These ads blend in really well with the regular stuff you see when you’re searching on Amazon, so much so that a lot of folks don’t even realize they’re looking at ads.

Actually, they’re the most liked type of ad on Amazon, as we found out in our 2023 Amazon Advertising Report.

For products that are just hitting the market, getting those first few sales can be tough, and it’s those sales that help you climb up in the search rankings. But with Sponsored Products ads, you can target specific keywords and get your product right at the top of the search results from the get-go.

Setting these ads up is a breeze, even if you’ve never dabbled in advertising before. Let’s dive in and explore what Sponsored Products ads really are, how they do their magic, and how you can kick off your very first campaign.

Well, think of it as Amazon’s version of a pay-per-click (PPC) ad. You get to bid on specific keywords to get your product noticed right at the top of Amazon’s search results, starting from the very day you launch. And PPC means just that – you only pay a bit every time someone clicks on your ad. These ads are pretty eye-catching because they look a lot like the regular product listings.

The cool thing is, you don’t need any special brand registration to use Sponsored Products ads, unlike some of the fancier ad types like Sponsored Brands or Sponsored Display ads.

That’s probably why they’re super popular – about 75% of Amazon’s third-party sellers use them. Even though sellers are starting to try out other kinds of Amazon ads, Sponsored Products ads are still the big player, making up 79% of what sellers spend on Amazon ads overall.

They’re pretty easy to spot because they pop up at the top of the search results, on the right, at the bottom, and even on the product detail pages.

If you’re not really looking for it, Sponsored Product Ads can look a lot like the regular listings. They show up above and to the right of the regular stuff, but they’re quietly labeled as “Sponsored.” You might even find them on the pages of competing products.

Sponsored Product Ads are everywhere on Amazon, making them a goldmine for sellers. It’s like customers can’t escape them; they’re even on the product detail pages! These ads are a big deal because they catch the eye of tons of potential buyers, seriously boosting sales.

When you use Amazon Sponsored Product Ads, you’re putting your products right in front of folks who are ready to buy. They’re deep into shopping mode and know what they want, which means they’re more likely to snag what you’re selling. Keep in mind, this is all about Amazon’s pay-per-click (PPC) system. That means you’ll be bidding against other sellers to get your ads in front of those eager shoppers. The cool part? You get to choose how much you’re willing to pay for each click, giving you plenty of control over your advertising budget.

Just like everything else on Amazon, there’s a lot of competition for it. The Buy Box is that key spot on a product detail page that kicks off the checkout process.

Most shoppers click to buy from there. If you’re the top dog according to Amazon at the moment, your product lands in the Buy Box. And if you’re in the Buy Box, you’re likely selling more than anyone else for that product. If there are a few top contenders, Amazon will rotate who gets the Buy Box spotlight.

Getting the Buy Box usually means you’ve got a solid selling track record.

It’s pretty straightforward and it’s all about the pay-per-click (PPC) game.
You’re basically in a bidding war with other sellers to grab the attention of shoppers. You get to pick how much you’re willing to shell out for each click on your ad, giving you the reins over your daily ad budget.

Here’s the rundown:

you start by picking a bunch of keywords or products that you want your ad to show up for in Amazon’s search results. You’re aiming for shoppers to think, “Hey, this is exactly what I was looking for!” and click on your ad to check out your product.

Next, you tell Amazon your max bid per click—this is you throwing your hat in the ring. An algorithm then juggles all these bids and figures out where to place your ads on the search results pages.

Sponsored Products ads are sneaky:

they blend in with the regular search results. You might spot them at the top of the search page, mingling with other products further down, or even on your competitor’s product pages.

If you’re willing to bid more, you could snag a prime spot right at the top of the search results, where everyone’s bound to see it. Bid too low, though, and your ad might not make it to the stage.

And here’s the deal:

the moment someone clicks on your ad, you pay up, based on your bid. It doesn’t matter if they end up buying your product or not, the click is what counts.

Heads up for the 2023 scoop:

On August 16, Amazon dropped the news that Sponsored Products ads are making their way to some cool spots like Pinterest, BuzzFeed, Hearst Newspapers, Raptive, Ziff Davis, Lifehacker, and Mashable. So if your ad pops up there, it’ll link right back to your product on Amazon.

And guess what? You don’t have to lift a finger for your ads to show up on these sites. Amazon’s got it all set to autopilot. They’re like, “Just chill, we’ll put your ads where they need to be, based on what the customer’s into, the vibe of the page they’re on, and the budget you’ve already picked for your clicks.”

Want to see how it’s all playing out?

Just check out the Sponsored Products placement report to get the lowdown on how your ads are doing.

Looking for a hand with your Amazon PPC campaigns?

Click here and let our PPC expert take the reins and handle your campaigns for you!

Alright, diving into the world of Sponsored Products, you’ve got two ways to play the game: automatic targeting and manual targeting.

Think of automatic targeting as letting Amazon be your co-pilot.
You give Amazon the wheel, and they pick out keywords or products to target based on what you’ve got in your product listing.
But hey, you’ll want to make sure your listing is on point with solid keywords to start

Going manual means you’re in the driver’s seat.
You decide on the keywords or products to target. Grab suggestions from Amazon or brainstorm your own. Plus, you can tweak your bids for each keyword.
Use keyword targeting when you’re clued in on the exact search terms your customers use.

Product targeting? Yep, you can do that too.

Go after specific competitor ASINs, categories, brands, or features.
And if you want to mix and match keywords and products, no sweat.
Just whip up two separate manual campaigns.
Manual campaigns come with their own flavors of matches: broad, phrase, or exact.
Pick the one that suits your strategy, and you’re good to go!

Broad, Phrase, Exact

  Broad Match:

Think of broad match as casting a wide net.
Your keywords can shuffle around, and folks can toss in extra words too.
Say you’re selling running shoes.
With broad match, your ad could pop up for any search that dances around ” running shoes,” like “running shoes for kids” or ” shoes for running” And it’s not just about the words; it’ll catch things like plurals or short forms too.
But remember, broad match is kinda like fishing in the ocean – you might catch a lot, but it’ll cost you more because it’s, well, broad. It’s less picky, so you’re reaching more people.

  Phrase Match:

Phrase match is like having a favorite fishing spot. Your ad shows up when someone searches your exact phrase, with maybe some extra words hanging at the front or back.
Sticking with our “running shoes”, if someone searches “running shoes for women” or running shoes for men,” your ad is there. It’s all about keeping your phrase together, like a little word family.

  Exact Match:

Exact match is like fishing with a spear – you’ve got your eye on one fish and that’s it. If your keyword is “running shoes,” then that’s the only thing that’ll trigger your ad. Nothing more, nothing less. Just “running shoes,” plain and simple. It’s the most precise way to target, so you’re really zooming in on what you want.

Alright, let’s chat about your bidding strategy, whether you’re rolling with automatic or manual campaigns. It’s all about how you wanna pay when someone clicks your ads.

So, what’s a bid? It’s basically the max you’re cool with paying each time someone clicks on your ad.

The catch? The actual cost per click depends on the bidding war with your competitors.

Your bid is just the ceiling – you might end up paying less. Let’s say you’re aiming for the keyword “running shoes for women” and you set your bid at 70 cents.

If you’re not the top bidder, that’s what you’ll pay. But if your 70 cents is the king of the hill, you’ll only cough up a bit less, like maybe 65 cents, whatever the next best bid is.

Dynamic Bid-Down Only:

Amazon’s got your back here. They’ll drop your bid if they think your ad’s not likely to lead to a sale, saving you some cash per click.

Dynamic Bid-Up and Down:

Amazon plays both sides here. They’ll hike your bid up to double if they think your ad’s got sale vibes, but they’ll also drop it if it looks like a no-go. Heads up, this one might be a stretch if you’re watching your budget closely.

Let’s make setting up a Sponsored Products ad as chill as possible, whether you’re going for an automatic or manual campaign.

The suggested bids might be on the lower side, so if you want your ad to show up more, think about bumping your bid up by about 25%, just make sure it fits your budget.

Then, there’s a spot for negative keywords.
These are the words you don’t want triggering your ad.
Maybe they’re not bringing in sales or they’re just off-target.
For example, if a keyword’s racking up clicks but no buys, pop it into the negative list.

That way, your ad won’t show for those terms, saving you from paying for clicks that aren’t working out