Amazon Sponsored Products is a pay-per-click advertising program that allows sellers to promote individual product listings in search results and drive more targeted traffic. This comprehensive guide covers everything brands need to know about Amazon Sponsored Products, including best practices for set up, management, and optimization.
Table of Contents
What are Amazon Sponsored Products?
Amazon Sponsored Products are paid advertisements displayed in search results and product listings aiming to promote specific products:
- Appear above or below organic search results
- Clearly marked as “Sponsored”
- Send traffic directly to the advertised product listing
- Charged on a cost-per-click (CPC) basis
- Manageable in self-serve Amazon Advertising console
Sponsored Products help sellers drive more targeted visibility and sales of their listings beyond organic rank alone.
Why Use Sponsored Products Campaigns?
Amazon Sponsored Products provide these primary benefits for brands:
Increased Product Visibility
- Puts products in front of high-intent customers actively searching Amazon
- Helps new products and brands get discovered faster
Improved Sales
- Estimated ~20% sales lift on average when using Sponsored Products
- redirects high-converting traffic straight to listings
Valuable Keyword Data
- Identify high-performing search terms related to products
- Provides insight into product marketing optimization
Prime Member Targeting
- Reach the most loyal 100+ million Amazon shoppers
- Higher conversions from Prime member traffic
Sponsored Products should be a core pillar of marketing for any seller looking to maximize Amazon success.
Amazon Sponsored Products Features
Key features of Amazon Sponsored Products campaigns:
Product Targeting
- Promote individual product ASIN pages
- Option to include related variations
Keyword Bidding
- Bid on text ads triggered by keyword searches
- Automatic and manual bid options
Placement Targeting
- Appear at top or bottom of search results
- Product detail page sidebar ads
Audience Targeting
- Target Prime members
- Reach customers by location and interests
Performance Monitoring
- Track clicks, spend, conversions, ACoS in real time
Campaign Management
- Set daily budgets, bids, scheduling
- Organize ad groups
Robust options for tailoring Sponsored Product campaigns to reach interested shoppers.
How Do Sponsored Products Campaigns Work?
Amazon Sponsored Products use keyword-triggered product ads syndicated into search results:
- Seller selects product listing to promote
- Inputs associated target keywords and bids
- Ad displays when shopper’s search contains keyword
- Landing page is product detail page for that ASIN
- Seller charged per-click on ad
- Amazon optimizes placements based on performance
Amazon handles ad serving, optimization and billing. Sellers manage campaigns, keywords and bids in self-serve Advertising portal.
How Much Do Sponsored Products Cost?
The cost of Sponsored Products comes entirely from optional advertising spend. Primary fees:
Cost Per Click (CPC)
- Bid what you’re willing to pay for someone to click on an ad for a keyword.
- Average $0.05 to $1.00 CPC across industries. Can go higher for premium terms.
- Set specific CPC bid or use Amazon’s automated bidding.
Total Daily Budget
- Indicates your max daily ad spend for a campaign.
- Typically start low like $5-10/day while testing.
- Amazon won’t exceed daily budget on billing.
Monitor ad performance continuously and only increase budgets yielding profitable ROI.
Amazon Sponsored Products vs Sponsored Brands
Sponsored Brands complements Sponsored Products targeting:
| Sponsored Products | Sponsored Brands |
|---|---|
| Focuses on individual product listings | Raises brand awareness |
| Maximizes conversions | Improves visibility across catalog |
| Bottom of funnel | Top of funnel |
| Search term triggers | Broader audience targeting |
Use Sponsored Brands for overall brand-building. Deploy Products to promote specific ASINs.
Setting Up an Amazon Sponsored Products Campaign
Follow these steps to create your first Sponsored Products campaign:
Enable Advertising
Turn on advertising in Amazon Seller Central settings if not already enabled.
Access Amazon Advertising
Find the “Advertising” section within Seller Central.
Create Campaign
Use the “Campaign Manager” to create a new Sponsored Products campaign.
Name Campaign
Give campaign a name related to the product type or line. Like “Running Shoes”.
Set Campaign Dates
Choose a start and end date. Ongoing campaigns must reset every year.
Select Products
Add ASINs to promote under the “Products” section.
Create Ad Groups
Group keywords and products into ad groups around themes. Like “sport shoes”.
Add Keywords
Input keywords around products like brand, category, styles. Leverage Amazon’s suggested keywords.
Set Bids
Initially use Amazon’s auto bids while you gather data. Then switch to manual bids.
Assign Budget
Allocate a daily budget starting small – $10-20 per day for new campaigns.
Amazon guides you through basic campaign creation in the portal. Now it’s time to optimize…
How to Optimize an Amazon Sponsored Products Campaign
Optimizing Sponsored Products campaigns improves results over time. Best practices:
Review Search Terms
See which keywords trigger ads. Add relevant terms with high click-through-rates.
Refine Match Types
Balance broad, phrase and exact match based on performance.
Analyze Conversions
Evaluate clicks to sales rates. Tweak targeting for keywords showing high conversion rates.
Monitor ACoS
Aim for <20% ACoS for profitable campaigns. Pause low performers.
Check Reports Frequently
Review campaign metrics at least weekly. Make incremental improvements.
Use Negative Keywords
Add negative keywords to reduce irrelevant clicks. Like misspellings of brands.
Adjust Bids
Increase bids on high converters. Reduce bids on low performers.
Reallocate Budget
Shift budget to higher ROI campaigns and ad groups over time.
Channel limited resources into keywords, products and placements generating sales. Pause underperformers.
Amazon Sponsored Products Terminology
Common acronyms and metrics seen when managing Sponsored Products campaigns:
ACoS – Advertising Cost of Sale – Your ad spend divided by sales
CPC – Cost Per Click – What you pay each time your ad is clicked
CPM – Cost per 1000 Impressions
CTR – Click-through-Rate – Clicks divided by impressions
KPI – Key Performance Indicator like ACoS or CTR
SKAG – Single Keyword Ad Group – One keyword per ad group
Knowing the lingo helps interpret performance data and optimize effectively.
Preparing Listings for Sponsored Products Success
Before launching ads, optimize listings for conversions:
- Utilize enhanced content – Add A+ content modules to boost engagement
- Include high-res images – Showcase product visually
- Write robust descriptions – Share all relevant details, specs, benefits
- Maximize conversions – Ensure fast loading pages, clear CTA buttons
- Highlight promotions – Share coupons, discounts or limited-time promotions
- Link related products – Cross-link complementary or accessory items
- Format readably – Use bullets, breaks and emphasis for scannability
Higher quality listings improve ad relevancy scores and increase sales from traffic.
Amazon Sponsored Products vs Google Ads
Both platforms have pros and cons for advertisers:
| Amazon Sponsored Products | Google Ads |
|---|---|
| Very targeted product-level placements | Broad match keyword targeting |
| Limited impression share due to rivalry | Greater impression share potential |
| Higher conversions from motivated buyers | Lower intent visitors require more nurturing |
| Automated optimization | Manual process requires expertise |
| Restricted ad copy | Expanded text and display ad formats |
View the platforms as complementary. New brands should start with Amazon before expanding to Google Ads.
Mistakes to Avoid with Sponsored Products Campaigns
Common missteps advertisers make with Amazon Sponsored Products:
- Focusing on rank not sales
- Assuming higher rank always worthwhile
- Overpaying for non-converting terms
- Using broad match excessively
- Not enough granularity in ad groups
- Failing to monitor search terms
- Not optimizing listings before advertising
- Limiting budget too much
- Giving up too quickly without iterations
Patience and rigor pays off. Optimize conservatively over time based on insights from data.
Why Aren’t My Sponsored Product Ads Showing?
If your ads don’t serve, common causes include:
- Daily budget too low
- Bid lower than minimum for term
- Low quality score for bad listings
- Brand name restricted
- Other advertisers outbidding
- Campaign start date not initiated
- Product out of stock and suppressed
Check campaign settings and product listings if ads are approved but not displaying after 24 hours.
Treating Amazon Sponsored Products like an Investment
Approach Sponsored Products with an ROI mindset:
- Monitor ACoS and rank spending efficiently
- Reinvest a share of profits into larger budgets
- Keep iterating and optimizing to lower costs over time
- Don’t overcommit budget upfront before testing
- Be patient – results compound long term, not overnight
- Track performance diligently – monitor metrics like any investment
- Use savvy bid and budget management tactics
With the right expectations, Sponsored Products generate positive returns scaling over time.
Getting Started with Amazon Sponsored Products Checklist
- Enable advertising access in Seller Central settings
- Review Sponsored Products campaign types and options
- Optimize listings for maximum conversions
- Group inventory into ad campaigns and themed ad groups
- Research keywords your product should rank for
- Start auto bids while gathering data
- Create campaign with conservative initial budget
- Import Sponsored Product reports into analytics
- Schedule time every week to optimize bids, keywords, targeting
- Scale budgets slowly as profitability proven
Following these steps helps maximize success launching your first Sponsored Products campaigns.
Key Takeaways for Amazon Sponsored Products
- Compelling way to promote listings directly in search results
- Manage easily through Amazon Advertising self-serve platform
- Monitor performance – optimize for profitability based on data
- Enhance listings for conversion before advertising
- Balance auto and manual bidding strategies
- Use care when scaling budgets – go slow and steady
Sponsored Products should be a pillar of digital advertising for any seller looking to maximize Amazon channel sales.
Conclusion
Amazon Sponsored Products provide a powerful platform for sellers to amplify product visibility and drive conversions through targeted paid search placements. Careful campaign configuration, bidding tactics and constant performance analysis allows brands to scale advertising profitably. This comprehensive guide outlines best practices for maximizing success with Amazon Sponsored Products. Follow these steps to increase sales through compelling product promotions attracting high-intent Amazon searchers.
