What is Amazon Advertising? Amazon Advertising Review, Features

Amazon advertising, also known as "keyword advertising" by sellers, is a form of advertising that uses keywords to match user searches and accurately displays products on Amazon. Fees are charged based on the actual number of clicks.

Satisfy the conditions

Have an active Amazon Professional Seller account;

Listing needs to have a shopping cart;

Products must be new. Used products are not eligible for Amazon product promotion;

Except for the books, audio-visual and adult categories, advertisements can be placed in other categories.

Classification

1. Sponsored Product

Amazon has two ways to place ads on the site: automatic ads and manual ads. Automatic ads mean that Amazon places your ads based on your product information, which has a high exposure rate but is not accurate enough; manual ads require sellers to set keywords themselves, and your ads will only be displayed when customers search for the corresponding keywords.

2. Headline search ads

Based on Amazon search, a high-exposure display method combining pictures and texts is displayed before other search results. It is suitable for brand owners. When using HSA to attract traffic, it is necessary to match keywords and pages as much as possible.

3. Product display ads

PD is only used by sellers with accounts such as VC, VE, and AMS. It has more display area than paid product ads and title search ads, and can be displayed on the side and bottom of the product details page.

These types of advertising all belong to the PPC (Pay per click) advertising model.

The difference between PPC and CPC advertising

PPC advertising (Pay-per-Click): In online advertising, it is a pricing model that pays based on the number of users who click on the advertisement.

CPC advertising (Cost-per-click): The cost per click. It is charged based on the number of times the ad is clicked. For example, keyword advertising generally adopts this pricing model.

The charging standards and models of CPC and PPC are exactly the same, with not much difference. They are just conceptually aimed at different groups. PPC is aimed at sellers who want to advertise on platforms or websites, while CPC, as a pricing model, is used by all major search engines and platforms.

Comparison

Location

The headline of the search page homepage, in the middle of the search page product, at the bottom of the listing page, below the shopping cart, etc.

cost

The unit of cost per click is a bidding charging model. After clicking your ad, consumers will enter the product details page, and they only need to pay when the ad is clicked. The same IP searches for the same keyword and clicks on the same listing within 24 hours , and the fee is calculated once.

Advertising quota

In order to avoid frequent deductions causing trouble to users, Amazon adopts a cumulative deduction limit deduction method, that is, a certain deduction limit is set, and a deduction will only occur when the advertising cost reaches the limit. When the user first registers, the deduction limit is RMB 50. This limit may increase based on the frequency and amount of the user's advertising costs. For example, if the user continues to reach the deduction limit very quickly, the amount will be adjusted appropriately to ensure that deductions do not occur frequently. The deduction limit increases in increments of RMB 150, RMB 200, and RMB 350, up to a maximum of RMB 500.

Advertising budget

The total advertising amount is the average daily advertising budget multiplied by the number of days in the month. For example, if you set the daily advertising budget to RMB 1,000, the total advertising budget for the month = RMB 31,000 (assuming there are 31 days in the month), which also means that you have the opportunity to receive ad clicks worth up to RMB 31,000 in the month. At the end of each month, Amazon will ensure that the average daily advertising cost does not exceed the advertising budget you are willing to pay every day. However, on certain days, advertising expenditures may be higher or lower than the maximum daily advertising budget you set. For example, if your daily advertising budget is RMB 1,000, on the first day of the month, you receive ad clicks worth RMB 500, but on the second day of the month, you may receive ad clicks worth RMB 1,500. The total advertising cost for these two days is RMB 2,000, an average of RMB 1,000 per day, which does not exceed your daily advertising budget.

Advertising payment methods

Deduct from your Amazon seller account balance;

Charge the fee to a credit or debit card.

Advertising Metrics

Daily advertising operations

1. Select core keywords.

Choose keywords with high impression, high click-through rate and high conversion rate, build a keyword database, and analyze the advertising search word report. A good keyword can bring more traffic. The more traffic, the higher the conversion rate.

2. Make associations.

According to the analysis of the advertising search term report, we should strengthen the association with the ASIN that can bring conversions to our products, effectively increase the number of views, and thus obtain more traffic and conversion rates.

3. Negate invalid keywords. Useless keywords refer to keywords that cannot bring conversion rates. They bring useless traffic and consume our budget, thereby lowering conversion rates and raising ACOS. A good keyword can bring a lot of traffic and increase conversion rates. At the same time, a useless keyword may also reduce product traffic and lower conversion rates.

4. Adjust bids and budgets in a timely manner.

The adjustment of bids is mainly based on the golden order time of our products, that is, spending money where it counts (such as 9:00 to 10:30 in the morning and 18:00 to 22:00 in the evening, these two time periods have the highest conversion rate). Every month, week, and day, we increase bids during the peak order time and reduce bids during other periods.

Promotion budget = sales * profit margin.

Calculate the promotion budget, the required traffic and the required order volume and divide them by the conversion rate to calculate the price per click.

5. Reduce ACOS (ACOS is closely related to product quality score)

ACOS= advertising expenditure/advertising sales.

There are several ways to reduce ACOS:

Reduce the cost of each word click, adjust the price for testing, and find the lowest price for a single click of the ad, and use the lowest bid to reach the target position;

Improve CTR and conversion rate, such as manual control;

· Open phishing advertisements (leak detection);

Increase the average order value (theoretically, not feasible);

Advertising has become an indispensable part of operating an Amazon store. Advertising can not only promote exposure, but also promote the growth of natural rankings. I hope everyone can grasp the gameplay of Amazon advertising.

Advantages

Increase exposure: Help product pages appear on the first page of search results or in a more prominent position.

Increase sales opportunities: Get closer to consumers’ purchasing decision points.

High relevance: Provide precise and targeted advertising based on consumer search terms.

Transparency: Measure return on investment and optimize advertising efforts.

Advertising precautions

1. If the unit price of the product is too low, be cautious when launching it.

2. Advertising should be concentrated, avoid even distribution, and the advertising budget should be placed on the products you are focusing on.

3. If there are multiple products in the same series, select the SKU that best suits the public's aesthetic taste. If a variant listing has multiple sub-items, select the sub-item that suits the public's aesthetic taste.

4. If the long-term input-output ratio is not cost-effective and the expected listing cannot be achieved after various optimizations, advertising should be suspended. Do not act blindly when you cannot determine the cause.

Reasons why advertising is not available

1. The advertising data is too small and the time is too short. If the ad has just been launched and the number of ad clicks is small, you should not be anxious even if there are no orders. A large enough amount of data is the basis for generating orders, so either observe patiently or increase the ad bid and increase the number of ad clicks before observing again.

2. The listing is not optimized properly, resulting in the listing not being recognized by the system. The system's judgment is not accurate and cannot match the appropriate display position. At this time, the advertising effect is bound to be poor. At this time, it is necessary to optimize the listing's category selection, keywords in the title, main picture and other content.

3. The listing price is high, the number of reviews is small, and the star rating is poor. In operation, you should pay attention to learning horizontal comparison thinking and compare your listing with your peers. Only when the product price is competitive and the product reviews are good enough, the conversion rate of the advertisement will be high.

Ad Optimization

1. Advertising data has a negative impact on advertising bidding and budget.

Focusing on the four core variables of exposure, clicks, orders and ACOS, if the exposure is too low, the ad bid should be appropriately increased. If the exposure is sufficient but the clicks are not high, the listing needs to be optimized. If the clicks are high but the number of orders is low, it is necessary to reflect whether it is because the unit price is high and not competitive, or the listing page display is not good enough to stimulate consumers' desire to buy, etc. Finally, sellers need to sort out and optimize the three variables to make the advertising ACOS value return to a reasonable range as much as possible.

2. Keyword screening and new advertising plan establishment based on advertising data reports.

When running ads, sellers need to analyze data to summarize the "three highs" keywords with high exposure, high clicks, and high conversions. Add them to the manual ad plan, or create a new ad plan separately, in order to maximize the advertising effectiveness of these keywords.

3. Reverse listing optimization based on advertising data.

For the “three highs” keywords, it is necessary for sellers to compare them with their own listing details.

If it is not reflected in the listing, it is necessary to add it to increase the quality score of these keywords, thereby increasing exposure and reducing advertising costs.

Ideal ACOS value

From the perspective of actual operations, ACOS has several reference values:

1. The ACOS value is less than the product gross profit margin: At this point, if the possible return rate is not taken into account, the input-output ratio of the advertisement itself is cost-effective, and the advertisement must be profitable.

2. ACOS value is equal to product gross profit margin: On the surface, advertising does not bring excess profits to operations, but if you compare the number of advertising orders, natural orders and total orders, you will find that in the comparison before and after advertising, the result obtained by subtracting the number of advertising orders from the total number of orders is very likely to be greater than the number of natural orders before advertising.

That is, with the delivery of advertisements, some orders are generated and the order volume of natural traffic also increases. This is the boosting effect brought by advertising. Therefore, if the ACOS value of your advertisement is exactly equal to the gross profit margin, this advertisement is worth continuing to deliver.

3. The ACOS value is higher than the product gross profit margin: If the higher proportion is not large and the total amount is within an acceptable range, there is no need to worry.

However, if the ACOS value is too high and has been effectively reduced after a period of optimization, it is necessary to pause or stop the advertisement and find the reasons from Listing optimization, market analysis, etc. Only by finding the reasons can a targeted response strategy be formulated.

Prevent malicious clicks

Amazon has its own error correction mechanism. If the system detects a large number of malicious clicks, the platform will return the fees generated by the clicks to the seller.

However, there are some clicks that cannot be detected by the system. The most typical example is the clicks that are not malicious but cannot lead to conversions when peers do market research. How to prevent these clicks? The most effective way is to adjust the advertising bidding by time period.

Specifically, during non-sales peaks, the ad bid will be lowered and the ad position will be ranked at the back, which can effectively reduce the number of ads clicked by competitors; during consumption peaks, the ad bid will be raised to the expected bid, the ad position will be maintained, and the exposure of the listing to consumers will be increased in order to obtain more orders.

Difficulties faced

1. Most sellers and suppliers already participate in Amazon Advertising.

2. Amazon Sponsored Products Ads are open to all sellers in Seller Central and Vendor Central.

3. As more and more people use these Amazon ads, the bids are getting higher and higher.

FAQ

Q: How do sellers create Amazon ads?

A: If sellers want to create a new advertising campaign, they must first click the Create Campaign button to enter the advertising campaign settings interface, and clearly set the name of the campaign, the daily budget of the campaign, and the start and end dates of the campaign. After completing the above steps, select the required advertising targeting type - automatic targeting or manual targeting.

Q: There are so many different products. What kind of products should sellers choose to advertise?

A: The products that sellers should choose must show actual profitability or have great potential. Usually there are three types of products:

1. High-profit products, preferably products with a profit margin of more than 40%;

2. High conversion rate products, with a conversion rate of more than 15% in the red ocean category and more than 10% in some niche categories;

3. Non-standard products, products with rich keywords and multiple attributes.

Q: In the seller’s product category, how can products that do not meet the requirements achieve a breakthrough?

A: Listings in different situations need to be tailored to the product, and are divided into short-term plans and long-term plans. For short-term plans, sellers can use manual intervention and external promotion to promote products, while for long-term plans, the quality of the product itself needs to be considered, and the product needs to be optimized and re-listed.

Q: What does the sales base mean for Amazon Advertising?

A: Usually there are two possibilities between sales and products. First, the product itself is good, but it is extremely dependent on advertising, and it is difficult to provide stable sales in the later stage. Second, the product itself is not excellent, and the advertising cost is high and terrible, so sellers need to control the proportion of advertising in sales.