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How Amazon Advertising Works

Amazon Basics / May 7, 2019

When sellers think about advertising on Amazon, they usually think of Sponsored Product Listings. While this is the most popular choice for advertising on Amazon, there are other options available that could help maximize your sales performance. Whether you want to increase your sales, get your products discovered, or clear inventory, there are a few ways to use advertising on Amazon to achieve your goals.

How Amazon Advertising Works: Sponsored Product Listings

Since this is the most popular choice for sellers, let’s start by digging into Sponsored Product Listings.

Basically, Sponsored Product Listings help sellers get their products placed higher in search results in the hopes of getting clicks and sales.

amazon sponsored product listing ads

Sellers running these ads are charged per click, called pay-per-click or PPC. Using this kind of advertising on Amazon doesn’t cost anything upfront, but when someone clicks on that listing in their search results, you are charged for that click. This can range from five cents to a dollar or two. It all depends on how competitive the keywords are that you are targeting. You have the ability to determine what keywords you are targeting if you are running a Manual campaign, which allows you to choose the keywords. An automatic campaign will bid on keywords that are (hopefully) relevant and profitable for your listing based on what keywords are in your description, title, etc.

For a deeper dive into Sponsored Product Listings, check out our blog post Why are Amazon Sponsored Product Listings Important?

How Amazon Advertising Works: Headline Ads

Another popular way to advertise in search results is by using headline search ads. These ads show up in the area directly below the search bar in a customer’s search results. These ads are different from Sponsored Product Listings because rather than sending a customer to a product listing when they click on the ad, they are sent to a specific page on Amazon.

amazon headline search ads animated

This page is usually a customized page that is branded. As with Sponsored Product Listings, these ads are also keyword targeted and PPC style campaigns, but allow sellers to advertise 3 or more products at once. One other big difference is that headline search ads only allow two keyword match types: phrase and exact. The minimum campaign budget for headline search ads is $100, with a limit of $1 spent each day. You can schedule these ads to run up to four months in advance, so you can plan ahead of time for things like holidays, season changes, etc. This kind of advertising on Amazon is great for brands with Amazon Storefront pages to help drive traffic to peruse through their full line of product offerings.

advertising on amazon - headline search ads gif

If you’re looking for more information on headline ads, check out our blog Amazon Headline Search Ads

How Amazon Advertising Works: Product Display Ads

Product display ads are like Sponsored Product Listings, but they can show up in a number of places besides search results. They feature one picture of the product along with the product title, price, and Prime indicator (if the product is sold through Amazon Prime).

amazon product display ads

These ads can show along the edge of search results, as well as on review pages, under the bullet points of a product listing, or under the Buy Box section of a listing.

Product display ads are great for advertising on Amazon because they allow you to reach a broader audience through targeting customer interests. Sellers typically use product display ads to help boost product exposure to more customers who are looking at similar products. When executed properly, product display ads can increase the amount of quality traffic your listings get, garner a better return on investment (ROI), and help Amazon target all of your ads better later on.

Pro tip: Amazon lets you use a maximum of 5 keywords to target for each product you are advertising with product display ads.

If you’re interested in learning more about product display ads, see more at Different Campaign Strategies for your Amazon Sponsored Product Ads

No matter how you decide to take on advertising on Amazon, it can make a huge difference in how successful you can be selling on Amazon. Not only does it help boost your sales, but it can help your organic rankings. If you’re looking to get started, it’s best to with advertising products that you know already sell well to give them even more of a boost!

If you’re unsure if you’re ready to start an Amazon PPC ad campaign, read our blog Are You Ready To Start PPC Advertising on Amazon? or What Is PPC Advertising on Amazon?

What are Amazon sponsored product listing?

These are pay-per-click or PPC ads targeting keywords or products that promote your individual listings and appear in shopping results and on product detail pages on Amazon and send a user to a specific product listing.

Headline Ads

These are pay-per-click or PPC ads that are targeted by keywords that show up directly below the search bar top of the page on Amazon search results. These send a user to a specific page instead of a product listing.

Sponsored Display Ads

Sponsored Display Ads (formerly “Product Display Ads”) are an advertisement product that allows a seller to target a user who has viewed their product or a similar product previously, known as remarking. It is a pay-per-click (PPC) ad and uses search terms relevant to a product or targets based on targeting people who have purchased from a seller previously.

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