Amazon Pay Per Click (PPC) is a powerful tool to help third party sellers get their brand and products noticed, encourage customers to visit their Amazon store, and it is also a platform to help grow sales. Amazon PPC works like an auction where advertisers place bids on keywords and pay only if their ad gets clicked. Yes, that’s right, advertisers only pay when potential customers click on the ads and they only pay the bid amount of the second winning bidder not the amount they bid on.

Business owners that are just starting out have different options on how to advertise their products. It is recommended that they allot money for spending on Ads and try automatic and manual targeting to get a clear idea as to what keywords and search terms are highly relevant to their products.

Advertising on Amazon is classified into three types.

• Sponsored Products Ads
• Sponsored Brand Ads
• Sponsored Display Ads

SPONSORED PRODUCTS ADS

Sponsored products ads are the most popular kind of ads on Amazon. They often appear in organic search results and in detail pages of competitors. Here are some examples.

Search result page:

Product detail page:

SPONSORED BRANDS ADS

Sponsored Brand Ads is a very competitive type of advertising, and it allows business owners to showcase their brand and advertise up to three products as they appear on search results that are highly relevant to their brand or products.

This type of advertising is very effective in building brand awareness and the ad placement occupies a prime spot in search result pages. Here are some examples:

On top of search results page:

At the bottom of search results page:

SPONSORED DISPLAY ADS

Among the three, Sponsored Display Ads is the most different. This type of advertising does not use keywords to target customers. These ads are run based on demographics data and customer shopping behavior.

Sponsored Display Ads appear in Amazon Detail pages, customer review section and they also appear on third party websites and related apps outside Amazon!

Conclusion

As a business owner, planning before launching PPC campaigns is very important, know your goals and make sure that the Ads are aligned with your goals.

Monitor and review the campaign reports to know which area to improve on, which keywords are converting, and you might even be surprised to find high converting keywords that you previously didn’t think about.