2024 Guide to Amazon Sponsored Products Advertising - Panda Boom (2024)

• What’s a Sponsored Products ad, you ask?
• Where do you spot Sponsored Products on Amazon?
• Amazon Sponsored Products will pop up only if you own the Buy Box
• So, how do Sponsored Products ads actually work?
• Automatic targeting and Manual targeting
• Bidding Strategy Essentials
• Setting Up a Sponsored Products Ad
• Optimizing Your Sponsored Products Ads
• Maximize Your Amazon Sponsored Ads: 5 Unique Tips for Success

These ads blend in really well with the regular stuff you see when you’re searching on Amazon, so much so that a lot of folks don’t even realize they’re looking at ads.

Actually, they’re the most liked type of ad on Amazon, as we found out in our 2023 Amazon Advertising Report.

For products that are just hitting the market, getting those first few sales can be tough, and it’s those sales that help you climb up in the search rankings. But with Sponsored Products ads, you can target specific keywords and get your product right at the top of the search results from the get-go.

Setting these ads up is a breeze, even if you’ve never dabbled in advertising before. Let’s dive in and explore what Sponsored Products ads really are, how they do their magic, and how you can kick off your very first campaign.

Diving into Amazon PPC without doing your homework…

Diving into Amazon PPC without doing your homework can really mess things up. It’s like experimenting with your cash on the line—easy to burn through your budget with nothing to show for it. The damage? Wasted money, lost sales, and a whole lot of regret. Always better to research deep first.

Well, think of it as Amazon’s version of a pay-per-click (PPC) ad. You get to bid on specific keywords to get your product noticed right at the top of Amazon’s search results, starting from the very day you launch. And PPC means just that – you only pay a bit every time someone clicks on your ad. These ads are pretty eye-catching because they look a lot like the regular product listings.

The cool thing is, you don’t need any special brand registration to use Sponsored Products ads, unlike some of the fancier ad types like Sponsored Brands or Sponsored Display ads.

They’re pretty easy to spot because they pop up at the top of the search results, on the right, at the bottom, and even on the product detail pages.

If you’re not really looking for it, Sponsored Product Ads can look a lot like the regular listings. They show up above and to the right of the regular stuff, but they’re quietly labeled as “Sponsored.” You might even find them on the pages of competing products.

Sponsored Product Ads are everywhere on Amazon, making them a goldmine for sellers. It’s like customers can’t escape them; they’re even on the product detail pages! These ads are a big deal because they catch the eye of tons of potential buyers, seriously boosting sales.

When you use Amazon Sponsored Product Ads, you’re putting your products right in front of folks who are ready to buy. They’re deep into shopping mode and know what they want, which means they’re more likely to snag what you’re selling. Keep in mind, this is all about Amazon’s pay-per-click (PPC) system. That means you’ll be bidding against other sellers to get your ads in front of those eager shoppers. The cool part? You get to choose how much you’re willing to pay for each click, giving you plenty of control over your advertising budget.

Most shoppers click to buy from there. If you’re the top dog according to Amazon at the moment, your product lands in the Buy Box. And if you’re in the Buy Box, you’re likely selling more than anyone else for that product. If there are a few top contenders, Amazon will rotate who gets the Buy Box spotlight.

Getting the Buy Box usually means you’ve got a solid selling track record.

• Your track record for successful sales
• How many positive reviews you’ve racked up
• Whether your prices are competitive
• How you handle shipping and delivery
• Making sure you’ve got enough stock
• The freshness of your product

Integrating PPC campaigns into your Amazon strategy is crucial for upping those sales…

Integrating PPC campaigns into your Amazon strategy is crucial for upping those sales. But here’s the deal: you’ve got two choices—either dive in and learn the ropes yourself or outsource to someone who knows their stuff. The third option? Well, that’s the express lane to burning through your cash without seeing any returns

It’s pretty straightforward and it’s all about the pay-per-click (PPC) game.
You’re basically in a bidding war with other sellers to grab the attention of shoppers. You get to pick how much you’re willing to shell out for each click on your ad, giving you the reins over your daily ad budget.

Here’s the rundown:

you start by picking a bunch of keywords or products that you want your ad to show up for in Amazon’s search results. You’re aiming for shoppers to think, “Hey, this is exactly what I was looking for!” and click on your ad to check out your product.

Next, you tell Amazon your max bid per click—this is you throwing your hat in the ring. An algorithm then juggles all these bids and figures out where to place your ads on the search results pages.

Sponsored Products ads are sneaky:

they blend in with the regular search results. You might spot them at the top of the search page, mingling with other products further down, or even on your competitor’s product pages.

If you’re willing to bid more, you could snag a prime spot right at the top of the search results, where everyone’s bound to see it. Bid too low, though, and your ad might not make it to the stage.

And here’s the deal:

the moment someone clicks on your ad, you pay up, based on your bid. It doesn’t matter if they end up buying your product or not, the click is what counts.

Heads up for the 2023 scoop:

On August 16, Amazon dropped the news that Sponsored Products ads are making their way to some cool spots like Pinterest, BuzzFeed, Hearst Newspapers, Raptive, Ziff Davis, Lifehacker, and Mashable. So if your ad pops up there, it’ll link right back to your product on Amazon.

And guess what? You don’t have to lift a finger for your ads to show up on these sites. Amazon’s got it all set to autopilot. They’re like, “Just chill, we’ll put your ads where they need to be, based on what the customer’s into, the vibe of the page they’re on, and the budget you’ve already picked for your clicks.”

Want to see how it’s all playing out?

Just check out the Sponsored Products placement report to get the lowdown on how your ads are doing.

Looking for a hand with your Amazon PPC campaigns?

Click here and let our PPC expert take the reins and handle your campaigns for you!

With automatic targeting, you’ll bump into four types of keyword matches:

• Close Match: Your ad shows up when folks search for stuff pretty similar to what you’re selling.
• Loose Match: Your ad appears for searches that are kinda, sorta related to your product.
• Substitutes: This one’s for when shoppers are eyeing products like yours but from a different brand.
• Complements: Here, your ad targets folks checking out products that go well with yours.

Setting up an automatic campaign is super quick, perfect for newbies.
Plus, as time goes by, you’ll gather data to fine-tune your approach.
And, it’s a sneaky way to stumble upon new keywords you might not have thought of.
You’ll see all the targets Amazon picks, how much you’re spending, and what’s bringing in the sales.
Even cooler? You can take your automatic campaigns global, launching them in other Amazon markets.
Amazon handles the currency switcheroo, product matches, and bid suggestions.

Going manual means you’re in the driver’s seat.
You decide on the keywords or products to target. Grab suggestions from Amazon or brainstorm your own. Plus, you can tweak your bids for each keyword.
Use keyword targeting when you’re clued in on the exact search terms your customers use.

Product targeting? Yep, you can do that too.

Go after specific competitor ASINs, categories, brands, or features.
And if you want to mix and match keywords and products, no sweat.
Just whip up two separate manual campaigns.
Manual campaigns come with their own flavors of matches: broad, phrase, or exact.
Pick the one that suits your strategy, and you’re good to go!

Broad, Phrase, Exact

Broad Match:

Think of broad match as casting a wide net.
Your keywords can shuffle around, and folks can toss in extra words too.
Say you’re selling running shoes.
With broad match, your ad could pop up for any search that dances around ” running shoes,” like “running shoes for kids” or ” shoes for running” And it’s not just about the words; it’ll catch things like plurals or short forms too.
But remember, broad match is kinda like fishing in the ocean – you might catch a lot, but it’ll cost you more because it’s, well, broad. It’s less picky, so you’re reaching more people.

Phrase Match:

Phrase match is like having a favorite fishing spot. Your ad shows up when someone searches your exact phrase, with maybe some extra words hanging at the front or back.
Sticking with our “running shoes”, if someone searches “running shoes for women” or running shoes for men,” your ad is there. It’s all about keeping your phrase together, like a little word family.

Exact Match:

Exact match is like fishing with a spear – you’ve got your eye on one fish and that’s it. If your keyword is “running shoes,” then that’s the only thing that’ll trigger your ad. Nothing more, nothing less. Just “running shoes,” plain and simple. It’s the most precise way to target, so you’re really zooming in on what you want.

Mixing giveaway campaigns with Amazon PPC?

Mixing giveaway campaigns with Amazon PPC? Game changer. Targeting a long-tail keyword in both giveaways and ‘Exact’ PPC campaigns boosts visibility like crazy. It’s like hitting two birds with one stone—more eyes on your product and skyrocketing sales. Trust me, it’s the combo move you didn’t know you needed.

Alright, let’s chat about your bidding strategy, whether you’re rolling with automatic or manual campaigns. It’s all about how you wanna pay when someone clicks your ads.

So, what’s a bid? It’s basically the max you’re cool with paying each time someone clicks on your ad.

The catch? The actual cost per click depends on the bidding war with your competitors.

Your bid is just the ceiling – you might end up paying less. Let’s say you’re aiming for the keyword “running shoes for women” and you set your bid at 70 cents.

If you’re not the top bidder, that’s what you’ll pay. But if your 70 cents is the king of the hill, you’ll only cough up a bit less, like maybe 65 cents, whatever the next best bid is.

Dynamic Bid-Down Only:

Amazon’s got your back here. They’ll drop your bid if they think your ad’s not likely to lead to a sale, saving you some cash per click.

Dynamic Bid-Up and Down:

Amazon plays both sides here. They’ll hike your bid up to double if they think your ad’s got sale vibes, but they’ll also drop it if it looks like a no-go. Heads up, this one might be a stretch if you’re watching your budget closely.

Fixed Bids:

This one’s all you – Amazon won’t mess with your bids. They stay put unless you decide to tweak them. If you’ve got a clear cap on what you wanna spend per click, stick to fixed bids or the down-only dynamic option.

• Amazon will throw in their two cents on what you should bid per keyword.
• You also have the option to adjust your bids by placement.

Head over to Seller Central, hit the “Advertising” tab, click on “Campaign Manager,” and then “Create Campaign.”

Choose “Sponsored Products”

Fill in the blanks—campaign name, date range, daily budget, bidding strategy, and so on.

Start by naming your ad group something unique.

Decide if you want to target by product or keyword. If you’re just getting started, it’s a good idea to go with keyword targeting.

This will keep things tidy, especially when you’ve got a bunch of campaigns running.

The suggested bids might be on the lower side, so if you want your ad to show up more, think about bumping your bid up by about 25%, just make sure it fits your budget.

Then, there’s a spot for negative keywords.
These are the words you don’t want triggering your ad.
Maybe they’re not bringing in sales or they’re just off-target.
For example, if a keyword’s racking up clicks but no buys, pop it into the negative list.

That way, your ad won’t show for those terms, saving you from paying for clicks that aren’t working out

Hit “Launch Campaign,” and you’re all set!