Most product searches and purchases begin and end at Amazon. The platform has become much more than a marketplace, serving users as a destination for research, exploration and even inspiration. The company has two ad platforms that help brands to connect better with their consumers and thus increase their sales: Amazon DSP and Sponsored Ads.
SPONSORED ADS
Sponsored Ads are pay-per-click keyword ads, directed to improve the product visibility and sales. They are only displayed within Amazon, and can be found at the top, in search listings or on product detail pages. There are three different formats of Sponsored Ads:
Sponsored Products: appear in product listings as promoted ads. They are aimed at boosting sales of specific products. This kind of ad allows consumers to see it as one of their first purchase options.
Sponsored Brands: appear at the top of Amazon. The brand displays its logo and up to three products. When users click on the ad they are referred to the Brand Store or to a product listing exclusive to the brand.
Product Display Ads: appear on product detail pages, in classic banner format and serve to offer similar or related products in both branded and competing products.
How do Sponsored Ads work?
At Amazon most experiences are born from a search for product. Therefore, the management of these ads must focus on the optimization of keywords so that brands get the right amount of traffic from customers.
The method of payment and control of these ads is the pay-per-click (CPC). Advertising brands only pay for the clicks that their ads receive and can limit spending through a maximum budget and by choosing the bid with which to bet on each click.
VIDEO&DISPLAY PROGRAMMATIC with AMAZON DSP
The Amazon DSP (Demand-Side Platform) able to the advertiser to purchase spaces in cost-per-thousand impressions (CPM) both on Amazon and all the internet, targeting by some cluster behaviour cluster of purchase that Amazon has predefined.
These are the main characteristics:
Data: Amazon is a large database that has information on millions of users, in countless sectors. This allows advertisers to target users much more effectively.
Access: this DSP make the possibility to the advertiser to appear in external online platforms with which Amazon has an agreement to the appearance of their programmatic advertising. Through the Amazon Publisher Services (APS) the companies can bet for the best platforms.
Scale: the brands can take advantage of the knowledge of the buyer of Amazon to créate and target audiences, pursuing every marketing goal, either form branding or performance.
How do the DSP work?
The DSP of Amazon use technology to programmatically streamline the advertising buy process. Its goal is to rise a concrete public through the platform and its DSP network. At the same time, provides the advertisers can extend their scope thanks to be able to access to audiences that are purchasing exclusively on Amazon.
On the other side, the DSP also allows that the brands are able to measure the effectiveness of their campaigns over the course of the customer journey. The brands, can analyze the data, are able to know better to the audiences and thanks of it can optimize the performance of their campaigns in the different stages of the conversion funnel.
The platform allows to the advertisers to measure and evaluate the impact of their ads in relation to the way of searching and buying of the consumers.
Combining DSP and Sponsored Ads
Right now, there are many brands that are considering investing in advertising on Amazon, others have started recently and others are only investing in one of the platforms.
For brands, the important thing is to take advantage of the opportunity that Amazon Advertising offers to reach the largest possible audience. On the one hand, a good strategy of Sponsored Ads is very positive in order to increase conversions and to effectively reach all those who may be interested in the category or in the brand itself within Amazon.
However, even though they are very efficient, Sponsored Ads only have the capacity to reach a small portion of the brands potential audience.
If a brand wants to increase its audience volume, it has to develop advertising strategies that increase awareness and consideration of its brand on Amazon. To achieve this goal, it is necessary to develop programmatic advertising strategies with Amazon DSP. Thanks to it, many consumers who do not know the category or even buy on Amazon will be able to become part of that audience as potential buyers. Once these consumers are attracted, the Sponsored Ads will be able to increase their share of the audience for conversion and thus complement each other.
The business of advertising on Amazon is growing. Therefore, at Amazing | Amazon Data Driven Agency we have a team specialized in Amazon Advertising to help advertisers take advantage of the opportunity that Amazon advertising offers to connect with their audience and make it grow.
We are an agency specialized in helping sellers in the marketing and advertising management on Amazon
