Amazon Sponsored Products is a cost-per-click (CPC) ad that promotes individual product listings on the platform. Today we will analyze what Amazon Sponsored Products is, how to properly create advertising campaigns, and how to place them.
What is Amazon Sponsored Products?
Amazon Sponsored Products are PPC (Pay Per Click) ads that Amazon shows to a customer when they search for a particular product. Promotional items are very similar to and mixed with search results, which is an advantage of using them – because it does not hurt the eyes of potential buyers.
This ad type generates ads from your listings and offers automatic targeting. That is why you can start advertising your products without any experience. Understanding Amazon Sponsored Products is easy!
In just a few minutes, you can create a campaign, even if you’ve never advertised before.
How does Amazon Sponsored Products work?
Amazon Sponsored Products use keyword-based targeting similar to Google Adwords. You can enter keywords or let Amazon find the keywords automatically. While this keyword-based targeting is technically similar to AdWords, Amazon uses a completely different strategy and has different requirements.
With Amazon Sponsored Products, you only pay per click when a customer clicks on your ad. By clicking on your ad, the buyer goes directly to the product listing!
What cost-per-click (CPC) means?
Sponsored Products ads are paid on a cost-per-click (CPC) basis, so you only pay when customers click on your ads. All you need to do is choose your bid per click and set your own budget.
CPC or PPC (cost per click) is a metric that determines how much advertisers pay for the ads they place on websites or social media based on the number of clicks the ad receives.
CPC is important to marketers because it measures the cost of a brand’s paid advertising campaigns. The goal of marketers should be to lower the cost of clicks while cultivating high-quality clicks and therefore satisfy their customers.
This metric applies to all types of ad campaigns, whether text, images, or video.
How to calculate the cost per click for an Amazon ad?
CPC is equal to the average amount paid for each ad click. A high number of clicks or visits to an ad means that it is attracting the attention of customers.
Meanwhile, the key to targeting this ad is keywords!
Different advertisers can bid on ad placement on websites and popular keywords, so each brand’s optimal CPC is determined by its ad rank, as well as the rank of other related brands and products.
The more in demand a keyword is in the auction and the higher the ad space, the higher the ad spend.
What is the average CPC on Amazon?
Yet, average CPC is simple: it is the average amount spent on each click on an ad. Typically, ads placed on search engine pages will cost more than ads placed on a brand’s website. Ad Rank changes frequently, so there won’t be a set number for CPC for brand ads.
What is the maximum cost-per-click?
First, the maximum CPC is the brand’s bid for ad placement and keywords, which means it’s the highest price they’re willing to pay.
How will Amazon Sponsored Products advertising increase your brand awareness?
- First, +40% increase in units ordered
During the first year of campaign launch, Sponsored Products ASIN saw an average weekly increase of 40% in units ordered during the first year of campaign launch.
- Second, +54% increase in views
During the first year after the launch of the Sponsored Products campaign, ASIN saw an average weekly increase in views of +54%.
- Third, 55x increase in impressions
Adding 3 or more markers to your product page and advertising with Sponsored Products can help you get 55x more impressions.3
- Fourth, 93 times more sales
Adding A+ Content to your Details & Ads page with Sponsored Products can increase your sales up to 93x!
How to set up ads with Amazon Sponsored Products?
- Set campaign duration and budget.
- Decide which keywords or products to target, or opt for automatic targeting.
- Select the products you want to advertise, set your bid, and launch your campaign.
Not so long ago, we published a full guide on how advertising on Amazon works in general and how to set it up! Click here to find out more!
Who can use Sponsored Products?
Sponsored Products are available to professional sellers, book sellers, Kindle Direct Publishing (KDP) authors, and agencies. To be advertised, products must be in one or more eligible categories and eligible for the Featured Offer.
Where will your advertisements appear?
Your ads may appear at the top, next to, or within shopping results, as well as on product pages, on desktop and mobile devices.
Ads are shown to buyers based on relevant keywords or products.
How much does it cost to advertise Sponsored Products?
With these ads, you offer the maximum amount you are willing to pay when a customer clicks on your product ad. The more competitive your bid, the more likely your ad will show when it matches a customer’s purchase request.
What products are suitable for this type of advertising?
Currently, adult products, used products, refurbished products, and products from closed categories are not eligible for promotion. We will publish a full list of allowed and prohibited categories in the following blogs!
What results can be expected from Sponsored Products?
Amazon provides a range of tools and reports to help you optimize campaign performance and measure success.
However, once you’ve launched your campaign, you can create reports that provide information about the sales and performance of advertised products or targets, the performance of different ad placements, and more.
Finally, use this advertising analytics to identify successful tactics for your business and help you optimize your advertising campaigns.
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