With hundreds of millions of worldwide active customer accounts, Amazon has a deep understanding of how shoppers engage with products and brands as they discover, browse, and purchase online.

However, with more users comes more competition. While SEO and listing optimization is key for organic search result growth, you need to be a bit more aggressive in order to get maximum exposure.

That’s where Amazon Ads come in. Admittingly, there is a lot behind Amazon advertising strategy. Advertising with Amazon Ads can help you reach customers at every stage of their journey.

When utilized correctly, they’re one of the best ways to gain traction for your business.

Which type of ad you’ll need will depend on your product and what you’re trying to achieve. Amazon offers multiple advertising avenues, but you can break them up into two main categories.

Amazon Pay-Per-Click (PPC) Advertising allows advertisers to get incredibly granular control over their own advertising on the Amazon platform (and sometimes beyond). 

Amazon Demand-Side Platform (DSP) allows larger sellers to get unprecedented reach using programmatic targeting to reach a wide audience beyond just the Amazon marketplace itself.

1. Amazon PPC

Amazon Pay-Per-Click (PPC) solutions are offered to advertisers, agencies, and self-service portals on Amazon. Under Amazon PPC ad types, we have:

  • Sponsored Products
  • Sponsored Brands
  • Sponsored Display

Amazon Sponsored

You can choose the products you want to advertise, and add relevant keywords or product attributes to target with a CPC (Cost-Per-Click) amount. Your ad is eligible to display when shoppers search for one or more of the keywords or products that you’re targeting.

Sponsored Products ads are the most flexible Amazon ad type.

Because you’re promoting one product, you don’t have to craft a copy and create graphics for a large advertising campaign. The ad is the graphic you’ve already created for your listing.

These ads appear right where shoppers will notice them the most – on the first page of their search results. The word “sponsored” is also printed small, which means the customer may not even notice that it is a sponsored ad they’re clicking on.

The proof is in the results for this type of ad. Amazon claims that advertisers within the first year of launching a campaign saw an average weekly +54% lift in glance views and an average weekly +40% lift in units ordered.

An increase in sales will improve your organic ranking of the products. Higher search visibility of your products will further increase your conversions, clicks, and impressions. This creates a flywheel effect in which your PPC sales strengthen your organic product ranking, which in turn, boosts your product sales.

Amazon Sponsored Brands (Formerly Headline Search Ads)

Sponsored Brand ads will help you showcase your brand personality. Previously known as Headline ads, they appear as a banner ad on the top, left, and below the search results page.

Since these ads are usually the first thing a customer sees on their search results page, they are a great way to build brand awareness, connect shoppers to your products directly, and create a branded shopping experience.

One of the unique advantages of using Amazon brand ads is that you have a great degree of control over the appearance of an ad. You can also control your ad spend by setting your budget and choosing how much to bid per click. You only pay a fee when customers click on your ad.

Since the ad is focused more generally on your brand, it also includes a link that will bring the customer to either a custom landing page or your Amazon Store.

Here, the customer will be able to browse your products – and only your products. You pick what is featured on this page and it is free from competitors’ advertisements and products.

Amazon Sponsored Display Ads

Sponsored Display is a self-service platform used to target relevant customers on and off Amazon. Sponsored display ads increase your campaign efficiency, and they are extremely useful for both sellers and vendors.

These ads give you more exposure than any other type of Amazon ad, too. Your ad can be featured on the Amazon home page, on shopping results pages, on Twitch, as well as on third-party websites and apps.

Sponsored Display Ads are cost-controlled with retail-aware cost-per-click ads, meaning they only run when your products are in stock. And just like the other types of ads, you easily control your ad spend by setting your budget and bid per click.

2. Amazon DSP

Amazon DSP (demand-side platform) is used to buy video, audio, and display ads across the internet. Instead of purchasing an ad placement, you can use Amazon’s data intelligence to reach your audience outside of Amazon using Amazon DSP.

You can purchase a variety of display, video, and audio (beta) ads and provide powerful experiences, and services to your shoppers. 

Amazon Sponsored

Amazon OTT (over-the-top) and out-stream ads allow you to target customers with a video on Amazon’s websites, mobile apps, the Fire tablet wake screen, and. They offer alluring branding experiences to customers allowing brands to tell their stories in a more captivating way.
Video ads are positioned for success as they become more reliable for advertisers to feature multi-language ads and content on Amazon. They also have high conversion rates if they succeed to capture the right audience.
The best part? Brands can track their performance and gather insights into their converting customers.

Custom Ads

Finally, Amazon customized ads consist of a comprehensive Amazon advertising service. Custom ads can include any and all the ad formats available on Amazon.

Brands can use this holistic approach as part of their full-funnel strategy that can be incorporated into their Amazon business.

Amazon Audio Ads (Beta)

Amazon audio ads help brands to target niche audiences during screen-free moments. This is Amazon’s first move toward paid product placements within the Alexa voice-activated ecosystem.

Brands can’t choose the songs accompanying their ads. There aren’t any targeting options available as of now.

Amazon Posts

Currently, in beta, Amazon posts allow you to tell your brand story to relevant shoppers who browse different categories on Amazon. Customers will find Amazon posts in the brand’s feed and click on your product pages. These posts appear on iOS, Android, and mobile web.

Any brand can create Amazon posts for free. This is an opportunity to create inspiring content and share your brand story with your audience. As of now, the Amazon posts option is available only on Amazon.com.

Amazon Live

You can create Amazon Livestream using the Amazon Live Creator app or collaborate with Amazon for a live stream produced by them. Amazon live enables shoppers to discover your brand and demonstrate your product features.

This feature will definitely help you boost your reach during special shopping events such as Prime Day, Black Friday, Cyber Monday, or other seasonal events.