Watch our latest Amazon Experts Webinar. Learn More

Sponsored Products is a powerful tool that allows Amazon sellers to drive discoverability and incremental sales, but it can be difficult to understand and implement. Sponsored Products could prove inefficient in some areas such as bid levels, campaign differentiation, keyword matching and optimization, and structure. Adopting it, however, is still the better option because you cannot just remain stagnant in an evolving marketplace like Amazon, which greatly supports Amazon sponsored ads.

Structure a Sponsored Products Automatic Campaign

(Pixabay / Templune)

Sponsored Products features automatic campaign structure. Consider the following tips and procedures when setting up your automatic campaigns:

  • Give all your products a chance to perform. Many sellers commit the mistake of choosing some products that they want to perform well instead of allowing data to guide them through the process.
  • Sponsored Products ads will only surface when you are in the Buy Box. This simply means that you have a very slim chance of driving traffic to your detail page if your competitors own the Buy Box.
  • Look to data harvesting. Automatic campaigns aim to obtain customer search term data which will be relevant to your future campaign build-outs.
  • Use the data Amazon provides when planning your future campaign instead of relying solely on your personal decisions.
  • Actions are driven by the goals of your company. You should not be satisfied with just having your brand out there in the marketplace, you should be aiming for a return on your investments.
  • Determine ad group differentiation once you have decided on your goals. You can effectively use advertising cost of sale as your guide here. You can then select the products that are performing well and therefore deserve higher bidding over those products that do not perform well.
  • Selling on Amazon requires decision making based on the advertising cost of sale. You can cut the product’s average selling price in half before you make a decision to lower the bid.

Amazon Sponsored Products is becoming very popular because it is evolving into a platform that moves in the direction of an advertising business similar to Google’s AdWords program.