What is Amazon Advertising? Amazon Advertising Review

Satisfy the conditions

Have an active Amazon Professional Seller account

Listing needs to have a shopping cart

Products must be new. Used products are not eligible for Amazon Product Promotion

Except for the books, audio-visual and adult categories, advertisements can be placed in other categories.

Classification

1. Sponsored Product

Amazon has two ways to place ads on the site: automatic ads and manual ads. Automatic ads mean that Amazon places your ads based on your product information, which has a high exposure rate but is not accurate enough; manual ads require sellers to set keywords themselves, and your ads will only be displayed when customers search for the corresponding keywords.

2. Headline search ads

Based on Amazon search, a high-exposure display method combining pictures and texts is displayed before other search results. It is suitable for brand owners. When using HSA to attract traffic, it is necessary to match keywords and pages as much as possible.

3. Product display ads.

PD is only used by sellers with accounts such as VC, VE, and AMS. It has more display area than paid product ads and title search ads, and can be displayed on the side and bottom of the product details page.

These types of ads all belong to the PPC (Pay per click) advertising model

The difference between PPC and CPC advertising

PPC advertising (Pay-per-Click): In online advertising, it is a pricing model that pays based on the number of users who click on the advertisement.

CPC advertising (Cost-per-click): The cost per click. It is charged based on the number of times the ad is clicked. For example, keyword advertising generally adopts this pricing model.

The charging standards and models of CPC and PPC are exactly the same, with not much difference. They are just conceptually aimed at different groups. PPC is aimed at sellers who want to advertise on platforms or websites, while CPC, as a pricing model, is used by all major search engines and platforms.

Comparison

Location

Search page homepage headline, in the middle of the search page product, below the listing page, below the shopping cart, etc.

cost

The unit of cost per click is a bidding model. After clicking your ad, consumers will enter the product details page and pay only when the ad is clicked. The same IP address searches for the same keyword and clicks on the same listing within 24 hours and is charged once.

Advertising quota

In order to avoid frequent deductions causing trouble to users, Amazon adopts a cumulative deduction limit deduction method, that is, a certain deduction limit is set, and a deduction will only occur when the advertising costs reach the limit. When the user first registers, the deduction limit is RMB 50. This limit may increase based on the frequency and amount of the user's advertising costs. For example, if the user continues to reach the deduction limit very quickly, the amount will be adjusted appropriately to ensure that deductions do not occur frequently. The deduction limit increases in increments of RMB 150, RMB 200, and RMB 350, up to a maximum of RMB 500.

Advertising budget

The total advertising amount is the average daily advertising budget multiplied by the number of days in the month. For example, if you set the daily advertising budget to RMB 1,000, the total advertising budget for the month = RMB 31,000 (assuming there are 31 days in the month), which also means that you have the opportunity to receive ad clicks worth up to RMB 31,000 in the month. At the end of each month, Amazon will ensure that the average daily advertising cost does not exceed the advertising budget you are willing to pay every day. However, on certain days, advertising expenditures may be higher or lower than the maximum daily advertising budget you set. For example, if your daily advertising budget is RMB 1,000, on the first day of the month, you receive ad clicks worth RMB 500, but on the second day of the month, you may receive ad clicks worth RMB 1,500. The total advertising cost for these two days is RMB 2,000, an average of RMB 1,000 per day, which does not exceed your daily advertising budget.

Advertising payment methods

Deduct from your Amazon seller account balance

Charge the fee to a credit or debit card

Advertising Metrics

Advantages

Increase exposure: Help product pages appear on the first page of search results or in a more prominent position

Increase sales opportunities: Get closer to consumers’ purchasing decisions

High relevance: Provide precise targeting of advertising based on consumer search terms

Transparency: measure return on investment and optimize advertising efforts