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January 17 2025 Marketing

Amazon Advertising: A Beginner’s Guide to Sponsored Products

Be it increasing product awareness or boosting sales on the biggest e-commerce site in the world, Amazon ads are crucial. However, the profitability of your business can be greatly impacted by how you use the tools. No wonder why many sellers opt for Amazon seller training courses. However, to make sure you leverage the most out of it, here is an ultimate guide to sponsored product ads.

What are Amazon Sponsored Products?

Amazon-sponsored products are cost-per-click (CPC) ads that allow individual sellers to promote product listings on Amazon. Once your products are launched, they let you bid on certain keywords to get maximum exposure in Amazon search results.

As the term CPC implies, you have to pay a nominal fee for each click on your advertisement. These ads are appealing because of their one-page prominence. The best part is that to use these ads you don’t need to be brand registered.

What are the Benefits of Amazon Sponsored Products?

Being a powerful platform, amazon advertising provides businesses with a plethora of benefits. This includes:

  • Sponsored product ads help in increasing product visibility as they are everywhere. They are found at the bottom and top of the search results as well as on the details pages of your product.
  • Another benefit is that it makes measuring your return on investment easier. You only have to pay for ads that are clicked on your ad campaigns.
  • It results in improved sales, especially for higher conversion rates products. If facing difficulties, you can seek advice from the best Amazon seller account consultant.
  • These ads are targeted to certain keywords. This means your products will be easily seen by customers who are searching for products like yours.
  • Another benefit of sponsored product ads is that they offer a great deal of control over your daily advertising budget. Yes, it lets you choose how much you want to spend each click on each specific target.

How Do Sponsored Products Ads Work?

As said earlier, sponsored product ads are based on CPC format. Every seller bids against each other to attract potential customers. Besides, talking about how it works- you start with specifying a list of products or targeted keywords. These are exactly what you want your advertisement to show up for in Amazon search results.

Once customers find it relevant to their search, they will read your product detail page by clicking on your ad. You then bid with Amazon, indicating how much you wish to spend per click. An algorithm then determines where your ads will appear on search result pages.

To earn a top rank in search results, you must set your bids high as a bid too low will not reveal your ads to your target customers. However, if you are failing to reach your target audience, then it’s time to rely on experts in Amazon PPC management service. Once your customers click on your ads, you will be charged the full price of your keyword bid, regardless of whether they buy products or not.

How to Set Up a Sponsored Product Ad?

Can’t wait to reach as many people as possible out there? Wondering how to set up a sponsored products ad? Well, here are some easy steps to follow:

  • Visit the Amazon Advertising dashboard and click on Campaigns. Then click on Create Campaigns and choose Sponsored Products.
  • Now set your campaign budget and duration as well as the start and end dates for your campaign.
  • Next, choose your targeting options.
  • Based on your categories or brands, you may then select the products you want to list on ads.
  • For each ad group, set your bids and create ad content.
  • Once done, click on Launch Campaign.

Become a Successful Amazon Online Seller

ECommerce Gyan Private Limited is your ultimate destination for your Amazon online business. As the best Amazon PPC agency, we walk the extra mile to help you achieve your goals. Our staff have years of experience and provide the best training to all.

We offer in-depth training and the professional support you need. Whether you are an established seller or just a beginner, we have solutions for all your problems. To learn more, you can get in touch with us today.