As a seller, big or small, it's important to understand the various advertising tools Amazon has to offer, especially as competition continues to grow.
Veronica Barberena
Veronica Barberena
April 10, 2024 — 8 minutes reading time
Advertising on Amazon
Photo by @Super Straho on Unsplash
Amazon Advertising, formerly known as Amazon Marketing Services (AMS), is the umbrella term used to describe all of Amazon's advertising solutions.
Amazon Advertising can be divided into two categories:
Amazon Ads: Self-Service Amazon PPC (Pay Per Click Ads)
Ads on and off Amazon: Amazon DSP effective slovenia mobile numbers list Managed Service (CPM or cost per thousand impressions, ads)
PPC ads are for professional sellers and brand sellers on Amazon who want to reach more customers. This is the most common advertising platform for Amazon sellers and includes Sponsored Product Ads, Sponsored Brands, and Sponsored Display Ads.
Sellers enrolled in Brand Registry also have access to Amazon Stores, Amazon Attribution, and Amazon Live, all of which fall under the Amazon Advertising umbrella.
Amazon DSP (demand-side platform) is a managed service option available to advertisers and agencies who want to sell products on Amazon or not. It typically requires a large budget of at least $50,000. Unlike PPC advertising campaigns, which can be set up quickly, you'll need to contact an Amazon Advertising account executive to get started using Amazon DSP.
What is Amazon PPC?
PPC, you pay Amazon every time a customer clicks on your ad, whether they buy your product or not.
Amazon provides third-party sellers with an easy-to-use advertising platform to set up multiple PPC advertising campaigns in just a few minutes. The amount you pay depends on the type of ad, the keywords you target, and how competitive your niche is.
Amazon provides sellers with important key metrics to help measure the success of each campaign they run:
Clicks: This metric shows the number of times your ads were clicked. Amazon adjusts the report to detect invalid clicks (accidental or illegitimate clicks), typically within 3 days.
Impressions: How many times the ad was shown to a customer on Amazon.
Spend: How much you've spent per campaign. This is the total amount of click charges per product ad.
Sales: The total amount of product sales generated within a week of clicking on your ads.
Advertising Cost of Sales (ACoS): Measures the efficiency of your ads and represents the percentage of ad-generated sales you spent on advertising. To calculate ACoS, divide the total amount of money you spent on ads by the revenue generated by the ads.
Return on Ad Spend (ROAS): Another efficiency metric and the opposite of ACoS. To calculate it, divide the sales dollars attributed to ads by ad spend. For example, a ROAS of 5 means that for every $1 spent on ads, you'll receive $5 in revenue.
These metrics can help you set goals for your advertising campaigns.