Why It’s Important to Understand How Advertising, on Amazon, Works?

Amazon is a global powerhouse with millions of customers every single day. As one of the most trafficked websites online, it is the ideal place to advertise your own online or even brick and mortar business. As a business, gaining exposure online is essential for promoting the latest deals, driving new customers to your business, and building a brand.

While some larger businesses can use a marketing consultant to help build their brand through advertising, many businesses need to take care of advertising themselves. This is where Amazon Marketing Services or AMS comes in. It is a simple yet highly effective way of advertising your business to a wide-ranging audience.

What Is Amazon Marketing Services?

Put simply, AMS is one of the most powerful advertising tools online beside Facebook and Google. The reach is phenomenal and the usability and value of the service are exceptional. AMS allows business owners to purchase ads at the top of search results on Amazon. For example, if your business sells car fresheners and some searches for the term “car fresheners” on Amazon, your advertisement will appear at the top of the search results, gaining preference and visibility.

How Does It Work

In a similar vein to Facebook and Google, AMS works by buying advertising space and choosing who to target. The price for advertisements depends completely on your niche and target audience. So if you are trying to buy advertising space for a specific kind of dog toy, your cost will be far lower than if you were attempting to buy advertising space for an iPhone charger.

Anyone can set up an AMS account and begin buying advertising space on Amazon. Depending on how you want to advertise you can choose to buy several advertisement spaces (a campaign) or just a single advertisement space to see how your product sells when advertised to a specific audience. There is no perfect way to advertise and many businesses create their own models, targeting Amazon customers who are searching for related items or simply trying to sell the “in-trend” item through advertising.

What to Remember

It is key to remember that AMS is not a traditional form of advertising and therefore traditional rules of advertising should not be applied. For instance, it is a much better idea to target a product in your advertisements rather than your shop. Clients who are searching for a specific keyword on Amazon may not know your brand and understand what you are trying to sell. However, if you are advertising a single product they are much more likely to click on your link and make a purchase.

Understanding Amazon advertising can create huge changes to your profit margins and accelerate the growth of your business. Online advertising on websites and platforms such as Amazon, Facebook, and Google are essential to compete in today’s business world and by zoning in on your specific niche, you can reach an enormous audience for your product or service. If you take the time to understand how AMS works, your business will certainly reap the rewards.

Niels Bosch
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