Get in touch with our team
Feature image for 18.08.2020


3 min read

The Ultimate Guide To Amazon Ads. Part 1: What is Amazon Advertising?

This article was updated on: 07.02.2022

In recent years, Amazon has become a platform you can no longer ignore in the e-commerce world. Why you may ask? There are quite a few reasons- let me tell you.

In just 25 years since its creation, Amazon has grown to be one of the most visited websites in the world! According to Oberlo, Amazon has currently got 150 million Amazon Prime subscribers and 89% of buyers agreed that they are more likely to buy products from Amazon than other e-commerce platforms.

Moreover, having your products on Amazon means that you can get your products in front of a huge number of customers at the beginning of their purchase journey as 28% of online shoppers go first on Amazon for inspiration when they don’t have a specific product or brand in mind for their purchase.

There are many more reasons for why you should be on Amazon, but I think you get the point now 🙂

Amazon platform

Amazon, like Google Search Engine, has 2 types of listings:

  • Organic listings – these appear organically on the Amazon SERP as Amazon determines them as the most relevant products for the customer’s query
  • Paid listings – these appear above or in between organic listings on the Amazon SERP as their seller is willing to pay to boost their products and increase sales.

This article commences a series of blog posts about the paid listings only, which are called Amazon ads. We will talk about how Amazon Advertising works, different ad types and bidding strategies available on Amazon Ads platform and how you can set up and optimise your ads to bring the highest return on investment.

What is Amazon Advertising?

Amazon Advertising is a search advertising solution for Amazon vendors. Similar to PPC ads on Google, sellers only pay when shoppers click on ads.

To give you an example of how these ads look like and where they’re placed, I have gone to Amazon’s website itself and simply searched for “womens watch”. Here are the results:

As you can see, all the top results have the “Sponsored” text next to them- these are considered Amazon Ads. If you’re an advertiser who wants to boost the visibility of your products you can pay for these top positions by bidding on specific keywords which users are typing in Amazon search box. You will then be charged every time someone clicks on your ad.

I don’t think I will surprise you by saying that Amazon ads work similarly to Google Ads. Amazon can show your ads not only in the main results section but also on individual product pages and a side or top of Amazon platform which is similar to Google Display Network. This gives you many different ways to connect products you sell to the right customers. There will be a separate article designated to Amazon Ad formats where we will go into more details of how these work.

Should I advertise on Amazon?

If you’re selling the product that consumers can buy online then, yes! And if you’re a vendor who already sells products on Amazon then even more, yes! It’s an effective way of expanding your market and increasing the number of people exposed to your products. Even more, you can improve your organic rankings by advertising on Amazon due to extra sales generated by Amazon Ads that are enhancing the sales history of your products. Sales history is a very important ranking factor and if a product sells better, Amazon will place it higher up the page in search results.

If you’re hesitant, you can start small and choose only one of your bestselling products and once you start to see a return on ad spend, you can keep adding more products to expand your campaign.

If you’re still unsure if you should put your efforts into advertising on Amazon, contact our team and we will be able to help and discuss this with you further.