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Complete Amazon Sponsored Products Ads Guide

If there is one thing that we have learned in years is that Amazon Sponsored Products Ads are one of the most productive and effective ways to upgrade rank your products on Amazon list and to increase your conversion rates.  At White Snow Ads, we help our clients to achieve these results and that is the sole reason we encourage sellers to have ads on sponsored products and Amazon.

For beginners, it is an amalgam of different terminologies and techniques that must be known before diving into it. After that comes the main part, ‘The Strategy Part’.

In order to get you going smoothly, we have decided to cover the main and most important aspects about Sponsored Products Ads that you should know and are proven ways to utilize the most popular and effective ads on Amazon.

What is the Meaning of “Sponsored” on Amazon?

These sponsored Ads are PPC (Pay Per Click) ads that help the seller in improving or promoting the visibility of a product in the search results.

In order to promote individual listings and attract the target audience, these sponsored products are Amazon Ads which are designed to promote that product. Search results and product pages contain these sponsored ads from Amazon. 

Customer clicks on an advertisement and is taken to the relevant product page. Vendors and professional sellers can advertise Sponsored Products.

This vector shows the placement of Sponsored Products ad.

Advantages of Using Sponsored Ads:

A stranger advertising strategy may involve a combination of different types of ads. Across the entire customer journey, from awareness to purchase, we offer advertising solutions to help you reach and engage your customers.

Following are some of the prominent advantages of using Amazon Sponsored Ads:

  • Your product will be promoted to customers shopping for similar products with Sponsored Products.
  • The sponsored products reporting feature offered by Amazon assists sellers in measuring and optimizing their PPC campaigns. It informs the seller whether his products perform well when used in conjunction with those keywords
  • PPC or sponsored posts give products global visibility and impressions. Within seconds, your PPC campaign can garner a million views. On Amazon, you can sell many products if only a few users click the link and place their orders.

Types of Campaign Sponsored Ads:

There are two types of campaign sponsored ads on Amazon. You can run either of them or both of them together. We recommend you to run both Automatic Campaign and Manual Campaign at once.

Automatic Campaign:

Automated campaigns are a great way to find keywords you can later use. You’re essentially searching Amazon’s massive database for opportunities you might not have considered. You can then incorporate these opportunities into manual campaigns to get the most out of them.

Manual Campaign:

Manual campaigns are excellent for experimenting with and refining strategies. They also provide significantly more control over the entire bidding and targeting process. However, in order for your campaigns to be successful, you must be knowledgeable in what you’re doing. Begin by entering keywords into your manual campaigns using your favorite keyword tool.

Types of Keyword Match Types of Sponsored Ads:

Sponsored products ads use 3 different kinds of keyword match types to match the keywords you enter in accordance with user’s search query. Following are these types:

Broad Match:

Traffic and exposure are maximized with this match type. Your keywords or synonyms for your keywords must appear in a customer’s search term. Searchers can include these keywords anywhere in their query, allowing for other words to appear before, after, or between them.

Phrase Match:

It requires a customer search to contain your keywords in an order or sequence but allows other words to appear before or after your submitted keyword.

Exact Match:

This is the most restricted or narrow type of sponsored ads but it is also the most relevant to the customer. In this type, a customer’s search must exactly match your keyword in order for that to be shown to him/her.

Negative Keywords:

You do not want to use negative keywords which are basically irrelevant to your product and prevent your ad to get triggered by a certain word.

Key Metrics You Must Remember:

Following are some of the most important Key Performance Indicators (KPIs) that you must remember in order to optimize your Standard Product Ads:

  • Advertising Cost of Sale (ACOS): ACOS is calculated as a percentage of your ad spend divided by your ad revenue. It enables you to determine whether your advertisements are profitable.
  • Return on Ad Spend (ROAS): ROAS is the ratio of ad revenue to ad spend. It also allows you to determine whether your ads are profitable by displaying how much revenue the ads generate per dollar spent.
  • Cost per Click (CPC): CPC displays your ad costs and is a good indicator of the level of competition in an ad category.
  • Impressions: this is actually the number of times that your ad appears in front of the shoppers.
  • Click Through Rate (CTR): CTR is calculated by dividing the number of clicks by the number of impressions. It indicates how many people clicked on your ad and can be used to determine effectiveness. 
  • Conversion Rate (CR): The number of orders divided by the number of clicks equals the conversion rate. It is used to assess the persuasiveness of your ad and product listing.

Prepare to Advertise:

If you want to create the best shopping experience for your customers, consider these few steps before creating your first ad. Your advertising performance will be improved and your advertising goals will be met by following these guidelines. 

It is recommended for new advertisers to start with Sponsored Products, which are designed to help customers discover and purchase products that advertisers sell on Amazon. Depending on your needs, you can use automatic targeting, keyword targeting, or product targeting. 

A Sponsored Products advertisement appears in the shopping results and on the product, detail pages across desktop and mobile devices. Ads are only charged if they are clicked, and you determine how much you are willing to pay.

This vector visualize that we have to plan campaigns properly for maximum effects.

How to Create the First Sponsored Ads Campaign?

The first campaign you create in the advertising console is created by clicking the ‘Create campaign’ button under the advertising tab. You can launch your Sponsored Products campaign in minutes by following these steps.

  • Choose the product you want to advertise.
  • Naming your product is a key aspect. Keep it straightforward so it is easy for both of you and the customer to find your product.
  • It is a bit tricky. Now, you need to set your budget depending on which currency you are going to trade in. Here at White Snow Ads, we would recommend you to choose the minimum daily budget of whichever currency you are dealing in by seeing the “minimum daily budget” in that currency from the internet.
  • Don’t give your campaigns an end date so that your customers will remember your products and keep up with shopping trends. Shopping terms used for your automated targeting campaigns will be updated automatically by Amazon throughout the year, so you are able to track changes.
  • With the help of automatic targeting, you can launch your first Sponsored Products Campaign. Amazon will be generous enough to help you in matching your ads to shopping queries. Amazon will make these matches based on the product information you provided. So, make sure you regularly update these packs of info with the changing shopping trends. 

What Should be the “Targeting Strategy”?

In order to build your advertising strategies on Amazon you can opt combination of different strategies that are mentioned below:

  • Target at least 30 keywords when launching a campaign with manual keyword targeting. Discover the keywords customers are using to find your products using your search term report.
  • For your initial set of keywords, choose a broad match. Concentrate your attention, using phrase match or exact match, on the top performers from the search term report.
  • Concentrate on browsing trends while using product targeting at the same time.
  • To focus your advertising strategy and organize your keywords and budgets, create separate campaigns for each product group. A set of both automatic and manual targeting campaigns should be distributed to each group.

And now last but not the least,

Evaluating Your Advertising Performance:

You can effectively gauge your performance using the advertising reports you receive. Here are some of the reports for Sponsored Products:

  • You must identify the top converting search terms.
  • Then evaluate how well or properly your keyword targeting is performing.
  • Then move on to evaluate how your advertised products are performing all this time.
  • Further check the performance of your campaign’s placements.
  • Track the evolution of your overall spending as well as the average cost per click.
  • Discover fresh advertising opportunities and gain knowledge of audience purchasing patterns.

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