Media Kundli: Amazon

Amazon ads

Amazon, the e-commerce giant, is a universe in itself. A digital space where users around the world spend hours and hours- shopping, reading, listening and watching. Imagine a brand that sells online, advertising in this pool of possibilities? Looking from an advertiser’s perspective, any brand that gets the nitty gritty of amazon advertising right, will have opened itself to a web of possibilities for targeting the right audience and achieving its marketing goals.

Amazon ads are available to businesses of all sizes and accessible to marketers of every level of expertise. The platform provides ad solutions that help businesses connect with customers at every stage of their advertising journey.

Now why should you give Amazon advertising a go? As long as you have a product that sells online, you can use Amazon advertising because of the following major reasons: 

It can bring your brand to life by deploying engaging ways to interact with customers.

Your ads can quickly help you connect with the right audience on and off the platform.

The right targeting and ad option can help you plan, manage, measure and optimize your digital marketing ad campaigns in a better way. 

The list and stats does not simply end here, in fact, this is just the starting. We have much more amazon advertising to discuss that will wipe off your indecision regarding running an Amazon ad campaign. Read below to find out:

Top 3 Facts about Amazon Advertising

  • As per Similarweb, the monthly users of Amazon in India in July 2022 was 339.7 Million and the average time spent on the app is 3 minutes. The monthly average downloads for the app is approx 7.7 million. 
  • The global monthly active users for Amazon is nearly 139.4 million and has million daily active users, with an average time spent of 3 minutes. In the past one year, the average downloads of the platform have been approx. 13.5 million. 
  • Amazon.in’s audience is 64.15% male and 35.85% female. The largest age group of visitors are 18 – 24 year olds. (On Desktop) (Source: Similarweb)
  • Traffic and engagement: Amazon.in’s traffic has increased by 12.12% compared to last month (July 2022) (On Desktop & Mobile, Worldwide)
Top 5 digital advertising platform in E- Commerce category in India according to Similarweb (Jan- March 2022)

Demographics of Amazon.in users (Source- Similarweb)

Benefits of using Amazon Ads

What are some points that sets Amazon advertising apart? 

Caters to every budget- No matter what your budget is with Amazon Advertising, you can spend as much (or as less) as you want. Choose the budget that is right for your business without compromising your ROI.

Quick execution- Amazon ad campaigns are really quick and simple to use. An advertiser need not have prior advertising experience to make a campaign. The whole process of making a campaign and launching it also takes as less as 5 minutes.

Targets the right audience- Amazon being the e-commerce giant that it is, has a deep understanding of customers’ buying behavior which can help advertisers reach the most relevant audience of their product/brand.

Get in depth insights of results- The platform generates performance reporting before and after running the campaigns to help advertisers understand what’s driving results and better manage their campaign.

Allows advertising globally– With Amazon advertising, your brand’s ads are just limited by your imagination (or maybe your budget) but not when it comes to geography. You can target customers anywhere in the world with just a few simple clicks. 

Top 3 Ad Options in Amazon Advertising

Amazon, undoubtedly, has a very clear understanding of customers’ buying behavior and how they engage with products- including everything from how they browse, discover, all the way till they complete the purchase of the products/brands online.

So as an advertiser looking to start an ad campaign on the platform, how do you know where to begin? Which advertising option would be the best suited for your brand? Should you start with Sponsored ads? If yes, what are the benefits that they offer? You must have a dozen questions on your mind, right? 

Data shows that Amazon ad campaigns that use both online video ads and display ads see an average 320% increase in detail page views and 150% increase in purchase rate as compared to display-only efforts. (Source: Amazon internal, September 2020, WW)

Although ad options like Audio, video, Amazon DSP, Custom advertising are equally good, following are the Top 3 ad most popular ad options provided by Amazon Advertising:

  1. Sponsored Product ads- The most popular option that can either be used manually or  automatically to target shoppers. Sponsored Products are self-service, cost-per-click ads for individual product listings on Amazon. They appear within shopping results pages and on product detail pages. 
  1. Sponsored Brands- Sponsored Brand are self-service, cost-per-click ads that appear in shopping results and feature your brand logo, a custom headline, and up to three of your products. This advertising can help you quickly build brand awareness by increasing your brand’s and its products’ visibility over the competitor’s brands during consumer searches.
  1. Sponsored Display ads- Sponsored Display ads are self-service display ads that use automatically generated ad creatives that help you to reach the right audience for your business in addition to those actively shopping on Amazon.in. It uses display advertising that is easy to create and manage.

Top 3 Targeting Options in Amazon Advertising

Amazon advertising allows you to target your audience based on a lot of different factors, some of which are as follows:

1. Automatic Targeting- This type of targeting matches your ads with keywords as well as products which are similar to the product in your ad. These keyword and product matches are based on shopping searches related to the information of your product. Automatic targeting has 4 targeting options, which are as follows-

Close match- Shows your ads when a user searches for a term that very closely matches or relates to your products.

Loose match- Shows your ads when a user searches for a term that loosely matches or relates to your products.

Substitute- Shows your ads when someone views product detail pages that are similar to yours.

Compliments- Shows your ads when someone views product detail pages that compliment your products. 

2. Manual Targeting- This type of targeting works best when you know the kind of keywords that your customers use for searching. Other cases when this targeting works best is when you know- 

  • The list of product categories.
  • Known price point or customer review rating.
  • The budget.
  • The goal or objective.

3. Keyword Targeting- An advertiser can input their own keywords like those from Google Ads, or they can use Amazon’s suggested keywords. These suggested keywords are generated from the search queries of customers that result in driving traffic to the ASINs in your campaign on Amazon. These keywords are automatically set to broad match and cannot be changed.

4. Product Targeting– Product targeting can help an advertiser improve the ads relevance by targeting single products or categories, which can be further refined or filtered by star rating, brand or price. 

Top 3 Reasons to go for Amazon Advertising

Although there are endless reasons (which we discussed above) as to why Amazon advertising would do wonders for your brand but to summarize, here are the top 3 reasons why you should definitely go for this advertising:

1. Targeting Options: Amazon’s advertising platform has access to one of the most advanced e-commerce ad targeting options. You may advertise to your audience by interests, age, location and behaviour, as you can do for other social media platforms, which basically means that the advertiser can do the same on Amazon. This means that an advertiser can do detailed targeting and target the right audience as per their product and service. In addition to these targeting options that we have mentioned above, Amazon also has some extensive retargeting capabilities as well.

2. Purchase ready audience: The users on Amazon come there with the intention of making purchases and tend to your long tail keywords. For instance, a user on Google may search for ‘high heels’ but a user on Amazon will be more specific and search for ‘red high heels’. Hence, the conversion rates for Amazon is much higher than other PPC platforms, thanks to Amazon’s buy-now culture. The fact that Amazon users use long tail keywords benefits the advertisers and gives them higher conversion rates in less cost. 

3. Mobile-friendly Ads: Most of the audience access e-commerce platforms from their mobile phones. Amazon as a platform offers you with a variety of mobile display ads, as well as banner ads, video ads and interstitial ads. They can help you optimize the sizing and content of your ads to best appeal to mobile users. This will help you increase your click through rate and help you score more business. 

Top 3 Brand Categories that Should Advertise on Amazon

Retail/Fashion

FMCG

Electronics

Top 3 Brands that Should Not Advertise on Amazon

EdTech

B2B

BFSI

Top 3 Cities of India that prefer Amazon Advertising

Bangalore

Mumbai

Delhi

Average CTR

The average CTR for Amazon advertising is 0.2%

Was this article helpful?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.