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Sponsored Products Ads

Sponsored Products Ads

There is no denying that Amazon advertising has become a key player for all e-commerce businesses, selling both on and off Amazon. With Amazon advertising, you can take control of your campaigns to gain awareness of your brand and reach relevant shoppers. Amazon provides advertisers with a variety of options, including Sponsored Products, Sponsored Brands and Sponsored Display campaigns, from which you can pick and choose and personalize the perfect campaign strategy for your business. So, what exactly are Sponsored Products? This guide will tell you all you need to know to use these self-service ads like an expert. 

What are Sponsored Products Ads?

Sponsored Products are cost-per-click ads on Amazon used to promote individual products to Amazon shoppers. This form of sponsored advertisement allows retailers to gain visibility, increase sales and control costs while accurately measuring their advertising success. Ultimately, Sponsored Products help customers discover and choose to purchase products on Amazon with ads that appear in shopping results as well as on product detail pages.

Sponsored Products Ads
Example of Sponsored Products Ads (source: screenshot Advertising.Amazon.com)

Benefits of Sponsored Products Ads

Improved visibility

Ads appear exactly where customers will see them on Amazon. They are simply placed throughout the shopping results pages as well as on the product detail pages, where shoppers can clearly see them.

Increased Sales

Advertisers can reach customers who are browsing for similar products and immediately direct them to your product page

Controlled costs

The cost-per-click (CPC) pricing model means you only pay when shoppers click on your ads. This makes it easy to control exactly how much you spend by setting a budget and choosing what you are willing to bid per click (see bidding breakdown). Sometimes, Amazon will automatically pause the campaign if the product is out-of-stock, but to be sure, it is best to manually pause campaigns if a product is no longer available

Automatically Generated

Auto campaigns permit easy keyword harvesting, especially when advertising in a marketplace with a different language. For more information on keyword utilization best practices, get in touch with the advertising experts at factor-a.

Easily Measurable

Different sales and performance metrics are available with Sponsored Products that provide insights into the impact of advertising on your business and help you optimize future campaigns

According to Amazon, ASINs saw an average weekly +54% increase in glance views and +40% increase in the units ordered weekly average within the first year of using Sponsored Products. 

Targeting with Sponsored Products

You can select the product(s) you would like to advertise and choose keywords, ASINs or product attributes to target or allow Amazon to automatically target keywords that are related to your product(s).

Automatic Targeting
Automatic Targeting Options for Sponsored Products Ads (source: screenshot Advertising.Amazon.com)

Pro tip: Amazon will sometimes automatically pause your campaign if our product goes out-of-stock, but it is not guaranteed. In order to ensure you are not paying for ads for products that are not in-stock, be sure to manually pause the campaigns until the product becomes available again.

How to Create and Use a Sponsored Products Campaign

In order to be eligible to use Sponsored Products ads, you must be a professional seller, a vendor, book vendor, direct publishing author, or agency. You must also have an account in good standing with Amazon, product listings that are eligible in at least one category, a valid payment method and be able to ship to the country in which you wish to advertise. 

Certain products, including adult, used and refurbished products are not eligible for Sponsored Products ads, as well as products that do not comply with the retail policy. Books must also meet the creative requirements provided by Amazon (see here) in order to be considered eligible. The table below also outlines the categories that are only available for vendors and KDP authors to use Sponsored Products.

Categories
Categories Available Only for Vendors and KDP Authors (source: screenshot Advertising.Amazon.com)

Building a campaign, step-by-step:

1) Go to Campaigns and select Create Campaign and then Sponsored Products

Select Sponsored Products Ads
Select Sponsored Products Ad Type (source: screenshot Advertising.Amazon.com)

2) In Settings, create a:

  • Campaign Name- this is only visible to you, and we recommend choosing one based on the type of products you will be advertising to keep your campaigns organized
  • Portfolio– this is a group of campaigns, which allows you to file them in an organized matter, sorting those that are similar with one another
  • Start/End date– you can choose to start your campaign immediately or select a date in the future for it to begin. You can also select any date for your campaign to end or allow it to run continuously. It is also possible to pause your campaign at any point and choose to start it again later. As soon as a campaign ends, the status will change to “Ended,” or you can extend a campaign by moving the end date. If you choose to archive a campaign you no longer want to run, it cannot be restarted
Sponsored Products Campaign Settings (source: screenshot Advertising.Amazon.com)
  • Daily budget– average amount you are willing to spend in one day, spread out across the month  
  • Bidding– You can also adjust your bids for placements, meaning different bids for top placements vs. product detail pages and adjust your bid strategy, choosing from:
    • Fixed bids
    • Dynamic bids: down only
    • Dynamic bids: up and down
  • Keyword and product targeting: you can select either manual or automatic targeting 

Automatic and Manual Targeting Options

There are two options for targeting for Sponsored Products Ads: Automatic or Manual. These use keywords and products to show your ads to relevant shoppers as they browse search results and product detail pages on Amazon.

  • Automatic Targeting– Amazon matches keywords and products with the product you are advertising based on shopper searches related to your product information.
  • Manual Targeting– This allows advertisers to choose different match types for keywords and specific categories, products, brands or features related to your product. 
Keyword Targeting Types Sponsored Porducts Ads
Targeting Options (Source: Advertising.Amazon.com)
Automatic TargetingManual Targeting
ProsYou can use Campaign Manager to customize the type of matching you would like Amazon to use (i.e. close match, loose match, substitutes, complements, etc.) when automatically targeting shoppers for your sponsored products. This way, you can adjust how much money you would like to invest in one type vs. anotherYou can use Campaign Manager to customize the type of matching you would like Amazon to use (i.e. close match, loose match, substitutes, complements, etc.) when automatically targeting shoppers for your sponsored products. This way, you can adjust how much money you would like to invest in one type vs. another.
Much more specific to your advertised product

ConsCannot specifically target keywords and products more exactly suited to your productRequires advertising knowledge and expertise to do so correctly. Reach out to our experts at factor-a to learn more about how we can help you build a customized advertising strategy

3) Book vendors and KDP authors must: Select Ad format

  • Standard– launch a campaign quickly without custom copy
  • Custom– include your own copy to provide info about your book (attention: the language of the book must match that of the site you are advertising on)

4) Create an ad group by entering a title in the create an ad group section

Note: this is not available for campaigns with custom text

sponsored products ads advertisement group
Source: screenshot Advertising.Amazon.com

5) Select product(s) you want to advertise

Select Products to advertise
Source: Screenshot Advertising.Amazon.com

6) Enter the keywords and/or product targets and bids (including negative targets)

7) Submit your ad!

Note: before submitting, review all the information you have entered to ensure that you are happy with the results

  • You have the option to save an ad as a draft and submit it later
  • Generally the ad will go live within 1-2 hours after submission
  • Performance metrics usually become available in campaign manager after the ad has been live for 12 hours

Note: Campaign Limits

Keep in mind when creating campaigns, Amazon sets limits on the number of campaigns you can have in your account, as well as factors like ASINs per campaign, keywords and negative keywords per campaign, etc. Please observe the table below for the full overview of campaign limits.

Campaign Limits Table
Sponsored Products Campaign Limits (source: Advertising.Amazon.com)

Sponsored Products campaigns are among the most simple ads Amazon has to offer, but are proven to help increase sales exponentially both alone and when combined with other ad campaign methods. Our advertising experts at factor-a can help you assess your advertising goals and develop a customized strategy to take your Amazon business to the moon. Reach out to us today to explore your options and the possibilities that await you within the world of Amazon Advertising.

About the author

Kristen Bryk

Amazon Expert

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