In our previous articles, we’ve explored how advertising serves as a valuable tool to increase product visibility and achieve marketing goals on Amazon. It’s crucial to familiarize ourselves with the vast world of Amazon advertising by analyzing the available products and how we can integrate them into a media advertising plan. In this article, we delve into the first of Amazon ads’ promotional products: Sponsored Products. Let’s explore the characteristics of this product and how it can be used to promote products on Amazon.
Before we begin, let’s briefly overview Amazon Advertising. Advertising products (Sponsored Products, Sponsored Brands, and Sponsored Display) offer targeting features and pricing models that allow us to work across multiple stages of the conversion funnel. The intersection of each product with various targeting, pricing models, and defensive/attacking strategies provides us with numerous combinations to utilize.
Sponsored Products: Key Features
Let’s start our analysis of SP and examine what they do and how they can be useful. SP are Amazon Advertising’s initial promotional product, with a straightforward purpose: to sell. These advertising products highlight products in the Top of Search. To clarify, when a user enters a keyword, SP compete to ensure that the promoted product, targeting the user’s keyword, appears at the top of search results.
Their high conversion rate makes Sponsored Products essential in media plans. A good media plan, depending on whether it’s for a lesser-known or more established brand, typically includes a Sponsored Products percentage exceeding 60% (though this varies case by case). In addition to direct sales, Sponsored Products also increase product awareness, helping products gain recognition.
Sponsored Products: Placement and Targeting
One of the most coveted placements for Sponsored Products, as mentioned, is the top of search. However, this isn’t the only available placement for Sponsored Products. Apart from the top, other placements can prove profitable: Rest of Search, Product Detail Page.
In fact, when analyzing Sponsored Products data and evaluating performance, it may be surprising to find that the top placement isn’t the only converting one. Other placements might be more profitable (in terms of ROAS, sales, orders), which we can leverage with placement bid (specific optimization techniques will be discussed in dedicated articles).
In addition to placement, SP can utilize another tool: targeting. Users perform millions of searches daily by simply entering a keyword. It’s crucial to use a set of relevant keywords for promoted products to intercept users.
Keywords aren’t the only tool for engaging users, however. Another equally effective tool is Product Targeting. The mechanism is straightforward: through this tool, we can target specific ASINs or target an entire category. This depends on whether we want to go broad or target more precisely.
Conclusion
With this first article on SP, we’ve quickly covered the key features of this product. Subsequent articles and insights will delve into further aspects: bidding strategy, auto/manual campaigns, AdGroups, etc.
Further exploration will be dedicated to various Sponsored Product strategies, such as Full Funnel planning, offensive/defensive strategies, and bid settings. Stay tuned for upcoming AdsWirt articles.
