Amazon PPC Ads 101: Amazon Sponsored Products in a Nutshell

January 7, 2022
Written by Nicasio Co III
Amazon sponsored products

If you've been on this marketplace for a while, you know how essential it is to have an Amazon Sponsored Products strategy. Competition is fierce, and to stay ahead, you need to stand out. 

There are many different ways to go about advertising on Amazon. Some sellers manage their own campaigns while others purchase an Amazon Sponsored Products service to aid their marketing efforts. Either way, if you're just getting started with Amazon advertising, it's good to have a general understanding of what you're getting into ahead of time.

We'll walk you through the process in our Amazon Sponsored Products guide that will help you better understand what this form of advertising is and how you can use it to improve your sales on Amazon. 

What are Amazon Sponsored Products?

Amazon Sponsored Products is an Amazon PPC ad that displays a product ad at the top, alongside, and within shopping results and product pages. They appear on both mobile and desktop devices. 

The ease of starting an Amazon Sponsored Products campaign makes it one of the most preferred ad types to get started with as an Amazon seller. It requires two simple things, (1) To have a professional Amazon seller account and (2) a product listing to advertise. A professional Amazon seller sells more than 40 units each month and pays $39.99 for this plan. 

Now is the part where you select the listing you want to advertise. You may have more than one product in your Amazon store, but with a limited budget, how do you exactly choose the correct product listing to advertise?

How to Create a Perfect Product Listing for your Sponsored Product ad

For the best results, you'll want to select a well-optimized product listing. Ensuring that your listing has a good foundation will help you narrow down which product to create a campaign for. 

Amazon product listing optimization is essential for setting up your Sponsored Products ad. Why? Because with a perfectly laid out product listing, you can ensure a higher chance of conversion when shoppers click your ad. Remember, Sponsored Products are a PPC campaign. Conversion results are a big part of what drives your campaign to success.

Ensure that your listing's product title, features, and product descriptions are streamlined and have organized formatting with SEO-backed keywords to rank higher in the Search Results. In addition, adding captivating graphics on your product images and video and A+ content through Amazon Brand Registry can significantly impact your shoppers' decision to hit the Buy Box. 

Amazon suggests choosing your store's top product or the ones chosen to be Featured Offers for Sponsored Products. Featured Offers are product listings with impressive reviews, sales history, and inventory management through FBA. 

Differences Between Amazon Sponsored Products and Other PPC Ads

Amazon offers other PPC ads, namely Sponsored Brands and Sponsored Display. These three are self-service ad types that help Amazon sellers bring in brand awareness to potential customers, boost sales and revenue, and outperform competitors. But, how exactly different are these two compared to Sponsored Products?

By the name itself, Sponsored Brands highlight a brand by containing the brand name and logo, brand headline, and up to three products. Meanwhile, Sponsored Display differs from the two other types by showing ads on and off the Amazon.com website. Additionally, it does not require the seller to input keywords for audience targeting.

Amazon search engine

3 Tips and Tricks to Follow When Coming Up With an Amazon Sponsored Products ad

There are many tips and tricks in setting up and managing your Amazon Sponsored Products campaign. Here are three main strategies you can use when getting started:

1. Use automatic targeting with a low maximum daily budget if you have little knowledge of Amazon PPC.

Advertising on Amazon can be expensive when done incorrectly, so implement a daily budget limit per keyword on the Amazon campaign manager. Set your keywords' maximum daily budget at a low cost to ensure that Amazon won't charge you more than your budget allows. For beginners, a maximum daily recommendation is $10, but this can vary based on your budget at hand.

When setting up your Amazon Sponsored Product campaign, you will be prompted to choose between automatic and manual targeting. With automatic targeting, Amazon targets audiences based on the keywords found on your product listing. Automatic targeting is often recommended for beginners in Amazon PPC to ease them into seeing which keywords perform best after two weeks.

2. Track your Amazon Sponsored Products performance after 2 weeks.

Amazon PPC experts suggest checking your campaigns after two weeks. This period allows you to have a considerable amount of time collecting data and finding out which keywords click with your prospective customers. 

Remember that the metrics found in your campaign manager change every hour, but the sales and ACoS data take up to 48 hours for accuracy. The spend metric updates in up to 3 days. 

Always note the day you launched your campaigns to track and monitor your progress effectively. If you started your campaign on the 1st of the month, you can accurately track sales and ACoS data by the 16th and the spend on the 17th.

3. Calibrate and Make Strategic Decisions.

So now that you've collected data from the campaign manager, what should you do with it? 

By understanding the data, you'll be able to make changes to your campaign to improve it as you move forward. For example, if you have poor-performing keywords with low conversion or are spending more than expected, you can consider turning off the ad or adding terms to the negative keywords list.

Alternatively, if you're seeing high-performing keywords with better conversion rates and lower ACoS, these terms should be noted as effective keywords and used in manual targetting. 

Final Thoughts

Getting familiar with PPC, Amazon Sponsored Products, keywords, and SEO can get overwhelming when starting as an Amazon seller, but it doesn't have to be that way. 

We at Seller Interactive believe that setting up your Amazon Sponsored Products shouldn't have to be complicated. We're here to help guide you through the process of advertising on Amazon so you can focus on what you do best. So take your Amazon store to the next level and plan your Amazon Sponsored Products campaign with Seller Interactive by reaching us at [email protected] today!

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