Advertising with Amazon’s Sponsored Products Program

If you have ever searched the Internet for a business or product, then you are probably familiar with Google’s Adwords. Considered Google’s main source of revenue, AdWords is an advertising product that allows businesses to promote their business or product by placing small clickable ads on Google and their partner websites. The neat thing about this advertising model is that the business is only charged for the ad when a potential customer clicks on it.

What you may not have realized, however, is that Amazon has two similar products that are called “Amazon Product Ads” and “Amazon Sponsored Product Ads.” While the Amazon Product ads work in a way similar to AdWords by providing a clickable link that takes buyers to a company’s website, the Amazon Sponsored Products ads advertise products that are actually being sold on Amazon’s website.

It is this second advertising method that Amazon offers that I want to draw your attention to, especially if you are participating in Amazon’s FBA (Fulfillment by Amazon) program. If you are selling products on Amazon, but are having to compete with other sellers who are selling the exact same products, you have probably been wondering how you can make your items stand out over the rest of the pack. Well, Amazon Sponsored Product ads might just be your answer.

Here’s how it works:

  • Select the items that you want to promote in an advertisement
  • Create keywords for your item that you believe most people would type in to Amazon’s search (if they were looking for your item)
  • Enter an amount for a cost-per-click bid

The ad for your item will then pop up alongside the search results whenever someone enters one of your keywords. The neat thing about this advertising program is that you only pay for the ad if it is clicked on. Once the ad is clicked on, the buyer leaves the search page and goes to the landing page of your item.

Keep in mind, the amount you enter for the cost-per-click bid determines how many times your ad appears in a day. As an example, Amazon uses $100 per day over a period of 31 days. This means that you could receive up to $3100 worth of clicks per a 31-day month. If you only receive $50 worth of clicks on the first day, then you could get $150 clicks on the second day and so on.

If you don’t have a budget of $3100 to spend for monthly advertising, you can always bid a smaller amount. This will mean, however, that your ad won’t show up in the search as often when someone uses your keywords. In other words, the more competitive you are (or rather the higher the amount that you bid), the better the chance that your ad will appear when the item is searched for instead of the buyer seeing another seller’s ad. If you are competing with potentially hundreds of other sellers all carrying the same product, this could give you a huge advantage over the competition. With this kind of marketing potential, I think this advertising method is certainly something we all may need to consider.

About our Guest Blogger
This guest post is by Kat Simpson. Kat is a trusted eCommerce author, speaker, educator, and entrepreneur. Kat Simpson has been a successful eCommerce merchant for over 10 years; is an eBay Education Specialist and Gold Level PowerSeller, as well as a successful Amazon merchant. Currently Kat is the hosts the popular weekly eCommerce Podcast That Kat Radio.

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