Everything You Need To Know About Amazon Sponsored Products

After managing more than $20 million in ad spend on Amazon, we have come to realize something…

Amazon sponsored products are the highest converting ads available.

Not only that, but they are easier to set up compared to the other available options.

Needless to say, we always advise our clients to have Amazon PPC campaigns for their products. This allows them to drive sales with a healthy ACoS, and improve their organic results as well.

Table of contents

What Are Sponsored Products?

  • The Advantages Of Sponsored Products

Creating Your Own Amazon Sponsored Product

  • Automatic Vs Manual Campaigns, Which to use?

What Are Sponsored Products?

Amazon sponsored products are advertisement space that Amazon sells to store owners who want visibility and sales of specific product listings.

Shoppers often mistake these ads for organic results, because there is only a tiny little “Sponsored*” emblem near them. (this is a great thing!)

Amazon gives you the option of selecting from 3 campaign types: Automatic, Manual, and Product Targeting.

These usually drive the most sales and are by far the most common type of advertisement on Amazon.

They can appear at the top, right, and bottom of search results.

Also, they appear on competitors’ product detail pages.

The Advantages Of Sponsored Products

Sponsored product ads are the most popular form of Amazon ads because they appear on almost every search result page.

Not to mention, they have a high average conversion rate of around 10%. This is because they appear in all of the locations that the shoppers are most likely to purchase.

Other advertisement options, like sponsored brand ads or sponsored display ads, are decent ad opportunities. They aren’t quite as good because the shopper is a lot further along in the buyer journey when they see the sponsored product ad in the search results. In other words, there is more work necessary to convince the shoppers to buy your product when using a brand ad or display ad.

On the other side of things, the campaign manager for sponsored products has more options and possibilities, allowing for a higher level of targeting.

Creating Your Own Amazon Sponsored Product

Hopefully by now you are motivated to start your own Amazon Sponsored product! If so, here are all the steps to do so:

Step 1: Go ahead and log into your Amazon seller central account.

Step 2: From there, you’ll want to head over to ‘advertising’, and then the ‘campaign manager’.

Step 3: Click ‘create campaign’

Step 4: fill out all of the necessary info like campaign name, duration, budget, and a few other fields.

Step 5: Select automatic or manual campaign, and click ‘launch’!

That’s it! You’re all done and can sit back and watch your products sell themselves…..

Well ok, you need to have a strategic approach with your campaign, but we covered this more in-depth in our Amazon PPC guide.

Automatic Vs Manual Campaigns, Which to use?

In a nutshell, Amazon gives you two different campaign types to choose from, automatic campaigns, and manual campaigns. Both of these are great and you should use each of them throughout your campaigns.

Automatic campaigns are when Amazon recommends keywords for you to target by pulling the keywords (and related keywords) from your product listing.

Manual campaigns are when you tell Amazon what keywords you will be targeting. This allows you to be very specific and targeted with your PPC campaigns.

We find that the best way is to start with an automatic campaign to figure out which of the relevant keywords will convert the best. Then you take your top converting keyword and put it into a manual campaign.

Psst: check out our full guide on how to run your own Amazon PPC campaigns.

And That Is It!

We hope that you now know everything you need to set up and run your own Amazon sponsored product. It is still the best way to build a profitable store on Amazon.

We know this is a lot of information and can be confusing, so feel free to reach out to our team if you have any questions at Support@adverio.io

Best of luck with your campaigns!

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