

• Precise Targeting: Amazon knows user shopping behavior and allows highly specific ad targeting.
• Automation: The platform offers automatic bidding options and campaign optimization tools.
• Full-Funnel Strategy: Amazon Ads can reach users at all stages of the buying process, from discovery to repeat purchases.

How does Amazon advertise its products

Amazon not only provides advertising tools for sellers but also invests in its own advertising efforts. The company uses Amazon Ads to promote its products and services, such as Echo devices, Kindle, and Amazon Prime subscriptions.

Some strategies Amazon employs include:

• Advertising on social media and TV.
• Retargeting campaigns: Amazon shows ads to users who visited a product but didn’t purchase it.
• SEO optimization of listings: Amazon prioritizes its own products in search results.

When does Amazon Ads charge you

Amazon Ads charges advertisers every time a user clicks on an ad. There is no fixed cost, the price depends on the competition for the keyword.

Prices can vary depending on the product category and the time of year. In highly competitive industries, the cost per click (CPC) can exceed €2 or €3, while in less saturated niches, clicks may cost less than €0.50.

Amazon Ads in detail: A beginner’s guide

If you’re just starting with Amazon Ads, here are some key concepts to understand:

• Amazon PPC: What is it and how does it work? 

Amazon PPC (Pay-Per-Click) is Amazon’s advertising system based on auctions. It works similarly to Google Ads, but the main difference is that ads are directly related to purchase intent.

• How do ads work on Amazon Prime?

Amazon Prime features advertising on its streaming platform (Prime Video), where brands can place video ads before, during, or after content.

• Is Amazon advertising profitable?

Yes, but only if campaigns are optimized properly. A poorly designed strategy can generate many clicks but few conversions, increasing costs without real results.

Amazon Ads costs and certifications

Understanding the costs and certifications involved in Amazon Ads is essential for any seller looking to leverage the platform for better visibility and increased sales. 

• How much does Amazon Ads cost?

The cost of Amazon Ads varies depending on the product category and competition. The average CPC typically ranges between €0.50 and €2, but in some niches, it can exceed €3 or €4.

• Amazon Ads certification: How to get it

Amazon offers official certifications through Amazon Learning Console, where you can learn about the platform and earn credentials to validate your expertise in Amazon advertising.

• Amazon Ads Login: How to access the platform

To start using Amazon Ads, you only need a seller account on Amazon and access to advertising.amazon.com. From there, you can create and manage your ad campaigns.

Amazon Ads in practice

Some of the industries that invest the most in Amazon Ads include:

• Electronics
• Fashion
• Beauty and personal care
• Books
• Home and garden

Do Amazon Ads work for books

Yes, Amazon Ads is one of the best tools for authors and publishers looking to increase the visibility of their books on Kindle and in physical format.

One of the many products successfully advertised through Amazon Ads is the Lectómetro Escolar para niños y niñas de 5 a 7 años.

Amazon Ads on Reddit: Opinions and experiences

Reddit is a great source of information where sellers share their experiences with Amazon Ads. Many emphasize the importance of A/B testing and continuously adjusting bids.

Amazon Ads jobs: Career opportunities

If you want to work in Amazon advertising, there are many opportunities in marketing agencies specializing in Amazon Ads and Amazon DSP.

If you sell on Amazon, advertising is almost essential to stand out in an increasingly competitive market. A well-optimized strategy can multiply sales and improve profitability, but it requires constant analysis and campaign adjustments.

For those seeking more information or networking opportunities in the Amazon Ads space, platforms like Quenarras provide valuable resources and connections. 

If you need help increasing your visibility and maximizing conversions, we can design the perfect strategy for your business, contact Jordi Ordóñez, we are experts in optimizing Amazon Ads campaigns. 

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