Advertiser Q&A: Amazon Display Ads

Advertiser Q&A: Amazon Display Ads

Amazon

All eyes are on Amazon this holiday season, with eight out of 10 shoppers planning to search Amazon for holiday deals. In September, Amazon organized all its advertising tools under one offering, Amazon Advertising, to help businesses capitalize on the gushing river of shoppers flooding the site. Our clients have been asking about the tools available under Amazon Advertising. Perhaps you are wondering, too. Recently I blogged one of those products, Amazon sponsored ads. Now let’s take a look at Amazon’s display advertising solutions.

1 What is Amazon’s Display Advertising Solution?

Amazon has two very different display advertising options. The first, which was discussed in the last post in this series, consists of product display ads. This ad type is part of Amazon’s pay-per-click (PPC) offerings, has limited reach and ad options, but is available to everyone who wants to advertise on Amazon.

The second option, and the main focus of this post, consists of Amazon display ads. These ads use specific audiences with custom creatives to target people on Amazon and Amazon-owned and third-party sites, apps, and devices. An advertiser can manage the ads themselves through the Amazon demand-side platform (DSP), or they can work with a team of experts.

2 Why Would an Advertiser Use Display Ads?

Just like any programmatic display strategy, an advertiser would use display ads on Amazon to show relevant ads to people who are in their target audience. The seemingly endless list of ad sizes, formats, and placements means that there is just as many options for creative customization, reaching consumers on all devices, both on and off Amazon. Couple that with the advanced audience options available, and almost anything becomes possible. An advertiser can reach current and new audiences at any stage in the search funnel:

  • Build awareness of a brand or product by using look-alike audiences based off of current customer information.
  • Get people when they are in the research phase through product or interest-based targeting.
  • Reengage with customers during their purchase decision using audience lists based on buy behaviors and what pages they’ve visited on and off Amazon.
  • Send customized messages to people who’ve already made a purchase encouraging them to become repeat customers.

3 Are There Any Limitations to Display Ads?

The main limitation with Amazon display ads is the price. Amazon requires a $35,000 budget for a campaign before they will let you have access to any of these features. The product display ads that are part of the sponsored ad solutions do not require any minimum spend amounts and may be a better fit for smaller advertisers or advertisers looking for a smaller test on Amazon.

4 How Can Advertisers Maximize the Value of Display Ads?

Think about your brand and what’s already on the plan for the year. Is there a big product launch or holiday push coming up? Are you noticing declining new customer sales? Is it time to reengage previous purchasers? Taking the time to identify what you really want to achieve with the display ads is the first step in maximizing the value of this ad format. Identify what the goal is, what the important metrics are, and how success will be measured.

Next, don’t rush the creative process. Have unique ads for each audience and goal, if there’s more than one. Understand that someone seeing an ad while they’re relaxing at home during the evening might respond differently than someone actively searching Amazon on their lunch break.

Finally, consider using display ads as a part of a larger tactic strategy. Display ads may not result in immediate direct sales, but do have an impact in other areas. Product searches and subsequent purchases typically go up once a display campaign has been launched. Visits to the brand website can also be expected to go up.

If you’re interested in Amazon display ads, but don’t know where to start or need assistance strategizing and managing them, please reach out to us at True Interactive.

Watch our blog for the final post in the series on Amazon video ads.

Image source: https://www.udemy.com/amazon-pay-per-click-advertising-ppc/

Advertiser Q&A: Amazon Sponsored Ads

Advertiser Q&A: Amazon Sponsored Ads

Amazon

Amazon is creeping up on Google and Facebook as an online advertising platform. According to eMarketer, Amazon will become the third largest online ad platform in the United States in 2018, generating $4.6 billion in ad revenue. Amazon’s online advertising market share is way behind Google’s and Facebook’s – but the trillion-dollar company is making strong moves to strengthen its services. In September, Amazon consolidated all its digital advertising services under one offering, Amazon Advertising, which provides the following products:

  • Sponsored ads: sponsored products and brands.
  • Display ads: reach audiences on Amazon sites, apps, devices and third-party sites.
  • Video ads: showcase brand messages on Amazon sites, devices and third-party sites.
  • Stores: create multipage brand stores within Amazon.
  • Measurement solutions: gauge advertising impact across Amazon and third-party sites
  • Amazon DSP: programmatic advertising solutions (formerly Amazon Advertising Platform).

These services have sparked a number of questions among advertisers, such as:

  • What exactly are these services?
  • How and why should an advertiser use them?
  • Do they have any limitations?
  • What’s the best way to maximize their value?

I’m going to answer those questions through a series of blog posts that focus on three products especially relevant to True Interactive’s clients: sponsored ads, display ads, and video ads. Today let’s take a closer look at sponsored ads.

1 What Exactly Are Sponsored Ads?

Sponsored ads are Amazon’s pay-per-click (PPC) advertising solution. They are available to sellers, venders, book venders, and Kindle Direct Publishing. Sponsored ads take a consumer directly to a product page or brand site within Amazon.

To reach customers, sponsored ads use keywords (either your own list or a list suggested by Amazon), products, and product categories for targeting. There are three types of sponsored ads:

  • Sponsored products.
  • Sponsored brands (previously headline search ads).
  • Product display ads.

2 How and Why Would an Advertiser Use Sponsored Ads?

Sponsored ads should be used when advertisers want to drive sales and awareness while maintaining more control over budgets. Since sponsored products and brands ads only incur costs if they’re clicked on, it’s easier to see the return on investment of this ad type. Amazon recommends using sponsored ads to showcase offers, clearance items, seasonal offerings, and unique items.

            How to Use Sponsored Products

Sponsored products are used to promote a single product and take the consumer directly to the product page. Additional creative such as images and text are not needed, making sponsored products the simplest ad to set up. Use keyword targeting to match products to a consumer’s search and show ads on the search results page or product detail page. 

            How to Use Sponsored Brands

Sponsored brands allow for multiple products or titles to be promoted together using a custom headline and logo. Consumers are taken to a product page if they click on a product, or to a designated landing page if they click on the image or ad text. Sponsored brands are good for driving awareness, in addition to sales. For example, advertisers can pair new or seasonal items with a related top seller in an ad to increase visibility in other product offerings. Or if a seller has multiple versions of the same product, say different versions of the same phone, using sponsored brand ads would showcase the variety available within a single ad.

            How to Use Product Display Ads

Product display ads use relevant products, product categories, and interests to target consumers and show image ads within product detail pages, reviews, and merchandise emails. These are a great ad to showcase complementary or competing products. This ad format is also a self-service option and is specific to the individual ASIN (Amazon Standard Identification Number) of a product. Think of product display ads as a conquesting campaign, or as a last chance way to capture interest away from another product or brand.

3 Are There Any Limitations to Sponsored Ads?

The keyword targeting can be somewhat limited for sponsored products and sponsored brands. Although Amazon uses the same match types as other PPC platforms, the keywords must be relevant to the metadata on the product page. So, for example, if you’re selling toys around the holidays and want to boost holiday sales, it’s unlikely having keywords around “Christmas Toys” will generate impressions of your ads unless the product page metadata contains those words. But if you’re selling a toy specific to the holiday, then your ad more than likely will show.

In addition, for product display ads, due to the competitive nature of the ad format, it may be harder to generate sales unless the product has a great offer or discount attached to it. Since product display ads are only visible after a consumer shows interest in a related product, the offer has to convince the consumer that the product they were originally interested in is not as good of a product as in the display ad.

4 How Can Advertisers Maximize the Value of Sponsored Ads?

To maximize the value of sponsored ads, spend time to really think through which products and offers would make the most sense on this platform. For example:

  • Putting up ads for a seller’s entire inventory all year round would probably not be a wise use of your money.
  • Pulsing the ads on and off during seasonal or clearance sales and using a promotion or discount would be a better way to generate sales and to raise awareness of your products or store.

Knowing about the competition on Amazon is another way to increase the value of sponsored ads. If you sell unique items that someone may not know how to look for, do a quick search on what related items are already for sale on Amazon. Using that information, you can target those products and categories so that your product ads show up when people search for those items.

Although you also want to give your campaigns time to collect enough data to see what works and doesn’t work, Amazon Advertising isn’t a “set it and forget it” platform. Things can change quickly, and someone else can emerge with better offers or newer products. Updating promotions and switching out products regularly gives you a better chance at figuring out what works best for your inventory.

If you’re interested in Amazon sponsored ads, but don’t know where to start or need assistance strategizing and managing them, please reach out to us at True Interactive.

Watch our blog for follow-up posts on Amazon display ads and video ads.

Understanding the Amazon Advertising Powerhouse

Understanding the Amazon Advertising Powerhouse

Marketing

Amazon is moving into advertising with breathtaking speed. In doing so, the company is solidifying its position as Google’s biggest advertising and search rival. In May of this year, Amazon stopped advertising on Google with the Product Listing Ads (PLAs). Shortly after that, Amazon announced it would begin testing a display ad format with select merchants that follows shoppers around the internet. And Amazon is reaping the benefits of its current advertising offerings, reporting more than $2 billion in advertising sales in Q1 2018.

As an advertising platform, Amazon will continue to grow. Now more than ever, it’s important for businesses to consider incorporating advertising on Amazon into your digital marketing game plan even if you don’t have products for sale on Amazon for the simple reason that Amazon has become such a popular platform for people to search for things to buy. But it’s not always easy to understand where to start. Here’s a quick overview of tools available to you to gain more visibility on Amazon:

Untangling Amazon Advertising Solutions

Amazon has collected its advertising services under Amazon Media Group (AMG), a premium solution for venders to create campaigns and run advertisements on Amazon. Underneath the AMG umbrella are Amazon Marketing Service (AMS) and Amazon Advertising Platform (AAP).

Amazon Marketing Services

AMS ad formats are based on a pay-per-click model. AMS consists of three main ad types:

  • Product Display: uses a display ad to promote a product, based on product or interest based-targeting.
  • Sponsored Products: keyword-based campaign promoting a single product.
  • Headline Search: promotes three or more products using a keyword campaign structure.

These ad formats are eligible to show on Amazon, either above, below, or alongside search results; in the product detail pages; reviews and other offer listing pages; and in Amazon-generated marketing emails. To see a more thorough breakdown of these PPC formats and placements, read True Interactive’s Tips on Incorporating Amazon into Your E-Commerce Strategy post.

            Amazon Advertising Platform

APP charges using a cost-per-thousand-impressions (CPM) model. For AAP, there are two options for advertisers:

  • Amazon Managed Service: Amazon manages display ads on an advertiser’s behalf.
  • ESS (Enterprise Self Service): A self-service portal allowing agencies to access Amazon’s Display and Remarketing features on the behalf of brands.

AAP uses the following ad types: desktop display, mobile banner, mobile interstitial, image and text, and in-stream videos. Advertisers can also include targeting layers such contextual, demographics, geographic, time of day and device.

Digging Deeper into Amazon Marketing Services and Amazon Advertising Platform

Amazon also has the ability to retarget based on either a pixel placed on the brand site, or purchase and browsing behavior based on product, brand, and similar product lists. The ads will show within Amazon; on Amazon-owned sites (IMDB and audible, websites that are part of the AMG ad network); and on the home or lock screens of the Kindle, Fire Table and Fire TV.

For people familiar with Google advertising solutions, think of AMS as search ads and AAP as ads typically run on the GDN or programmatic ad networks. This distinction is very important when it comes to forming an Amazon advertising strategy. Your approach depends on what goal you are trying to achieve and where in the search funnel you would like to hit consumers:

  • For brand awareness, using the advertising network and placements available in AAP would be a good way to reach new customers.
  • If an advertiser that wants to capture people’s interest in the consideration, purchase intent, and purchase experience phases, a combination of AAP and AMS ad formats could be deployed, bringing potential new customers to a purchase decision.
  • And in that final stage, the actual purchase and product display ads through AMS are a good way to bring people back to the products they’ve show interest in before to make that final purchase.

If you’re interested in advertising on Amazon, but need help deciding where or how to begin, contact us at True Interactive, where we can guide you through the entire process.

How to Use Your Google AdWords Account to Compete with Amazon

How to Use Your Google AdWords Account to Compete with Amazon

Marketing

Amazon is so popular for product searches that retailers who rely on Google AdWords to drive online sales may be wondering how to compete with the $136 billion giant. For some, the answer is to start selling on Amazon themselves. For others, advertising on Amazon might not be the right fit. Although many people search and shop on Amazon exclusively, many others continue to search first on Google. And comparison shoppers are loyal to no site. In a previous blog post, I discussed why Amazon devotees head there first: they like the large variety of products, reviews, the amount of deals, and free shipping opportunities. With an understanding of why people like Amazon, a retailer can use different functionalities in AdWords to attract similarly minded customers.

Google Shopping Ads

Reasons people like Amazon include reading customer ratings and reviews and learning about products and promotions. Using Google Shopping ads is a great way retailers can capitalize on those reasons.

According to a 2016 PowerReviews study, of the people who start their product searches on Google, 52 percent said they’d click on Google Shopping ads next, followed by Amazon or a retailer site, at 41 percent each. To use Google Shopping ads, a business should link its Merchant Center to AdWords. Once linked, the product data dictates how and where ads will show. Management of the shopping ads is done in AdWords, where organization and promotion of items is done using ad groups or campaigns. Unique ads do not need to be created manually. Rather, Google pulls information such as an image, title, price, and store or business name from the feed into an ad. In the new AdWords experience, advertisers can even use Showcase Shopping Ads, which is an ad format that shares information about several related products.

Shopping ads come with their own set of enhancements, which are similar to ad extensions for text ads. Opting into these enhancements is where there’s the opportunity to showcase many of the features that make Amazon attractive to online shoppers. Currently, these are the available enhancements:

  • “Special Offers” with Merchant Promotions – uses a promotions data feed, promotions shown as “special offer” links alongside the Product Ads.
  • Product Ratings – provide critical information to shoppers using a 5-star rating system and count of total reviews. Reviews are specific to the individual products and not reflective of the store or business and they are based on aggregated ratings from multiple sources.
  • Google Customer Reviews Badge – A badge available to those who’ve opted into the Google Customer Reviews service. The badge associates the retailer website with the Google brand, can be placed on any page of the site, and displays a seller rating using the 5-star system.
  • Seller Ratings – A score that can appear on shopping ads. An automated enhancement that utilizes consumer reviews on post-purchase feedback to generate an “XX% Positive” Rating.

Ad Extensions

Ad extensions are another great way to share information about a company or products, and also make text ads stand out against the competitors in the search engine results. Using them is also a way to showcase detailed product information, which people look for while shopping on Amazon. In addition to the basic extensions like sitelinks and callout extensions, there are also a few other extensions every retailer should be using:

  • Structured Snippets – show a preview of the advertised products before a searchers clicks to the website, using a predefined header and the retailer’s choice of supporting details. Some of the relevant headers for retail are Brands, Models, Styles, and Types.
  • Price Extensions – display up to eight cards that people can view to see different products or brands and prices. From the price menu, people can click directly to their area of interest. This feature includes a header and small description, similar to sitelinks. Pricing qualifiers include from, up to, and average, allowing for flexibility in the offering.
  • Promotion Extensions – highlight sales and promotions, catching the eye of those people who are looking for the best deals. They include the option to emphasize holidays, special events, coupons and offer codes. Scheduling guarantees the promotions will only show up during the designated time frame.
  • Review Extensions – share positive third-party reviews or awards with potential customers, giving them a good impression of the business even before they click on the ads.
  • Seller Ratings Extensions – an automated extension that uses the 5-star rating system. Google displays a rating after gathering enough information from reputable sources that aggregate business reviews. Ratings normally reflect the overall consumer experience with the business and show if a business has 150 unique reviews with a rating of 3.5 or better.

Custom Ads for Specific Audience Lists

Audience lists that are layered into search campaigns bring another opportunity to capture competition from Amazon. With IF Functions, it’s possible to write customized ads for different audience lists. For example, if an advertiser wanted to use a text ad and highlight a percent off offer on all items, they could choose to have a separate offer for people who haven’t been to the website before. Using the IF Function for audiences, the current customer list could be shown a 20% off text ad while people not on the audience lists could be shown 30% off. Or if the products being sold are considered commodities and buyers commonly jump around from site to site looking for the best offer, the opposite can be done and current customers can receive the larger discount.

By using Google Shopping Ads, Ad Extensions for text ads, or writing custom ads using IF Functions for specific audience lists, a retailer can provide a shopping experience that can appeal to an Amazon shopper. And regardless of where a searcher starts out, most people want the same thing: a good customer experience. Showcasing as much relevant information as possible before someone clicks on an ad helps create a good customer experience because it tells the searcher what to expect and if the product matches their need. Highlighting the amount and type of products available, relevant reviews, discounts, savings, and promotions encourages people to choose your products even before getting to your website. If you need help setting these features up, contact us at True Interactive.

Tips for Incorporating Amazon into Your E-Commerce Strategy

Tips for Incorporating Amazon into Your E-Commerce Strategy

Marketing

Sears gave its investors reason to smile July 20 when the iconic and embattled brand announced that it would sell Kenmore appliances on Amazon. The value of the company’s stock rose 19 percent in the wake of the announcement. It’s easy to see why: as I discussed in a recent blog post, many consumers start searching for products on Amazon first. Sometimes they may visit a search engine after perusing Amazon. In other cases they might stay on Amazon and never see products sold by advertisers who rely solely on paid and organic search to attract traffic to their sites. If you are experiencing flat or declining online sales, now may be the time to incorporate Amazon into your e-commerce strategy.

According to Amazon, there are more than 95 million unique visitors a month on the site. Listing your products there gives you ample opportunity to attract new customers. Selling on Amazon also allows you to capitalize on Amazon’s brand. Amazon is a well-known and trusted brand — in fact, Amazon ranked Number 1 in reputation for 2016 according to a Nielson survey. People trust Amazon to have good products and sellers. Some of that trust will automatically be given to you when you sell your products on Amazon.

Getting Started

The first step in competing with other companies selling products on Amazon is to list your products there. A Professional Account is for those who plan on selling 40 or more items a month, and costs $39 per month in addition to some other selling fees. Once you have an account, you can list your products and start selling quickly. The set-up process is easy, and Amazon has many resources to help answer any set up or implementation questions.

Advertising on Amazon

Once you are all set up with a Professional Account, you can start advertising on Amazon. Amazon has an advertising platform that utilizes many similar features as Google AdWords, including keyword-, product-, and interest-based targeting methods. Running additional advertisements on Amazon puts you in front of more new customers and differentiates you from other sellers not using these features. As a seller, you can use Sponsored Products, Headline Search Ads, or Product Display Ads to increase your product sales and brand awareness. Here is a breakdown of how the ad types are different from each other:

Sponsored Products

  • Promotes a single product.
  • Keyword-based campaign structure using broad, phrase, and exact terms.
  • Ads drive shoppers to the product detail page.
  • Sponsored Products show above, alongside, and below the search results and product detail pages.
  • Utilizes daily budgets similar Google AdWords.

Headline Search Ads

  • Promotes three or more products.
  • Keyword-based campaign structure.
  • Ads drive to a brand or custom landing page on Amazon.
  • Headline Search Ads appear above search results.
  • Utilizes daily budgets and “All-campaign” budgets.

Product Display Ads

  • Promotes a product through a display ad.
  • Product or interest-based targeting options.
  • Ads drive to the product detail page.
  • Ads show on the product detail, search results, review, and offer listing pages as well as Amazon-generated marketing emails.
  • Costs based on a cost-per-click model.

All these ad types are similar to ad options on Google AdWords. So if you are already doing search or display on Google, you should have an idea of what keywords or interest targeting works best for your products. Taking your top-performing, product-related keywords from AdWords and trying them out on Amazon would be a good way to gauge performance on the Sponsored Products or Headline Search Ads. While the costs across the platforms will be different, Amazon lists many case studies where sales and revenue have increased substantially.

Product Fulfillment

Listing on Amazon gives you access to the Fulfillment by Amazon (FBA) services. With this service, you can store your products in Amazon’s fulfilment centers. Amazon takes care of picking the product out, packing, shipping, and handling any customer service requests. Using FBA opens up access to Amazon Prime customers, which make up nearly 60 percent of Amazon users. Doing so also places the work of managing orders to a specialized team of people, freeing up your time and allowing you to focus on other business needs.

While selling products and getting advertising set up on any new platform can seem overwhelming, it’s hard to ignore the benefits that come with adding Amazon into your online e-commerce strategy. Being on Amazon places your products in front of more customers on a trusted website. And because many people who shop on Amazon stay on Amazon, you also are less likely to compete against yourself in other channels.

If selling and advertising on Amazon sounds like something you would like to try out, we at True Interactive would love to help you manage your seller account and advertisements. Contact us to learn more.

Image source: Waste360.com

Amazon Takes a Bite Out of Search

Amazon Takes a Bite Out of Search

Search

If you haven’t incorporated Amazon into your search strategy, it’s time to reconsider your strategy. Over the last three years, Amazon has surpassed search engines as the place to start shopping online for products. According to a PowerReviews survey from 2016, 38 percent of people start their product searches on Amazon versus 35 percent who start on Google. A more recent survey from financial services firm Raymond James states a larger variance, with 52 percent starting at Amazon and only 26 percent starting on a search engine. No wonder Eric Schmidt of Google famously called out Amazon as its biggest search competitor in 2014.

I was surprised the first time I heard this information about search behavior on Amazon because Googling things has become second nature to me as a search marketing professional. Then I thought of my experiences as a new mom with an Amazon Prime account, and the numbers started to make more sense. Every time my son suddenly grows, or we’re almost out of some baby toiletries, or I don’t feel like making that third (or fourth) trip to the store, I go directly to Amazon. I can’t remember the last time I started shopping for a product on Google first.

Why are more people heading directly to Amazon? As it turns out, the main reasons most people start their searches on Amazon are:

  • The large variety of products.
  • Free shipping.
  • Better deals.
  • The number of product reviews available.

Another factor to consider is how many people who have an Amazon Prime account. According to Consumer Intelligence Research Partners, 60 percent of Amazon customers are Prime members, and Prime members make up about 80 million people from the United States. Why would a person paying for a Prime account look somewhere other than Amazon first when online shopping?

So what does this information mean for companies that rely on paid search and SEO as the main drivers of online sales? Shoppers who start their search on Amazon may very well stay on Amazon if they find what they want when they want it.  For those shoppers, it does not matter how greatly organized and efficient a brand’s AdWords account is or how high the organic results are. People who start a search on Amazon and stay on Amazon will never see the ads and are very unlikely to purchase products from these companies. Brands that rely on e-commerce should continue to advertise on search engines. But it is also important for advertisers to take a serious look at their marketing strategy to see if incorporating Amazon into the mix makes sense.

Need help in figuring out if adding Amazon to your plan is the right strategy for you? True Interactive can help. Contact us for more information.