ImaginativePRO Blog

2021 Guide to Amazon Ad Types

As an Amazon seller — especially if enrolled in Brand Registry — there are a few different ways to internally advertise your products to millions of potential Amazon customers. 

While listing optimization and SEO are vital to your organic search results, you shouldn’t rely on just that when it comes to driving traffic to your listings. To increase your impressions and conversions, you need to be taking advantage of all the advertising opportunities Amazon has to offer. 

Through Amazon Pay-Per-Click advertising, sellers and brands can target specific keywords, categories, and even competitors with their ads. 

There are a few different types of PPC advertising on Amazon, so it’s important to understand what they are, how they work, and how to manage them. In this article, we’re going to go over:

• Amazon PPC ad types and examples of each
• The benefits of each ad type
• How to set up Amazon PPC ad campaigns

Amazon PPC ad types  

Third-party Amazon sellers have three ad types to choose from within their Seller Central account. Each ad type has a specific purpose and function depending on what your goals are. 

Those three ad formats are:

1. Sponsored Products
2. Sponsored Brands
3. Sponsored Display 

No matter the type you choose to run, they’re all a PPC format, meaning you will pay a small fee each time a customer clicks on your ad. Because of this, PPC ads are not a “set it and forget it” type of ad. You will need to frequently optimize and manage your campaigns to ensure you’re not overspending on keywords that do not convert into sales. 

Out of the three PPC ad types listed above, Sponsored Products are the most popular amongst Amazon sellers —  66% of third-party sellers utilize Sponsored Product ads. This is due in part to the fact that you do not need to be enrolled in Brand Registry to use them, as you do with Sponsored Brands and Sponsored Display. 

If you’re not enrolled in Brand Registry, do not worry, because Sponsored Product Ads are still one of the most effective ways to advertise your products on Amazon. 

According to our data, Sponsored Brands will result in the greatest RoAS (return on ad spend) over a period of 30 days — with Sponsored Products coming in a close second. Of course, this will not be the case for every seller, so it is important to test out various campaigns to see what works best for your business. 

Now, let’s get into each PPC ad format in detail.

1. Sponsored Products

Sponsored Product ads are the type that all Amazon sellers start out with and continue to use as their business grows. As we mentioned above, they’re the most popular amongst third-party sellers and one of the most profitable. 

With this ad type, you’ll have a lot of flexibility when it comes to targeting — in other words, defining the keyword search results and product detail pages in which you want your ad to appear. You can target keywords you think your audience is searching for, relevant categories, and even your main competitors’ listings. 

With PPC, you’re bidding against your competitors for the top ad placements on Amazon. You decide what you want to target, how much you want to spend per click on each particular target, and the overall daily budget for your campaign. 

If your ads convert into sales, this will in turn increase your organic search rankings for the specific keywords you’re targeting. 

Where do Sponsored Product ads appear on Amazon?

This ad type integrates so well within the organic search results on Amazon that customers may not even realize they’re looking at an ad. And depending on your bids, they’re effective right out of the gate, too — on day one of launching your product, your ad can appear at the top of the first page for each of their main keywords. 

Let’s consider an example: say I’m shopping on Amazon for boat accessories. I type “towable tube” into the Amazon search bar and press enter. Here’s what I see when the search results page loads: 

If you look closely under the images on the first row of products pictured above, you will see tiny “Sponsored” tags. These four tagged products are examples of Sponsored Product ads, while the bottom four are the first organic search results for “towable tube.” 

While using Sponsored Product Ads are a great way to get your products to the top of page one of search results, you have to be willing to spend — if your keyword bids aren’t high enough compared to your competitors’, your ads could appear within or at the bottom of the search results, where fewer customers may notice them. 

As we mentioned above, your Sponsored Product Ads may also appear on your competitors’ listings. That way, customers can do some comparison shopping before they buy. 

What are the benefits of Sponsored Product ads?

This ad type is very beginner friendly and easy to set up — even if you have no advertising experience. 

Here are some other benefits of using Sponsored Product ads:

• It’s easier for customers to discover products with low organic rank 
• It helps drive sales and increase your best seller rank for newly launched products.
• It provides an instant visibility boost to newly-launched products 
• You can choose keywords or product attributes to target manually, or you can let Amazon automatically target keywords it thinks are relevant to your products. 
• There’s no need to write ad copy or provide additional images. Amazon will use your listing content for the ad. 
• You only pay Amazon for the ad service when customers click on your ads — and you decide how much you want to spend per click. 

How to set up a Sponsored Product ad

From within your Seller Central account, go to the Advertising tab and click on “Campaign Manager.”

Click “Create campaign,” then click on “Sponsored Products.”

From here, you can set your campaign name, date range, daily budget, targeting options, bidding strategy, and targets. 

For a much more in-depth step-by-step guide on how to set up and optimize your Sponsored Product Ad campaigns, please check out our Amazon Sponsored Product Ads Guide.

2. Sponsored Brands

Sponsored Brand ads are banner ads that appear at the top of the Amazon search results that feature your brand’s logo, a custom tagline, and multiple products from your brand. 

Sponsored Brand ads are different from Sponsored Product Ads in that they help drive brand awareness by funneling traffic to your Amazon Storefront or to a custom landing page displaying your product line. With Sponsored Brands, you’re also able to run video ads, which catch customers’ attention as they scan Amazon search results. As with other PPC ad formats on Amazon, you can target specific keywords, categories, or products when setting up your ad.

When searching for products on Amazon, customers are met with tons of product options and other distractions — with Sponsored Brand Ads, you’re able to create a custom shopping experience that helps cancel out all the noise.

On your landing page or Amazon Store, customers view only your brand — none of your competitors’ ads or products will be displayed. This is a huge advantage, and could account for the comparatively higher RoAS sellers experience with Sponsored Brand Ads versus other PPC ad types. 

Keep in mind that this ad type is only available for third-party sellers enrolled in Brand Registry and Vendors. 

Where do Sponsored Brand ads appear on Amazon?

If you’ve shopped on Amazon before, you have encountered a Sponsored Brand ad. They appear at the very top of Amazon search results pages — above Sponsored Product Ads — and typically feature three products from one brand. 

Unlike a Sponsored Product ad, with Sponsored Brands, you can add your own custom logo and tagline that will help your ad stand out. 

If a customer clicks on “Shop JOYIN” in the above example, they will be redirected to the brand’s custom Amazon Storefront, where they can view all the products sold by JOYIN, without interruptions from competitors’ ads. 

What are the benefits of Sponsored Brand ads?

Sponsored Brands allows you to get more creative with your ads and drive more brand awareness and recognition. Instead of promoting just one product, you have the opportunity to display three products at a time to show customers more of what  you have to offer. 

Here are a few more benefits of using Sponsored Brand ads:

• They encourage customers to add more items to their cart, as they will be presented with multiple products from your brand. Use this as an opportunity to promote complementary items. 
• Among the ad campaign types we measured, Sponsored Brand Ads result in the greatest RoAS over a period of 30 days.
• You can defend your branded keywords by ensuring your ads show up when a customer searches for your brand name. 
• You can redirect customers to a custom landing page or Amazon Store that is free of competitor ads and products. 
• You are able to add custom ad copy that shows off your brand’s messaging. 

How to set up a Sponsored Brand ad

Getting your Sponsored Brand ads live on Amazon is simple. In your Seller Central account, go to the Advertising tab and click on “Campaign Manager,” then “Sponsored Brands.”

In the next section, enter details such as your campaign name, date range, daily budget, and the brand you will be promoting. 

Next, choose your ad format: Product collection, Store spotlight, or Video.

Next, fill in the creative assets of your ad, such as your logo, brand name, and tagline. After that, choose what you want to target with your ad — keywords or products. You can let Amazon automatically optimize your bids, or you can set your bids manually. 

For an in-depth overview of Sponsored Brand ad formats, as well as how to set them up, please check out our step-by-step How to Use Amazon Sponsored Brands Ads guide. 

3. Sponsored Display ads

While Sponsored Display ads may be least popular ad type of the three with just 25% of sellers using them,  there’s been a noticeable shift in ad spend away from Sponsored Product ads to this newer and recently updated ad format. 

As defined by Amazon, ”Sponsored Display is a self-service display advertising solution that helps you grow your business and brand on Amazon by engaging shoppers across the purchase journey, on and off Amazon.”

Sponsored Display brings advertising on Amazon to a whole new level, giving you the ability to retarget customers on and off Amazon. So not only will your ads be displayed across Amazon as they would with other ad types, they’ll also be visible to customers on third-party websites and apps. 

Unlike Sponsored Products and Sponsored Brands, you cannot target keywords with Sponsored Display ads. Instead, you’ll target specific audience interests and shopping behaviors, as well as customers who have previously viewed your product’s detail page. 

Basically, Amazon knows which products customers have viewed in the past. It will display those products to the same customers again on other Amazon pages or third-party websites, in hopes of converting that view into a purchase. 

If you’re enrolled in Brand Registry, this is yet another powerful tool in your arsenal to overtake your competitors. 

This ad type may yield the lowest RoAS compared to other ad types, but it’s still effective and worth testing out for your brand. 

With Sponsored Display ads, there are three targeting options to choose from: product targeting, views remarketing, and interests. 

Where do Sponsored Display ads appear?

Now that you know where Sponsored Product and Sponsored Brand ads appear on Amazon, let’s go over where Sponsored Display ads will appear. 

Depending on the targeting option you choose, your ads may appear on:

• Amazon product detail pages or search results on desktop, mobile, and app 
• Third-party websites and apps (in the U.S. only) 

Let’s see an example of a Sponsored Display ad using product targeting or audience retargeting. 

In this example, the ads are being displayed below the bullet points and the Buy Box on a competitor’s listing. 

What are the benefits of Sponsored Display ads?

Display ads are a fantastic way to reengage with potential customers who may still be interested in purchasing your products. 

• You have the ability to retarget customers who have viewed your listing within the past 30 days
• You can target similar products or categories, as you can with Sponsored Products and Brands
• Your ads will be displayed throughout Amazon’s pages and will stand out more than a standard sponsored ad
• You can target customers off of Amazon to redirect them back to your listings
• You can target customers based on their interests and previous shopping behaviors (vendors only)

How to set up a Sponsored Display ad

Following the same process as the previous ad types, go to the Advertising tab in Seller Central and click on “Campaign Manager,” “Create campaign,” then “Sponsored Display.”

Enter your campaign details, such as your campaign name, date range, budget, targeting, bidding, products to advertise, and products to target.

For a much more in-depth description of the various targeting options within Sponsored Display as well as how to set them up, please check out our step-by-step guide: How to Use Amazon Sponsored Display Ads. 

Courtesy of an article dated June 10, 2021 appearing in JungleScout

14 DIGITAL MARKETING PREDICTIONS FOR 2022 AND BEYOND

Digital marketing transformation refers to the shift from digital complacency and reliance on traditional marketing to the active pursuit of digital excellence through the proper usage and optimization of your digital channels.

The main difference between digital and traditional marketing is the medium through which an audience encounters a marketing message. While traditional marketing uses traditional media like magazines and newspapers, digital marketing uses digital media, such as social media, search and websites.

Digital transformation is essential in achieving business sustainability, competing better in an economic environment that is constantly changing in response to technology evolutions and economic disasters brought on by pandemics like COVID19.

One of the biggest reasons digital marketing has become so important is the engagement it brings – you can converse with your prospective and current customers, answer questions and resolve issues. You can also interact with a wider audience, meaning you can do more than just sell.

The following infographic presents 14 digital marketing predictions to help brands implement a digital marketing transformation and prepare their digital marketing strategies for the year 2022 and beyond.

Courtesy of an infographic by Liana Technology based on several sources between 2017 and 2020

HOW DIRECT-TO-CONSUMER BRANDS ARE CHALLENGING MARKET LEADERS AND DRIVING CONSUMER ACTION

During a Brands United webinar in September 2021, Brent Niemuth, President & Partner of direct marketing agency J. SCHMID, said that direct-to-consumer brands are outsmarting established market leaders with data-driven marketing and compelling and memorable creativity designed to delight consumers and disrupt markets.  

Niemuth explained how direct-to-consumer brands like Warby Parker, Casper, and Hello Fresh are shaking established marketing paradigms and being successful while doing it.  Niemuth said.

“When you look at direct-to-consumer brands now, they’re the cool kids, everyone wants to sit at the table with them because they’re the ones leading the way, they’re the ones who have figured out how to connect with consumers in a more impactful, more powerful, and more memorable way.” 

Niemuth broke it down into three categories: Disrupt, Delight, and Drive action.

Being Disruptive with Direct Mail 

Niemuth said it’s getting harder to stand out in this “jam-packed marketing world.” So, how do you cut through the clutter and shake things up to the point where your brand gets noticed? It’s simple — you’ve got to be different.   

Niemuth said.

“When people hear this idea of having to disrupt to stand out, they assume they must yell louder and be crazier than the other guy, but no. You’ve got to be different from the other guy; if they’re comparing you to other brands they’re familiar with, being louder doesn’t matter, being different does.” 

Niemuth explained that direct mail is disruptive by nature and used two digitally native brands as examples of brands that have learned to embrace both marketing mediums.

Casper

Niemuth joked and said, if you said 10 years ago, we’d be buying mattresses through the mail, he would’ve looked at you sideways, but now thanks to Casper, that’s all changed. He utilized Casper to ask viewers: What is your unboxing experience like for your brand, and have you missed an opportunity for marketing? He pointed out that Casper’s signature blue striped packaging is like a mobile billboard for the brand, and now when people see that packaging, they’ll associate it with a great product. He also touched on the interactive “sleep kit” it sends to its customers and how the company has built a brand not just based on mattresses but on sleep.

Warby Parker 

Niemuth said.

“This is one of the first brands that started out digital and realized that if they open up retail stores, they might grow a little bit faster, but if we also reach out to our customers through direct mail and digital, we can make the experience better.”

He also touched on Warby Parker’s packaging and how it’s a critical part of their consumer experience. He touched on how their packaging has a simple and clean design with instructions that allow customers to interact with the brand.

Elevating to the Emotional through Delight

Niemuth said that 95% of buying decisions are based on emotion, not logic, so brands need to consider how they make people feel. In addition, Niemuth said that brands should make it simple and easy for their customers so that they feel at ease.

He used another two brands as examples of companies that ensure their customers will remember how their buying experience made them feel.

Allbirds

Niemuth admitted that he was even wearing a pair of Allbirds as he talked about them and how he has four pairs of the company’s sneakers. Keeping along with the theme, Niemuth touched on the brand’s simple yet elegant design for their packaging and labels that are effective and serve a purpose. He also pointed out the illustrative designs that they incorporate into their direct marketing campaigns that keep everything light and fresh— bringing joy and delight to their consumers.

Hello Fresh 

Niemuth said. 

“This brand doesn’t just slap a logo on the side of their box; they utilize their logo to communicate in a delightful and joyful way.”

Niemuth emphasized that Hello Fresh uses their packaging to communicate in a way that’s fun and playful for their customers by using phrases like “can I get a kale, yeah?”

Drive with a Call to Action 

Niemuth said this might be the most critical component for direct marketers. “Research shows that if people take some sort of action, even if they go online and watch a 30-second video, chances increase that they’ll make a purchase,” Niemuth said.

He used two more brands to showcase calls to action.

Allen Edmonds 

As a client of J. SCHMID, Allen Edmonds got their catalog redesigned from just showing off shoes to instead telling a story with real people. Niemuth said they featured five people throughout the catalog, told their stories, and then pushed people online to go find out more.

Relax the Back 

Because this is a retail-driven brand where the product can be upwards of $9,000, Niemuth pointed out that it’s critical to get people into the store and not just buy online. So, just like Allen Edmonds, they pushed a narrative throughout their catalog about “living wellness” and urged people to come into the store. Then to top it all off, the spread at the end of the catalog gives not just one but six different calls to action.

To wrap up his talk, Niemuth Emphasized the three Ds.

1. Disrupt: Do something different to get noticed.
2. Delight: Once you have their attention, make it worth their time.
3. Drive: Give the consumer a reason to act.

COMMENTARY  The direct-to-consumer (D2C) business model — allows data-driven brands to provide consumers with exactly what they want, when they want it, in an extremely personalized way. It allows consumers to access products directly from a brand, rather than a third party such as a retail store.

Knowing about the D2C business model, you might be wondering what is direct to consumer advertising exactly?

What is D2C advertising and why are brands using it?

Just as the term and business model suggest, D2C advertising cuts out any middlemen and lets brands to manage the end-to-end process themselves.  So rather than pushing products to larger retailers and wholesalers, sellers choose to focus their marketing strategies on consumers to build a closer relationship with them.

D2C marketing is quickly growing in popularity, brought on largely by other current advertising trends, like influencer marketing and social media ecommerce capabilities like various shopping ads.

What sets direct to consumer advertising apart?

While there are some similarities, there are some major differences between D2C marketing and other marketing strategies including B2B.

The main distinction is that D2C marketing requires an unrelenting focus on data, technology, and a personalized ecommerce experience — more so than any other type of marketing.

Other qualities that set D2C marketing apart include:

• A seamless buying experience with speedy delivery
• Heavy reliance on engagement and sharing (social conversations turn into user-generated content, which can then be leveraged to spread positive publicity)
• One-to-one interaction with users based on customer feedback and reviews
• The quantity and quality of first-party customer data created that the brand can use to make important decisions, such as tweaking product design
• A deep and invaluable understanding of the purchase path, which can inform subsequent communication and advertising choices
• An intrinsic modernness, providing millennials with the sense that these products were developed specifically for and by their generation

How can brands implement a D2C advertising strategy?

There are countless ways to begin DTC advertising, but here are a few of the most basic to get you started.

Paid search

This is the best place to start as a D2C brand because when someone searches for your main keywords, you want to make sure they know that your business can help them. This allows you to start building that strong one-on-one connection with them immediately as they’re searching for a solution, and then convince them to take action.

For example, when someone searches “where to buy razors,” Harry’s ensures their website is at the top of the results page:

When users click the D2C ad, they’re directed to this pre-cart landing page to learn more about the razor subscription:

After learning about the offer, prospects can click the “Redeem Trial” CTA button to easily checkout on the next page:

The order of this process is critical because although nearly 1 in 4 online shoppers begin their customer journey on a product page, about 96% of visitors aren’t yet ready to buy when arriving there. Sending them to an actual pre-cart landing page instead makes them less likely to bounce right away.

Social media

Paying for social media ads where your consumers spend most of their time is another great D2C marketing tactic. Social media advertising provides brands with a way to amplify their voice, increase shares and engagement, and leverage personalized, one-to-one messaging.

This DailyLook Facebook D2C ad is highly personalized to the user. The ad copy and video captions even make it clear that DailyLook is a D2C brand:

Visual platforms like Instagram and Pinterest have been rolling out in-feed shopping tools, enabling customers to move more quickly from product discovery to purchase. Users can click ads like this Nike Pinterest ad and be directed to a brand’s ecommerce site to complete transactions:

Or they can complete an in-app purchase in some cases, such as this Instagram Checkout for UNIQLO:

With this new feature, consumers don’t even have to leave Instagram to complete their transaction.

Email

With your existing list of contacts, you can start by setting up one-to-one transactional emails — welcome, thank you, order confirmation, shipping notification, customer support, etc. like this one from Fabletics:

You can also create promotional D2C campaigns like Nectar does with their direct-shipping mattress service:

Display ads

Display and retargeting ads tend to have two different goals: not only click-throughs, but also impressions and reach. So this particular D2C marketing tactic is more like brand advertising — to make a favorable impression, build strong connections, and increase long term demand.

Consider this Johnson & Johnson ad for instance:

It’s not intended to sell a specific product; just to raise brand awareness, build connections, and create long term demand.

Courtesy of an article dated June 13, 2019 appearing in Instapage