Amazon Advertising for Beginners: How to Start Selling with PPC & DSP

Amazon Advertising has become an effective tool for new seller growth, helping sellers stand out from the competition in the marketplace. Since Amazon customers are already searching with high purchase intent, advertising helps beginners reach customers at the moment they are ready to buy. 

This is why advertisements are one of the quickest methods to create awareness, level conversions, and enhance natural positioning.

The service has been transformed compared to its initial platform, Amazon Marketing Services (AMS), which provides search, display, video, and programmatic campaigns. 

This development has enabled the tools to be more accessible and provide more control and precision in targeting.

Running PPC Campaigns (Pay-Per-Click) is a great opportunity for new advertisers. Promotions can appear in search results almost instantly with PPC. 

With the help of Demand-Side Platforms (DSPs), DSP Offers an additional opportunity to gain exposure for your brand. PPC and DSP produce a balanced approach that motivates performance and awareness.

Learning the Advertising Ecosystem at Amazon.

The Amazon advertising system is one of the most sophisticated advertising platforms available to online sellers. What was initially used as a mere internal marketing device has evolved into an elaborate set of advertising remedies. 

It benefits any business, irrespective of size. In line with their marketing objectives, sellers can choose from search ads, display ads, video placements, and programmatic campaigns.

Amazon connects advertisers with shoppers within its ecosystem throughout the shopper’s journey. 

Amazon, by having ownership of both the marketplace and the advertising platform, provides very specific, targeted opportunities. It is based on the shopper’s interests determined by search history, shopping activity, and purchase interests.

Which Amazon Ads are There? 

There are many ways in which Amazon enables its sellers to promote their products through different advertising options that suit the varying levels of expertise, objectives, and financial resources of sellers. 

New users must learn about the different forms of advertising available through Amazon so they can create a successful advertising campaign to attract traffic to their listings, increase awareness of their items, and turn potential customers into paying clients. 

Each advertising format serves to target potential customers in a different stage of their buying journey – the Discovery Stage, the Consideration Stage, and the Buying Decision Stage.

If you are trying to reach prospective buyers who are actively looking for products, then the Search-based Ads format would be your best bet. 

However, if your goal is to generate Brand Awareness with prospective customers who may not yet know who you are, then Video and Display Ad formats would work best for you to accomplish that goal.

Branding-based formats establish a stronger presence, while performance-based campaigns center on products in search results.

The advertising ecosystem at Amazon is designed so sellers can start with simple tools and progressively use more sophisticated tools as their business grows. 

It is this accuracy and flexibility that make Amazon ads very effective for sellers across all levels. Knowledge in all formats will enable beginners to create campaigns that deliver performance and drive brand development.

Sponsored Products

Amazon ads target discoverability, or increased visibility through the use of sponsored products. These ads are located in the search results as well as detailed product pages. 

Sponsored products typically have good conversion rates since they attract Amazon users who already have intentions to purchase.

Novices typically begin with automated campaigns because Amazon identifies relevant keywords, making it easy. Manual campaigns are rerun after data is received, and sellers can set bids and select keywords.

These advertisements are important in improving organic rankings. High traffic indicates relevance to the Amazon algorithm. 

Sponsored Brands

The format promotes more interaction and brand loyalty because multiple products are featured simultaneously. A click on the banner takes the shopper to a custom Amazon Store or list of products, depending on campaign settings.

Sponsored Brands supplements performance campaigns, which increase exposure and trust, thereby helping the company grow in the long run. They are also useful in enhancing click-through rates and total conversion potential.

Amazon Stores

Amazon Stores enable sellers to create multi-page, branded stores that let customers browse product collections in a clean, clean, visual layout. There is no coding skill needed, and it is friendly to beginners who desire to build a professional brand presence.

Through stores, sellers can display product categories, emphasize best sellers, and share brand stories. This will enhance credibility and customer interaction.

Sponsored Display Ads

Display Ads are sponsored and enable sellers to target shoppers on Amazon and other websites. Such a format facilitates retargeting. It is used to remind customers who have seen and touched a product but have not bought one. 

Retargeting helps regain lost sales and maximize conversion opportunities. Competitor products or other similar products can also be targeted by advertisers, allowing them to be strategically seen in niche marketplaces. 

Sponsored Display Campaigns are either automated or manually managed, depending on the advertiser’s wishes. Since such advertisements appear on product pages, detail pages, and even third-party websites. They help maintain the brand’s presence throughout the customer journey.

Sponsored Display is a suitable tool for mid-funnel marketing and can enhance ROAS when paired with PPC campaigns. It enhances product consideration and promotes a full-funnel advertising approach.

Amazon Video Ads

Amazon video ads depend on getting users attention with the help of engaging video content. The users can get the ad video in search results streaming platforms as well as on different product pages. 

These types of video ads are best for enhancing the advantages of the product. Video advertisements are more effective because moving content is more engaging than stationary content. 

They are also used to develop brand recall and credibility. Advertisers also use these ads by selling on Amazon directly or indirectly. So they can run the ads for retail and branding campaigns. 

Video ads are always engaging and make a compelling impression for driving high levels of interaction. They always play a very important role in boosting the awareness and consideration at the final stage.

Custom Ads

Custom Ads are high-quality, interactive ad designs used by brands seeking high-impact visibility. Such creatives enable animations, carousels, or immersive designs that will be impressive on the Amazon platform.

They offer something different than typical advertisements and are typically offered via Amazon-based advert-specific teams.

Custom Ads are the most effective way to enhance brand awareness and create an impression because they are suitable for bigger sellers or brands with creative marketing resources.

Amazon DSP (Demand-Side Platform)

The Amazon DSP is considered the best advertising platform with which the sellers can run programmatic displays. They can also run video ads on different websites and external sites. 

These ads are not like PPC ads which depend 

on search intent. In fact DSP ads always give value to audience targeting depending on purchase data and demographics.  

This increases exposure and improves brand awareness on a scale beyond what Amazon search results offer. By combining performance and branding, Amazon DSP can help sellers reach new audiences and in-market shoppers. 

It is particularly useful for companies that are growing or entering saturated markets. The post How to Start Selling with PPC and DSP (Step-by-Step Guide) provides a step-by-step guide to selling with these tools.

Keyword Research

The first step in Amazon advertising is conducting thorough keyword research. This will help you understand how customers search for products similar to yours. 

Identify high-intent, low-competition keywords that drive targeted traffic with the help of Amazon Search Terms Report, Helium 10, and Google Keyword Planner. Create a powerful list of keywords before proceeding.

Budget Setting

After you have prepared your keywords, set a real budget for your daily or monthly ads. Make it based on your margins, competition, and campaign objectives. 

A scheduled budget eliminates wasteful expenditure and enables your campaigns to extend far enough to bring quantifiable performance information.

Bidding Strategy

You have to select the particular bidding strategy in the second step. Different types of beds are available such as fixed bids, dynamic, etc. It is useful to test various strategies to determine the most efficient cost-per-click and retain a competitive position for the ad.

Launching Campaigns

After setting your research, budgets, and bids, roll out your campaigns with the following match types: broad, phrase, and exact. This allows the identification of new keywords and the acquisition of conversion-ready shoppers. 

Conduct Keyword Research

Use Tools

You can start the research using different tools such as Amazon brand analytics, Google keyword planner, and much more. These tools will show you the search volume, competition, as well as the intent of the purchase. 

Target Long-Tail Keywords

Invest in long-tail customers who are specific and buyer-ready. The competition and conversion rates for these terms tend to be lower because they appeal to shoppers who are already aware of what they want.

Set Your Budget

You can start with a daily budget aligned with your product margins and expected traffic. New sellers should use a moderate amount to gather sufficient data without spending heavily. Then assess business competition. 

Niche types that are highly competitive are the ones that need a higher level of spending and better bids in order to be noticed, and the ones that are not as competitive enable you to spend less and still achieve clicks. 

Understand Bidding Types

Knowing the types of bidding helps with cost management and campaign efficiency. Amazon PPC operates on the principles that CPC works, i.e. you are only charged when a person clicks on your advertisement. 

Automatic bidding, on the other hand, is awesome at the entry level. Amazon modifies bids depending on the chances of conversion, and as a result, you learn fast.

Build Your First Campaign

Your initial Amazon PPC campaign should be based on automatic campaigns. These will enable Amazon to identify relevant keywords and placements depending on what you are listing. 

The automatic campaigns are best for collecting information and understanding how customers search. Lastly, pay attention to the organization of ad groups. Organize keywords by theme, product type, or keyword intent. 

It maintains performance, keeps them clean, and makes them easy to optimize. An effective campaign allows you to monitor results precisely and target lucrative regions.

Optimize & Scale

A good ACoS can help determine which areas to allocate more budget and which keywords to target for profitable returns. Second, raise bids on keywords that perform well and have been proven to drive conversions. 

Increasing bids increases visibility and reaches more shoppers. Meanwhile, pause losers: high-spend keywords that did not make any sales. Eradicating these eliminates budget wastage and makes campaigns effective. 

Lastly, block irrelevant traffic and unnecessary clicks with negative keywords. Negatives  enhance your targeting and boost conversion rates. 

With frequent optimization, your campaigns keep on growing with improved performance, enhanced visibility, and regulated expenditure.

Take Patience and Test Persistently

Amazon PPC takes time and trial to be successful. Keep this thing in mind that optimisation takes time. 

Sometimes it takes days or weeks before you make any decision. It is possible to find out what actually works rather than assuming through testing. 

Performance trends, not day-to-day changes, should determine the weekly changes. When made small and consistent, they help reduce unnecessary spending, increase conversion, and gradually grow the winning keywords. 

Amazon Marketing Pros to New Sellers

Increased Visibility

Promotion on Amazon gives your product instant virality, so new items are highlighted in front of customers and do not need to be ranked organically. This exposure plays a vital role in the competitive niches.

Faster Sales Velocity

Advertisements play a very important role in increasing sales and also organic ranking. When there are high sales velocity signals to Amazon then ultimately it leads to more impressions and higher placement. 

Valuable Audience Data

Through advertising, there is in-depth information on shopper behavior. You get to know the keywords that customers are searching, what attracts their clicks, and which profiles get the best response to your listings.

Better Conversions

Targeted advertising places high-intent customers on your product page, boosting your conversion rate. This increases your performance with listing and organic visibility.

Branding DSP Sponsored Brands

The difference between Sponsored Brands and DSP is that the first one presents your brand story and product line. 

The second one is used to create long-term brand awareness with the help of sophisticated targeting. These are used to ensure that new sellers build credibility and recognition at an early stage.