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, 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.

Another example of the sponsored products footer placement.

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.

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.

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