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A To Z On Amazon Ppc - Sponsored Products & Sponsored Brands

By Author: Arun
Total Articles: 1

Amazon PPC campaigns are one of the best marketing ways to generate sales in Amazon for your products as sellers or vendors.
After reading this comprehensive guide on Amazon PPC, you will gain a complete understanding about the concepts, know-how, tactics and best practices in Amazon Advertising and the variety of opportunities of marketing of your products in Amazon depending on the type of seller or vendor you are.
Terms | Factors | Advantages
01. HOW AMAZON PPC WORKS
Amazon Pay-Per-Click (PPC) advertising is a method where you pay only for the advertisement that a potential buyer clicks and views the product.
In other words, it is like renting out the outdoor billboard space for free to place your ad but you only pay when a passerby accesses your ad to reach out to your product.
Isn’t it wonderful?
Amazon advertising is revolutionary, competitive, cost-effective and an ideal way of advertising of your products to reach your shoppers by placing your product ads in the top or within the Amazon SERPs to increase sales in Amazon.
Before we elaborate on Amazon PPC, get a hold of a few terms defined below that are required to understand about Amazon PPC.
A. Basic Terms
Impression : An impression happens when Amazon shows your product ad on the screen to a shopper.
Cost-per-click : The cost that will incur when a shopper clicks on your ad. (Note that, Amazon does not charge for an ad impression but only when a shopper clicks the ad)
Clicks : The number of times your ad was clicked.
Ad display Auction : Amazon runs a real-time auction to decide which ads, if any, will appear for that specific search (by a shopper) and in which order those ads will be shown on the page. The sellers who are eligible and running ads for a particular keyword will bid against each other and win for the placement of an impression.
Sponsored Products : A powerful cost-per-click advertising solution of Amazon that enables you to promote the products you sell with ads that may appear in highly visible placements on Amazon.
Sponsored Brands : It increases awareness of your products. The ad creative generally includes a headline, logo, and product images.
ACoS : An abbreviation for Advertising Cost of Sales and a key metric used to measure performance of your Amazon Sponsored Products or Sponsored Brands campaigns. It is a percentage of direct sales that resulted from your advertising campaign and is calculated by dividing total ad spend by total sales from advertising.
ACoS = [Total spend ÷ Attributed sales (from ads)] x 100
Spend : How much you spent on clicks for your ad.
RoAS : Return on advertising spend (RoAS) divides the total sales by the total ad spend (total ad sales/ total ad spend). It is simply an inverse of ACoS, so RoAS = 1/ACoS. Unlike ACoS, it is represented as a number that is interpreted as an index (multiplier) rather than %.
Attributed Sales : The total product sales generated within one week of clicks on your ads. Your sales data can take up to 48 hours to populate. You can view the individual sales totals for advertised products and other products in the Campaign Performance report
B. Factors to keep in mind
If you are running ads, the other factors you should consider on working to generate sales and profit in total are:
Well-optimized Product listings - It becomes a futile effort if you run an advertisement in Amazon if your product listings are not attractive or optimized properly. Ads can only get the shopper to the product details page but finally, it is the product listing that induces the sale by a shopper.
Marketing Budget in tandem with Profit margins - Depending on your business, inventory and profit goals, define your monthly and daily budgets, default bidsand always run campaigns with an ACoS goal.The whole structure of your campaigns is defined through your goals and how you would like to generate sales within your budget.
The product listing is in full-shape with kickstarting reviews that will induce trust to the shoppers visiting the product listing.
C. Advantages of Amazon Advertising
To name a few, running ads through Amazon Advertising helps in
gaining visibility and product discoverability for the product in a competitive category (really important in the product launch stage),
building a stronger brand through higher visibility to relevant audience.
Understand the customers and their shopping behaviour.
Cross-sell and up-sell using targeted and strategic ad placements within Amazon.
Helps in creating a brand-recall in the mind of relevant shoppers.
Drive traffic to the Brand’s Storefront enabling incremental sales using strategic objectives like cross-selling, brand defense, promoting higher-priced products, and creating a shopping destination on Amazon that matches the brand's look and feel.
Re-marketing to high-intent audience
Types | Requirements | Placements | Goals
02. Amazon Advertising
A. Types of Amazon Advertising

Amazon provides for a variety of Ad solutions through which you can find, attract and engage with Amazon customers at every stage of their buying decision journey.
The below table 2.1 showcases different ad solutions of Amazon. In this guide, we will focus on Sponsored Products and Sponsored Brands in detail.
Popular
Sponsored Products
Sponsored Brands
Store
Others
Display Ads
Video Ads
Custom Ads
Amazon DSP
Every ad solution is different and enabled for different purposes. Every ad solution of Amazon has a suite of ad placements within Amazon and off-Amazon catering to different stages of its customers in their buying decision path. The below table 2.2 will broadly help you to understand in a nutshell about the type of ad solution, requirements, types and goals.
Type
SPONSORED PRODUCTS
SPONSORED BRANDS
Requirements
Professional sellers, vendors, book vendors, Kindle Direct Publishing (KDP) authors, and agencies
Professional sellers enrolled in the Amazon Brand Registry, vendors, book vendors, and agencies
Eligibility
Buy box, Eligible categories
Eligible categories
Placements
top of, alongside, or within search results Product listing pages
feature brand logo, a custom headline,upto 3 products on search results
Goals
Awareness
Promotion
More demand

Brand Discovery
Promote entire product portfolio
Cross-sell & up-sell
For every ad solution, Amazon has created superlative ad placements to maximize the reach to the audience with an intent to buy products.
Ad placements for each type are explained in detail further below in the respective sections of Sponsored Products (Section 3) and Sponsored Brands (Section 4).
NOTE
Amazon will display your product ads only when your product is in the Buy Box at the time the customer views the ad.
B. Goals of Amazon Advertising
Before starting to advertise your products, it is crucial to jot down your advertising goals, business and marketing goals, budget and enumerate the focus touchpoints of the buyer’s journey.
The types of advertising goals that a seller needs to inculcate while designing amazon ppc campaigns for different stages in a customer decision journey are:
Awareness and reach :
Reach and Brand awareness campaigns generate long-term, new demand for your brand by reaching those who are not currently engaging with the product category.
Consideration :
Campaigns designed for consideration stage will prompt customers to show interest and keep the products visible among customers considering a purchase. By such campaigns it can generate short-term, new demand for your brand by reaching those considering the brand's category, but not currently considering the brand.
Conversion :
Campaigns can be promoted to influence the customers who are almost ready to make the purchase. Through these advertising campaigns, it can capture existing demand for their brand by reaching those already considering the brand.
Loyalty :
Drive Brand loyalty and open up cross-selling and up-selling opportunities through customized storefronts or remarketing to existing brand customers or using Subscribe and Save offers among brand subscribers.
Depending on the stage of the product's lifecycle, you need to write down the goals you want to accomplish through advertising in Amazon. If your brand or product is new, you should focus on creating awareness and reach out to the intended shoppers. Every advertising goal indulges a different strategy (also depends on the product category, price, disposable income of the buyer etc) to finally accomplish sales. So, it is crucial to mark your goals and budget to build best amazon advertising strategies for your product.
Goals can be short-term and long-term. Budget and sales vary accordingly. If you wish to generate sales during a festive season, you can raise your marketing budget for short-term and deploy bombarding advertising strategies to boost maximum sales.
Ad Placements | Campaign Structure | Setup | Targeting
03. Sponsored Products
Amazon has provided for a simple architecture to advertise your products, target your audience appropriately and measure the ad performance.
Advertise your products
Select the ASINs (products) you want to generate sales for through advertising in Amazon. As a seller, you can decide and control the marketing budget, default bids, bidding for each keyword depending on your overall business goals and profit margins.
Target your audience
You can target your audience in three ways:
Aligning your ads to the keywords (relevant search terms) related to your product. When a shopper searches using that keyword, your product ad will be displayed in different placements based on the bidding.
By targeting specific ASINs (similar competitive products or your own product portfolio). These ads will be displayed in the product detail pages after the product information.
Using Automatic Targeting of Amazon - By choosing this option, amazon will automatically match your ad with keywords and products that are similar to the product in your ad. Amazon will choose keyword and product matches for you based on shopper searches related to your product information.
Measure your Ad performance
Amazon provides a variety of reports to measure and gauge your ad performance like targeting report, advertised product report, purchased product report, search term report, placement report, and performance over time report. How to track and measure your ad performance will be explained in the reports and analysis section (Section 9) of this guide below.
A. Ad Placements for Sponsored Products
Sponsored Products displays ads in a variety of places across Amazon to make it easier for shoppers to find your products. Ads may appear in desktop, tablet, and mobile browser and app placements. One of the biggest highlights of sponsored products is that the ads are placed within the search results for the shopper allowing for high product discoverability.
Whenever a sponsored products campaign is run, these are the following locations the ads may appear depending on the bidding and budget the ads are allocated to :
Ad type
Placement
Visual
Top of Search
appear in the top row of search results

Middle of Search
appear in the middle of search results

Bottom of Search
appear in the bottom of search results

Detail Pages
appear after product information on detail pages.

Devices-related Sponsored Products Ad placements
Ad type
Placement
Visual
Desktop Browse
appear in the last row of the browse results page for category-specific browse pages.

Tablet Browser
appear in the middle of search results

Mobile Browser
appear in the bottom of search results

Mobile App
appear in the top of search results and in the last rows of search results.

B. Campaign Structure - Sponsored Products
Portfolio
Campaign
Ad group
Keyword/ Product Targeting
Bidding - Dynamic
C. Setup, Match Types, Keywords - Sponsored Products
a. SETUP - Sponsored Products Campaigns
How to setup a Sponsored Product Campaign in Amazon
In the Advertising tab, choose “Campaign Manager”, click “Create campaign”, and select “Sponsored Products”.
Enter information in the Settings section.
Campaign name : Name your campaign based on the type of products you'll be advertising, or seasonal products you'll promote.
Know more
Start/End Date: These are the start and end dates of a campaign you are running.
Know more
Daily budget : The daily budget is the average amount you are willing to spend on a campaign in one day. It is spread out over one month, and applied across all the days in that month.
Know more
Targeting : Targeting uses keywords and products to show your ads on search and detail pages to relevant shoppers. For Sponsored Products campaigns, you can create two types of targeting: automatic and manual. (explained further below)
Select the product you want to advertise.
Enter your keywords, bids, and ad groups. You will learn more on campaign structures (Section 6), bidding strategies (Section 7) in this guide.
Submit your ad. Before submitting, review all of your information to ensure you're happy with the results.
Note: Your campaigns are generally eligible to go live 1 to 2 hours after you submit them.
b. Keywords Match types
Whenever a buyer types a search term, Amazon will display your ads when the keywords you inserted in the ad groups match with it. Matching the keyword with the search term can occur in 3 ways: Broad, Phrase and Exact.
i. Broad Match Keywords on Amazon
This match type offers ads broad traffic exposure. A customer search term will match if it contains all the keyword terms or their synonyms. The customer search term can contain keywords or synonyms in any order.
Broad Match Modifier:
For Sponsored Brands, you can add broad match modifiers to indicate words that must appear in the customer's search in order for your ad to run. Add a broad match modifier by adding a plus symbol "+" before the word.
Example: If you use the keyword "+men shoes" with a broad match, then the ad will only match to searches that contain the word "men". The ad may match to "men sneakers" or "running shoes for men" but not to any search term that does not contain the word "men"such as just “sneakers” or just “running shoes”.
ii. Phrase Match Keywords on Amazon
The customer search term must contain the exact phrase or sequence of words. It is more restrictive than broad match and will generally result in more relevant placements for your ad.
iii. Exact Match Keywords on Amazon
The customer’s search term must exactly match the keyword in order for the ad to show, and will also match close variations of the exact term. Exact match is the most restrictive match type, but can be more relevant to a customer’s search.
IMPORTANT:
You can’t change the match type of an existing keyword, but you can add multiple match types for one keyword. You can also select match types for Negative Keywords.
iv. Negative Keyword Match types
Negative keywords prevent your ads from displaying when a shopper's search terms match your negative keywords. Negative keywords can be matched in two ways:
Negative phrase:
Ads don't show on search queries that contain the complete phrase or close variations. There is a maximum limit of four words per negative keyword and 80 characters.
Negative exact:
Ads don't show on search queries that contain the exact phrase or close variation. There is a maximum limit of ten words per negative keyword and 80 characters.
c. Ad groups
Campaigns are made up of one or more ad groups. Ad groups help to cluster similar SKUs together.
In auto-targeted campaigns, you can apply a single bid to the whole ad group. In manual-targeted campaigns, you can select a common group of keywords to target all the SKUs within the ad group. Since keywords and bids apply to all SKUs within an ad group, it’s advisable to choose SKUs that are closely related to each other.
Note:
When creating an ad group with manual targeting, add as many similar products to the ad group as you can. The more products in your ad group the greater likelihood of receiving ad impressions. You can skip this if you want a more granular control over keyword targeting for particular SKUs by adding only one product for an ad group.
Amazon will only display your product ads when you are winning the Buy Box, at the time the customer views the ad.Product ads that are not in the Buy Box will show as Status = "Not in Buy Box" in Campaign Manager and those ads will not be displayed to customers.
Elements of an ad group
Ad group name : Assign an ad group name that is descriptive and meaningful to you.
Know more
Products : As explained above, cluster SKUs from your inventory that are similar type into one ad group.
Note:Keywords and bids apply to all products within an ad group, so we recommend choosing products that are closely related to each other. There is a catch here.
Though more products in your ad group increases the likelihood of receiving ad impressions because the products share the same keywords in your ad group, you gain more control over your campaigns by separating each product into a different ad group.
You can add new products to an existing ad group at any time. To add products, select the ad group and go to the Products tab. Click Add products, and you will see your list of eligible products to add to the ad group.
You can add 1,000 products to an ad group at a time.
Targeting : You can use Amazon’s suggested keywords, your own keywords, negative keywords, or target by product. (explained in detail below)
D. Types of Targeting - Sponsored Campaigns
Amazon provides for a variety of targeting methods to reach your ads out to your intended audience. Targeting can be done at campaign level and at ad group level.
At Campaign level:
Automatic Targeting
Manual Targeting
There are two ways to build & manage your campaigns (at campaign level) within Sponsored Products:
Automatic Targeting:
Amazon uses multiple default strategies on your behalf to match your ad to a shopper looking for your product.
Though it skips the process of selecting keywords, the degree of control over the campaign is also greatly reduced resulting in higher ACoS or lesser conversion rate.
Manual Targeting:
It helps Amazon Sellers to specifically target keywords and products. You can choose different match types for keywords, and choose categories, products, brands or features related to your product.
Manual targeting is laborious but result-driven and yields a higer degree of control on campaigns.
At Ad group level:
Keyword Targeting
Product Targeting
For a granular specific targeting, Amazon provided:
Keyword Targeting
Choose keywords to show your products in customer searches and detail pages.
Use case: Use this targeting method when you know the search terms that shoppers use to search products similar to yours.
Example: If your ad product is a phone case, you may choose the keyword “phone case.” When a shopper searches for a product with the search term “phone case,” your ad is eligible to show in search results and detail pages.
Product Targeting
Choose specific products, categories, brands, or other product features that are similar to the product in your ad.
Categories tab : Target suggested categories or search for categories that are relevant to your ad product. You can also refinecategories by brand, price range, and review star ratings.
Products tab : Target suggested individual products or search for products that are similar to the product in your ad.
Use case: Shoppers will find your product when browsing detail pages and categories, or when searching products on Amazon.
Example: If your ad product is a phone case, you may choose the keyword “phone case.” When a shopper searches for a product with the search term “phone case,” your ad is eligible to show in search results and detail pages.

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