Amazon Sponsored Products: A Seller's Guide

Sponsored Products are Amazon’s pay-per-click ads that put your listings in front of shoppers already searching for what you sell. This guide explains what they are and walks through the six steps to launch your first campaign.

Key Takeaway

Follow the six steps below and you will have a live Sponsored Products campaign running in Seller Central.

1. Choose automatic targeting to start, then add manual campaigns once you have search-term data.
2. Set a daily budget you can sustain, and adjust it as performance improves.
3. Promote products with strong sales potential, competitive pricing, and positive reviews.
4. Set a default bid, then shift spend towards the keywords that convert.
5. Review performance regularly and adjust bids, rather than launching and forgetting.

What are Sponsored Products?

Sponsored Products are pay-per-click (PPC) ads that help you promote your products directly on Amazon SERP (Search Engine Results Page) and other high- visibility locations. Amazon provides this advertising service to sellers, helping them increase sales and visibility by putting their products front and centre for potential customers. When you use Sponsored Products, you’re bidding for ad placements, which ensures that your products are showcased above, below, or alongside the organic search results.

These targeted ads make it possible for you to reach Amazon users who are actively searching for products like yours, connecting you with the right audience, and ultimately boosting your sales.

Features and Benefits

Some of the advantages and unique features of Sponsored Products include:

1. Enhanced visibility: With Sponsored Products, your products appear in prime locations on Amazon, including search results, product detail pages, and even on your competitors’ listings.
2. Pay-per-click model: You only pay when a customer clicks on your ad. This means you’re only spending money when directly engaging with potential buyers.
3. Targeted Ads: Set up manual or automatic targeting for your ads, allowing you to choose specific keywords or let Amazon’s sophisticated algorithms target relevant shoppers for you.
4. Easy set-up: Quickly create new campaigns and ads with minimal effort, using the Campaign Manager within your Seller Central account.
5. Real-time reporting: Monitor your ad’s performance and make data-driven decisions to optimise your campaigns using Amazon’s detailed reporting tools.

Setting up Sponsored Products

To establish an effective Sponsored Products campaign, follow these guidelines:

Step 1: Choose Your Campaign Type

1. Automatic Targeting: With this option, Amazon will target keywords and products relevant to your ads based on your product information. This is a great starting point for beginners or sellers who prefer to rely on Amazon’s targeting algorithms.
2. Manual Targeting: This campaign type allows you to select your own keywords based on your product research and target audience. It gives you more control over your ad placements and enables you to optimise your campaign based on specific goals.

Step 2: Set a Budget

Decide on a daily budget that suits your financial capacity and goals. Keep in mind that Sponsored Products campaigns run continuously, so it’s essential to allocate a budget that you can maintain over time. You can always adjust the budget later as your goals change or your campaign performance improves.

Step 3: Select Your Products

Choose the products that you want to promote in your campaign. It’s best to select products that have strong sales potential, competitive pricing, and positive customer reviews.

Step 4: Set Your Bids

Decide how much you’re willing to pay for each click on your ad. You can set a default bid for all keywords or products in your campaign, or set individual bids for specific keywords or products. A higher bid improves your chance of winning a placement, but it also raises the cost of every click, and relevance still matters — set bids to hit your target ACoS, then tune.

Step 5: Choose Your Keywords (Manual Targeting Only)

If you selected manual targeting, you’ll need to choose the keywords you want to target. You can use Amazon’s suggested keywords, or conduct your own keyword research using tools like AdRazor’s Keyword Insights Google Chrome Extension.>.>

Step 6: Review and Launch

Double-check the details of your campaign, and click “Launch” to set your Sponsored Products ads live. Once the campaign is live, check performance at least weekly and adjust bids based on what the data shows.

FAQs

What is the benefit of sponsored products?

In short, they buy your listing placements on Amazon’s search results that you would otherwise have to win organically, and you only pay when a shopper clicks — see the Features list above for the detail.

Are Amazon sponsored products good?

Yes, Amazon Sponsored Products can be highly effective for boosting sales and increasing visibility of products on the platform. By appearing in prime locations and targeting customers who are actively searching for related products, Sponsored Products can significantly improve your chances of generating sales.

How effective are sponsored ads?

The effectiveness of sponsored ads depends on factors such as targeting, bidding strategy, product quality, and keyword selection. When properly optimised and managed, sponsored ads can drive substantial traffic to your products, increasing visibility and, ultimately, sales.

How Much Do Amazon Sponsored Products Cost?

Amazon does not publish standard rates: the cost of each click is set by the auction for the keyword you are bidding on, and you only pay when a shopper clicks. Broad, common keywords cost more per click than long-tail terms, so most sellers start at Amazon’s suggested default bid and adjust from there.

Are Amazon Sponsored Ads Worth It?

Amazon Sponsored Ads can be worth it for many sellers looking to increase their product visibility, reach new customers, and improve sales. By leveraging Amazon’s advertising platform and optimising your campaigns, Sponsored Ads can provide an excellent return on investment. However, it’s important to continuously monitor and adjust your campaigns to ensure they remain effective and cost-efficient.