How to Use Amazon Advertising: A Guide for New Sellers
How to Use Amazon Advertising: A Guide for New Sellers
Blog Article
If you’re a new seller on Amazon, you may have already realized that listing your product isn’t enough to generate traffic or sales. With millions of products on the platform, simply having a great item won’t make it stand out. This is where Amazon Advertising comes into play. By strategically using Amazon’s powerful ad tools, you can drive visibility, boost conversions, and grow your business. In this guide, we’ll break down how to use Amazon Advertising effectively, especially for beginners aiming to scale.
What Is Amazon Advertising?
Amazon Advertising is the company’s in-house advertising platform that enables sellers to promote their products directly within Amazon’s ecosystem. From search result placements to product detail pages, Amazon’s ads help sellers reach potential customers who are already in a buying mindset.
Amazon offers different ad types, including:
Sponsored Products
Sponsored Brands
Sponsored Display
Amazon DSP (Demand-Side Platform)
Understanding each of these formats—and how they function—is key to setting up campaigns that deliver ROI.
Why Use Amazon Advertising as a New Seller?
Amazon Advertising is not just for big brands. It’s a scalable solution that works for businesses of all sizes. Here’s why it’s particularly useful for new sellers:
Fast Visibility: Organic ranking can take weeks or months. Ads put your product in front of shoppers instantly.
Targeted Reach: You can reach buyers based on keywords, interests, or shopping behavior.
Sales Momentum: Advertising boosts sales velocity, which is a critical metric for organic ranking.
Data-Driven: Real-time performance metrics help you optimize campaigns for better results.
How Does Amazon Advertising Work?
Before we dive into using the platform, it's important to understand the question: how does Amazon advertising work?
At its core, Amazon uses a Pay-Per-Click (PPC) model. You set a daily budget and a bid for each keyword or target audience. When a shopper clicks your ad, you're charged based on your bid and the competitiveness of the keyword.
Here’s a simplified breakdown:
You choose a product to promote.
You select relevant keywords or audience segments.
You set a bid (how much you're willing to pay per click).
Amazon’s algorithm decides when and where to show your ad based on your bid and relevance.
You pay only when someone clicks your ad.
Now let’s look at how to put this into action.
Step-by-Step: How to Use Amazon Advertising
Step 1: Register for Amazon Seller Central and Enroll in Brand Registry (Optional but Recommended)
Before creating ads, you need an active Amazon Seller account. To access advanced advertising options like Sponsored Brands or A+ Content, enrolling in Amazon Brand Registry is highly recommended. This adds legitimacy and unlocks features that enhance your product’s appeal.
Step 2: Choose the Right Campaign Type
There are several campaign types available. For new sellers, the following are especially useful:
Sponsored Products: These are keyword or product-targeted ads that appear in search results and on product pages. This is the best place to start.
Sponsored Brands: Showcase your brand and a collection of products. Requires Brand Registry.
Sponsored Display: Target audiences based on behavior. Good for retargeting.
Start with Sponsored Products for a more controlled and beginner-friendly approach.
Step 3: Keyword Research
Your campaign's success largely depends on selecting the right keywords. Tools like Helium 10, Jungle Scout, or Amazon’s own Search Term Report can help identify high-converting keywords. Focus on:
Long-tail keywords: Less competitive and more specific (e.g., “organic green tea bags” vs. “tea”).
High relevance: Ensure the keywords match your product’s features and benefits.
Use both automatic targeting (Amazon picks keywords) and manual targeting (you pick keywords) in separate campaigns for testing.
Step 4: Set Your Budget and Bids
When starting out, it’s wise to set a conservative daily budget—anywhere from $10–$50 per campaign. You’ll also need to set bids for keywords, typically between $0.20 and $2.00 depending on competition.
Pro Tip: Monitor your ACoS (Advertising Cost of Sales). If your ACoS is too high, you’re spending more than you're earning. A good target ACoS for beginners is 20–30%.
Step 5: Launch and Monitor
Once your campaign is live, it’s critical to track performance. Check metrics such as:
Impressions: How often your ad was shown.
Clicks: How many users clicked your ad.
CTR (Click-Through Rate): Clicks ÷ Impressions.
Conversion Rate: Purchases ÷ Clicks.
ACoS: Ad spend ÷ Sales.
Use this data to pause underperforming keywords, raise bids on converting terms, and adjust budgets accordingly.
Tips for Success with Amazon Advertising
1. Optimize Product Listings
Your ad is only half the equation. If your product listing isn’t compelling, you won’t convert clicks into sales. Ensure your:
Title includes main keywords
Bullet points highlight features and benefits
Images are high-quality and professionally taken
Descriptions are clear and keyword-optimized
2. Use Negative Keywords
To avoid wasting money, add negative keywords to your campaign. This prevents your ad from showing for irrelevant or unprofitable searches.
For example, if you sell high-end leather bags, exclude “cheap leather bags” as a keyword.
3. Run A/B Tests
Test different ad copies, images, and targeting methods. Amazon’s platform doesn’t provide built-in A/B testing tools, but you can manually create variations and compare results.
4. Gradually Scale
Don’t rush to increase your budget. Start small, test thoroughly, and scale what’s working. Review performance weekly and make incremental adjustments.
Conclusion
Navigating Amazon Advertising as a new seller may seem overwhelming, but the platform is designed to be accessible even for beginners. By understanding how the system works, focusing on relevant targeting, and continuously optimizing your campaigns, you can dramatically increase your visibility and sales on Amazon.
So, if you’ve been wondering how does Amazon advertising work, now you have a solid foundation. Use this guide to start your advertising journey with confidence and set your brand on a path to success in the world’s largest online marketplace.
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