Find out how Amazon Ads works and find out what features are available – WAU
Amazon Ads, or Amazon Advertising, is Amazon’s online advertising service that centralizes ad management across all of its channels and media. Its platform provides sponsored advertisements in surveys, banners, graphics and videos, in addition to exclusive options that promise to shake the market.
Ten years ago, founder of e-commerce Amazon, Jeff Bezos, said in an interview that “advertising is the price you have to pay for offering an insignificant product”. However, almost a decade later – much to the delight of defenders of paid traffic – the prestigious CEO admitted in a very good mood at a 2018 conference that he had changed his mind.
The new tool called Amazon Advertising – also referred to as Amazon Ads – has not yet officially arrived in London. However, in view of the growing advancement of the company’s services in the country, London advertisers and Digital Marketing professionals will certainly not need to wait long to enjoy the novelty.
In this article, you will see a sample of what is to come and understand why Bezos’ new bet threatens great services hitherto consolidated, such as Google Ads (formerly Google AdWords). Check out the material we prepared:
Ready to meet the newest internet advertising tool? So stay with us and check it out!
What is Amazon Ads and how does this tool work?
The Amazon Advertising brand was created in 2018 from the meeting of the Amazon Media Group, Amazon Marketing Services (AMS) and Amazon Advertising Platform (AAP) platforms. It is another market expansion of the gigantic American company Amazon, which now intends to compete directly with the famous services Facebook Ads and Google Ads.
The working principle of the tool is exactly the same as its rivals: Big Data. By actively collecting user information from its various products and services, Amazon has a privileged set of first-party data at its disposal and, with the help of sophisticated algorithms, is able to offer personalized advertising content to its audience.
As such, we have advertisers at one end creating highly targeted ads and, at the other, users of Amazon services and their partners, who automatically become potential customers of registered companies.
Why should you keep an eye on this new tool?
Amazon has some advantages that make it stand out among its competitors. With an immense structure of e-commerce, logistics and entertainment, the company is able to offer companies an end-to-end understanding of their customers’ journey.
Another important point concerns the consumer experience on the different platforms. When a user searches for a product on Google, for example, even though the search is efficient, he needs to check the retailer’s credibility and condition before completing the purchase.
At Amazon, on the other hand, the reputation of its platform and its services contributes to a more agile and comfortable experience for the consumer, who naturally feels supported by the confidence that the brand offers.
As for the numbers, what can be said is that Amazon Ads is already shaking the online advertising market in the United States. While the shares of Google and other large companies decline, the Amazon’s share in this segment is expected to grow 15.9% by 2021, according to the CNBC portal.
Imagine the impacts that this novelty will cause here!
What are the features available on Amazon Ads?
The purpose of Amazon Ads is to become a central ad management for your platforms. Most of the available advertising formats are familiar to those who are used to working with Outbound Marketing campaigns. At the same time, some features catch the eye. Look at that!
As with Google Ads, Amazon Ads sponsored ads are used to generate conversions and sales from keywords searched by users. Just select the product you want to advertise, associate it with a keyword and set a daily budget (bid).
This type of advertising follows the PPC (Pay Per Click) model, and its biggest advantage is that you only pay when a user clicks on the ad. In addition, the platform gives the advertiser all flexibility, allowing him to change his keywords and bids whenever he wants.
Most suitable for brand promotion, featured ads appear at the top of pages and are also related to keywords. In that case, the advertiser must select a landing page, set a budget and add an image and a title. The highest bidder wins the exhibition space.
This is a very interesting feature for retailers. Amazon allows create a store with a unique URL within your platform. The biggest advantage, without a doubt, is the user’s shopping experience, which is directly benefited by the company’s robust e-commerce structure.
Amazon Ads also does not require any programming knowledge to take advantage of this functionality. The entire creation of the store’s content, be it its description or the display of products, can be carried out quickly and intuitively.
This type of ad takes into account the user’s interests and is usually shown on pages and areas reserved for related products. Therefore, are recommended for advertisers using upselling, and their biggest advantage is that they reach users on and off Amazon.
To advertise you will need to select a product, add a title and logo, set a budget and choose a type of goal (by product or interest). The biggest benefit of this format is that there are many possibilities for exhibition, and the audience reached is selecting through behavioral data.
Amazon Advertising video ads bring all the benefits of this type of content: are visually appealing, have greater reach and impact the consumer like no other format. In addition, Amazon ensures that its display will always take place in trusted environments, whether within its platform or in third-party environments.
Amazon Ads also allows its users to create personalized ads. In that case, the advertiser can define a specific group of ads to promote and insert them into their product posts.
Amazon DSP (Demand Side Platform)
Amazon DSP is a programmatic purchasing platform (automated by algorithms), and its proposal is expand ad delivery to partner platforms. The system is aimed at major brands that want to take their products and services beyond Amazon (such as apps and streaming services), without giving up the company’s infrastructure and reliability.
This is one of the features that promise to clash with Google’s online advertising services – mainly because the search giant has already been denounced by several companies for linking their ads to inappropriate content.
How do I use Amazon Ads for my business?
To help you prepare for this new internet tool, we’ve listed some basic recommendations to increase your campaigns ’chances of success. Check it out below!
Clarify your goals and track results
It seems like obvious and abstract advice, but it is not. Many people create fanpages and run paid campaigns without adopting any strategic criteria. All advertising tools provide valuable data and metrics that need to be used to monitor your actions and help you drive results to your business goals.
In Amazon Ads you can check:
- clickthrough rate (CTR);
- cost-per-click (CPC);
- conversion rate;
- advertising cost per sale (ACoS);
- average daily impressions, clicks and conversions;
- daily ad cost.
If you want to minimize your investments with paid ads, for example, you will need to identify the factors that most influence your ACoS (Advertising Cost of Sales). In another situation, if your goal is to increase your brand awareness, your focus should be on the impressions generated.
Choose the right products
Study your sales history, market standards and your competitors’ performance to define products most likely to convert clicks into purchases. If you are looking to optimize your advertising investment, you will certainly be more successful creating campaigns for the most popular products.
Create efficient product detail pages
A good product page needs to be clear, concise and convincing. There is no point in bringing visitors to it, if it does not motivate them to complete the purchase. So, consider some basic criteria for building an efficient page:
- succinct and descriptive titles;
- relevant and persuasive descriptions;
- varied and high quality images.
When will Amazon Advertising be available in London?
There is still no set date for the launch of Amazon Advertising in London. However, according to the company itself, studies are already being carried out to make the service available here. The expectation is great, because this year Amazon entered the London market head on, making clear its intentions to become one of the major technology players in the country.
Currently, the company offers direct sales of products from its own distribution center in São Paulo, offers the Amazon Prime loyalty program – which guarantees unlimited free shipping and a series of exclusive advantages – and its Echo product line, which , among other innovations, brings the personal assistant Alexa entirely in London.
What we can say is that the Bezos company is entering the world of online advertising with everything, offering a complete solution of the highest quality in one of the most promising markets today. With only one year of official activity, Amazon Ads is already a success in several countries, and it will certainly shake up London Digital Marketing soon.
While this super novelty does not arrive here, how about continuing to learn on our blog? Check out this article on ROAS now and understand how to calculate the return on investment for your ads!