What Are Amazon Sponsored Products? Are They Worth It In 2021?

What Are Amazon Sponsored Products?

Sponsored products are cost-per-click (CPC) ads that promote individual product listings on Amazon. In just a few minutes, you can create an ad campaign for your business and increase the visibility of your company in as little time as it takes to make coffee!

Amazon places importance on their affiliates because they also need to ensure that they are selling more and generating more revenue. This is why Amazon sponsored products make it easy for potential clients to find and buy products. 

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To ensure that this process is fair, sponsored products are automatic, and you will not need to grease anyone’s hands to get the privilege. It will, however, help you to make more and generate more revenue for Amazon. 

Sponsored Products are ads that amazon has to promote listings by individuals and also target shoppers that are looking for products the same as the ones you have. The sponsored ads will appear in a search result and also on the product pages. These product ads meant for promotion are created automatically according to the product listings and they can only be customized indirectly. 

It is vital that you have sponsored products because they attract more people to your site and the more clicks you have the higher you will rank. You can also improve on your metrics with this method and many others that Amazon is offering to sellers. 

Amazon Advertising & Product Listing Service - YOURBACKUPEMPLOYEE INC.

What Does Sponsored Mean On Amazon

When you talk about sponsored concerning amazon, you mean that the products are keyword or product targeted ads. They will look more similar to the organic search results and they will appear on the product link page.

These products are created automatically by amazon and there are criteria that amazon uses to ensure that the products are eligible.

The following is the eligibility criteria:

  • The account must be active and have a good standing with amazon
  • Have a valid payment method
  • You must have the ability to ship to the country where you are advertising
  • The seller type should be professional seller, vendor, and kindle direct publishing author
  • Products should not be used, adult or refurbished
  • The product must be available in the buy box and stock

Amazon Sponsored Products Requirements:

Apart from the above, you should also make sure that you have been selling through your account for 90 days. The product should also not exceed the average price of the previous and also up to two months. This will make it possible for the products to sponsor because they will be eligible for it.

For the vendors and the sellers, the sponsored products will perform better in the market and will drive more revenue for them. This is why you will find that it is worth it to have your sponsored products. 

The sponsored products will appear directly in search results and this will help them get visible to customers. The ads are specific and are meant to get to potential shoppers who are likely to make the purchases. You can talk to Sunken Stone about how to get products sponsored and how to ensure that your account is eligible. 

Understanding Amazon Sponsored Products Model

It is vital that you understand how the PPC (Pay per click) model works. This is because they bill sponsored products according to clicks meaning that the advertisers will only pay when the ad has been clicked. The cost will range from a few cents to dollars and there is a benchmark to set them.

Is Amazon Sponsored Products Really Worth It?

Any decision you make for your account must be worth it in the end. You should know that the sales volumes you will get from organic rankings are important and this is a major factor when you have amazon sponsored products.

You will sell more make more earnings through the slicks and therefore your account will have a higher ranking. 

Amazon Sponsored Products vs Sponsored Brands | Clever Solution

When you have an increase in sales from promoting products and any other amazon PPC campaigns calculate to a higher ranking. You are sure that these will boost your organic ranking and therefore you will have a better chance of earning more from amazon. 

Ad campaigns are important especially when a new product struggles on Amazon SERP and this will help with improving ranking. Any more information you need about amazon ranking and SEO is available at Sunken Stone. However, here are a few basic terminologies you should learn before you start on amazon as a seller or about amazon sponsored products.

Established products also use ads to improve on the amazon ranking and the campaigns for sponsored ads campaigns are very effective. You however need to understand the basics and the terminology used by amazon for these issues:

Target & Keywords

In an amazon PPC campaign, you can choose to set the target ads using keywords, product ASINs, and categories. You can also remarket on external websites so that audiences that have seen the products have a target option. 

Keywords are the search queries that a potential customer will type into the amazon search field this can be a product or a category. Targets are specific words or categories and ASINs that will cover multiple search terms.

How to do Keyword Research like a Pro - An Advanced Guide | E2M Blog

Keyword Match Type

This is what will determine the degree of match between the customer search and the keyword. This can be varied according to the item available on amazon. The match type can be either broad, exact, or phrase and this will determine the precision of the keyword. This will affect the management effort you will require to ensure that the keywords match the searches of the customer. 

Negative Targeting

This will help the sellers to exclude the search terms that will not benefit their ad campaigns. This is a great tool to help a seller so that they can control their PPC activities and this can be either negative ASINs or negative keywords. 

Dynamic Bidding  & Adjust Bid Placements

Amazon can select and set bids when using the dynamic bidding option and this will allow amazon to adjust the bids in real-time.

All the buds depend on the conversion probability of the product. Adjust bid placements are a feature that will modify the bids so that they can target the top search and detail pages. A bid modifier can help for targets from 0 to 900 percent. 

Amazon Sponsored Products Ads: Bidding and Targeting Strategies

Campaign Types

There are two types of ad campaigns, manual and automatic campaigns. In manual campaigns, you have the chance to get more accurate results because you can control the search items. You can choose the products that you want to display so that you can have a precise target for your products.

While in automatic campaigns your ad will automatically match when the terms that amazon has set finds relevant for your products. 

Key Metrics

Metrics are performance indicators that will determine the success of your advertisement. You need to look for any areas that will improve your strategies. This will help you to calculate your success when dealing with ads on Amazon. There are tools that you can use for free like sellers and the amazon PPC benchmarker.

This will help you to compare with other sellers in your category. 

It is important to note that Amazon has a formula that they use to calculate and determine the ranking of the products and accounts. You will be able to see how efficient any method you are using to advertise are and you can compare it with your competitors. It is vital that you have enough clicks and it has to convert to orders.

The amazon sponsored benchmarks are usually for top categories like health electronics, household, and clothing. 

How To Determine If Your PPC Campaigns Are Doing Well

When you are gauging the success of your Amazon ad strategies, you need to ensure that you compare the performance with those of your peers. The marketplace has many other sellers who also sell the same products and are in the same categories, this means that you need to ensure that you stay on top. 

Check out your rankings so that you can know if the sponsored products are working and that you have all the requirements to ensure your account can have the sponsored products. All the categories thereby type and other factors which make it easy for amazon to determine the products they will sponsor. 

How to Structure Your Amazon PPC Campaign in 2021

After using the free sellics benchmarker, you can then compare your CTR to that of your competitors and also find ways of improving to have more clicks. You also need to understand if you are targeting a broad or a narrow audience so that you can customize your keywords and other ads to match the targets. The success of the ads will ensure you get a better ranking and you can stand out from the rest of your competition. 

Your peers are those with whom you sell in the same category and those that you are in competition. You need to ensure that any decision you take about your account will positively affect your ranking.

The metrics will help you gauge how you need to adjust and what you need to do so that your product page will be more appealing to your potential customers. This way, you will know if you are successful in convincing consumers. 

» DOWNLOAD NOW: Learn Everything There Is To Know About Selling Effectively On Amazon With Our Ultimate Amazon Playbook [PDF]

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Frequently Asked Questions

What Is A Good CPC For Amazon Sponsored Products?

CPC is the amount that you will pay when a client clicks the ad and it is a sign of the level of competition in your selling category. A good CPC depends on the specific products and if it is lower than that of your peers, it means that your bids are not as competitive as the others. You need to ensure that you know what you are willing to pay for and if your CPC is higher than your peers, it means that you are overpaying for the clicks.

How Do I Set a Goal For Amazon Sponsored Campaigns?

When advertisers run ads they know that they can incur a loss because of the performance of the individual products. You need to track your performance and therefore it is important to set goals. This is because you need to know what advertisers go for and be clear about the goals before you start running your ads. 

How Can I Automate The ASIN Research?

You need to ensure that your keyword and the ASIN will continuously optimize your targeting. A free sellics trial can be used and check out how it works. You need to ensure that you have category targeting so that you can compare to your peers. This will make it easy for you to automate your research. 

How Can I Create My Sponsored Products Campaign?

You first need to ensure that you have all the requirements to be eligible for the sponsored products. You can also name a campaign and define a target and a CPC bid. When the campaign starts, amazon will determine and automatically start displaying your ads for specific search items.
You can be sure that Amazon will support a campaign when you create it the right way. For a long time, Amazon has been supporting sellers and they continue to grow and change strategies every time. This is why you can be successful with amazon sponsored products. 
Talk to us about creating a campaign and Sunken Stone will help you so that you can have a more competitive edge among your peers. We will ensure that you have all the tools you need so that you can excel in your category and make more with amazon in any category you choose.

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