Are Amazon’ Sponsored Product’ Ads Worth It?

Say you’re in the market for a new pair of headphones or a new guitar tuner. Where would you start your search? Google, right?

Not so fast. According to a 2016 survey of 2,000 consumers, 55% of people actually skip Google altogether and start their online shopping searches directly on Amazon. Google still remains the top search tool for B2B buys and services, but Amazon is steadily overtaking them in the B2C market.

Need help getting started with inbound ads on Amazon, Google, LinkedIn, or Facebook? Book a free meeting with The Center for Inbound Advertising here. 

So what does this mean for you, the advertiser?

When youare thinking about your online ad strategy, you want to meet your consumers where they are. And if you're a B2C company, that place is -- more likely than not -- Amazon.

Google and Facebook still command the biggest slice of the tart in the online ad marketplace, producing respective revenues of $80 billion and $27 billion in 2016. But the two tech giants only control around 20% of the market, leaving plenty of room for a new player( say, Amazon) to emerge.

Experts estimated that Amazon earned around$ 1 billion from ads in 2016, but some say that number will surpass $2.5 billion in 2017. They're on the fast track for exponential growth in the coming years, but since they're still not officially a leading player in the online ad business, there's an incredible opportunity for advertisers to get in early and score better ad stances at a lower cost than well established properties like Google AdWords.

Who can benefit the most?

If you are an e-commerce company, advertising on Amazon is something you should definitely explore. B2B companies, consulting firms, lawyers, others will still assure better ad returns on more established properties like Google, LinkedIn, and Facebook at the moment.

Getting Started With Amazon Ads

Amazon has several ad programmes designed to choose from, but the best one to get started with is Amazon Sponsored Products. The Sponsored Product ads are genuinely merely image ads -- similar to display ads in Google Adwords -- but the cool thing is that they appear in search results on Amazon right next to the searched products. So when I do a search for aguitar tunersa in Amazon I get this 😛 TAGEND

The only visible difference between the sponsored and the non-sponsored results is the gray aSponsoreda tag that appears above the product title. You'll also assure sponsored products can appear in the sidebar.

The same search in Google yields this 😛 TAGEND

The process for Amazon Sponsored Product is very similar to advertising on Google AdWords: you select keywords, and your ad will show up when someone searches for them. Like AdWords, you pay merely for the clicks you receive on your ad.

And when someone clicks on your Sponsored Product Ad, they're sent to your landing page, which would typically be your Amazon product detail page. You could also send them outside to a page on your website if you choose.

You Might See Better Results on Amazon vs. Google AdWords

A major difference between Google AdWords and Amazon ads is where people current sit in the purchase process when they search on each platform.

People searching on Google are more likely to be at the beginning of the buyer's journey, i.e ., they just began their search and or are currently just browsing for solutions/ products. But when someone begins their search on Amazon, that person is usually more prepared to make a purchasing descision.

Building Your Amazon Ad

Amazon offer a complete introduction to getting started you can see that here.

But just to highlight the process 😛 TAGEND You will need to have an active seller account on Amazon. You need to have active product listings in at the least one of Amazonas product categories. You need to have Buy Box.

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