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Beginner’s Guide to Amazon Marketing Services in 2022

By Bubuy Balangue | 6 May 2022 | 8 mins read

Amazon Marketing Services (AMS) is a collective name for Amazon services for sellers such as Sponsored Products, Headline Search Ads (now called Amazon Sponsored Brands), and Amazon Display Ads. As of September 2018, Amazon has renamed several of its features (AMG, AMS, and AAP) as Amazon Advertising. The term “Advertising Console” was coined to make it easier for Amazon users to understand.

According to Marketplace Pulse, on Amazon, there are over 2.5 million active sellers. Around 25,000 vendors on Amazon have more than $1 million in sales, while 200,000 sellers earn more than $100,000 (2019). And consumers trust Amazon.

It’s critical to note the difference between Seller Central and the advertising console. Although many of the ad types are similar, Seller Central is the dashboard that third-party (3P) sellers use for selling and marketing, whereas the Advertising Console is used by 1P brands.

What Are Amazon Marketing Services?

Amazon’s advertising console, formerly known as AMS, is where the company’s three primary advertising services — Sponsored Products, Sponsored Brands, and product display advertisements — reside.

The major advantages you can get from Amazon’s advertising console are listed below, along with a screenshot of the login screen for the three available advertising platforms: Seller Central, Advertising Console, and Amazon DSP console.

What does this signify to you? In a nutshell, selling on Amazon may provide you with a nice profit. More importantly, just what are the different types of Amazon marketing services?

So How Can You Boost Your Revenue With Amazon Marketing Services?

Advertise Your Amazon Products

Amazon has over 300 million active customer accounts (Amazon earnings release, Q1 2020). With all of this data, it’s no surprise that Amazon knows what motivates consumers, how they connect with businesses, and how they browse and buy online. You may target your audience at every phase of the purchase process by advertising on Amazon by using any of the Amazon marketing services. Each advertising cost will also be discussed with the different marketing services.

Sponsored Products are a feature that allows merchants to advertise on Amazon and, in the process, promote their products. Sponsored Ads appear in search results and product pages for items you sell on Amazon or are simply known as product display ads.

Sponsored Products Ads show in prominent places like the top of search results and product pages. They allow you to reach customers who are more likely to buy your goods since they’re looking for goods similar to yours. These advertisements are pay-per-click, so you only pay if people click on your ad and can set a limit on how much you spend.

Sponsored Products Ads are available to professional sellers, vendors, book vendors, Kindle Direct Publishing (KDP) authors, and agencies. This ad type is only available in a certain set of categories, and your product must be eligible for the Featured Offer to use this Amazon Marketing Services product. To note, product display ads are generally more appealing to the target market.

Minimum Daily Budget: $1 to $10

Sponsored Brands

Sponsored Brand Ads are cost-per-click (CPC) advertisements that allow you to incorporate your logo, a unique headline, and multiple items. This is a favorite type of Amazon marketing service that bigger brands like to use. Sponsored ads are best used if you want to put out your brand name or services offered to the world.

Sponsored Brand Ads are a way to increase the visibility of your brand and share your message via unique headlines. When consumers are seeking what to buy, these advertisements assist you in increasing product recognition.

Shoppers on Amazon may click on your logo to visit your store or a custom landing page on Amazon. If they click on one of the products in the ad, they’ll be taken to the product page immediately. Professional sellers who use Amazon Brand Registry, vendors, book vendors, and agencies may utilize Sponsored Brand Ads.

A custom landing page is a powerful addition to your marketing arsenal if used well.

Minimum Daily Budget: $1

Amazon Stores

Amazon Stores is a free service that allows you to promote and sell your brand and products on Amazon in a fully immersive, multipage buying experience.

You can use an Amazon Marketing Services service to easily create a drag-and-drop page builder or prebuilt templates that you can use to share your brand narrative and product range with Amazon customers. Product display ads can also be featured here as well. You may even obtain an Amazon URL similar to amazon.com/BRAND. Stores are accessible for sellers who are members of the Amazon Brand Registry.

Sponsored Display Ads

Amazon Marketing Services’ sponsored display ads are a self-service advertising solution. You may use these advertisements to establish display campaigns quickly and target your desired audience anywhere along the buyer journey on and off Amazon. Side note, best to use a custom landing page to enhance the user’s experience.

Sponsored Display Ads, like sponsored ads, may be viewed by audiences on or off the Amazon platform. It makes it easy to create a campaign and creates ad designs automatically for successful sponsored displays. Sponsored Display ads or Product Display ads are accessible to professional sellers in the Amazon Brand Registry, vendors, and agencies working with clients who sell goods on Amazon.

Minimum Daily Budget: $1 and a cost per click of $0.02.

Video Ads

Amazon OTT (over-the-top) video advertisements may be found on connective TVs, publisher channels and networks, IMDb, and IMDb TV. Outside of the Amazon Video app, out-stream advertising appears on Amazon.

Video advertising on Amazon is a fantastic way to expand your reach because they offer billions of product and viewing actions. Video ads tend to be more engaging compared to the generic product display ads that only appear as a picture and some info. These advertisements give you the opportunity to advertise your company alongside high-quality material such as the most recent films and TV, curated news, and live sports. Video ads can be purchased by businesses whether or not they sell items on Amazon and as a self-service option.

If you’re looking to start making video advertisements for Amazon and other platforms but don’t have much video editing experience, here are the top video ad production companies we’ve discovered that can assist you in producing high-quality videos to boost sales.

Cost: For managed solutions, the Amazon video advertising minimum budget is generally $35,000 per campaign.

Audio Ads

Amazon’s Audio Ads help you target your ideal customers across Alexa-enabled devices using Amazon Music’s free ad-supported tier. Knowing how to use targeted ads get greatly increase the revenue of your sales.

Amazon Music’s playlists can be monetized using advertisements. Audio advertising may be between 10 and 30 seconds long, and they’ll play during breaks on Amazon Music. Audio advertising may assist you to increase brand recognition because Amazon is one of the most popular customer interactions on Alexa. Whether or not a company sells items on Amazon, businesses may purchase audio advertisements.

Audio ads’ success rate is similar to video ads, which have a higher engagement rate than product display ads.

Cost: Typical minimum expenditure for video advertising on Amazon is $25,000, and it involves collaborating with an Amazon ad consultant.

Custom Advertising

Amazon’s custom advertising solutions are tailor-made advertisement experiences. The Amazon Custom Advertising Team works with businesses to create campaigns that target customers at each step of the marketing funnel.

To assure that your message is delivered in a way that is certain to have the biggest effect, Amazon creates end-to-end campaigns utilizing its own shopping analytics. Custom advertising integrates Amazon’s online, offline, and subsidiary brands for cross-channel marketing efforts across channels. Custom solutions may be purchased by businesses promoting anything from products to brands.

Amazon DSP

Amazon Demand-Side Platform (DSP) is an Amazon Marketing Services demand-side platform that allows marketers to programmatically buy display, video, and audio advertisements on and off of Amazon. Both self-service and managed services are accessible.

Product display ads and the sort are not typically used in the Amazon DSP as much more complex ads are used for this.

Cost: For the managed service option, Amazon recommends a $35,000 minimum spend for businesses seeking access to Amazon DSP inventory and consultative services, or those with limited programmatic advertising expertise.

Amazon Attribution

Amazon Attribution is a metrics tool that may help you analyze the performance of your advertising across various platforms. It’s simple to use and useful for determining the return on investment (ROI) of all parts of your digital marketing, including search, social media, and email marketing. This function is currently in beta test.

The test allows you to see just how your headline search ad is doing compared to others that are similar to it.

Amazon Attribution is now available to professional sellers in the United States who are members of the Amazon Brand Registry (the US only), vendors, and agencies with clients that sell items on Amazon.

Cost: There is presently no cost for Amazon Attribution.

Amazon offers several other advertising services (like as Headline Search Ads and Product Display Ads), but the ones we’ve mentioned are only available through Amazon Marketing Services.

Amazon Marketing Services Best Practices

Choosing the ad type you want is only the beginning. There are some Amazon Marketing Services best practices you can use to ensure that your campaigns are as effective as possible.

Do Your Research

Before you start a campaign, you should do some research. Here are the things to pay attention to:

When it comes to optimizing an ad campaign, the goal is to focus on the goods that will appeal most to your target audience. Seasonal, in-demand, or already proven sellers are usually preferable when it comes to producing advertising.

Make a Budget

To figure out how much to set aside for your Amazon advertising budget, start by figuring out your typical cost of sale (ACoS). This includes overhead, material costs, production expenses, taxes, and account fees. So, to set a scenario: you’re selling a product for $100 with costs to you of $70, or 70 percent of your product margin. This leaves $30 (30%) that goes toward your profit, leaving a margin of only 30%.

Another variable to consider while creating your budget is the length of your campaign. If you’re thinking of a $1,000 budget, will you spend it all in one day or spread it out over 20 days, spending no more than $50 each day?

Consider your usual bid amount next. This is crucial to calculating your cost-per-click (CPC), which is the rate you pay each time someone clicks on your ad. A high CPC indicates that you’ll be paying more for each click. A low CPC allows you to spend more money advertising and still make a profit.

Once you’ve decided on a default bid amount, you’ll need to calculate the return on your investment (ROI). After you know how much money you want to make from your efforts, you can use that information to figure out how much advertising expenditure is required.

Last, you’ll have to consider the keywords you’ll use in your advertising since this will have an impact on your advertising budget. You’ll want a variety of shorter and longer longtail keywords that are three to four words in length. Shorter keywords are more inclusive and will attract a larger audience. Longtail keywords are usually much more specific and attract a smaller number of people. People who discover your items via longtail keywords, on the other hand, have a generally greater purchase intent (they’re more likely to buy).

How to Optimize Your Amazon Ad Campaigns

We’ll look at how to fine-tune your Amazon advertising in this section.

1. Consistency

Setting up an advertising strategy that you’ll employ across your ad campaigns is a good idea. This will keep your ad strategy organized, making it less likely that you’ll waste money on repeated advertisements on your Amazon advertising strategy.

2. Always Know and Use the Best Keywords

Amazon advertising already has an excellent algorithm that will assist you in deciding on keyword phrases to utilize for your advertising efforts. You may begin with these suggestions and then fine-tune your target keywords as necessary as you obtain more data from your campaigns. There are also keyword research tools available that can help you discover the terms that are most popular among your target audience

3. Utilize a Combination of Product-Based Targeting and Brand-Awareness

Amazon Marketing Services provides two primary targeting options: interest-based and product-based. To reach a larger audience, we suggest utilizing both approaches.

4. Video Ad Optimization

Video advertisements are popular for getting people’s attention, but be sure to adhere to Amazon’s advertising rules. Amazon has a lot of target ad sizes, frame rates, and other requirements. Furthermore, avoid including clickable elements in your video ads since such features don’t always function as intended.

By default, Amazon Video Ads audio is muted. The ad will only play if the viewer clicks on the video portion of the advertisement, making it critical to producing video advertisements that can work with and without sound. By using the data you get from Amazon advertising, you can ensure a higher success rate as all the data you need can help you identify your target market.

5. Improve The Quality of Your Ad Headlines and Copy

Another place to focus your attention is your ad’s content together with Amazon advertising. Your advertisement’s opening line is similar to an email subject line. They must pique people’s curiosity and get them interested in clicking. These suggestions can help you create appealing email subject lines that will improve the headlines on your advertisements.

If a user didn’t click based on your headline, your ad copy should support it, giving them additional information that encourages them to click. Use simple language that is interesting and explains the advantages of your company and services. Amazon advertising metrics can help you understand the age range of your users to customize your responses or phrases even further.

There you have it! A complete beginner’s guide to knowing everything about Amazon Marketing Services and how to get started on each of them.

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