the rise and conquer of amazon ads
Updated: Jul 23, 2019
It’s no secret that powerhouse Amazon is a leader in the eCommerce market, dominating over search engines such as Google and Bing. With over 300 million consumers using Amazon globally, it has rapidly become the go to product search engine. A survey found that almost 90 per cent of UK shoppers use Amazon, with a further study reporting that 52 per cent typically use Amazon to start their search when looking to purchase a product online. These statistics imply that Amazon Advertising is a tactic that eCommerce businesses should consider as part of their PPC strategy to get ahead of the competition.
who should be using amazon ads?
Even if you’re not an Amazon shopper, your customers most likely will be. According to research conducted by Mintel, 86 per cent of people in the UK are Amazon users, with 70 per cent of customers shopping on the site at least once a month. The eCommerce platform is beginning to overtake Google in the number of users who begin their product searches there. Potential customers are using Amazon to read extensive customer reviews, ask questions and view product photos, all in one place.
According to Jumpshot, more than two-thirds of product clicks happen on the first page of the search results with one-third occurring on the first two rows displayed. So, the question isn’t who should be using Amazon ads, it’s why aren’t you using Amazon ads? As an eCommerce brand, if your products can be found across Google Shopping, Facebook and Instagram, then the time has come to turn to Amazon for ad placement and get more eyes on your products ultimately generating more business and higher returns.
what do amazon ads mean to your business?
Amazon is an influential growth channel and one that businesses should utilise to their potential. In the case of limited media budgets, it can be a welcome alternative to the traditional search engine PPC or Shopping campaigns. Shopping on Amazon works similarly to Google, making it a breeze for users. Brands who want to gain more visibility for their products can pay for higher ad positions, targeting keywords as you would on Google Ads, the advertiser is only charged when a customer clicks on their product. Just as Google captures search data and Facebook interprets interest levels, Amazon captures shopper data, understanding what actions a user took on their website and whether they converted through your Amazon Shop.
This direct sales data allows businesses to track a clearer ROI, making the platform even more compelling for brands. Companies using Amazon ads should consider conversion rates an important metric. A study conducted by Milward Brown Digital quotes Amazon Prime’s conversion rate to be a staggering 74%, and for non-Prime members, the conversion rate is still four times the average online retailers conversion rate at 13%.
what are the types of amazon ads available? There are three types of Amazon Ads, these are Sponsored Product Ads, Headline Search Ads and Product Display Ads, each presenting your business with the opportunity to increase how many potential customers see your products.
sponsored product ads
When a user searches on Amazon, paid ads appear as a top result and have “sponsored” displayed next to them. Similar to Google Ads, Amazon Sponsored Products are based on keywords and search query auctions. These ads show above Amazon’s organic search results.
sponsored brands (formerly headline search ad)
The ads which fall directly above the organic search results are called ‘Sponsored Brands’. These ads are targeted by keywords and operate on a cost-per-click basis, requiring a higher minimum budget spend than Sponsored Product Ads. They have multiple URL options allowing businesses to link to their preferred destination whether that’s your storefront page or a specific product.
product display ads
Product Display Ads appear on individual product pages either to the side of the displayed product or as the user scrolls down the page. These ads are set up using a targeted product or interest as opposed to a specific keyword.
There’s no question that Amazon is an online shopping marvel of the 21st century. According to Mintel, there are 15 million UK shoppers using Amazon so for eCommerce businesses, advertising on this platform is a no brainer. Utilising Amazon Ads helps you find and engage these customers at every step of their journey.
Our trusted experts have the skills and experience to help propel your products and reach new customers with Amazon. If you’re interested in finding out more about PPC and Amazon Ads for your business, contact the equation team.