# Understanding Amazon Ads: A Comprehensive Guide

Amazon is more than just the world's largest online marketplace. It's an impressive ad platform that businesses can use to reach millions of customers. As of May 2023, Amazon is the third-largest digital advertising platform in the U.S., capturing nearly 10% of all digital ad spending.[^1]

## What Are Amazon Ads?

Amazon Ads are digital advertisements displayed across Amazon’s website and apps. Like [Google Ads](/services/paid-media-management), Amazon Ads operate on a pay-per-click model, meaning you only pay when someone clicks on your ad. Ads are targeted based on the user's shopping habits, searches, and demographic information. This ensures that your ads reach the right audience at the right time.

## Types of Amazon Ads

Amazon offers several types of ads, each with unique features and benefits.

### 1. Sponsored Products
These are ads for individual product listings on Amazon. They appear in search results and on product pages, increasing visibility and sales opportunities. 
![Amazon product page showcasing swimwear for men and women, including shorts and swimsuits, with 'Sponsored' labels indicating paid advertisements. Prices, ratings, and delivery information are displayed under each product.](https://s3.us-east-1.wasabisys.com/cdn.fruition.net/sponsored_products_26ab4b0560.png)

Another example of the sponsored products footer placement. 
![Amazon product recommendations based on shopping trends, showcasing women's clothing including jeans and a tee. Products are labeled 'Sponsored' with prices and Prime availability displayed under each item.](https://s3.us-east-1.wasabisys.com/cdn.fruition.net/sponsored_products_footer_670a6e38ae.png)

### 2. Sponsored Brands
Sponsored Brands are banner ads that appear at the top of search results. They're an excellent way for businesses to build brand recognition and showcase a collection of their products.
![Similar brands on Amazon' section with sponsored ads for GAP, PajamaJeans, and Jean Name Shirts & Gifts. Product prices, ratings, and images are displayed under each item, along with a GoDaddy advertisement.](https://s3.us-east-1.wasabisys.com/cdn.fruition.net/sponsored_brands_footer_f8e0b5af77.png)

### 3. Sponsored Display
Sponsored Display ads appear on product detail pages, customer reviews, shopping results pages, and under the "Featured offer". They are a powerful tool for retargeting, as they can reach customers both on and off Amazon.
![amazon video ads](https://s3.us-east-1.wasabisys.com/cdn.fruition.net/amazon_ads_video_0210aba6bf.png)

### 4. Amazon DSP
Amazon Demand Side Platform (DSP) is a programmatic advertising platform that lets advertisers buy display and video ads programmatically across Amazon sites and apps, as well as publishers' sites on the web.

## 5. Custom ADS
Custom ads are innovative ads designed by our creative team, specifically for you. They are high cost but can provide results. 

## Understanding Amazon Ad Placements

Ad placements refer to where your ads will be shown. Amazon offers three main types of placements:

1. **Product detail pages:** Your ads will appear on pages featuring product details.
2. **Search results:** Your ads will be visible when customers search for relevant products.
3. **Third-party websites:** Through Amazon DSP, your ads can appear on external websites and apps. (Sponsored Display, Video & Display via DSP),
4. **Amazon Devices:** Ad placements on devices, like Fire TV. Ad placements on devices are high-impact, full-screen experience. (Video & Display via DSP) 
5. **Amazon Owned & Operated Sites:** A number of ad types may appear on both desktop and mobile Amazon O&O sites, including IMDb, Goodreads, and DPReview.


## Who Can Benefit From Amazon Ads?

Any business looking to increase their product visibility and sales can benefit from Amazon Ads. Whether you're a startup or an established brand, Amazon Ads can provide significant return on investment. We have found positive ROIs for brands with appropriate optimization and budgets. 

## Who Can Benefit From Amazon Ads?

Any business looking to increase their product visibility and sales can benefit from Amazon Ads. Whether you're a startup or an established brand, Amazon Ads can provide significant return on investment. According to a 2021 study by Jungle Scout, sellers who used Amazon's advertising solutions reported a 106% increase in sales, on average.

### Hospitality Brands

Hotels, resorts, and other hospitality brands can benefit immensely from Amazon Ads. Sponsored Brands or display ads can help these businesses showcase their services and accommodations, increasing bookings. For instance, a hotel chain could use Amazon DSP to display video ads highlighting their luxurious amenities and breathtaking locations to a targeted demographic of frequent travelers. Amazon reports that there is a 40% increase in expected gross bookings in 2022 (they don't reference 2023 numbers).[^2]

### eCommerce Brands

This is perhaps the most straightforward application. eCommerce brands, both big and small, can leverage Sponsored Products, Sponsored Brands, and Sponsored Display ads to drive traffic to their product listings, thereby increasing sales and improving brand visibility. For instance, an emerging fashion brand can use Sponsored Products to promote a new clothing line to shoppers who have shown interest in similar items.

### Financial Brands

Financial brands like insurance companies, banks, and investment platforms can use Amazon Ads to reach potential customers. For example, a credit card company can run a Sponsored Brands campaign to raise awareness about a new card offering or a special promotion.

### B2B Brands

Amazon Business is a thriving marketplace for B2B sellers, and these companies can use Amazon Ads to connect with other businesses. For instance, a company selling office supplies could use Sponsored Display ads to retarget businesses that have previously viewed their products but haven't made a purchase.

## Amazon Ads is a Powerful Alternative to Google Ads

In the ever-evolving digital advertising landscape, Amazon Ads offer businesses a powerful way to reach millions of potential customers. By understanding the various ad types, placements, and audience targeting capabilities, businesses can effectively harness the power of Amazon Ads to drive growth and profitability.

Ready to take the leap and start advertising with Amazon? Remember, the key to success is understanding your audience, picking the right ad types, and constantly optimizing your campaigns based on performance data. 

[^1] https://ir.aboutamazon.com/news-release/news-release-details/2023/Amazon.com-Announces-First-Quarter-Results/
[^2] https://advertising.amazon.com/solutions/industries/hospitality-marketing 


Unveil the power of Amazon's digital advertising platform. Learn about different Amazon ad types, placements, and targeting strategies to boost your product visibility and sales. Start reaching your ideal customers today!


Understanding-Amazon-Ads-A-Comprehensive-Guide.jpg

Understanding Amazon Ads: A Comprehensive Guide

2024 is shaping out to be a pinnacle year in marketing. With Chrome, the dominant web browser, finally phasing out third-party cookies, how we target audiences online is radically transforming. This shift has major implications for the technical aspects of ad targeting and the broader marketing strategies we employ. We need to adapt to a world where user privacy takes center stage, demanding a renewed focus on first-party data collection and creative targeting solutions.

But what does this look like? How can we, as marketers, prioritize user privacy while targeting consumers' interests and demographics? 

## What are Third-Party Cookies?

Ever wonder how websites remember your preferences - like your preferred language or shopping cart items? Those are thanks to cookies. These digital “crumbs” store information about your browsing habits on your device. 

There are two main types:
- **First-Party Cookies:** Placed by the website you visit directly. They help personalize your experience by remembering your settings.
- **Third-Party Cookies:** Placed by a different domain than the website you're on. These are often used by advertisers to track your browsing data across different sites and build a profile of your interests for targeted advertising. 

## Why are Third-Party Cookies Crumbling?

**One word - Privacy.**

Third-party cookies have long been a mainstay of online advertising, enabling advertisers to track users across the web and build detailed profiles for audience targeting. However, privacy concerns have grown louder, with users increasingly uncomfortable with this level of unseen tracking. This and stricter data privacy regulations have led browsers like Chrome to phase out third-party cookie support.

## How Will This Impact Advertising?

For marketers, the loss of third-party data means less precise audience targeting. We can expect:

- **Reduced Targeting Accuracy:** Without third-party cookies following users across sites, building comprehensive audience profiles will be harder.
- **Limited Campaign Reach:** Targeted advertising may not reach as many potential customers, impacting campaign effectiveness.
- **Higher Ad Costs:** With less competition for ad space due to reduced targeting options, costs could potentially rise. 

Fear not, oh-faithful-digital-marketers. While the news might seem daunting, there's a silver lining. This is a chance to build stronger relationships with your audience and explore new marketing avenues:

- **First-Party Data will be King:** Focus on collecting valuable data directly from your customers through website interactions, email signups, and loyalty programs.
- **Contextual Targeting:** Target users based on the content they're consuming, not their browsing history. Partner with relevant publishers to reach your ideal audience.
- **Invest in Customer Relationships:** Build trust and loyalty through high-quality content, personalized experiences, and strong customer service.
- **Explore Privacy-Focused Solutions:** Look into cookieless targeting solutions being developed that prioritize user privacy.

## How to Prepare for a Cookieless Future

The good news? You have time to adapt. Here's what you can do now:

- **Audit Your Cookie Usage:** Identify all cookies on your website, particularly third-party ones used for advertising or analytics.
- **Invest in First-Party Data:** Build strong relationships with your audience to collect valuable data directly. Encourage sign-ups for newsletters, loyalty programs, and offer gated content in exchange for email addresses.
- **Explore Contextual Targeting:** Partner with relevant publishers to place your ads alongside content that aligns with your target audience's interests.
- **Focus on Customer Engagement:** Create high-quality content that resonates with your audience and personalizes their experience on your website. This will keep them coming back for more and generate valuable first-party data.
- **Stay Informed:** Keep up-to-date with the latest privacy-focused solutions and cookieless targeting options being developed. 

By taking these steps, you'll be well on your way to a future-proof marketing strategy that prioritizes user privacy and builds strong customer relationships. Remember, the most successful marketers will be those who can connect with their audience on a deeper level, offering value and building lasting connections.

## When Will This Change Happen?

It has already begun. **The phase-out began in January 2024 **with a limited rollout, during which Chrome restricted third-party cookies for 1% of users globally. **The full phase-out was expected to happen in late 2024, however, the date keeps moving. [Google is now predicting that the full rollout might not even happen until 2025](https://privacysandbox.com/intl/en_us/news/update-on-the-plan-for-phase-out-of-third-party-cookies-on-chrome/).** The exact time frame depends on addressing any remaining concerns raised by the UK's Competition and Markets Authority (CMA) to ensure a thorough review process. 

### Conclusion

The end of third-party cookies marks a significant turning point for digital marketing. While it presents challenges for audience targeting, it also compels us to explore innovative and privacy-focused strategies instead. By prioritizing first-party data collection, contextual targeting, and building strong customer relationships, you can navigate this shift and continue to reach your target audience effectively. 
Feeling overwhelmed by the changes? Don't go it alone! Our team of marketing experts at [Fruition](https://fruition.net/) is here to help you develop a future-proof marketing strategy. 

[Contact us](https://fruition.net/contact) today to discover how we can help your business thrive in the cookieless future.


Google Chrome limits 3rd-party cookies, prompting a shift to privacy-focused SEO and leveraging your own customer data. Learn how to adapt your ad strategy for continued success!

Strategy & Research

Digital Marketing

Web Development

Creative

AI Data & Analytics

Rachel Clark

Lead Paid Media Strategist

More articles by Rachel Clark

Understanding Amazon Ads: A Comprehensive Guide

The Crumbling Cookie - The End of Third-Party Data