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Amazon’s sales exceeded $100 billion in 2020. With the Amazon Advertising Platform (AAP), sellers can reach more leads and boost Amazon advertising revenue. In this article, we will tell what AAP is, and how your business can benefit from it.
If you want to stand the biggest chance of selling products on Amazon, then you need to become acquainted with the Amazon advertising system. Here, we are going to take a look at the various advertising opportunities offered by the company, as well as give you a few brief ideas that should make it easier for you to determine AAP Amazon how to use and which advertising option is right for you.
3 Amazon advertising platforms
There is no single Amazon advertising platform. There are three of them. This means that if you are starting to learn more about Amazon’s marketing services, it can be a little bit confusing. After all, you have no knowledge about which option is going to be the right one for you. Thankfully, once you start comparing the various solutions from Amazon, you will quickly realize which one is going to benefit your business the most.
Do bear in mind that in recent years, Amazon has started to shake up the way in which they do advertising, including even merch by Amazon advertising. It is likely that they realized that having just one Amazon advertising platform would be the best solution for them in the long term. So, expect to see a lot of changes on the advertising front later on. While they are all likely to remain separate products, it is likely that they will be controlled through the same dashboard at one point. Not only will this make it simpler for advertisers, but it is probably going to be a whole lot better for Amazon’s bottom line!
Let’s take a look at the various Amazon Advertising Platform options. Hopefully, this information will give you a better idea as to which solution is best for your business goals.
What are programmatic ads?
Before we talk about the Amazon advertising options, we do want to point out that all solutions offered by Amazon are programmatic ads. What does this mean? Well, it means that your ads are going to be targeted towards the people that are most likely to become customers of yours. Programmatic ads are important because it allows you to find the segment of the market your product is targeted to. It means you are not spending money showing ads to people who have no care for your product. Basically, programmatic ads will help you to get the most bang from your marketing budgets.
Of course, Amazon isn’t going to go into depth on how they create their ads and target them. However, it is likely to be based around past shopping history on Amazon, search results, as well as bits and pieces of information on their profile. If you are using AAP, then Amazon will likely bring that information into the mix, as well as get a little bit of an idea as to the types of party sites a person visits. Rest assured, however Amazon does it, they will always ensure that your ads are delivered to the right people. It is in their best interest to do that, after all. They want to make money from your product sales too.
AMG Marketing– Amazon Media Group
What’s an AMG? Let’s define AMG. It stands for “Amazon Media Group” which, in theory, keeps a close eye on everything related to advertising through Amazon. Amazon Marketing Group helps to purchase Amazon ad space on various sites online, create new ad products and algorithms to ensure that ads are served up in the best possible way. Basically, Amazon AMG wants to ensure that the people that advertise with them are getting the biggest bang for their buck.
If you are a small business, you are probably not going to need to worry about AMG advertising all that much. While their algorithms and ad development will have an impact on you at some point, it isn’t anything that you can control all that much.
If you are a business with a larger monthly advertising budget, then you will be able to work with AMG media marketing directly. If you work with them, they will be able to help take full control of your Amazon campaign. This means that you do not need to learn how to advertise on Amazon, simply because the real experts are going to be doing all of the work for you. However, do bear in mind that working directly with Amazon is going to be incredibly expensive, so it isn’t a good idea if you are new to the world of Amazon advertising. It really is reserved for some of the biggest companies in the world. If you can afford it, it is a great way to run your campaign.
AAP – Amazon Advertising Platform
Let’s define AAP? It stands for the Amazon Advertising Platform. This covers all ads delivered out of Amazon on sites owned by Amazon. Think of it as being similar to when ads are displayed on your favorite websites. AAP produces ads similar to that, and AMG works incredibly hard to ensure that your ads are seen in as many places as possible.
When you use AAP, you will be able to choose the exact audience that you want to target with your Amazon’s DS ads. Amazon has collected a lot of data here. Perhaps the best part about AAP is that you are able to do retargeting. This is something that very few platforms allow. This means that if a customer was looking at a product of yours, or similar to yours, and left Amazon, they would then start to see ads in various places online reminding them that the product exists and they should come back and buy it.
It is worth noting that AAP doesn’t so much focus on individual products. It can, but most of the people using AAP are going to be using it to build up their brand. They know that people who are viewing ads delivered by AAP are unlikely to be purchasing products any time soon but the ads are essentially saying “Hey, I still exist. Don’t forget about me!” Basically, you are trying to encourage people to get into your marketing funnel so they can buy from you.
AAP is fantastic for building up brand awareness, but it doesn’t deliver as many sales as advertising console. At least not directly. As a result, Amazon charges per view (CPM) of your ad. It is unlikely shoppers click on it, so you will be paying per 1,000 views of your ad. You will need a fairly hefty marketing budget if you want to use AAP.
Advertising Console is a PPC option (pay per click, which means you only pay when somebody clicks your ad). If you have browsed through Amazon for any length of time, you will start to notice various sponsored products ad appear. These ads are created through the Amazon advertising console. The ads will be targeted via keywords. You have a variety of different options available to you here for your advertising, although it is pretty much all going to boil down to sponsored product listings and product detail pages.
For most small businesses, advertising console Amazon is the way to go. It is an affordable way to get your products viewed by people who are already on the Amazon landing page and in a “buying mood.” While targeting doesn’t go beyond keywords, this is all that you really need when you are advertising on the site. After all, it is just a really quick way to get your products viewed without going to the massive lengths of product page optimization (which you should be doing too).
Since you will buy ads on a PPC basis here, you will only ever pay when somebody clicks your ad. Since you know somebody is in the mood to buy something similar to your products already, assuming you have a good product page (i.e. description), it should be pretty easy to recoup your advertising fees. Advertising Console Amazon is probably the best PPC network out there for selling Amazon products.
Which advertising platform is better?
Honestly, there is no one platform that is better than the other. You can exclude AMG if you do not have a massive marketing budget as you will not be able to work with them directly. However, the other two have their own merits.
If you are new to selling on Amazon and are simply looking into how to advertise on Amazon and want to generate a few sales as quickly as possible, then advertising console is the way to go. It is ridiculously easy to convert sales here since the potential customer will already be at the point of the sales funnel where they are looking to buy. You just need to push them over the edge. As a result, Advertising Console is always going to be the best solution for those new to online business.
As you start to build up your brand, you can start looking into AAP. It is a bit more complicated than running a PPC campaign, but it will allow you to pull potential customers into the sales funnel a little bit earlier. Most of the ads delivered via AAP are more to tell people that Amazon and its products exist. You may get a couple of clicks, but do not expect people to be in a buying mood quite yet. You are just priming them for the eventual purchase. This option does provide you with a lot more targeting opportunities than Advertising Console, but if you aren’t quite sure what to do with ads like this, then it is not going to be the right solution for you. In fact, you will probably spend more than you earn.
Benefits of AAP for your business on Amazon
There are plenty of advantages of using the Amazon Advertising Platform for your business. Let’s have a look at the most important ones below!
- Keep in touch with your customers
AAP helps seller central to connect with shoppers and make relevant leads. With this program, you can customize your Amazon digital advertising message to shoppers depending on their level of engagement. For instance, you can build different communications with people who are just getting aware of your products and people who are already familiar with your company and are eager to purchase.
Analytics define four main stages in the process of purchase:
Awareness: Shoppers are learning of an issue or a need for a certain product. They are noticing ad and product.
Consideration: People are looking at different options for goods.
Evaluation: Customers are deciding which goods best meet their needs or solve their issues.
Purchase: Leads are converting, and people are buying the product.
This is a so-called buying circle. People go through all these steps before making a purchase. With this in mind, AAP makes it possible to target shoppers at different stages in different ways and deliver the correct message across various platforms, devices, and sites.
- Communicate your key message through a number of platforms
When you are trying to get the necessary leads, it’s crucial to reach them as many ways as possible. Amazon Advertising Platform helps sellers to expand their reach and receive leads across different websites.
- Keep track of your campaign
Sure thing, it’s important to monitor the results of the advertising campaign to identify if it is effective. AAP allows users to check the impact of their advertisements. In the respective reports, you can see if your ads are efficient and target the right shoppers. Besides, you will see how Amazon users interact with your Amazon advertisements, check the engagements and impressions.
As you can see, there is an Amazon advertising option for everybody. If you are a new business, then we actively encourage you to get started with Advertising Console and work your way up from there. Whatever option you choose, you must advertise. It is the only way to gain quick sales in a painless manner.