HOME BLOG E-commerce Marketplace

E-commerce Marketplace

[The Basics of Amazon Advertising!] A Comprehensive Guide to the Benefits, Types, and How It Works!

To Amazon, which boasts "the world's largest selection,"
Did you know that the number of items listed for sale is said to be in the hundreds of millions?

To get users to buy from among the many products available,
We need to raise awareness of our products.

That’s when you’ll want to try"Amazon Ads"That's it.

What are Amazon Ads?

Amazon Ads refers to the advertising service operated by Amazon.
On Amazon, which has hundreds of millions of products, users can
Amazon ads are an effective way to raise awareness.

Partly due to the impact of COVID-19,
The fact that more and more people are shopping online, and
Due to factors such as companies that previously sold their products only in stores beginning to list them online,
It is expected that the number of items listed for sale will continue to increase.

Therefore, having knowledge of Amazon advertising is
This will likely become important.

In addition to Amazon ads,"On-Site SEO on Amazon"The reason is that
This is an essential strategy for raising user awareness of a product.

For those who want to learn about “Amazon SEO”Please take a look at this article.

 

In this post, I’ll be explaining “Amazon Ads.”

 

The Strengths of Amazon Advertising

The biggest strength of Amazon Ads is,
It’s the fact that they have a lot of “purchasing data.”

 

And since Amazon attracts users with a high propensity to buy,
"Advertisements to Sell Products"The fact that it can stream
This can be cited as a strength.

 

In addition to running ads based on keywords,

You can display ads on your competitors' pages, or

For example, you can fill ad slots with your own products, and so on
Another key feature is the ability to implement strategies unique to Amazon Ads.

 

Benefits of Using Amazon Ads

There are three benefits.

The first one is Amazon'sThe media has a lot of influenceThat is the point.
Amazon has 67.24 million users in Japan (*1), and

We boast the largest number of users among Japan's e-commerce marketplaces.

(Note 1) Reference:https://ecclab.empowershop.co.jp/archives/96543

 

They also promote Amazon through commercials and other means, and
Since they also hold sales and other events, they're good at attracting customers, and
By running ads on Amazon,You can aim to maximize your sales.

 

Second,Sales Cycle...is that you can create it.

By running Amazon ads,We will increase opportunities for users to become aware of our products.
Once customers become aware of a product, the number of views on the product detail pagehas increased, and
As a result, sales have also increased.
As sales increase,Amazon has determined that this is a "popular product among customers" and
Your search ranking on Amazon will improve.


This, in turn, will create even more opportunities for users to become aware of it,
This completes the cycle of maximizing sales.

To keep this cycle going,While optimizing product pages is also necessary,
Amazon ads can help kickstart this cycle.

 

Third,You can start with a small amountThe fact that it contains ads.
There are also ads that are billed per impression, but,
Depending on the type,Pay-per-clickYou can start advertising here.

You can also set a daily budget, so
One of the strengths of Amazon Ads is that you can get started even with a small budget.

 

How Amazon Ads Work

Amazon Ads are,Auction Based on Ad Rankand
Determines which ads to display.

 

Ad rank is,"Bid Amount × Relevance"It is determined by that.
The higher the rank, the more times the ad is displayed,
It also increases the likelihood of ranking higher.

In addition, the cost per click for an ad is calculated as “the amount for the second-place ad plus 1 yen.”
(*Assuming the correlation is the same for all three companies)

As shown in the image above, there are items with a bid price of 100 yen
You can secure ad space.
In this case, the CPC is 51 yen, which is the second-highest bid of “50 yen + 1 yen.”

Since auctions take place every time a user searches,
It’s important to check and update your active ads on a regular basis.

 

Types of Amazon Ads

Amazon offers the following five ad formats, and

Each has its own features, benefits, and uses.

 

Sponsored Products Ads

Sponsored Brands Ads

Sponsored Display Ads

Sponsored TV Commercials (Sponsored TV)

Amazon DSP

 

Here is the latest update:TV Commercialswhile also touching on its practical applications

I'll explain this in a way that's easy to understand.

 

Sponsored Products Ads(Sponsored Products)

This is the most widely used ad format on Amazon, and

We specialize in promotions at the product level.

Since it appears in search results and on product detail pages,

You can directly target users who are highly likely to make a purchase.

 

Features

Easy to get started on a low budget: Since it’s a pay-per-click model, you can start with a small budget to test the system.

Simple Operational Workflow: Flexible control with auto and manual settings

It makes it easier to directly increase sales: Directly links to the product page and boosts the desire to purchase

 

Recommended Uses

• Not just the manual, but also,Auto-TargetingUse [tool] to uncover potential keywords

• If the number of sessions increasesProduct PageImprove [...], with the goal of increasing the conversion rate

• In conjunction with sales and new product launchesBid Rigging... and increase exposure

 

Distribution Channels (Examples)

 

 

The advertisement includes the word “Sponsor,” as shown in the red box.

 

Sponsored Brand Ads(Sponsored Brands)

This is an effective strategy when you want to strengthen your brand or increase awareness of multiple products.

It appears at the top or to the side of search results, and

You can prominently feature your logo and tagline.

Video AdsIt also supports this feature, allowing you to further differentiate your product.

 

Features

Promoting Brand Image: Allows you to highlight your logo and tagline

Promote Multiple Products at Once: Can direct users to brand stores or specific product pages

Video Ad Support: It has a strong visual impact and makes it easy to convey product and brand characteristics in a short amount of time

 

Recommended Uses

• Build out the store, andA comprehensive overview of our product lines and brand stories

Video CreativesDifferentiating from Competitors' Ads

A/B Testing...to determine the optimal video length and tagline

 

Distribution Channels (Examples)

 

 

Sponsored Products ads and Sponsored Brands ads are,

BothFor users of the Large-Volume Seller Program onlyis a service that is available.

If you'd like to learn more about large-volume and small-volume listings, please click here.

 

Sponsored Display Ads(Sponsored Display)

These are display ads that can be served not only on Amazon but also on external websites.

Not only can you make full use of retargeting and interest-based targeting, but

Video ads are also available.

 

Features

Wide-ranging exposure: Display ads on partner sites outside of Amazon

Retargeting: Re-engagement Based on Browsing History

Video Ad Support: Allows for dynamic advertising beyond just banners

 

Recommended Uses

Browse or BuyEncourage purchases through retargeting

• Through exposure on external sites,New CustomersAiming to secure

Video CreativesWe'll also test this to aim for higher engagement than with still images

 

Distribution Channels (Examples)

 

 

Sponsored TV Commercials (Sponsored TV)

Available on Prime Video, Twitch, and other streaming servicesVideo Ads

Since it will be played on a large-screen TV,

This is the perfect format for boosting brand awareness.

 

Features

Spectacular Footage: Likely to catch the attention of TV viewers

Makes it easy to convey the brand story: Creating a World Through Video and Audio

A mass-media advertising approach: It is possible to increase brand awareness even among those who do not actively search

 

Recommended Uses

Short-form videosBut a structure that makes a strong impact within the first few seconds

• While assessing cost-effectivenessCampaign PeriodStreamed in conjunction with

Focus on BrandingFocus on creating content centered around the message to enhance the image of the company and its products

 

We're running a promotion worth 50,000 yen through June 30, 2025 (UTC), so

Please give it a try sometime.

Click here for details on sponsored TV ads ▼ (Links to the official website)

https://advertising.amazon.com/legal/terms-conditions/sponsored-tv-promo?ref_=a20m_us_p_spot_promo_btn_tc

 

Amazon DSP

A programmatic advertising platform provided by Amazon,

By making full use of purchase data, behavioral history, and other information,

High-precision targeted delivery is possible.

Not only display ads and video ads, but also,

It also supports a variety of formats, such as audio ads.

 

Features

Highly Accurate Targeting: Making the Most of Amazon's Big Data

Capable of handling large-scale ad campaigns: Wide-ranging distribution both on and off Amazon

A wide variety of formats, including video and audio ads: Comprehensive support from corporate branding to customer acquisition

 

Recommended Uses

Agencies and specialized teamsIn collaboration with [...], we set up the optimal segments

Data AnalysisConduct frequent analysis to improve advertising ROI (such as ROAS)

• From brand awareness to purchase promotionComprehensive Marketing StrategiesConducted

 

We also manage Amazon DSP campaigns, so please feel free to contact us.

 

Summary

In this post, we explained the types and basics of Amazon ads.
If you're thinking, "I want to get started right away!"
We recommend Sponsored Products and Sponsored Brands ads.

If you're thinking, "I want to focus specifically on Amazon advertising!"
It might be a good idea to learn about ads other than sponsored ads.

 

I've also written an article about the different types of Rakuten ads, so
If you're interested, please take a look!

 

Hide&Seek, the author of this blog, is,
We are a Fukuoka-based company that provides management services for Amazon, Rakuten, and Yahoo!.

We provide Amazon management services for more than 40 companies.
"I want to open a store on an e-commerce marketplace, but I don't have the resources to spare."
"We want to expand our sales channels while maintaining the competitive edge of our own online mall."
"I opened a store on an e-commerce marketplace, but I'm too busy to manage it properly, so my sales aren't going up."

If you're facing such concerns,Please feel free to contact us using the contact form below.

 

Author

Yosuke

Member of the Web Consulting Division. We provide a wide range of consulting services covering all aspects of DtoC, from in-house e-commerce sites to online marketplaces.