Introduction to Sponsored Products

Sponsored Products are one of the easiest and most impactful ways for brands to boost their search visibility and grow sales on the Amazon platform. These product advertisements are pay-per-click (PPC) ads that drive shoppers to a brand’s product detail page. They promote products as consumers commence a search on the Amazon platform and can appear on product pages or in various locations on the Search Engine Results Page (SERP) for specific terms.

 

Why Should I Use Sponsored Products?

Sponsored Products can be leveraged for a variety of business needs, whether it’s for a household name or a small online business. They can be used to raise awareness for new products or to boost additional sales for best sellers. Furthermore, they can be useful in spreading awareness for seasonal items or products on sale/clearance. This form of advertising is effective because it displays ads at the exact moment when shoppers are looking for relevant products.

Sponsored Products are also a great way to test the waters of online advertising. Not requiring copy or images to accompany the advertisements, they can go live with ease. As long as your product detail page is up and running, Amazon ads require little additional effort. 

 

How Much Do Sponsored Products Cost?

CPC advertising displays ads at no charge, and you only pay when a customer actually clicks on the Sponsored Product. Ad impressions are completely free of charge. In planning for these advertisements, all you need to do is establish the maximum amount that you’re willing to pay whenever a shopper clicks on the ad. As with all online advertising, the higher the bid, the more likely that your ad will be shown over another. You can measure the success of your advertising campaigns by looking at metrics such as TACoS, ACoS, and RoAS.

 

Who Can Use Sponsored Products?

Sponsored Products can be displayed in all categories that are presently open to advertising, listed below. The products must also not be used, refurbished, or explicit in nature.

Amazon Qualified Categories

 

How to Build Your Campaign

In order to begin building the most successful campaign for your business, you first need to establish your business goals. What exactly do you want your advertising to accomplish? Do you want it to spread awareness for a new product, boost sales for a top item, or help you clear out inventory on sale? By establishing your desired outcomes, you can best determine the products you're going to advertise as well as develop your campaign structure and performance indicators. 

There are two ways that your business can go about establishing Sponsored Product campaigns: Automatic and Manual Targeting. Both have benefits and downfalls depending on your business needs. Automatic Targeting is the less arduous method, through which Amazon leverages your product information to target ads to relevant searches. Manual, on the other hand, requires that you explicitly input your desired keywords. Automatic can be a far more timely process, and it can help you easily uncover valuable keywords customers use to find your products that you might otherwise miss. However, it takes away the control your business has with Manual.

As your business sets up Sponsored Products, it can be beneficial to use a tool to streamline this process, lower ACoS, and save time. A tool like Ad Station will help you optimize your Amazon Ads (AMS) campaigns with automated reporting, powerful bid management, and integrated account management. Monitoring your initial campaign over the course of several weeks will allow you to gather performance data and learn what does and doesn't work for your ads.

 

Interested in trying out Ad Station to optimize your Sponsored Products campaigns? Contact us for a one-on-one demo or a 30-day free trial.