Kickstart Your Journey with Amazon Sponsored Ads: A Beginner’s Blueprint ~ Data On

Discover how to use Amazon’s ad platform effectively to grow your brand.

Growing your Brand on Amazon requires a multi-pronged advertising approach that engages shoppers at each stage of their non-linear journey.

Leveraging a strategic mix of Amazon Advertising Sponsored Ad solutions can drive your products' awareness, consideration, purchase, and loyalty. This guide explains how to choose the right tactics and measure success.

1. Setting the Stage: Defining Goals for Amazon Ad Success

A strong advertising strategy starts with well-defined goals. On Amazon, your objectives will likely include:

Capturing Attention: Initiating Brand Awareness

Awareness campaigns aim to generate interest in your Brand and products among new audiences. Success metrics include:

Key Awareness Campaign Metrics

Impressions: How many times your ad was displayed
Viewable Impressions: Impressions displayed on screen for over one second

Key Awareness Brand Metrics

Branded Searches: Searches for your brand terms that didn’t lead to engagement. See Brand Analytics provides powerful insights to optimize your advertising strategy.

Example: A dog food brand runs a Sponsored Display to engage relevant lifestyle audiences and then measures impressions to gauge brand exposure.

Engaging Potential Customers: Deepening Consideration

Consideration campaigns entice browsers to explore your offerings more deeply.

Key Consideration Campaign Metrics

Clicks: Number of ad clicks
Click-Thru Rate: Ratio of clicks to impressions
Detail Page Views: Product page views, including organic traffic

Key Consideration Brand Metrics

From your Brand Metrics, measure changes in:

Detail Page View Only
Brand Searches and Detail Page Views
Add to Cart

Example: Snack brand runs Sponsored Brand keyword-targeted campaigns promoting products to category browsers. They measure clicks and detail page views.

Sealing the Deal: Driving Purchases on Amazon

Purchase campaigns aim to convert interested shoppers. Focus on:

Key Purchase Campaign Metrics

Total Sales: Revenue generated
ROAS: Total sales divided by ad spend

Key Purchase Brand Metrics

Brand Customers: Unique purchasers
Top 10% Customers: Your most loyal buyers

Example: A hair care brand runs Sponsored Products, retargeting shoppers who view products but don’t buy. They optimize based on sales and ROAS. See Data-Driven Amazon TACoS Insights.

Cultivating Brand Loyalty Through Targeted Ads

Loyalty campaigns nurture repeat purchases and brand advocacy via:

Key Loyalty Metrics

Subscribe & Save signups
Brand Follows

Example: A CPG brand runs posts with brand-follow prompts that offer deals and exclusive content. They measure engagement and follower growth.

For metrics and reporting opportunities, see Automating your Amazon advertising data and The Best Amazon Advertising Tools For Sellers & Vendors.

Decoding the Shopper’s Path: A Guide to Non-Linear Journeys

Shoppers interact with brands in various sequences as they move between stages.

Reaching shoppers across this complex flow requires showing up where they are with relevant messaging. Awareness and consideration touchpoints are especially crucial to growing your audience.

Selecting Optimal Ad Solutions for Maximum Impact

Amazon’s suite of ad solutions supports your objectives:

Stores: A dedicated brand destination to immerse shoppers in your story and products
Sponsored Brands: Keyword-targeted ads promoting your Brand and products in search results
Sponsored Display: Product and interest-targeted display ads on and off Amazon
Sponsored Products: Keyword and product-targeted ads in shopping results
Posts: Shoppable brand-building content that appears in feeds and product pages
Brand Follow: Lets shoppers follow your Brand and get notifications about deals, products, and Posts
Brand Metrics: Measurement tool showing how your Brand stacks up in your category

How to select and optimize keywords for your ad campaigns

Keyword targeting matches your ads to shopping queries shoppers use when searching on Amazon.

Automatic vs Manual Targeting

Automatic targeting for Sponsored Products allows Amazon to select keywords for you based on product information. Manual targeting for sponsored products and brands lets you choose keywords and bids.

When to Use Automatic Targeting

Launching a new campaign
Wanting to leverage Amazon algorithms to find new opportunities

When to Use Manual Targeting

Have proven keywords to allocate more aggressive bids
Want control over keyword-level optimizations

Keyword Mastery: Targeting the Right Terms in Amazon Sponsored Ads

Match types refine how shopping queries can trigger your keyword-targeted ads:

Broad Match: Queries can contain keywords in any order with other terms. Use for discovering opportunities.
Phrase Match: Queries must contain the exact keyword or close variants in the same order but can include other terms before/after. Use for more relevant traffic.
Exact Match: Queries must match the keyword exactly or very closely with no additional terms. Use for most relevant traffic.
Negative Match: Queries matching the negative keyword exactly or closely will not show an ad. Use this to avoid irrelevant traffic and wasted spending.

Choosing Keywords

Broad Match Example: A beverage brand used a broad match for the “healthy drink” keyword in a new product campaign, uncovering relevant longtail variations like “fruit drink healthy” and “fizzy drink healthy.” This drove sales and revealed new marketing angles.
Negative Match Example: An eyeglass brand selling only 50 TVs added “60-inch TV” as a negative phrase match to avoid impressions and clicks from shoppers wanting larger sizes it doesn’t carry.

Targeting Tactics: How to Promote Your Products Effectively on Amazon

Product targeting lets you promote your products on related product detail pages and category-level shopping results.

Targeting by Category: Choose relevant categories to show your ads. Then, further refined by Brand, price range, star rating, or other criteria shoppers use. Ex: A running shoes brand could target the “men’s running shoes” category, then refine it to similar brands and price points.
Targeting by ASIN: Select individual products to show your ad by searching for or uploading ASINs. Choose complementary or competitive products to engage high-potential audiences. Ex: The shoe brand could target product pages of competing or accessory product ASINs.
Using Negative Product Targeting: Keep your ads from showing on specific product pages or categories that need to meet performance goals. Ex: The shoe brand could exclude unrelated products in targeted categories, like shoe horns.

Implementing Product Targeting: A Step-by-Step Guide for Amazon Sellers

When creating your campaign, select “Product Targeting” rather than “Keyword Targeting.” Then, follow the prompts to choose categories and ASINs.

Here is an example of an electronics brand selling a new digital camera;

1. Target broad “Electronics” and “Camera & Photo” categories to reach engaged shoppers

2. Narrow targeting to the “Digital Cameras” sub-category

3. Exclude irrelevant products like camera cases with negative ASIN targeting

Strategic Bidding: Optimizing Your Amazon Ad Spend for Best Results

Fine-tuning your keyword and product targeting is just one piece of the puzzle. To get the most out of your sponsored ads, you also need to dial in your bidding and budgeting approach.

Combining Keyword and Product Targeting

We recommend using keyword and product targeting together for Sponsored Products to maximize your reach and relevance. Sellers can use both in the same campaign but in different ad groups. Vendors are limited to one targeting type per campaign. Don’t worry about bidding against yourself — the system accounts for this.

Precision Bidding: How to Adjust Your Bids for Optimal Ad Placement

The “Adjust Bids by Placement” feature for Sponsored Products lets you bid more aggressively for specific ad placements:

Top of Search (First Page): The premium placement at the top of the first search results page. Use a higher bid adjustment (e.g., +50–100%) to win this spot.
Product Pages: Your ads on product detail pages and add-to-cart pages. Modest bid adjustment (e.g., +25%) can help you stay competitive.
Rest of Search: All other search result placements. Your base bid applies here.

Your bid adjustments stack on top of your base bid and bidding strategy. For example, a $1.00 base bid with 50% top-of-search adjustment and dynamic bidding down would only have a $1.50 max bid for top-of-search but may reduce bids for other placements based on conversion likelihood.

Selecting Effective Bidding Strategies for Amazon Ads

Sponsored Products offers dynamic bidding and fixed bidding options:

Dynamic Bids — Down Only: Amazon may reduce your bid for placements less likely to convert, never exceeding your base bid.
Dynamic Bids — Up and Down: Amazon may increase your bid to 100% for top-converting placements and reduce it for low-converting placements.
Fixed Bids: Your exact bid is used regardless of placement.

If your goal is to drive volume efficiently, dynamic bidding can help stretch your budget further. To focus on specific placements, use fixed bids with bid adjustments.

Sponsored brand ads have two bidding choices:

Automated Bidding: Allows Amazon to automatically adjust bids below your max bid to optimize for your target ACoS.
Custom Bid Adjustments: You can increase or decrease bids up to 99% for placements below the top of the search. Your base bid is used to top the search.

Budgeting for Success: Managing Your Amazon Ad Budget

Set your campaign budgets high enough to keep your ads showing throughout the day. If you’re consistently hitting your daily budget early, raise it by 10–20% until you’re no longer limited by budget to maximize visibility.

By combining keyword and product targeting, choosing the right bidding strategies, and setting competitive bids and budgets, you can ensure your sponsored ads work as hard as possible to grow your Brand on Amazon. Monitor performance and adjust as needed to hit your brand and efficiency goals.

Preparing Your Products for the Spotlight: Retail Readiness

Ensuring your products are retail-ready before launching any Amazon advertising campaign is critical. Retail readiness means your product detail pages include all the information a customer needs to make a purchase, such as:

Clear, high-quality images
Descriptive title and bullet points
Relevant keywords in the listing copy
Competitive price
Ample inventory
Product reviews

The Importance of Retail Readiness: Ensuring Your Products Stand Out

Understanding the non-linear shopper journey is key to effective advertising. Reaching shoppers across this complex flow requires showing up where they are with relevant messaging. Awareness and consideration touchpoints are especially crucial to growing your audience.

Driving shoppers to an incomplete or uncompelling product page is a fast way to save ad spend. Retail-ready pages ensure potential customers can easily find the information they need to convert.

Amazon customers rely heavily on product content when making purchase decisions online. A detail page is the digital equivalent of your in-store packaging and salesperson. It must answer critical questions, overcome objections, and convince shoppers yours is the best product for them.

Additionally, retail readiness impacts your ad performance. Amazon’s algorithms consider your click-through rates, detail page views, and conversion rates in determining your ad placements. Relevant, engaging pages with strong sales history get more impression share.

Deciphering Amazon’s Retail Terms: A Quick Guide

Let’s review a few key terms related to retail readiness on Amazon:

Product Detail Page: This is the page on Amazon where customers land after clicking your ad. It contains all product information, including titles, images, bullet points, descriptions, prices, and reviews.
ASIN: Amazon Standard Identification Number, Amazon’s unique SKU for each product variation. Each ASIN has its detail page. Variations of a product like size and color are called “child ASINs” and roll up to a “parent ASIN.”
Featured Offer: The purchase offer featured on a product detail page is determined by price, shipping speed, and seller rating. Customers who click “Add to Cart” or “Buy Now” purchase from the featured offer by default.

The Power of Product Detail Pages: Why They Matter

Mastering the art of product detail page optimization is essential for any online retailer. By focusing on clarity, interactivity, and customer engagement, brands can significantly enhance their online presence and sales potential.

A well-optimized product detail page enhances user experience and serves as crucial virtual shelf space for your Brand. See Amazon Sellers and Vendors: Building Brand Loyalty for more on creating compelling product pages.

Here’s how to optimize your product pages for visibility and conversion.

The Significance of Product Detail Pages

A product detail page is where your customers decide to purchase. It acts as the point of sale online, much like a physical checkout counter. This page must provide essential product information and facilitate a smooth and convincing purchase process. It is a brand’s opportunity to differentiate itself by clearly and attractively presenting its products.

Key Components of a Product Detail Page

To mimic the effectiveness of in-store merchandising, every detail on the page should be thoughtfully curated. Here are the main elements to focus on:

Title and Description: These should be clear and concise, providing all necessary details, such as size, color, and compatibility.
Images and Videos: Using high-quality images and videos that accurately represent the product is crucial. Include multiple views and a ‘what’s in the box’ image to reassure customers of their purchase.
Customer Reviews and Ratings: To build trust and encourage sales, aim for a high number of reviews and a rating of at least 3.5 stars.
Inventory and Pricing: Ensure your products are competitively priced in stock to prevent cart abandonment.

Assessing Your Retail Readiness

To check if your products are retail-ready, evaluate your detail pages:

Do your titles, bullets, and descriptions include relevant search keywords?
Are your images clear, informative, and high quality?
Have you filled out all attributes completely with accurate, helpful information?
Are you priced competitively after considering shipping?
Do you have enough inventory in stock?
Are you winning the featured offer regularly?
Do you have product reviews and a star rating?

Optimizing for Retail Readiness

If your pages don’t meet retail readiness criteria, prioritize the following actions:

Upgrade your image quality and add more relevant photos/videos
Revise your product title and bullets to include top keywords
Expand your product description, answering key customer questions
Review pricing — can you offer a more competitive price or shipping options?
Increase your available inventory
Encourage reviews via product inserts or follow-up emails

Remember, your product detail page is your best sales tool on Amazon. Optimizing it will result in higher conversion rates, better ad performance, and, ultimately, more sales. By ensuring retail readiness, you set your sponsored ads campaigns up for success before they even begin.

Optimizing Product Pages for Better Performance

Ensure high-resolution images that meet platform guidelines, such as a pure white background and product filling 80–100% of the image frame.
Include detailed, concise product descriptions that highlight key features.

Enhancing Product Visibility

Use A+ content for a richer presentation, including videos and comparison charts.
For sellers enrolled in Amazon’s Brand Registry, utilize Enhanced Brand Content (EBC) for added customization and branding.

Leveraging Promotions

Implement promotional strategies such as Lightning Deals or Subscribe & Save to boost visibility and encourage purchases.
Combine promotions with Amazon PPC campaigns to drive significant traffic to your product pages.

Each element — from compelling visuals to strategic promotions — is crucial in converting potential buyers into loyal customers. Creating and optimizing each product page meticulously is essential for success in digital retail environments.

Leveraging Brand Metrics to Uncover Growth Opportunities

Ads and Brand Metrics help you benchmark your performance against competitors and identify areas for improvement.

Assessing Performance vs. Competitors

See how your Brand compares in key metrics like awareness, consideration, and conversion. Look for areas where you lag to focus on.

Measuring Return on Engagement

Brand Metrics shows the estimated ROI from shoppers engaging with your Brand over the past 12 months. Use this to gauge the quality of your audiences.

Making Strategic Campaign Decisions

Based on your goals and insights, craft campaigns to move shoppers down the funnel:

Awareness Strategies: Introduce your Brand using Sponsored Brands and Sponsored Display. Lifestyle imagery and category keywords help attract relevant new audiences.
Consideration Strategies: In sponsored products and store content, feature specific product benefits and unique selling points. Use detailed page traffic and purchase rate to see what resonates.
Purchase Strategies: With sponsored displays, retarget high-intent audiences like past brand shoppers, product viewers, and competitors’ customers. Promote seasonal deals and best sellers.

Becoming a Data-Driven Advertiser on Amazon

Sponsored ads are essential tools for growing your business on Amazon. By aligning your tactics with your objectives, engaging shoppers across the journey, and leveraging data, you can craft campaigns that build your Brand and bottom line.

Maximizing your campaigns requires timely, unified reporting to surface trends and optimization opportunities, especially when looking at off-Amazon performance. For example, using Amazon Attribution to understand how your non-Amazon marketing tactics contribute to shopping engagement and sales. Attribution insights can help you optimize campaigns to drive more efficient growth. See Why Amazon Attribution reporting data supercharges insights.

Challenges of Manual Reporting: Navigating the Data Jungle

Accessing your campaign and brand data often requires logging in to Seller Central or Vendor Central to manually download spreadsheets and stitch them together. This is tedious and delays insights.

Advantages of Automated Reporting: Streamlining Your Amazon Ad Insights

Connecting your Amazon data with an automated solution like Openbridge enables you to automate the metrics flow to a dashboard or data warehouse. Unifying data speeds up time to insight and eases reporting.

Additional Amazon Advertising Resources

To dive deeper into Amazon advertising strategies, reporting, and optimization best practices, check out these additional resources:

Whether you’re just starting with Amazon advertising or looking to take your sponsored ads strategy to the next level, it’s key to have a solid foundation in the available solutions, targeting options, retail readiness best practices, and reporting capabilities.

Combining the right advertising tactics with an in-depth understanding of your shoppers and a data-driven optimization approach can unlock the full potential of Amazon’s powerful sponsored ads platform to grow awareness, consideration, conversion, and loyalty for your brand. Explore the linked resources to expand your Amazon advertising expertise.

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Kickstart Your Journey with Amazon Sponsored Ads: A Beginner’s Blueprint was originally published in Openbridge on Medium, where people are continuing the conversation by highlighting and responding to this story.

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Wednesday, July 3, 2024