An overview of the advertising ins and outs of the world’s most powerful online retail environment.
An overview of the advertising ins and outs of the world’s most powerful online retail environment.
In simple terms, an Amazon Advertising Agency produces advertising campaigns for brands that advertise and sell on and off the Amazon platform.
It’s easy to get lost in all the marketing jargon. But, simply put, Amazon advertising agencies manage and produce advertising campaigns – making the most of the many different advertising vehicles available. And most successful agencies are defined by three traits:
The agency should help brands build a cohesive and integrated Amazon strategy, from coordinated Amazon Storefronts to fully-optimized product display pages (PDPs).
The agency should use analytics to guide the creative process and help turn Amazon from a sales channel into a highly effective brand-building platform.
The agency should recognize the power of the brand. Everything they do should be designed to amplify their clients’ brands on Amazon and beyond.
Amazon offers a range of products through its Amazon Ads platform. They are most effective when combined in a unified strategy. And broadly speaking, each product is suited to customers at different stages in their customer journey. Those products include:
Sponsored Products help you to stay top of mind while customers are searching for similar products. These are easy to set up since they are set up from your existing product listings. And they offer automatic targeting, so you don’t need to be a media buying genius to get started.
These ads are sold on a cost-per-click (CPC) basis, which means you only pay when someone clicks on your ad. You just have to choose how much to bid per click, set a budget, and watch the customers come to you.
With sales and performance data at your fingertips, you (or your Amazon marketing agency) can easily evaluate the impact of sponsored ads on your bottom line.
According to Amazon, ASINs featured in a Sponsored Products campaign can benefit from a 40% increase in orders during the first year of a campaign.
Sponsored products are particularly useful if you are competing against many comparable products, and you find you are losing market share to imitators or 3rd Party Sellers (3P). Your Sponsored Product ads can act as a visual roadblock, ensuring you stay top of mind and top of the search results.
This is really the next level up from Sponsored Products and often works hand-in-hand with that ad unit. Amazon Sponsored Brands Ads show up at the top of the search results page and are an effective way to increase awareness of your brand’s presence on the platform.
Sponsored Brands let you put your brand logo at the top of the page, and immediately help increase your brand’s visibility. You can link to your Amazon Storefront or, by including products in the ad, drive customers directly to your product pages.
These are also CPC ad units. So you only pay when someone clicks on your ad. And since you can get your logo front and center, these ad units are loved by Amazon marketing agencies as they help you quickly insert your brand into the shopper’s thinking.
Well-established brands use Sponsored Brands to stay top of mind with people already familiar with their brand. They can rekindle an emotional connection or serve to strengthen brand loyalty.
If you have loyal Amazon customers, Sponsored Brand ads can help to generate repeat business by directing customers to your Amazon Store. Once there, the store will provide ample opportunities for you to showcase the breadth of your product line, giving shoppers access to a host of products to consider.
For brands with less brand recognition, Sponsored Brands can be the ideal tool to help you generate all-important awareness and drive engagement. With custom headlines, your logo, and imagery, you can quickly demonstrate your value proposition and give customers an excuse to dive deeper.
As with every facet of the Amazon Ads platform, Sponsored Brands lets you measure what matters most. Their “new-to-brand” metrics help you gauge the number of new customers (or first-time sales) you gained on the site in the preceding 12 months.Further Reading
This simple but powerful tool lets you create your own product display ads to reach your target audience – on and off the Amazon site.
You can quickly and effortlessly attract new customers or reach people already searching for your products or similar products or categories.
Digital marketing teams love Sponsored Display ads for their simplicity. No design skills are needed since the ad creative is automatically generated through your existing Amazon product information.
Again, these are CPC units, so you are in total control of how much you spend. You just decide on your target audience, set your budget, and pick the products you want to promote. It couldn’t be any easier.
Amazon DSP, (which stands for demand-side platform) is the Amazon programmatic advertising service.
Amazon programmatic advertising uses automated technology to buy media (in other words to buy advertising space on specific websites). Programmatic advertising harnesses data analytics and powerful algorithms. It is a far more effective way to target the right consumer at the right time and place.
In programmatic advertising, a demand-side platform allows digital marketing agencies and advertisers to buy advertising inventory across multiple platforms (or websites). Interestingly, Amazon DSP is used by both brands that sell on Amazon and those that do not. Programmatic advertising uses an exchange for the process of buying and selling ad inventory. Rather than advertisers and publishers making a host of individual deals, the exchange automates the transactions, saving time and increasing efficiency.
Amazon DSP is a much more robust advertising solution. It harnesses the power of machine learning and automation, so you can programmatically buy a variety of advertising vehicles – including display ads. On the other hand, Sponsored Display focuses on just that – display ads.Further Reading
As more and more of us switch from traditional to streaming media services, Video and Streaming TV ads give brand owners an important new tool to add to their arsenal.
Companies can buy video ads if they sell products on Amazon or not. Whether you are an Amazon marketing agency, a brand marketer, a vendor, or a seller, this product is available to you.
These ads show up either before or during Amazon streaming content. And according to Amazon, they have the potential to reach 50MM+ active users per month.Further Reading
Audio Ads are the digital equivalent of radio spots. Brands use this tool to extend their reach, moving beyond the screen, to meet customers who use the free, ad-supported Amazon Music platform.
Popping up during breaks in playback, these spots engage customers as they tune in to the free version of Amazon Music on an ever-growing range of Alexa-enabled devices, including Echo and Fire TV, as well as on mobile and desktop.
Similar to traditional radio spots, Audio ads tend to be between 10 and 30 seconds. And just as with their traditional cousins, Audio Ads are played between songs, keeping your brand message front of mind, even as listeners enjoy a bit of time away from the screen.
Audio ads work really well in tandem with other on-screen Amazon Ad products. According to Amazon, less than a third of Americans pay for a streaming subscription–many listeners don’t have a problem with ads, as long as they get to enjoy their audio content for free. That makes Amazon Audio a great option for reaching potential new audiences,Further Reading
Amazon’s Custom Advertising team works with brands and Amazon marketing agencies like Iron to develop bespoke campaigns that engage consumers in unique ways.
We’ve worked on numerous campaigns with the Custom Advertising team, helping our customers maximize the potential of this thoroughly integrated platform. Custom Advertising is an excellent solution for building brand awareness, increasing consideration, and kicking conversion up a gear.
In our experience, Amazon’s team knows the platform and its capabilities better than anyone. But they won’t know your brand as well as you. And they may not have the creative chops of a full-service digital marketing agency.
Custom Advertising Solutions requires in-depth Amazon platform intelligence and true creative agency expertise. We always see the best results when those two teams collaborate.
Typically Amazon marketing agencies rely on ACoS – which stands for your Amazon Advertising Cost of Sales. It is a vital metric for measuring how well your Amazon PPC campaigns are working.
Amazon ACoS measures the efficiency of your Amazon advertising campaigns. It is the ratio of the amount you spend on advertising to the amount of revenue (in %) that advertising generates.
You can calculate your Amazon ACoS by dividing your ad spend by the number of sales generated and multiplying the result by 100.
For example, if your latest PPC campaign generated $500K in advertising sales, and the campaign cost $100K, the Amazon ACoS = 100 / 500 * 100 = 20%.
RoAS, or Return on Ad Spend, is another reliable metric that also measures the efficiency of your PPC campaigns. It lets you know how much you earn for every dollar spent on advertising. You calculate your Amazon RoAS by dividing ad revenue by ad spend (rather than ad spend by ad revenue).
If that sounds familiar or confusing, that’s because it is. ACoS and RoAS are essentially two different ways to measure the same thing. Namely, how efficient and how profitable your ads are.
ACoS measures the amount you spend on advertising relative to each dollar in ad revenue you generate. Whereas, RoAS measures how much ad revenue you make relative to every dollar you spend on advertising.
According to proprietary research from Sellics, ACoS can vary from a low end of 8.2% in the video games industry to a high end of 36.8% for Cell Phones and Accessories. As you can see, ACoS varies greatly depending on your industry, the ad campaign you are running, your competition, product price, and a host of other factors.
With a client list that includes Levi’s, Adidas, Fitbit, and Ray-Ban, our Amazon advertising team is a proven leader at producing highly-effective Amazon marketing services. We built the first-ever Amazon brand store, and we’ve been ranked as one of the leading amazon marketing agencies ever since.
As a proven Amazon marketing agency, we specialize in the following Amazon Advertising services:
• Digital Strategy
• Amazon Marketing Strategy
• Amazon Advertising PPC Campaign Design
• Amazon Custom Advertising Solutions
• Integrated Amazon Store Management
• ROI Optimization
While Amazon is essential to any online marketing strategy, it still only accounts for 37% of online sales in North America. And globally, that figure shrinks to 9.2%. We’re proud to be Amazon Advertising experts. But, we’re even prouder to be an omnichannel marketing agency that specializes in producing world-class campaigns that span a brand’s entire ecosystem. If you are looking for Amazon experts who understand the bigger picture, you’ve come to the right place.
"IRON Creative consistently delivers innovation, strategic leadership, and peerless execution at an impressive scale."
Thousands of brands, both large and small, have woken up to the potential of Amazon to drive unparalleled growth in their businesses. Whether you’re new to the platform or looking to take your Amazon game to the next level, we’re confident we can help.
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