Case Study: Advertising Tools

Introduction to Advertising Tools on Amazon

Amazon’s advertising tools, including Sponsored Brands and Sponsored Products, can be incredibly powerful for businesses looking to increase brand visibility and drive sales.
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Must-know advertising tools for brand sellers

A Sponsored Brands campaign helps to drive search discoverability and tells the brand story for sellers enrolled in Amazon Brand Registry. Sponsored Brands can help drive customers to your brand store or listing with prominent placements of the brand logo, self-defined headline, and product images above, below, or under search results.
Example of sponsored brands ad placement
A Sponsored Products campaign lets you bid on specific keywords that enable your ads to be displayed on the first page of results when a customer searches for those keywords.
Factors influencing first-page ranking include overall relevance of the keywords used, and the bid placed on those keywords.
Example of sponsored products ad placement
Both types of ads are cost-per-click, meaning that you bid the maximum amount you are willing to pay when a shopper clicks an ad for your product. The more competitive your bid, the more likely your ad is to be displayed when it matches a customer or shopping query. Learn more about the types of digital marketing tools on Amazon here.

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Now, let’s learn from real Amazon sellers and how they used Amazon’s advertising tools to increase brand visibility and drive sales.

Tapping into brand owner benefits

Starting off as a reseller of over 800 different products, Jason found that there were more benefits to becoming a brand owner. For example, one benefit was that he could create his own unique listings and avoid competition with other sellers to be the featured listing in the Buy Box.

As a brand owner, he could also build a business and assets with long-term value, instead of being subject to brand owners who may choose to stop supplying goods to him at any time.
Some sellers might have good sales, but due to low margins, might make a very low profit or even no profit after discounts and pay-per-click (PPC). It is important to have a data-driven approach to optimize advertising. And you need to know your product’s profit margin, so that you can have a profitable bid strategy.

– Jason
The challenge for Jason as an entrepreneur was to keep his investments conservative. “One thing I never want to do is to burn cash. Whatever I put in, I want to be able to see returns for them.” He learned that this was especially difficult to maintain if not done properly without trusting the data and adapting to the results of campaign performance e.g. by decreasing bids if a campaign is underperforming, and increasing bids if a campaign is performing well.

Start with optimizing your listings

Jason recommends that sellers first start with a solid foundation for their advertising campaigns by creating product pages that are well optimized for Search Engine Optimization (SEO) so they can easily see the relationship between Impressions, Clicks, and Conversions. With this, running advertising campaigns such as Sponsored Brands and Sponsored Products can then be more effective to help increase brand awareness and gain high search visibility.

Key takeaways

1. Build a solid foundation by creating product pages that are well optimized for SEO and Impressions > Clicks > Conversions

2. Continually adjust bids and campaign bidding strategy based on performance

3. Consider setting dynamic budgets to automatically increase your budget during Tier 1 events to prevent running out of budget

Read more about his case study on Seller University* to find out more about Jason's actual experience using Amazon’s advertising tools and how he optimizes the structure of his advertising campaigns to drive results.

*An Amazon seller account is required to access the full case study.

Stand out with Sponsored Products ads

The challenge for Petite Simone was to penetrate a saturated market, not just offline, but online as well. They were hoping to change the way fast fashion was applied in the bag industry. They analyzed everything, from ratings and reviews to user relationships, and in their early days on, managed to boost their sales by 1.5 times, just by focusing on Sponsored Products ads.
We always ensure that our Ad Sales exceeds our Ad Spend to ensure healthy profit margins. Looking forward, we hope to gradually focus more on Sponsored Display ads so as to reach new audiences and gain more new traffic for Petite Simone.

– Stev
“When we first started out as an Amazon Global Seller, we allocated about 90-95% of our Amazon advertising budget on Sponsored Product ads, and the remaining 5-10% on Sponsored Brand and Sponsored Display ads. Once we had a better understanding of our North American customers’ preferences, we tweaked our budget allocation slightly, with 80% on Sponsored Product ads, and 20% on Sponsored Brand and Sponsored Display ads. This helps us to maintain conversion rates while at the same time continuing to boost our brand awareness.”

Continue to improve with customer feedback

Stev learned that sellers need to keep their eyes and ears on the ground to pick up on even the smallest of details, so they can meet the needs and wants of their customers efficiently. By A/B testing his creative assets, he was also able to identify what engaged customers the most. Moreover, he recommends maximizing exposure to customers during peak seasons as online traffic and exposure during big shopping events like Prime Day and Black Friday, Cyber Monday are a lot higher than usual.

Key takeaways

1. Keep your eyes and ears on the ground to pick up on even the smallest of details, so that you can meet the needs and wants of your customers efficiently.

2. Do A/B testing on creative assets to optimize campaigns.

3. Start preparing early for key shopping events and avoid overlapping or stacking discounts.

Read more about his case study on Seller University* to find out more about Stev's actual experience using Amazon’s advertising tools and how he optimizes the structure of his advertising campaigns to drive results.

*An Amazon seller account is required to access the full case study.
Note: The information contained in this guide is confidential and proprietary to Amazon. These materials are subject to the confidentiality obligations in your agreement with Amazon or in a non-disclosure agreement between us. Any unauthorized disclosure, dissemination, distribution, copying, or the taking of any action in reliance on the information herein is strictly prohibited. The information contained in this guide does not constitute legal, tax or financial advice. If you are in doubt as to the action you should take, please consult your legal, financial, tax, or other professional adviser. In addition, the content in this article is for information only and must not be construed as a guarantee of future results. Many factors influence the demand for a seller’s products, including price fluctuations, consumer demand shifts, and sellers remain responsible for determining the products they sell and their prices.

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What are Sponsored Brands?
Sponsored Brands are keyword targeted ads that appear in prominent locations within shopping results and feature a custom headline, brand logo, and a collection of products within the ad creative. When shoppers click the ad, they are taken to a product listing page, custom landing page, or Store. Sponsored Brands are available for sellers enrolled in Amazon Brand Registry.

Learn more here.
What are Sponsored Products?
Sponsored Products are keyword or product targeted ads that promote your individual listings and appear in shopping results and on product detail pages on Amazon.

Sponsored Products can help you increase visibility and sales of your products by displaying ads when shoppers are looking for products like yours. Consider using Sponsored Products for product visibility, new offers, unique selections, offers with low glance views, clearance items, and seasonal promotions.

Learn more here.
How much does it cost?
Most Sponsored Products and Sponsored Brands are cost-per-click (CPC) ads, meaning you pay only when your ad is clicked. You choose your budget and how much you want to spend for a click.
What is CPC advertising?
Cost-per-click (CPC) advertising is a type of paid advertising where ads display at no charge — ad impressions, or views, are free — and the advertiser is charged only when customers click the ad. Sponsored ads, such as Sponsored Products and Sponsored Brands, run on the CPC model.
What are the requirements to advertise?
An active Professional seller account is required.
• For Sponsored Brands, enrollment in the Amazon Brand Registry is required.
• For Sponsored Products, eligibility for the Featured Offer.

If you create a Sponsored Products ad for a product listing that is not eligible for Featured Offer placement, your ad will not display to Amazon shoppers. Ads that are not eligible are flagged in the campaign manager under the ‘Advertising’ tab in Seller Central. Sponsored Brands will be shown to shoppers regardless of who is presenting the Featured Offer.
What is Featured Offer?
The Featured Offer is on a product detail page where customers begin the purchase process by adding items to their shopping carts. A key feature of the Amazon website is that multiple sellers can offer the same product, so you may compete with other merchants for the Featured Offer. Sellers must meet performance-based requirements to be eligible for Featured Offer placement.
Jason - Beauty
Stev - Clothing & Accessories
Jason - 2013
Stev - 2021
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