Amazon Advertising Basics for Beginners

amazon ads bidding strategy

Every day, Amazon welcomes hundreds of new sellers to its group, attracted by the numerous benefits the platform provides.

These new sellers have been accepted because advertising with Amazon lets them:

  • get a bigger audience to hear,
  • Increase sales
  • to increase their customer base and
  • boost their organic rankings and improve their engagement.

Amazon’s advertisements provide new opportunities for sellers who are new to connect with customers on the internet, no matter which stage they’re in within the buying cycle.

It’s the reason that understanding the basics of advertising is essential for any seller who is just starting.

This blog will explain the three kinds of Amazon Advertising campaigns, their locations, and how to create a basic advertising campaign.

The Evolution of Amazon Ad Types

Sponsored Product is the most popular of Amazon ads. They make use of keywords or product-targeted ads to market the individual listings of products. 

Amazon Pay-per-click is a form of advertising that increases the visibility of products and sales of the product. They have featured on search result pages as well as a page detailing pages for products.

Sponsored Brands were introduced the next. They highlight a company’s brand and portfolio of products. 

They’re looking for results advertisements that include your company’s logo, your custom headline, and three or more different products simultaneously.

Sponsored Brands employ keywords and pay-per-click advertising. They increase brand awareness and sales. They are found above search results on the left side of search results and below the search results.

Sponsored Display ads on Amazon are the most recent of three advertising strategies to launch. They allow sellers to focus and retarget shoppers both off and on Amazon.

Instead of relying on keywords instead, these ads are either focused on product or interest. Display ads that are sponsored work based on pay-per-click as well as pay-per-1000 views.

They are displayed in a variety of high-value locations such as the right-hand sidebar of the results page of the search as well as in the Top of the Search, on detail pages for products, and the category pages.

Setting Up a Sponsored Products Campaign

1. Create a budget for the campaign and timeframe.

A typical budget will vary from a daily budget of just $10 for each campaign, up to $30 per day at the top end. You can set your duration to be flexible.

2. Select a target type.

For each ASIN you have, run an Automatic campaign, a Manual campaign, or both.

When you use the Automatic Campaign, Amazon identifies keywords in the description, title, as well as other sections of the listing of products to show ads that match relevant keywords.

This type of targeting is crucial for novices because it’s simple to set up and gathers valuable data and offers a lower probability of making an important error.

Manual campaigns let sellers select the keywords and items they would like to focus on. This allows them to decide the bids they place. If they are using manually targeted keyword targeting There are three match types available:

  • Broad match: Includes all keywords in any order, and includes plurals, variants, and other keywords.
  • Phrase match: Contained the phrase you want to match or the sequence of keywords However, it may also include additional words that surround them.
  • Exact match: exactly matches the word or the sequence of keywords

With targeted product advertising, sellers may have their ads appear on the page of a targeted item or in a whole product category. If you’re targeting a particular area you can reduce your target audience by particular brand names, price ranges, and star ratings.

3. Select the advertisement group.

Remember that you can add multiple ads in the same campaign so you should choose a name that can distinguish it from other ad groups.

Amazon Ad Groups:

Ad groups let sellers be more specific in the people they target within the course of a campaign. A seller may combine similar products to aid in the planning of their marketing campaign. Then, they can define the parameters of targeting for that advertising group.

4. Choose the products you want to promote.

It is possible to add more than one product to an ad group but only one will be displayed every time the ad is displayed. Amazon will decide which product to display based on several variables.

5. Set your bidding strategy.

Amazon Dynamic Bids allow Amazon to modify your Sponsored Product bid in real-time based on the likelihood of conversion.

Dynamic Bids, Down Only If you believe that a click is not likely to bring sales, Amazon will reduce your bid by as much as 100 percent.

Only those search terms which are unlikely to convert can lower an offer to 0. The first line of a new seller’s bid should be “down only,” as Amazon might lower your current bid even if you’re not likely to convert.

Dynamic Bids, both up and down If a click is more likely to bring about the sale of a product, Amazon will increase your bid by as much as 100 percent (for 1st-page search results) or 50 percent. If the click is not likely to be converted, Amazon will reduce your bid by as much as 100 percent.

Fixed Bid Fixed Bid: Your default bid stays the same regardless of the possibility of conversion. Amazon will continue to offer an estimated price based on category as well as competition and its information.

6. Select Keywords & Set Your Bid Prices.

If you’re conducting an Automatic campaign, you do not be required to include keywords. Simply set your default bid price.

If you want to run a manual campaign, it is possible to choose Amazon-suggested keywords, type in the keywords yourself, or use a combination of both. 

If it is it is possible, Amazon will also provide bid suggestions to assist you bid enough to generate enough impressions. You can input your bid prices.

About Keyword Relevance:

This is the way Amazon’s algorithm determines what “rankable” the page is. The most relevant keywords (to the question) will more often receive the highest ranking. 

If all other factors for ranking are equally an item will be able to stand over another listing with a keyword considered to be more relevant. Begin with the creation of a list of keywords (5 -30) that are specific and able to define the product that is being offered.

Amazon determines keyword relevancy by

  • How often does the keyword appear in the description
  • Where in the listing it is located,
  • How closely do the keywords appear,
  • How many sales occur through the search keyword?

About Negative Keyword Targeting & Negative Product Targeting:

Negative targeting allows a seller to block certain keywords or products so that their product(s) do not appear when you search for the terms and along with those products.

After viewing the results of their first automated campaign, sellers will be able to see which ads aren’t working well and begin blocking the keywords as well as ASINs.

Negative targeting is a great way of ensuring you’re not being found in search results that are irrelevant to you. This can be accomplished in both manual and automated campaigns.

7. Click on “Launch Campaign”

New campaigns usually take about an hour before advertisements begin to appear in search results.

Creating Amazon Portfolios

Amazon Portfolios allows the creation of custom groups of campaigns for planning and budgeting purposes.

How do you make a Portfolio?

  1. Hit on the “Create a Portfolio” button under “Portfolios” in your campaign section for management.
  2. Make sure to name your portfolio to ensure that you can easily locate the portfolio and be aware of the contents.
  3. Choose “Add Campaigns,” then click the “add” button next to the campaigns you want to add to your portfolio. Select the “Add to Portfolio “Add to Portfolio” button to complete.
  4. To set a budget cap for your portfolio you must select “modify portfolio” and then choose “Date Range” or “Recurring Monthly.” Once you’re done you can select “Save Changes.”

Knowing the fundamentals of Amazon advertisement is the foundation for any seller who wants to start their own business. can start building a successful Amazon business.

Utilize this guide as your motivation to put on your apron and begin to create successful Amazon advertisements in support of your product(s) as soon as possible.

Recommended Guide: How to become an Amazon FBA Seller.

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