What is Amazon Advertising: How does it work?

Amazon Advertising allows businesses to promote their products on Amazon international marketplaces. Learn more about tips to optimize ads in this blog.
What is Amazon advertising
One of the effective ways for businesses to reach millions of customers who are actively browsing through products is via advertising. Not just in India, but across the world, Amazon sellers use Amazon Advertising to promote their product listings, so it appears on first few pages of search results on Amazon international marketplaces. This is a powerful tool for businesses to increase their online presence and drive more sales.

What is Amazon Advertising?

With Amazon Advertising, businesses can create ads in various formats, such as sponsored products, sponsored brands, sponsored brand video, brand store, and sponsored ads to drive sales among customers. With Amazon Advertising, businesses can create highly targeted campaigns that reach customers searching for products on Amazon’s marketplaces. One of the key benefits of Amazon Advertising is its ability to reach a highly engaged and motivated audience, and make customers purchase a product with the presentation of relevant products and promotions. Meet customers where they shop, read, listen, and watch with Amazon Ads, helping you reach more customers and grow your brand.

Amazon’s advertising model

Amazon’s advertising model is based on a pay-per-click or Amazon PPC, where businesses only pay when a customer clicks their ad. The ads through Amazon Advertising can appear on Amazon search results page, product detail pages, and other relevant locations on Amazon marketplaces (shopping sites and apps). One of the key advantages of Amazon’s advertising model is its ability to target specific audiences, enabling businesses to create highly relevant and personalized ads that are more likely to convert into sales.

Another benefit of Amazon’s advertising model is its reporting and analytics tools. Amazon provides you and your business with detailed performance data, including impressions, clicks, and conversions. This allows you to track the effectiveness of your campaigns and make data-driven decisions to optimize your advertising strategy.

With Amazon Advertising, you can also set your own budgets and bid on keywords relevant to your products or services. For instance, if you want to advertise your product listing on leather wallets, you can bid on keywords like ‘leather bags’, ‘Indian leather wallets’, etc. This gives you greater control over your advertising spend and allows you to maximize the ROI of your campaigns.

Benefits of Amazon Advertising

Here are some key benefits of Amazon Advertising for Indian exporters selling through Amazon Global Selling:

Target specific audiences:

Amazon Advertising provides more control over ASINs and your product listings, allowing businesses to target their ads to specific audiences such as demographics, interests, and purchase history. This creates highly relevant and personalized ads that are more likely to convert into sales.


Amazon Advertising uses a cost-per-click (CPC) model, which means that businesses only pay when a customer clicks on their ad. This makes it a cost-effective way for businesses to advertise their products.

Transparent and robust analytics:

Amazon Advertising provides businesses with detailed reporting and analytics tools, allowing them to track the performance of their campaigns and make data-driven decisions to optimize their advertising strategy.

Different types of Amazon ads

Below are the two primary types of Amazon ads:

Sponsored products:

These ads appear on the search results page and product detail pages and are designed to promote individual products. Sponsored products are targeted to relevant keywords, and you can pay when a shopper clicks on your ad.

Sponsored brands:

These Amazon sponsored ads appear on the search results page and are designed to promote a brand or group of products. Sponsored brands are customizable, allowing you to feature your logo, a custom headline, and a selection of products. Like sponsored products, you only pay when a shopper clicks on your ad.

Sponsored display

Sponsored display is a self-service display advertising solution that helps you grow your business and brand by engaging shoppers across the purchase journey, on and off Amazon. Reach relevant audiences throughout their shopping and entertainment journeys with self-service, programmatic display ads that can be created in just a few clicks.

Brand store

Amazon Stores allow you to showcase your brand and products in a multipage, immersive shopping experience.

How to optimize Amazon ads: Tips and tricks

Here are some tips and tricks for optimizing your Amazon ads:
• Use relevant keywords and phrases
• Optimize your product listings
• Test different ad formats and targeting options
• Monitor your ad performance and adjust your strategy accordingly
• Continuously update and refine your campaigns

Amazon advertising costs

Amazon advertising costs and placements vary depending on a variety of factors, including ad format, targeting options, and competition for keywords. Businesses using Amazon Advertising can set a daily budget through an Amazon PPC system for their campaigns and bid on relevant keywords with costs determined by the number of clicks their ads receive. Amazon offers a range of advertising solutions to fit different budgets and advertising goals.

How to create an ad?

Step 1

Log in to Seller Central. If you’re new to selling on Amazon, sign up now

Click the ‘Advertising’ tab then follow the prompt to get started. Choose your campaign type and follow the steps to create your campaign. If you want to set up a Store, click the ‘Stores’ tab and follow the steps to build your first page.

Step 2

Create your campaign

Creating a campaign can take as little as 5 minutes. To create a Sponsored Products campaign, pick the products you want to advertise, choose between automatic and manual targeting and decide how much you want to pay per click. For a Sponsored Brands ad, choose at least 3 products you want to advertise, add your logo and a custom headline, and decide which keywords to target and how much you want to spend. For Stores, use our pre-built templates, drag-and-drop tiles, and dynamic widgets to create your customized Store for free. For Sponsored Display, select your audience, set your bid and daily budget, choose your products to advertise, and create your campaign.

Step 3

Reach more shoppers with sponsored ads

Sponsored Products launch immediately, while Sponsored Brands, Sponsored Display, and Stores undergo a moderation review. Based on relevance and bid, ads are shown to customers in high-visibility placements within shopping results and on product detail pages. With Sponsored Display, you also have the option to show your ads off Amazon, reaching shoppers who viewed the detail pages of products sold by your brand, and encourage them to come back to those pages.

When shoppers click your Sponsored Products or Sponsored Display ads, they’re taken to your product detail page. Your Sponsored Brands ad will take shoppers to your Store or a custom landing page that displays your products.

Step 4

Control your costs

Most sponsored ads are cost-per-click solutions, meaning Amazon charges for the number of clicks you receive on your ads. You choose how much you want to spend for a click, and set a budget for the maximum amount you are willing to spend on your ads in a day.

Step 5

Measure success

You will be able to track your impressions, clicks, click-through-rate, new-to-brand customers, traffic to your Store, advertising spend, and more. These insights will help you monitor performance and optimize your campaigns.

Amazon Global Selling: Your passport to easy e-commerce exports from India

Amazon Global Selling enables Indian exporters to sell internationally, while simplifying the export process with support at every stage. Leveraging Amazon's global expertise, you can easily establish and manage your e-commerce export business from India and sell on Amazon global marketplaces, benefit from expert support for fulfillment, compliance, and training.

Frequently Asked Questions

Should I use digital advertising?
You can make this decision depending on your business goals and target audience.
How do I know if my ads are working?
You need to monitor performance metrics such as clicks and conversions to know if the ads are working.
Who can qualify for Amazon Advertising?
Businesses selling products on Amazon marketplaces across the world can qualify for Amazon Advertising.
Published on July 12, 2023.


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