What is Amazon Sponsored Products?
Amazon Sponsored Products are PPC (pay per click) ads that Amazon shows a customer when they search for a product.
You can see (PPC) ads all across the internet. For many Google searches, “sponsored” links come up first. Here’s how it works: In the instant between hitting enter and the search results coming up, Google held an auction between all companies who want their link to appear for the search term you entered. The top three (give or take) are shown. If you click on a sponsored link, that company pays Google the winning bid.
Amazon Sponsored Products is the same thing, just on Amazon.
Sponsored Products ads show up in several places: the top of the page, on the side bar, in the middle of the page, and on other product’s detail pages. This is great exposure to people who are searching on your keywords.
We’re going to teach you how to convince them to buy your product.
Why Are Ads Important?
If you’ve ever launched a product and painstakingly climbed from page 10… to page 5… to page 3… 2…1... you know how valuable each spot is for generating new sales! Gaining traction with a new product is extremely difficult without ads. You can’t get reviews if no one sees your product down on page 18. But if you don’t get sales, you won’t move up. It’s a catch-22.
Products in the top few spots can enjoy over 10x the daily sales compared to the top product on page 2.
What if you could show up on page 1 on day 1? That’s what Sponsored Products lets you do.
You want lots of traffic! As an Amazon seller, your main goal is for Amazon customers to buy your product. Sales happen from the detail page, so your task is to get customers there. Let’s look at the ways you can get traffic.
Traffic falls into two main categories: from within Amazon and from outside of Amazon.
- Sponsored Products (our focus for this Guide)
- Organic traffic (the customer searched and you showed up in the results)
- Amazon Marketing Services (an advertising solution for Amazon Vendors)
- Listings on other detail pages under the “People Also Bought” section
- “Related to items you’ve viewed” when the customer goes to amazon.com
- Lists that Amazon curates including featured product lists, best seller lists, new and noteworthy lists, etc.
From Within Amazon:
- Search engine results
- Non-Amazon ads like Google, Facebook, Bing ads
- Your own website
- Online magazines
- Social media posts
From Outside Amazon:
If all you do is make a listing on Amazon then you’ll get a tiny bit of organic traffic, you might show up in Google results, and if you’re super lucky you’ll get on a list Amazon puts together. Not the greatest plan, right?
Sponsored Products is an important way for potential customers to land on your page and buy. You might call it a no brainer. But you need to do it right, and that’s why we’re here to help.
Launching Products is Easier with Amazon Sponsored Products
As we mentioned earlier, launching a new product on Amazon is difficult because your product will only rank in the search results after you make sales, but sales are tough if the product doesn’t rank.
Fortunately in this case, you can buy a seat at the top. In five minutes you can set up your Sponsored Products campaign and get shown to hundreds of thousands of Amazon customers per day. That’s… a lot.
Once you prove to Amazon that customers want your product, you’ll see improvements in your organic ranking and sales will follow. Remember, Amazon just wants happy customers so if your product sells, they will reward it with ranking.
This is why the quality of your listing is so important. Quality listing = high rankings that last. You will have to pay more for ads during your launch but it will pay off later in organic sales.
To illustrate: We recently helped launched a brand new product into a competitive market. With a strong S ponsored Products campaign, we moved up to Page 2 within one week and Page 1 within 16 days for one of our main keywords. We’re still on Page 2. This would never had worked without Sponsored Products.
Ads are not just for new products! Bumping up your PPC investment also works for products that have been around a while but are having trouble getting up to the top 2-3 pages.
Ready to dive in? In the next chapter you’ll learn all the basics about Sponsored Product ads.