Are Amazon Product Ads Right for Your Business?

Whether it’s office supplies, software, or Star Wars collectibles, we all know where we can find it – Amazon.com. The online marketplace concluded 2014 with some record-setting numbers: more than two billion units were ordered from its sellers all around the globe. We can’t say we’re surprised by Amazon’s popularity stats . . . but how many of you know about Amazon’s Product Ads offering? A site as popular as Amazon has incredible daily search volume, and this ad interface has the capacity for detailed targeting. Find out why we’re excited to start exploring Product Ads within our media plans.

 

Amazon Product Ads

What are the main features of Amazon Product Ads?

Essentially, a business can upload their catalogue and customize daily spend. Then, ads are targeted to customers who are searching for similar items on Amazon.com, with the ads displayed in multiple places – like “buy” boxes and details pages.

Amazon Product Ad - Kitchenaid

If a user clicks on the ad, they will be redirected to the business’s webpage. We like this option because the advertiser can retain the branding and information within the product page on their website. It’s also great if the business incorporates additional marketing automation in their site, giving new leads a chance to enter a lead nurturing ‘flow’ rather than remaining in the Amazon platform.

Which businesses are best suited to the interface?

The platform works well for both large and small businesses, as long as the brand website is optimized for ecommerce usability, since traffic will be redirected there. Because Amazon is designed for comparison shopping, it’s best if prices match competitor’s rates. There’s no minimum spend or fees for set-up of an Amazon ad account, so it’s possible to run smaller test campaigns to test the waters at low risk.

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How does this interface compare to Google Shopping?

Google Shopping offers an alternate comparison shopping platform with ad opportunities. While it’s not as popular as Amazon – 11% of users begin searching for a product in search engines, while 39% go straight to Amazon – Search Engine Land proposes the Google ad interface is more cost-effective due to lower CPC rates. However, this is countered by the fact that Amazon has a more active user base, and that Google Shopping’s conversion rates have declined over the last four years.

The platforms are similar in that they both use Google tools for data collection – Amazon Product Ads data integrates with Google Analytics, so calculating your ROI and click spend is readily available. With some marketing savvy, Amazon campaigns can be continuously optimized to achieve the lowest CPC.

 

Are there any Product Ads case studies?

Amazon is currently publicizing two case studies on their site – a small mattress seller gained 180% increase in conversion rate compared to other channels, while retail giant HSN increased conversions by 50% in one month of using Product Ads. Tips to achieving their similarly stellar results include uploading multiple, high-quality images per product, optimizing your titles and descriptions, and regularly consulting Analytics to adjust budget for your optimal selling times.

Amazon is actively encouraging more sign-ups; they’re currently running a promotion offering $75 in free clicks for new advertisers. If you’re interested in exploring advertising on the Amazon platform, contact us today! We’re looking to craft our own case studies using the platform as it grows – the next success story could just possibly be your own.

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