Originally published on June 7, 2022, updated October 20, 2022
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Online sales have climbed consistently over the past few years, with digital shopping reaching unprecedented levels during the COVID-19 pandemic and continuing to thrive beyond. According to Statista, worldwide eCommerce shoppers grew by more than one billion between 2014 and 2021. As the opportunity continues to increase, retailers are working extra hard to get their market share on Amazon.com, the most significant eCommerce site in existence when it comes to net sales revenue.
Selling on Amazon can be lucrative as either a third-party seller or a first-party vendor on the platform. But both sides have had to adjust their marketing levers as Amazon evolves. With a now unified advertising portal, some vendors wonder how best to navigate Amazon’s increasingly pay-to-play business model. This article will share the ins and outs of Amazon Vendor Central advertising, including the top ad options and the key differentiator for merchants.
It’s not enough to list products on Amazon and hope your brand organically flourishes. If you want to climb the sales rankings and actually compete in search and browse, you must advertise your products aggressively to customers both on and off Amazon.
Paid marketing on Amazon used to be controlled through separate portals for vendors and sellers, much like other services are controlled through Vendor Central and Seller Central, respectively. As of 2020, Amazon scrapped separate Amazon Marketing Services (AMS) and Amazon Advertising Platform (AAP) portals and launched Amazon Advertising as a unified platform for advertising types.
While vendors and sellers used to have different capabilities tied to their accounts, the current setup allows for both types of businesses to take advantage of the same types of advertising systems, campaigns, and reporting metrics.
This is ideal for vendors because it makes transitioning from seller to vendor much easier. It also allows better leveraging of a hybrid account setup where a business maintains both a seller and vendor account on Amazon.
It’s important to note that to take advantage of all that Amazon Advertising offers, a business must be set up through the Amazon Brand Registry. The Brand Registry is for brand owners. Registration is a crucial part of being able to create many marketing placements as well as unlocking a suite of self-service brand protection tools.
If you have an existing Vendor Central or Seller Central account, simply log in to the Amazon Advertising portal using the same credentials (and using the account you also use to access your Brand Registry) to learn more and schedule your advertising options.
There is a range of different ad types available to vendors on the Amazon Advertising platform. Businesses should create a vigorous and tailored advertising strategy and budget that reaches the maximum amount of customers with the best return on investment.
To do this, Amazon offers different advertising types, allowing brands to blend campaign types into a cohesive strategy. Whether you are looking to entice new customers, shout about a deal you’re running, re-target customers that didn’t convert, or single out customers browsing your competitors, there’s an advertising type for you and your business.
Sponsored Products are a cost-per-click advertising option that lets vendors and sellers promote individual products in highly visible placements on the Amazon website. This may appear at the top of search results, on detail pages, and in other places around the site. These ads may be targeted to competitor ASINs, search terms, brand names, or auto-targeted based on category. The campaigns may be customized to relevancy degree (close match, exact match, complements, etc.) and also budgeted with specific bids tied to each targeting type.
Sponsored Products do not allow customized creative text or images. They are great for creating general awareness, showcasing new products, targeting similar competitor items, and getting slow-selling items more traction, for example, with higher bidding for better placement.
Sponsored Brands are also a cost-per-click advertising option, but this ad type is for the promotion of your brand overall. Sponsored Brands advertisements show your brand and/or creative elements in highly visible placements on the Amazon website. They may appear at the top of search results, on detail pages, and in other places around the site.
These ads may be targeted to competitor ASINs, search terms, brand names, or auto-targeted based on category. The campaigns may be customized to relevancy degree (close match, exact match, complements, etc.) and also budgeted with specific bids tied to each targeting type.
Sponsored Brands do allow a degree of creativity, allowing advertisers to select ad types that feature a brand logo, a set of products, custom headlines, auto-played videos, or direct customers to a Brand Store. They are great for creating awareness for your entire brand, pulling in potential customers, and directing customers to shop products where you’ve advertised a particular unique selling proposition.
Sponsored Display ads enable businesses to reach relevant audiences both on and off Amazon. During campaign creation, advertisers still get a chance to customize bids and adjust targeting. Brands can target shopping audiences, product categories, and more.
Sponsored Display is slightly customizable, but has a familiar Amazon look and feel to inspire customer trust when the brand is seen off-Amazon.
The targeting for these ads is a bit different because advertisers are allowed to select views-based targeting, product-based targeting, or interest-based targeting to pull in audiences. Vendors are given a few more targeting options, but this is also dependent on Brand Registry status.
From the options laid out, there is a nearly endless variety in what advertisers can create. As of 2022, all of these advertising types are open to both sellers and vendors. There is only one main difference, and that comes down to the attribution window. If a customer clicks on an ad, the attribution associated with that campaign will be activated. If a customer makes a purchase, it will attribute the sale to that campaign. For vendors, the attribution window is 14 days, while for sellers, it’s only 7 days.
Vendors must also be Brand Registry approved to access a number of Amazon Advertising features, such as Brand Stores and Amazon Posts. As Amazon has become much more focused on brand protection, the company has moved to promote and expand the Brand Registry suite. It’s imperative that vendors register to unlock all of the advertising types.
Furthermore, there are a number of advertising software options available to help vendors or sellers optimize their budgets and campaigns. This can take some of the guesswork out of running advertisements, especially if a vendor has an extensive catalog, a large business, or cannot devote time to running Amazon-specific marketing.
Whereas Amazon used to be a lot more reliant on promoting products that customers organically supported, the whole platform has become focused on paid promotion.
As of March 2022, the average Amazon seller in the US spent $268.21 per day on Amazon Advertising, according to Influencer Marketing Hub. In reality, sellers and vendors both must allocate a decent budget to spend on advertising, especially if they want to sustain sales and grow their businesses.
Once a vendor has started advertising, they might quickly realize the scope and complexity of the opportunity available. If a vendor is in over their head when it comes to lowering average cost of sale, optimizing a PPC bid, increasing conversion rates, boosting products, or incorporating advertising into an overall marketing strategy, it may pay off to invest in an agency to manage your Amazon Advertising. At eCommerce Nurse, our experts can dive into your Amazon Vendor Central advertising with an AI-powered approach. We offer full-service advertising support and specialize in integrating our work for a holistic Amazon and DTC approach. Please contact us for more information.
Originally published on June 7, 2022, updated October 20, 2022
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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